“Duty of Cooperation”, it might not be trending on mainstream media yet, but it is a hot topic amongst Canadian Realtors®.  Last week at the Canadian Real Estate Association’s annual general meeting in Ottawa, delegates from boards and associations across the country voted 83% in favour of adding a new Duty of Cooperation to the Realtor® Code, which is accompanied by a Realtor® Cooperation Policy.

The policy will require listing agents to list properties on MLS® within three (3) days of marketing them publicly, making it an ethical obligation. 

The new policy explains public marketing as the representation or marketing of a listing to the public or anyone not directly affiliated with the listing brokerage (office) in a business capacity. 

Additionally, the new changes also effect exclusive listings, meaning if a seller does not want their property on MLS®, the listing agent would only be able to market the property exclusively, or more simply stated, on a one-to-one basis and not publicly.  That means no for sale sign, no social media posts, no print advertising, and the list goes on. What it does allow is marketing within your brokerage, or to another Realtor® or person on a one-to-one basis.

The revised policy also includes enhanced disclosure and consent requirements between Realtors® and their seller clients. Realtors® will have to disclose to the seller the benefits of listing the seller’s property on an MLS® System, including greater exposure of the property to more potential buyers, which may result in more offers and increase the likelihood of receiving the best offer in terms of price or other terms and conditions of sale.

This all stems as consumers have been becoming increasingly frustrated by the rising misuse of marketing tactics that were keeping listings off MLS® Systems, limiting the exposure of available properties to Realtors® and their buyer and seller clients. It was recognized by the Canadian Real Estate Association (CREA) that there was an imminent issue.

“The increase in the availability of social media highlighted an unfair advantage that some clients were receiving, which prompted us to ensure fair competition in the industry. It is essential that all buyers have equal opportunities to access all listings available for sale and that exclusive listings are used solely for their intended purpose. While there may be rare circumstances where you may not want to make your listing public, such as confidential listings, it’s crucial to maintain transparency and fairness in the industry. Boards and associations brought this issue to our attention since they’re responsible for addressing complaints and enforcing ethical standards among realtors. Through extensive consultation and engagement with our members, we worked to develop a policy that upholds high ethical standards and provides fair competition for all parties involved”.  Jill Oudil, Immediate Past Chair of CREA.

The new policy, which will come into effect on January 3, 2024, is focused on the purchase and sale of residential properties, which form the bulk of real estate transactions on MLS® Systems. This timeline will provide real estate boards and associations time to review their current rules and ensure they are compliant with the policy.  It will also allow Realtors® time to become familiar with the change and new documentation that is required.

Hopefully, both Realtors® and consumers will become aware and understand the scale and depth that this new change will have.  If you have any questions and want to talk about this or anything real estate related, please send me a message or email, I am always happy to help.

Demand remains strong as home prices increase month-over-month.

This past month of April turned up the heat in the real estate market, while our actual weather had us scratching our heads and ducking from cover from all the rain.

On a national level, home sales rose 1.4% month-over-month according the Canadian Real Estate Association (CREA).  And on a more granular level in the region of Waterloo as a whole added 869 new listings to MLS Systems, of which Cambridge represented 229 of those properties.  In total, 670 homes were sold in the Waterloo Region and 175 of those were in Cambridge.

From a month-over-month perspective the statistics are trending upward in a positive direction, but looking year-over-year we are still not were our numbers were last year in 2022, nor are the numbers reflective of the five year average. We should be seeing on average the number of new listings for single family freehold detached homes be around 213 but we are down 21% this past April, and the five year sales average is 138, but in Cambridge in April we only had 111 single family freehold detached homes sold, representing a 24% decrease.  Month-over-month we saw a 17% increase in the number of new listings and 23% growth in the number of sales for single family detached homes in Cambridge.

“As the spring market heats up and it looks as though some buyers are coming off the sidelines, it’s important to remember that the intense market conditions of recent years have not gone anywhere, they’ve just been on pause”. Jill Oudil, Chair of CREA

In our region of Waterloo for all property types was $797,716, and specifically in Cambridge $771,965.  If we look at the different property types in Cambridge you can see that the missing middle as our industry labels it, so those single family freehold attached homes (semis and towns) are the one property type we are seeing sale prices over asking.

• Freehold attached homes in April were listed on average at $644,389, and sold for $712,059, that’s 10% over asking and it only took over average 25 days to sell
• Freehold detached homes were listing on average around $877,688 and sold 3% less then asking, around $851,699 and took 20 to sell on average
• Condos were listed on average in April at $603,256 and sold less then asking for $555,295 and took roughly 38 days to sell

The surge in activity though expected for this time of year, this upwards pressure on the house prices is largely due to the demand for homes outpacing the supply of new listings coming on the market which has pushed current months of inventory of homes to just one month, which is an unhealthy and unbalanced number.  If we don’t see new homes hit the market and sell, I expect the housing market to remain competitive in the month ahead.

If you want to discuss what’s happening in the market, or maybe the process of buying or selling, I am always ready to have that conversation.  All you have to do, is reach out by filling out the form below and we can chat more over coffee. And be sure to follow me on Facebook or Instagram for all the behind the scene and up to the minute news.

Goodbye winter, hello spring!

Traditionally, this is the time when not only do we start to feel some warmer weather but we also begin to see the real estate market heat up too.  Before we get into the housing market let me bring you up to speed a little on the economy which helps give context to the spending habits of buyers and sellers today.

At the beginning of March the Bank of Canada (BoC) decided to hold its target for the overnight rate at 4.5%, with the Bank Rate at 4.75% and deposit rate at 4.5%.  We saw inflation ease to 5.9% in January to 5.2% in February, which is one small step closer to the foal of 2% by the end of 2023.  What is also interesting to note was just at the end of March details of the 2023 federal budget were unveiled.  The intention of the budget is to strengthen the middle class, support an affordable economy and generate a healthy future without heightening inflation.  Another noteworthy observation was that the budget did not propose any increases in personal or business tax rates. I say all this to help give some context when we drill down in the housing sector of our economy, and specifically what’s happening here in Cambridge, Ontario.

Sales volume in Cambridge through the Multiple Listing Service® (MLS®) System of the Waterloo Region Association of REALTORS® (WRAR) continues to remain low. In March for all of Waterloo Region there were 611 homes sold in March, representing a decrease of 38.4 per cent compared to March 2022 and 33.6 per cent below the previous 5-year average for the month.

Looking closer to home, in Cambridge there were 188 new listings and 153 listings sold.  We are looking at just one months supply of inventory.  In fact, what we are seeing is demand exceeding inventory, currently a deficit in homes compared to buyers.  The drop in inventory becomes staggeringly apparent when we look at the ten year average and begin to see that historically new listings for residential properties in Cambridge are around 300 in March but are now almost half that. Number of sales is also proportional, with the ten year average being around 227 and now 153.

There continues to be relatively consistent average sale prices for properties in Cambridge.  For all property types in Cambridge the average list price is $775,613 and average sale price being $733,236. That means that on average in March we are seeing a 5% difference in average list price to sale price.

If we look a little closer at the specific property types, a single family detached home in March was listed on average at $877,688 and sold 5% less then asking. If you are wondering the difference in price between a single family detached home and attached home (semi or townhouse), there is an 18% difference in the average sale price.  A single family attached property sold on average for $674,476 in March here in Cambridge. And, condos in Cambridge sold on average for 16% less then an attached home, $578,319, but remember these properties even though the sale sticker is lower, your monthly expenses can work out to be roughly the same as attached freehold, since there are condo fees to account for.

If you want to discuss what’s happening in the market, or maybe the process of buying or selling, I am always ready to have that conversation.  All you have to do, is reach out by filling out the form below and we can chat more over coffee. And be sure to follow me on Facebook or Instagram for all the behind the scene and up to the minute news.

If you made it to this point, I think it’s safe to say that I don’t need to convince you that staging works.  Not only does staging improve the sale price of your home by up to 20% but it also proven to sell a home up to 11 times quicker than those that aren’t staged.  So, I think you get the drift that staging works.

But, what is home staging really?

To keep it simple, home staging is the act of preparing your home for selling – staging your home to look as if someone lives there so that the potential buyer(s) can more easily see themselves living in that space. There are varying degrees of staging from just adding accessories or on the other end of the spectrum, painting the walls, changing light fixtures, and bringing in furniture that suits the room.  For the purposes of this post, I am going to give you the quickest, simplest and most wallet friendly tips, because if you’re not doing atleast these five things when selling your home, you’re leaving money in the pockets of the buyers instead of padding yours.

Tip # 1 – Artwork

Artwork can fill an otherwise bare wall, which can be good or bad depending on the piece.  The key to artwork when staging, is to pick pieces that are neutral in imagery, so think landscapes, abstract or natural elements.  The colours and tones of the piece also play into setting the ambience of the room. So for example, a soft white or neutral piece like this sail boat evokes a peacefulness and calmness.  This subtle messaging is not just applicable to the artwork but also to the audience who is suddenly transported to feel those same feelings when in the space.

Tip # 2 – Greenery

Natural elements such as fresh cut flowers, or stems in a decorative vase can easily bring the outside in, as well as add an interesting focal point for the eye to wander to.  The wonderful thing about greenery as well, as it can add height to a space which makes people feel like there in a larger room then  it may appear because your eye is drawn up.

Another tip when thinking about greenery, is don’t feel limited to putting it in your traditional spaces like the kitchen or dining room. Consider putting out a small bud vase with a fresh cut flower in the bathroom next to the soap and hand towel, or what about hanging a sweet bouquet of dried eucalyptus from your shower head with a pretty ribbon.  Not only is it beautiful, but the fragrance will draw you in and make you stay longer.

Tip # 3 – Lighting

Natural light is always the best kind of light, but this becomes a problem in the evening which is when most Buyers go to look at a property.  It’s critical that you  have sufficient lighting in a room when selling a house. And I don’t mean just one light in a room so you can see where you’re going, I am talking about ceiling lights as well as accent lighting like table or floor lamps.  When placed well a beautiful light can act not only as a decorative piece of art, but also literally casts light on the places we want our Buyers to see.  Think about it, in your bedroom there are often table lamps for function, but the light shines up through the lamp shade drawing the eyes to the ceiling which emphasizes the height of the room. Or maybe you place a floor lamp in a corner next to a couch or hutch, the Buyer’s eye is drawn to the outer corner of the room highlighting the spaciousness of the room.

Tip # 4 – Closets & Cupboards

Assume that all closed doors are fair game, that is, they will be opened. This includes your bedroom closets, linen cabinet and even kitchen cupboards or pantry.  While having the space looking magazine worthy, it is important that you tidy up the items and remove ones that you may not want people to see. This could be a time consuming tip, but it doesn’t have to cost you a dime, and psychologically, as Buyers look in your home and see tidy and well kept spaces they equate that to you having pride of home ownership.  This basically means, that if you care about a tidy sock drawer, you must also care about other items like the roof or furnace of the home too.

Tip # 5  –  Table Setting

Setting the kitchen or dining room table is an easy and cheap way to dress up the space.  It is also is an opportunity for you to take a rather boring table and add a splash of colour or interest with the napkins or plate chargers. The trick though when staging the table, is to keep it simple. If your plates have a pattern on them, then make sure the napkin and placemats are plain and simple, but if you have white plates, add some colour or a pattern with the napkins or table runner.  Another bonus tip here, is don’t just think inside the box, or rather house here. If you have your patio table out, why not dress it up too, just make sure the napkins don’t fly away.

I hope these tips help make staging your home easy and impress future buyers.  Adding in decorative elements should make your home feel more complete, the only thing missing is the new home owners. If you are thinking about selling your home now or maybe in the next few years, now is the time to start thinking about the return on your investment.

Contact me today if you want to make sure that you are making the right choices that will make you the most amount of money when selling your home.  What you do today, matters for your tomorrow.

Weakening housing trends remain the central theme early in 2023 across Canada.

There was a decrease to all residential home sales in the City of Cambridge in February compared to the previous month, prices dropped nearly 4% overall. However, from all properties sales, those most affected were condos, and single family detached homes saw a increase, be it very minor, an increase is an increase.  Single family detached homes, went up 1.7% ($840,182), from January when the price was roughly $14,000 less.

In 2022 in January to February there were 140 new listings and 97 sales, but in February there were 243 (+73%) new listings and 185(+90%) sales. In other words in Feb 2023, for every 2.5 new listings, there is 1 sale, and in the previous year, for every 1.3 new listings, there was one sale.

 

One month into the new year and we are already seeing signs of a strong housing market in our city of Cambridge, Ontario.

Last year, in January there were high housing prices due to low interest rates, low inventory, high demand and fewer barriers to entry. By year end things had changed dramatically, closing the year out with the least amount of new listings for the month (88, high of 410 in April), as well as least numbers of sales (72, high of 249 in March). So, when I say the year started out strong with home prices hovering around a million dollars, and then being in the low 700,000s by year end, would be an understatement.  *(These numbers reflect all residential homes in Cambridge as per ITSO. InfoSparks © 2022/2023 ShowingTime).

However, if you were to look at the year without comparing it to other years you would be left scratching your head as to why the dramatic shift.  You would have to go back a few years to start to unpack this and first look to a growing population (demand) and a lack of housing (supply).  This unbalanced market only heightened as borrowing costs continue to dip making it easier to justify going into debt, as the appreciation would outweigh the low carrying costs.

Everything seemed hunky dory until people started noticing our inflation rate, which simply stated is a rise in prices which results in the decline of purchasing power. So, as people began spending during the pandemic the inflation rate continued to rise and it became apparent that there could be detrimental ramifications if not addressed.

This is the part in the story that the Bank of Canada comes into flex their muscles and save the day.  In order to squash the hemorrhaging wallets of Canadians, something needed to be done, so those low interest rates we loved so much began to rise.  Slowly throughout the year marginal increases were made to the rate which took time to actually be reflected in Canadian’s spending habits. So, as we enter a new year with interest rates higher then this time last year, we also see a change in the housing market.

No longer are prices close or over a million dollars for a single detached home in Cambridge, they are now just over $800,000. We are still in short supply of new inventory but demand is still there, people are now more cautious about over spending and are selective in what they spend their money one.

As we look ahead, I think many people are apprehensive to share their thoughts on what the housing market will look like in 2023.  But as a Realtor® it’s my job to study and know the market, to keep my finger on the pulse and to be informed with monetary policy, mortgage rates and the economy. I tend to share a similar sentiment as the recent 2023 Royal LePage Market Survey Forecast. highlighted, and that is that though we have seen a drop in prices, a rise in interest rates, we still continue to have a shortage of homes to meet the needs of our communities. I expect that 2023, though it won’t be as extreme as the height of the pandemic, I do expect we will continue to hear a similar story.

If you want to discuss what’s happening in the market, or maybe the process of buying or selling, I am always ready to have that conversation.  All you have to do, is reach out by filling out the form below and we can chat more over coffee. And be sure to follow me on Facebook or Instagram for all the behind the scene and up to the minute news.

Waiting, /ˈweɪtɪŋ / noun; the action of staying where one is or delaying action until a particular time or event.

I share this with you because as important as it is to know about the buying and selling process, or what the term bully offer means, it is also very important to hear about the emotional side of real estate. It’s not called “real” estate for no reason, this is real life and we all have real emotions.  It’s for that reason and that reason alone that I love my job, because even though there can be frustrations or anxious thoughts during the buying and selling process, more times than not, I get to see the BIG happy and joyful emotions. My clients invite me into a chapter of their life to help them get to the next best chapter that is waiting to be written and there’s nothing sweeter than that.

So, in closing I will leave you with these parting words should you find yourself in the stillness of waiting, “embrace the wait, trust the process and believe that the outcome is exactly where you are meant to be.”

The great thing about time, is that when you look back you have this unique advantage of being able to see the things you were present for but now with this glorious ability to reflect with a new perspective, all while still being able to recall what it was like being in that moment.  So, when I look back at 2022, I have this new perspective that is entirely different than the one I would have shared with you had I been asked in that moment what my thoughts were.

You see, we entered 2022 with vivid memories from the previous year that had a profound impact on us all, and whether you realize it or not, how you spent your time, money, and talents this past year was directly influenced by what came the prior year.  

We started 2022 still feeling deeply overwhelmed by the pandemic, and with a new Omicron variant on the scene.  There was a partial lockdown at the time that lasted until mid February and by March 21st the mask mandate was lifted and by the end of April all directives were dropped.

Also, last March began the first of several Bank of Canada rate hikes which were the result of an increasing inflation rate which became note worthy in late 2021 when it was in the 4% range, but by June 2022 the inflation rate nearly doubled topping out at 8.13%.  These rate hikes had a profound impact on the housing market, and as restrictions were a thing of the past, people seized every opportunity to connect with old family and friends and go places, they had been lusting about over the last two years, it was finally time.  So, as people got busy being busy, the housing market that started out strong fizzled as the year went by. 

In January 2022, the average sale price for a single detached home was just over one million dollars, or to be precise $1,094,707.  By the end of the year the average dropped nearly 28% to the high 700,000s.

All data from ITSO, InfoSparks © 2023 ShowingTim

In January 2022, the average sale price for a single detached home was just over one million dollars, or to be precise $1,094,707.  I heard a client share a sweet statement when he said “I never thought I would be living in a million-dollar home” because at the time prices were beyond every economist’s expectation and he was living in a modest and average home.

If you were selling your home during the first two months of the year, you were one of the last to benefit from the outrageous high in the housing market. But, as the interest rates started to be announced and one after another getting a little bleaker and dimmer, Buyer’s eagerness waned, and Sellers were no longer seeing those high-priced offers.  In fact, not only were sellers not seeing those high prices they began to see the comeback of conditions in offers.  With less competition in the market, buyers began including financing and home inspection conditions, in part because they could, but more importantly because it was prudent to do so with a market in such flux.

By the end of 2022, the same house that would have sold in less than a week for over a million dollars in Cambridge was now likely to sell roughly 28% less, closer to the high 700s and would take almost a month to do so. Usually, you ring in the new year with a bang, but for the housing market things seemed dismal. But, before you become all Debbie-downer on me, let me offer you some good news. Consistently, year over year for the last five years, house prices have continued to appreciate, i.e. go up in value. So, despite a dismal end to 2022, when we have the perspective of time to factor into our understanding, we now can see a brighter future. 

House prices increased 6% in Cambridge which is a strong and healthy appreciation percentage.

All data from ITSO, InfoSparks © 2023 ShowingTime

As we look to 2023, having a clean slate, all we can do it predict what the year ahead holds and believe how you feel about that prediction will greatly influence how you see the year playing out.

So, if you’re like me, and like to see the glass as being half full, rather then half empty, let’s going 2023, thinking that it will be even better than the last year.

There’s no better time then the present to take the first leap of faith into a new year, and one step closer to your dream. If you’re dreaming about buying or selling real estate and you’re wanting to talk more, let’s get together over coffee. I would be so happy to have a coffee and even more excited to chat with you all about it what I love and how I can help you.

If I didn’t know that I was looking at the November 2022 stats, I would have thought it was November 2019.  Reason I say that, is that the market is coming back to a more balanced state like we saw prior to COVID.  Unfortunately, the boom of the housing market these past few years has clouded our memories of what a “normal” housing market looks like.  We are so used to low interest rate, high demand and even higher sales prices, that we have forgotten about how a healthy and stable, or dare I say normal housing market looks like.

Sure we saw another hike to interest rates that continued to slow down buyers, but these increases to the prime rate that the Bank of Canada is making is having the exact effect that they are hoping to achieve, and that is to reduce inflation.  It’s no surprise that the higher interest rates have definitely slowed down the intensity of the market, but it hasn’t stopped it completely.  Remember, there will always be situations where people have to buy and/or sell, such as a job relocation, outgrowing their home, marriages or divorces.  There are a variety of life circumstances that we just can’t avoid; delay, yes, but avoid not forever.

Inventory was low in November, with a total of 132 new listings in the City of Cambridge added and there were 96 total sales.  This equates to roughly one month of inventory, or also know as MSI (month supply of inventory), which reflects the relationship between supply and demand.  So, looking at November theoretically it would take one month to burn through all the homes currently available, so if no new listings were added, Buyers would be left without any options. The interesting element to note about the number of new listings and sales, is that these totals look very similar to what a five year average would have looked like prior to COVID.  An average amount of new listings would have been around 125, and 115 sales, so in actuality, November 2022 is very healthy and balanced.

What may not be similar to the five year average prior to COVID, is the sale prices.  In fact, the sale price for a single family detached home in November isn’t even remotely close to what is what at the beginning of the year.  In January of 2022, the average sale price was sitting just above one million dollars ($1,094,707) and now eleven months later, that same house would sell for 26% less, closer to $800,000 and it would take over a month to sell, whereas in January it would have been about a week to two weeks.

Since there are fewer Buyers due to the rising interest rates and speculated economic uncertainty, demand has dropped.  Houses that are being listed are selling closer to their asking value, and there is a smarter pace at which a Buyer takes to purchase a property.  We have time once again to have finance and inspection conditions in our offers, which affords the Buyer the ability to make sure that the purchase that they are about to make is right for them.  They can truly crunch the numbers, investigate all possible scenarios that they could encounter if yet another rate increase, or if they have a to replace an expensive aspect for their home unexpectedly.

Sure, the housing market these past two years made for better headlines in the news, but a more balanced market is more fair for both parties. Now is a great time to buy or sell, and if your curious to hear more, or discuss how I can help you with your real estate needs, whether buying, selling or investing I would be happy to have a coffee and chat with you all about it.