Market Update • January 8, 2024

Property Pre-Qualification & Pre-Approval Guide

by Gerald Lawrence

Securing pre-approval is a pivotal step for homebuyers in Canada, as it provides a more comprehensive and concrete commitment from lenders compared to pre-qualification. To initiate this process, prospective buyers should gather essential financial documents, including proof of income, employment verification, and details about existing debts. These documents help lenders assess the buyer’s financial stability and capacity to repay a mortgage, forming the basis for a pre-approval decision.

Choosing a reputable mortgage professional or financial institution is paramount when seeking pre-approval. The selected expert will carefully review the buyer’s financial documentation, conducting a thorough analysis of their creditworthiness. This evaluation goes beyond the initial pre-qualification, providing a more accurate estimate of the loan amount the buyer can secure. With pre-approval, buyers gain a clearer understanding of their budget, streamlining the home search process and allowing them to focus on properties within their financial means. Please contact me so I can refer you to the trusted and highly recommended mortgage professionals that my clients and brokerage have used.

Upon successful pre-approval, buyers receive a formal commitment from the lender, often in the form of a letter. This document specifies the approved loan amount, interest rate, and other pertinent details. Armed with this pre-approval letter, buyers demonstrate to sellers that they are not only serious about purchasing a home but also financially capable. In a competitive real estate market, having pre-approval significantly enhances a buyer’s negotiating power and increases the likelihood of their offer being accepted.

Buyers should be aware that pre-approval typically has a validity period, usually ranging from 60, 90 or 120 days. During this time, it is crucial for buyers to actively search for a home and finalize their purchase. If the homebuying process extends beyond the pre-approval‘s expiration date, they may need to undergo the process again, taking into account any changes in their financial circumstances.

In conclusion, obtaining pre-approval is a strategic move for homebuyers in Canada. By diligently preparing financial documentation, collaborating with a trusted mortgage professional, and actively pursuing properties within their approved budget, buyers can position themselves as serious and capable contenders in the competitive real estate landscape. The pre-approval process not only streamlines the home buying journey but also instills confidence in both buyers and sellers throughout the transaction.

REALTOR® Cooperation Policy Comes into Force January 2024

by Gerald Lawrence

On January 3, 2024, the REALTOR® Cooperation Policy will be enforced, bringing into operation the new “Duty of Cooperation” as outlined in Article 30 of the REALTOR® Code.

What is mandated by this policy?

In cases where public marketing of a residential listing takes place, REALTORS® must ensure the inclusion of the listing on an MLS® System within the timeframe specified by their respective board or association, unless an exemption is applicable. The policy allows for a maximum timeframe of up to three-(3) days.

Are there any exemptions?

The policy does not restrict brokers from exclusively representing a buyer or seller.
Moreover, it stipulates that REALTORS® must apprise their seller clients of the advantages of marketing their listing on an MLS® System. Should the seller opt to forgo the benefits of public marketing, this decision must be confirmed in writing.

What is defined as public marketing?

Public marketing refers to reaching out to the general public and/or any REALTOR® not directly affiliated with the listing brokerage/office in a business capacity.
It is not categorized as public marketing when a listing REALTOR® directly markets to REALTORS® from another brokerage or office. “One-to-one” marketing does not trigger the policy, while “one-to-many” does.

How does this policy positively impact you and your clients?

Benefits for sellers: Inclusion on an MLS® System enhances exposure to potential buyers.
Benefits for buyers: A greater number of sellers on MLS® Systems translates to increased options for buyers.
Benefits for REALTORS®: Collaboration between REALTORS® remains fundamental to the success of every real estate transaction.

The real estate market inside scoop for the community you love. See homes that are for sale and have recently sold. Find out if home sales in your neighbourhood are trending up or down. See what homes around you are currently selling for.

January 7, 2024

Ontario Modernizing Rules Governing Province’s Real Estate Services Sector

by Gerald Lawrence

News Release From The Ministry of Public and Business Service – Ontario

New protections designed to strengthen consumer confidence when dealing with brokerages, brokers, and salespersons

November 28, 2023

Public and Business Service Delivery

TORONTO — The Ontario government is updating the rules governing the province’s real estate brokerages, brokers, and salespersons to strengthen consumer protection, educate home buyers and sellers, and enhance professionalism. The new rules, effective December 1, 2023, will give Ontarians more choice in the real estate trade process by allowing a brokerage to disclose the details of competing offers. They also include an updated Code of Ethics to strengthen professional obligations related to integrity, conflict of interest and the prevention of fraud.

“Buying, leasing and selling real estate is one of the biggest and most important decisions a person or business will ever make so it’s critical that rules for real estate brokerages, brokers, and salespersons reflect modern business practices that foster a strong and vibrant real estate market,” said Todd McCarthy, Minister of Public and Business Service Delivery. “We want to ensure Ontarians feel empowered and informed when participating in real estate transactions, and for professionals in the sector to be seen as trusted and ethical. These latest rule changes coming into effect December 1 will help us do just that.”

Phase 2 of legislative and regulatory changes introduced under the Trust in Real Estate Services Act (TRESA), 2020, will modernize the province’s real estate market by:

Allowing real estate brokerages to disclose the details of competing offers if the seller directs them to do so, excluding personal or identifying information.
Better protecting and educating Ontarians through enhanced disclosure requirements for real estate brokerages, brokers and salespersons (known as registrants) and the development of an information guide to help individuals make informed decisions when they trade in real estate.
Requiring registrants to comply with an updated Code of Ethics that strengthens professionalism by focusing on their obligations related to integrity, quality of service and conflicts of interest.
Providing the Real Estate Council of Ontario (RECO) with new powers and tools to better hold registrants accountable for non-compliance with the rules.
Allowing brokerages to enter designated representation agreements so clients could be represented by a specific broker or salesperson at a brokerage who would actively promote their interests in a trade.

“Phase 2 of TRESA represents the most significant change in consumer protection measures for Ontario’s real estate sector since the 1990s,” said Michael Beard, Chief Executive Officer, Real Estate Council of Ontario (RECO). “Ontarians who buy or sell a home now have greater clarity on their rights, as well as the duties owed to them by real estate agents and brokerages. The changes also include new powers that will further strengthen RECO’s compliance and enforcement efforts. Ultimately, this represents important progress for consumers, while also enhancing professionalism for real estate salespeople and brokers.”

“Ontario’s REALTORS® are thrilled to see the Phase Two legislative and regulation changes come into effect. This marks a historic moment for real estate professionals in Ontario and is the result of a decade of hard work, advocacy and collaboration with the province,” said Tim Hudak, Chief Executive Officer, Ontario Real Estate Association (OREA). “Thanks to TRESA, Ontario will raise the bar on consumer protections and become a North American leader in professional standards, ethics, and modern business tools. OREA commends the Ontario government for their work on TRESA and looks forward to collaborating on the third phase of implementation.”

Quick Facts

RECO administers and enforces the Real Estate and Business Brokers Act, 2002 (REBBA), the legislation governing Ontario’s brokerages, brokers and salespersons.
On December 1, 2023, REBBA will be renamed the Trust in Real Estate Services Act, 2002.
The Trust in Real Estate Services Act (TRESA), 2020, which amends REBBA, was passed by the legislature on February 28, 2020, and received Royal Assent on March 4, 2020.
The first phase of changes related to TRESA, 2020, came into effect in October 2020. Those changes allowed salespersons and brokers to incorporate and be paid through a personal real estate corporation. They also allowed registrants to use more recognizable terms like “real estate agent” and “REALTOR®” in their advertisements to better reflect the services they provide.
Additional regulations are required to fully implement the amendments made by TRESA, 2020.

Additional Resources

Media Contacts

Doug Allingham
Minister’s Office
doug.allingham@ontario.ca

Media Desk
Ministry of Public and Business Service Delivery Communications Branch
MPBSD.MediaRelations@ontario.ca

January 4, 2024

The 2023 GTA Housing Market: High Borrowing Costs and Growing Affordability Challenges

by Gerald Lawrence

TRREB: The 2023 GTA Housing Market: High Borrowing Costs and Growing Affordability Challenges

TORONTO, ONTARIO, January 4, 2024 – While the overall demand for housing remained buoyed by record immigration in 2023, more of this demand was pointed at the rental market. The number of Greater Toronto Area (GTA) home sales in 2023 came in at less than 70,000 due to affordability issues brought about by high mortgage rates.

“High borrowing costs coupled with unrealistic federal mortgage qualification standards resulted in an unaffordable home ownership market for many households in 2023. With that said, relief seems to be on the horizon. Borrowing costs are expected to trend lower in 2024. Lower mortgage rates coupled with a relatively resilient economy should see a rebound in home sales this year,” said new Toronto Regional Real Estate Board (TRREB) President Jennifer Pearce.

There were 65,982 home sales reported through TRREB’s MLS® System in 2023 – a 12.1 per cent dip compared to 2022. Despite an uptick during the spring and summer, the number of new listings also declined in 2023. The trend for listings has been largely flat-to-down over the past decade, which is problematic in the face of a steadily growing population. On a seasonally adjusted monthly basis, sales increased compared to November, while new listings declined for the third straight month.

The average selling price for all home types in 2023 was $1,126,604, representing a 5.4 per cent decline compared to 2022. On a seasonally adjusted monthly basis, the average selling price edged higher, while the MLS® Home Price Index Composite edged lower.

“Buyers who were active in the market benefitted from more choice throughout 2023. This allowed many of these buyers to negotiate lower selling prices, alleviating some of the impact of higher borrowing costs. Assuming borrowing costs trend lower this year, look for tighter market conditions to prompt renewed price growth in the months ahead,” said TRREB Chief Market Analyst Jason Mercer.

“Record immigration into the GTA in the coming years will require a corresponding increase in the number of homes available to rent or purchase. People need to have comfort in knowing that they can plan their lives and future with the certainty that they will have the stability of an affordable place to live,” said TRREB CEO John DiMichele.

TRREB is releasing its 2024 Market Outlook and Year in Review report and digital digest on Thursday, February 8. Discover the listings, sales and price forecast for 2024 and a more in-depth look at the 2023 housing market. The outlook will also include the latest Ipsos polling on home buying and selling intentions, homeowners’ viewpoints on government policy and taxation, and insights on immigration.

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December 31, 2023

Happy New Year | 2024!

by Gerald Lawrence

May this year bring you joy, success, and new opportunities. As we embark on another chapter, may it be filled with love, laughter, and memorable moments. Here’s to a prosperous and fulfilling year ahead!

General Info • December 22, 2023

The Pros and Cons of Listing Your Home for Sale in Winter: A Guide for Ontario Residents

by Gerald Lawrence

In the dynamic real estate market of Ontario, Canada, deciding when to list your home for sale is a crucial decision. While many homeowners prefer the warmer months for the selling process, listing your property in winter comes with its own set of advantages and disadvantages. In this blog, we’ll explore both sides to help you make an informed decision.

Advantages of Winter Listings:

Less Competition Because Of Fewer Listings:
One significant advantage of listing your home in winter is the reduced competition. With fewer sellers on the market, your property may stand out more, attracting serious buyers looking to make a purchase despite the season.
Motivated Buyers Who Are More Serious:
Winter buyers are often more motivated. Whether due to job relocations, changes in family dynamics, or other factors, those looking for homes in winter are generally serious about making a purchase. This could lead to a quicker and smoother selling process.
Cozy Atmosphere and Warm Ambience:
Winter provides an opportunity to showcase the cozy and inviting aspects of your home. A well-heated, well-lit home can create a warm atmosphere that resonates with potential buyers during chilly weather.

Disadvantages of Winter Listings:

Weather Challenges:
Ontario winters can be harsh, with snow, ice, and cold temperatures. This can make it challenging for potential buyers to visit your property, leading to fewer showings. Additionally, weather-related issues may affect the overall market activity.

However, this may not be as much a disadvantage since I use 3D Interactive Virtual Tours. In the competitive real estate market, a 3D Interactive Virtual Tour emerges as a powerful tool for sellers in Ontario, Canada, seeking to showcase their homes with unparalleled detail. This cutting-edge technology allows potential buyers to virtually navigate through every room, providing a realistic and immersive experience from the comfort of their own homes. Sellers benefit by thoroughly presenting their properties, highlighting unique features and intricate details that might be overlooked in traditional photographs. This interactive approach not only captures the attention of prospective buyers but also saves time by attracting individuals genuinely interested in the property’s layout and design. By offering a virtual walkthrough, sellers can effectively convey the true essence of their homes, fostering a stronger connection with potential buyers and increasing the likelihood of a successful sale.
Curb Appeal:
Winter landscapes may not showcase your property’s exterior as well as during the warmer months. Snow and ice can cover landscaping elements, making it harder for buyers to visualize the full potential of the outdoor space. As a seasoned Realtor®, I address this challenge by proactively scheduling professional photography and/or videos during the summer months whenever feasible. Moreover, I curate summer photos from homeowners’ family members and employ digital editing techniques to eliminate any individuals or pets from the visuals. Additionally, I leverage aerial photography resources available to Realtors, enhancing the overall visual presentation of the property. This meticulous approach ensures that the marketing materials accurately reflect the property’s features and appeal, providing potential buyers with a compelling and unobstructed view of the home.
Holiday Distractions:
The winter season is often filled with holidays and festivities, which can distract potential buyers. Schedules may be busier, and some individuals might postpone their home-buying decisions until after the holidays. While the statement holds validity, we believe that stunning holiday decorations can elevate the overall aesthetic of a space, offering potential buyers insights into how they might personally decorate the home. Despite the bustling nature of the holiday season for many individuals, it serves as a unique time for some families to explore properties collectively. This period may be one of the few instances in the year when families can thoroughly consider and decide on a property together, benefiting from the fact that they may have more time off from work than usual, facilitating joint decision-making with everyone’s input.

Conclusion:

Deciding when to list your home for sale in Ontario involves weighing the pros and cons of each season. While winter may present challenges, it also offers unique advantages, such as less competition and motivated buyers. Consider your specific circumstances, the condition of your home, and your target market to determine the best time to embark on the selling journey. Consulting with a professional REALTOR® like myself, I can provide valuable insights tailored to your situation. If you plan to list your home in the Spring instead, please check out my blog on what to do in the winter to prepare for listing your home in the Spring.

December 13, 2023

Home Sweet Home Under 400K: Find Your Ideal Property Today!

by Gerald Lawrence

December 13, 2023

New Listing in Oshawa

by Gerald Lawrence

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September 6, 2023

NO RATE CHANGE! But Still a Chance For Increase Next Time!

by Gerald Lawrence

Bank of Canada maintains policy rate, continues quantitative tightening

FOR IMMEDIATE RELEASE

Media Relations

Ottawa, Ontario

September 6, 2023

The Bank of Canada today held its target for the overnight rate at 5%, with the Bank Rate at 5¼% and the deposit rate at 5%. The Bank is also continuing its policy of quantitative tightening.

Inflation in advanced economies has continued to come down, but with measures of core inflation still elevated, major central banks remain focused on restoring price stability. Global growth slowed in the second quarter of 2023, largely reflecting a significant deceleration in China. With ongoing weakness in the property sector undermining confidence, growth prospects in China have diminished. In the United States, growth was stronger than expected, led by robust consumer spending. In Europe, strength in the service sector supported growth, offsetting an ongoing contraction in manufacturing. Global bond yields have risen, reflecting higher real interest rates, and international oil prices are higher than was assumed in the July Monetary Policy Report (MPR).

The Canadian economy has entered a period of weaker growth, which is needed to relieve price pressures. Economic growth slowed sharply in the second quarter of 2023, with output contracting by 0.2% at an annualized rate. This reflected a marked weakening in consumption growth and a decline in housing activity, as well as the impact of wildfires in many regions of the country. Household credit growth slowed as the impact of higher rates restrained spending among a wider range of borrowers. Final domestic demand grew by 1% in the second quarter, supported by government spending and a boost to business investment. The tightness in the labour market has continued to ease gradually. However, wage growth has remained around 4% to 5%.

Recent CPI data indicate that inflationary pressures remain broad-based. After easing to 2.8% in June, CPI inflation moved up to 3.3% in July, averaging close to 3% in line with the Bank’s projection. With the recent increase in gasoline prices, CPI inflation is expected to be higher in the near term before easing again. Year-over-year and three-month measures of core inflation are now both running at about 3.5%, indicating there has been little recent downward momentum in underlying inflation. The longer high inflation persists, the greater the risk that elevated inflation becomes entrenched, making it more difficult to restore price stability.

With recent evidence that excess demand in the economy is easing, and given the lagged effects of monetary policy, Governing Council decided to hold the policy interest rate at 5% and continue to normalize the Bank’s balance sheet. However, Governing Council remains concerned about the persistence of underlying inflationary pressures, and is prepared to increase the policy interest rate further if needed. Governing Council will continue to assess the dynamics of core inflation and the outlook for CPI inflation. In particular, we will be evaluating whether the evolution of excess demand, inflation expectations, wage growth and corporate pricing behavior are consistent with achieving the 2% inflation target. The Bank remains resolute in its commitment to restoring price stability for Canadians.

Information note

The next scheduled date for announcing the overnight rate target is October 25, 2023. The Bank will publish its next full outlook for the economy and inflation, including risks to the projection, in the Monetary Policy Report at the same time.

Content Type(s): Press, Press releases

August 23, 2023

August 2023 VIP GiveAway

by Gerald Lawrence

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August 2023 VIP Club Giveaway

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