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NORMAL. This slow start to the year is what "normal" used to look like and it's the first time we have seen it since pre-pandemic times.
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February saw more sales & listings vs. January but it has felt sluggish compared to what we are used to seeing.
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Fear not, this *should* start to pickup, in fact we saw 70 new listings in Guelph this first week after March Break.
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With the most recent interest rate announcement keeping things steady and inflation down for the second month in a row, economists are optimistic for a rate decrease in the near-ish future we could see A LOT of activity in the next few weeks.
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We are already seeing the return of "holding offers" in Guelph and continuing in Kitchener/Waterloo/Cambridge
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BUYING? Get ready to move quickly, when great homes come on the market (especially in the range for first time buyers) they will not last long. So get your MORTGAGE PRE-APPROVAL done and find a real estate agent you trust to guide you.
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SELLING? Determine your goals (sell fast, most value, etc.) and give us a call to help design the best strategy to achieve them. NOW is the time to prepare your home so you don't miss the action.
CURRENT MARKET TRENDS
Colour our City!
Melissa created a Guelph inspired colouring book for our most recent community event and we have some left over. Want one? Shoot us a quick note in the chat and we'll make sure you get it.
NOTEWORTHY NEWS
THANK YOU for joining us at our FREE SKATE event!
We got to see over 25 families on Saturday March 16th. It was so much fun to see some familiar faces and meet new neighbours in our community. And a BIG CONGRATS to Estera L. who won the door prize. Enjoy your time at Bardo and we can't wait to see what your family creates at Play with Clay!
Canada's Inflation rate dropped (again) to 2.8% in February
Which is more good news! This is the first time in since early 2021 where we have seen back to back months where inflation as been in the Bank of Canadas (BOC) targeted zone of 1-3%. What is the impact from decreased inflation? We are seeing lenders already starting to build in rate cuts and more positivity from BOC that rates will decrease in the future. Some are believing it could happen in April but others are saying it's not likely, just yet.
What you should know about that BIG real estate lawsuit in the US that has come to Canada
First, here's what happened in the US in a nutshell >>> A few years ago a class action lawsuit was brought against the National Association of Realtors and several large brokerages claiming there was price fixing measures taken that artifically inflated buyer agent commissions. NAR agreed to pay $418 million in a settlement to end the lawsuit (in addition to settlements made by the other national brokerages involved in the suit).
What does this mean for Canada? We are just getting started here and it will likely take years to resolve. HOWEVER, if you ask us, it IS likely that our governing boards like the Canadian Real Estate Associations and the Ontario Real Estate Association will take action and implement changes based on measures taken in the US before the actual legal resolution in Canada. What will those changes be? We don't know but will be watching the US situation very carefully.
Here's a condensed summary of the key points from an article by Zoe Demarco that you can find here that presents the current situation:
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A Canada-wide class-action lawsuit claims real estate brokerages and boards have inflated commission fees paid by sellers.
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This lawsuit includes various regional real estate boards and the Canadian Real Estate Association (CREA) as defendants, with allegations of facilitating the illegal scheme since at least March 11, 2010.
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In addition to CREA, 88 regional boards and brokerages are implicated, including major real estate boards across Canada.
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The class-action follows rules set by real estate boards and CREA, where a seller must pay commission to both their own and the buyer's brokerage, typically 2.5% each (note: this varies City by City).
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The lawsuit, initiated by Kevin McFall, challenges the lack of incentive for buyers to negotiate commission rates due to these rules, arguing it suppresses competitive market forces.
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The case suggests that the current system unfairly benefits brokerages that prioritize volume over service quality.
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The goal of expanding the lawsuit is to obtain justice and compensation for affected sellers and to drive systemic changes in the industry.
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The lawsuit seeks to lower buyer brokerage commission fees and reduce overall costs associated with buying and selling residential real estate, aiming to positively impact affordability for home buyers.
Links to additional articles/perspectives: BNN Bloomberg, Financial Post, CBC
Client Congratulations
CONGRATULATIONS to S and her family! Right off the batt, we had great interest in their beautiful family home in Doon South. But with some patience, and a few more days on market, we were able to hold out for a firm offer just over asking price within the first week of being on market. Thank you for your partnership in getting your home ready. You ran with every suggestion and it really helped make the house shine it brightest. All the best in your next chapter!
BEST WISHES to M as he travels out of the area to start his next chapter. Selling a condo in this market is a bit trickier than other housing styles but you took on every task we gave you and it helped your home outshine the competition (even those right beside you!). Thank you so much for all your hard work and your flexibility, we couldn't ask for anything more. CONGRATULATIONS!