On May 23, 2024, Information Technology Systems Ontario (ITSO) provided a memo to the boards of its member associations about new exclusive listing functionality it planned to implement as early as this month within its Matrix system.

ITSO sought feedback from its CEO Advisory Group on whether the functionality should be made available system-wide or on an opt-in basis as a non-basic service. However, the organization halted its efforts less than two weeks later.

Issues with adding exclusives to an MLS system

REM obtained ITSO’s memo, which discusses the issues of adding exclusive listings to the Matrix system after those listings have sold (which is often done for tracking statistics, financing purposes or use in comparative market analyses).

It notes, “The practice raises concerns under Rule 2.08, which provides that a listing is not acceptable if it is not available for showings and the registration of offers. If a listing is already sold before it is entered into the ITSO system, then it is not available for other realtors to cooperate on and therefore is a violation of Rule 2.08.

It is extremely frustrating for realtors to see a new listing, or have their clients see one in an auto-email, only to find out that the property is already sold when they contact the listing realtor for a showing. Adding these listings as MLS listings diminishes confidence in what is supposed to be a cooperative system. Further, the sale price for an exclusive listing is not necessarily reflective of what would be obtained for an MLS listing, so entering these listings into the ITSO system can skew statistics.”

How the functionality would help the industry

The memo goes on to note there are legitimate reasons for entering these listings into ITSO’s system: “Historically there was no easy way to capture this data for sales records or for financing purposes. The ITSO board of directors wants to respond to the needs of our users so that they will not be forced to breach the MLS rules or, alternatively, find a workaround to avoid compliance issues.”

It then explains this is why ITSO created the Alternative Listing Task Force (ALTF) in 2022, which determined the following, and unanimously agreed to recommend proceeding with the closed exclusive listing functionality:

1. “Augmenting the ITSO system with exclusive listings would be beneficial for statistical and financing purposes.

2. Enabling realtors to put exclusive listings into the ITSO system directly to a pending or closed status will likely increase compliance with Rule 2.08 for MLS listings, as there will no longer be a need to add exclusive listings to system inaccurately as MLS listings.

3. Adding this functionality to the ITSO system could also potentially entice more commercial realtors to put listings into the ITSO system, as MLS rules are often seen as a constraint for commercial listings.

4. Augmenting the ITSO system with exclusive listings could also provide an avenue for assignment listings to get exposure to realtors without being publicly advertised.”

The process and journey

The memo continues to describe the process and journey ITSO took in developing the exclusive listing functionality.

ITSO’s board of directors approved the ALTF’s recommendation in September 2022 along with its finalized rules for sold exclusive listings in March 2023, which the CEO Advisory Group discussed in April 2023. After some delays in development work and the Trust in Real Estate Services Act (TRESA) coming into effect on December 1, 2023, ITSO changed the rules for exclusive listings to include TRESA terminology changes before meeting with the CEO Advisory Group in December 2023. The intent was to consult about active exclusive listings, but this was put on hold (due to member associations’ work being done with the Ontario Realtor Wellness Plan).

The ALTF met this year to discuss and finalize changes to the exclusive listing rules to accommodate active listings. This caused a delay in launching the functionality for sold exclusives.

In the end, ITSO’s board approved the exclusive listing rules at its May 2024 meeting. The board found the proposed system enhancement would be welcomed by realtors “to fill a void they have been working around” along with association staff “who should see a reduction in listings violating the MLS rules as a result of providing a legitimate method of adding sold exclusive listings to the system for internal use.”

The memo encourages member associations and realtors to familiarize themselves with the exclusive listing rules and notes that Rule 9.01 requires realtors to obtain consent from their clients to collect, use and disclose the exclusive listing in the ITSO system (with sample language provided).

Response from CREA

After the memo was sent, ITSO had planned to consult with its members on the new functionality and determine how the service could be implemented. However, this was stopped on June 4, when the organization received an email from James Mabey, chair of the Canadian Real Estate Association (CREA).

Mabey tells REM that CREA became aware of the new functionality towards the end of May. “When it came to our attention, we took the opportunity to meet with them and make sure we had a really good sense of what they were trying to accomplish and why. Once we started looking at it, we came to the conclusion quite quickly that it was fundamentally, in our opinion, offside with Article 30 of the Realtor Code and also the Cooperation Policy.”

His email notes that CREA learned of ITSO’s proposal on May 27 in a memo entitled New Matrix Functionality. It says that the functionality appears to be non-compliant with the requirements of Article 30 of the Realtor Code (Duty of Cooperation) and the Realtor Cooperation Policy (the “Policy”) because the proposed functionality “appears to segregate “exclusive listings” from MLS listings “when a client is looking to limit marketing of the property” (as stated in (ITSO’s) memo).”

Mabey writes that placing listings in ITSO’s system this way falls under the definition of “public marketing” under the Realtor Cooperation Policy, as follows:

““Public marketing” means the representation or marketing of a listing to the public or anyone not directly affiliated with the listing brokerage/office in a business capacity. For clarity, public marketing does not include one-to-one direct communication with a realtor unaffiliated with the listing brokerage/office. Public marketing includes any representation regarding the sale of a property, including but not limited to, flyers, yard signs, digital marketing on public-facing websites, brokerage website displays (including IDX and VOW) and onsite brokerage promotion, digital communications marketing (i.e. email blasts, newsletters, social media posts), multi-brokerage listing sharing networks and applications available to the general public.”

So, he concludes, a listing appearing as an “exclusive listing” would trigger the requirement to also place that listing on an MLS system within three days as set out in paragraph 2 of the Policy: “Within three (3) days of public marketing, realtors must place the listing on an MLS system for cooperation with other realtors.”

Mabey highlights that a listing appearing only in the “exclusive listing” portion of ITSO’s system and not on the MLS system doesn’t satisfy the Policy (regardless of the fact that MLS listings are searchable in Matrix).

Request to immediately suspend functionality implementation

He then makes some other related points and states it’s CREA’s view that ITSO’s proposal “may expose ITSO member boards, associations and realtors to disciplinary action under CREA’s bylaws and rules for failing to comply with CREA’s policies and the Realtor Code.”

The email concludes with CREA’s request that ITSO “immediately suspend all implementation of its proposal and notify CREA member boards and associations that are members of ITSO that it has done so,” along with, “We respect ITSO’s attempts to provide innovative solutions for its members and if ITSO Boards and Associations believe there is an opportunity for improvements to the Realtor Cooperation Policy our door remains open to that feedback.”

During his interview with REM, Mabey points out that the Realtor Cooperation Policy was put together with a lot of consultation from CREA members, and it was passed with a very large majority. “Anytime a policy comes into place, we look to make sure our members are well served. We have a Realtor Code committee that reviews policies on a regular basis. We’re always happy to collaborate. We value our relationship with ITSO and our collaborative efforts to work well with them,” he explains.

Mabey suggests that anytime a board or association is working on something like this, the sooner they reach out and engage with CREA to confirm everyone’s on the same page and that any barriers or differences in interpretation are established, the easier it will be to collaborate and ensure that joint members are served as well as possible.

ITSO’s response

On June 6, Blair Campbell, president of ITSO, responded to Mabey’s email, confirming that ITSO agrees to suspend the new exclusive listing functionality implementation in Matrix. 

Authority to interpret and apply Realtor Code as deemed appropriate

Campbell goes on to explain why ITSO is disappointed that CREA feels the new functionality breaches the Realtor Cooperation Policy, particularly since CREA’s rules state that boards and associations have exclusive authority to interpret and apply the Realtor Code as they deem appropriate. He points out that ITSO enforces the Realtor Code for 11 real estate boards, pursuant to CREA’s bylaws and rules, and therefore feels ITSO should have this same authority.

He then explains that ITSO has been actively enforcing Article 30 of the Realtor Code since it came into force and is well versed in the requirements of the Realtor Cooperation Policy, plus the organization’s staff have talked to every realtor named as a respondent in these “PSC (professional standards committee) incidents” — which is how they know that realtors want the functionality.

In response, Mabey tells REM, “Our boards and associations have some latitude in interpreting the code. In this case, we believe the interpretation is fundamentally different. It’s not just a grey area. (The code) was evaluated by our legal team and the people who had developed the policies with us and (the interpretation) is just fundamentally inconsistent — it’s not a degree of latitude difference.“

Realtors can’t always meet MLS listing standards only with additional effort

Campbell also writes, “Our end users want a way to comply with the Realtor Cooperation Policy while still respecting their clients’ wishes and the nature of exclusive listings. At the same time, ITSO wants to maintain the integrity of the MLS data in our system. We respectfully disagree with your assertion that realtors are always able to meet the standards of MLS listings simply by incurring additional effort.”

The examples Campbell cites include properties that can’t be shown because there’s no access during the winter or where tenants will not allow anyone to enter the property, including properties the listing realtor can’t enter to verify basic details like the number of bedrooms or measurements, whether due to a power of sale or uncooperative tenants.

“These listings cannot meet the standards of an MLS listing and must be taken exclusively,” he writes. “Permitting these listings to be entered on our system as MLS listings with remarks saying ‘no showings’, that ‘the listing brokerage takes no responsibility for the accuracy of the information’ or ‘buyer to verify all details’ goes against CREA’s three pillars and interpretations of the MLS marks and will deteriorate the quality of the MLS data on ITSO’s MLS system.”

Mabey tells REM that MLS systems across the country have different rules and different barriers to entry into the system in terms of the number of fields, the amount of data that must be put in, restrictions on showings, etc.

“If those pieces of MLS rules need to be reevaluated in context of the Realtor Cooperation Policy, then those boards and associations could definitely review the rules in that context to ensure they’re still best serving their members (and) maybe prohibit some of those listings going into the MLS,” he suggests. “I would encourage (them) to review the MLS policies they feel might not be working well with the new cooperation policy and figure out what’s best for them.”

While Mabey notes that if a realtor can’t provide the sufficient level of detail, maybe public marketing the property isn’t the best choice, he points out that CREA isn’t aware of any situation where the barrier is so high that the decision shouldn’t be made to publicly market a listing. “In (that) case, they have other opportunities because the policy doesn’t (forbid) taking an exclusive listing.”

A matter of enforcement

Campbell also points out that CREA’s stance assumes all listings entered into ITSO’s MLS system as active exclusives would fall under the Realtor Cooperation Policy, but how listings are entered (as MLS or exclusive) is actually a matter of enforcement.

“ITSO and its member associations could still require all listings falling under the Realtor Cooperation Policy to go on the system as MLS listings. Then, the exclusive functionality could be used for the legitimate purposes it was created for — capturing sold exclusives, commercial listings, new builds, assignment sales with clauses that disallow advertising as an MLS listing, etc.”

‘Enforcing (the) Realtor Cooperation Policy within current MLS system limitations puts ITSO and its members at risk’

Campbell notes that ITSO feels enforcing CREA’s Realtor Cooperation Policy within the current MLS system limitations put both ITSO and its members at risk in light of:

• the United States Department of Justice’s position on the National Association of Realtors’ Clear Cooperation Policy,

• recent press suggesting CREA’s policy may be anti-competitive and

• the Ontario TRESA regulations that require registrants to abide by the lawful instructions of their clients.

He concludes by urging CREA to reconsider its position, stating: “The Realtor Cooperation Policy does not specify that listings must be entered on an MLS system as MLS listings — it says the listings must be placed on an MLS system for cooperation with other realtors.

It is open to CREA to interpret the policy to allow listings on the MLS system as exclusive listings provided the listing realtor is willing to cooperate with other realtors. This would achieve the purpose of the Realtor Cooperation Policy while maintaining the exclusive nature of the listing, respecting sellers’ wishes, enabling Ontario realtors to comply with their regulatory obligations and allowing ITSO to maintain the integrity of the MLS system data that we have worked so hard to achieve.”

‘We do not want any of our members to be in breach of their obligations in organized real estate’

Campbell shares this statement about the situation and ITSO’s reason for suspending the functionality’s implementation:

“It is ITSO’s position alone that listings falling under the Realtor Cooperation Policy should be able to go on the MLS system as exclusive listings with cooperation. We did not have a chance to discuss all aspects of this functionality with our members prior to CREA sending us a letter requesting that we suspend its implementation.  

We are disappointed that CREA has reached this conclusion and prevented us from implementing functionality that would be of great benefit to the realtor users of our system.

ITSO views MLS listings as the preferred method for selling and buying properties. However, the value of an MLS system is determined not only by the integrity and accuracy of the data but also by the completeness of the database. We’ve all been in a meeting where a client asked about an exclusive listing, and we didn’t have access to the information the client wanted. Being able to capture exclusive listing data would increase the value of the MLS system while maintaining the integrity of MLS listing data. At the same time, capturing exclusive listings would enable realtors to appear more professional and to better serve their clients.

That said, the interests of our members are ITSO’s priority and we do not want any of our members to be in breach of their obligations in organized real estate. That is why we agreed to suspend the implementation of this functionality.”

📞 Your Next Step Starts Here—Contact Me Today!

Tara Kennedy
REALTOR® ABR, RENE, SRS
✨ Tara Kennedy Real Estate 🏘️
☎️ 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com
🇨🇦 Royal LePage ELITE West

Always Putting Your Best Interest First! 🌟

#TaraKennedyRealEstate #TaraKennedyRealtor #TricitiesRealEstate #CoquitlamRealtor #PortMoodyRealEstate #PortCoquitlamHomes #RoyalLePageEliteWest #BCRealtor #HouseHuntingBC #BuySellInvest #HomeSweetHome #DreamHomeFinder #RealEstateExpert #MoveToBC #RealtorSince2007 #TaraKennedyHomes #TricitiesRealtor #YourTricitiesRealtor #GreaterVancouverRealEstate #InvestInRealEstate #SellingHomes #BuyingHomes #LuxuryRealEstate #RoyalLePageRealtor #TaraKennedySellsHomes

“First and foremost, let me be clear: there is no privatization happening with Realtor.ca. Realtor.ca will remain completely owned by CREA, and realtors will continue to own it through their membership in CREA.”

This is something Janice Myers, the new CEO of the Canadian Real Estate Association (CREA), stressed during our recent time together in Ottawa.

Aside from pressing issues — like the “privatization” of Realtor.ca, the Realtor Cooperation Policy and the commission lawsuits — we had the opportunity to discuss her career trajectory, her first 100 days in the role and her vision for the future.

The full video interview is available to watch. For transparency, only minor edits were made to ensure you can see the complete conversation and form your own judgments.

An industry veteran

Myers comes highly qualified for her role. Her background in association management and experience working with a real estate team in Vernon, British Columbia, paved the way for her position at the Okanagan Mainline Real Estate Board in 2001.

In 2014, a new opportunity arose: “My husband and I decided it was time for a change, and literally the next day, I got a call about the CEO position in Ottawa.” So they relocated, and for the next decade, Myers served as the CEO of the Ottawa Real Estate Board.

Prior to this interview, I talked to people who have worked with her in the past to get their perspective on her leadership.

Without exception, every single person had nothing but effusive praise. It’s a feeling of excitement for what she can do in her new role and trust in her ability to do it well.

At a time in our industry where it seems many are divided on leadership at different levels and trust in the organized side of the industry, Myers seems to buck that trend.

The focus as CEO

“My first 100 days have been focused on listening and learning,” she shares. “I’ve embarked on a listening tour, meeting with colleagues across the country, both virtually and in person, to understand their challenges and opportunities.”

While she does come with a wealth of experience, Myers has spent the last 10 years at the local board level. Now, she has to get up to speed on how it changes when it comes to the national level. For the CEO of CREA, there are three critical components of the role.

The first is advocacy.

There was no time to go slowly. Out of the gate, the team at CREA had policy recommendations in the government’s 2024 housing plan. When The Hill Times put out its list of The Top 100 Lobbyists for 2024, Myers made the list. She was very quick to point out that the team at CREA, not her, is the reason for inclusion on the list.

Enhancing and protecting the reputation of realtors is another key focus for Myers. “Reputation is vital in this environment, especially as consumers continue to press for transparency,” she states.

The third pillar of Myers’ focus is realtor and consumer technology, with Realtor.ca being a primary asset.

New structure for Realtor.ca 

“First and foremost, let me be clear: there is no privatization happening with Realtor.ca,” Janice states unequivocally. “Realtor.ca will remain completely owned by CREA, and realtors will continue to own it through their membership in CREA.”

This clarification addresses fears that Realtor.ca might be sold off or opened to outside investors.

Myers assured me that this is not the case. Instead, the focus is on maintaining control while enhancing the platform’s capabilities and ensuring it continues to meet the evolving needs of both consumers and realtors.

She emphasized three main points solidified by a special task force and endorsed at a special general meeting:

1. Ownership. Realtor.ca will remain wholly owned by CREA, ensuring that realtors retain ownership through their membership.

2. Governance. The platform will be managed with an independent board and as a taxable entity, allowing for greater operational flexibility.

3. Revenue reinvestment. Any profit generated will be reinvested back into the platform for the benefit of realtors and consumers alike.

“The idea is to provide Realtor.ca with the operational independence it needs to thrive and compete against heavily financed competitors,” Myers explains. “This structure allows us to diversify revenue streams, reducing our reliance on membership dues and ensuring the platform’s long-term viability.”

One of the main concerns among realtors has been how CREA plans to generate revenue from Realtor.ca without compromising its integrity or the interests of its members. Myers was clear that Realtor.ca would not sell leads to realtors. Instead, the focus is on exploring other revenue opportunities.

“We’ve identified about 30 different revenue opportunities and are narrowing down to five key areas,” she says. “These include leveraging our best-in-class data distribution capabilities, always ensuring that any data shared externally maintains the Realtor.ca brand and benefits our members.”

When pressed on whether allowing the data-distribution feed on third-party websites could lead to those websites selling leads to realtors, she emphasized that they’d make it part of the contracts not to allow that. The data-distribution feeds don’t contain member emails or contact information, and all consumer inquiries flow through Realtor.ca. This is the way it works currently, has always worked and will continue to work.

Myers highlighted the importance of maintaining transparency and cooperation with boards and associations across the country. “We want to ensure that everyone understands where these revenue opportunities are coming from and how they will benefit the entire realtor community,” she says. 

While they’re making the case for five specific revenue opportunities, Myers declined to provide them until she’s had the chance to bring them to the boards and associations first.

“We’re listening to our members and ensuring that any steps we take are in their best interest,” she assures. “Our goal is to keep Realtor.ca as the premier consumer portal in Canada, owned and operated by the industry for the industry.”

“Realtor.ca is a crucial asset for our industry,” Janice concludes. “By giving it the independence to innovate and compete, we’re ensuring it continues to serve the needs of consumers and realtors effectively. This is about building a sustainable future where our platform can grow and adapt alongside the industry.”

Keeping Realtor.ca within CREA as it currently stands as a non-profit could jeopardize its not-for-profit status. By removing Relator.ca from the not-for-profit arm of CREA, the association has more flexibility on how to generate revenue — revenue that Myers affirms will be reinvested back into the platform.

The Realtor Cooperation Policy

In addition to the potential changes with Realtor.ca, the new Realtor Cooperation Policy, which limits the use of exclusive listings, has sparked significant discussion. Few topics at REM generate as much commentary as this policy.

So I wanted to ask her about it.

“The primary driver for the new exclusive listing policy is consumer demand for transparency,” Janice begins. “We’ve seen a growing call from buyers and sellers alike for more openness in the real estate process. This policy is a response to those demands.”

The new rule mandates that any property marketed publicly must be listed on the MLS system within three days. This move aims to ensure that all consumers have fair access to property information, levelling the playing field for buyers and maintaining the integrity of the MLS system.

The policy has sparked a range of reactions from the real estate community. Some agents fear it might drive exclusive listings further underground, while others worry about the impact on marketing strategies. Janice acknowledged these concerns but emphasized the policy’s benefits.

“We understand that there are scenarios where exclusive listings can serve a purpose,” she says. “However, the policy doesn’t eliminate the possibility of exclusives. It simply ensures that once you start publicly marketing a property, it gets the broad exposure that only the MLS can provide.”

Janice highlighted that the policy strikes a balance between transparency and consumer choice. “If a seller has privacy or security concerns, they can still choose to keep their listing exclusive. The key is that once you start public marketing, it should be accessible to all potential buyers through the MLS.”

For realtors navigating this new policy, Janice advised open communication with clients. “It’s crucial to have honest conversations with your clients about their options and the benefits of MLS exposure. Realtors have an ethical duty to act in their clients’ best interests, and this policy supports that by promoting transparency and competition.”

Commissions

In the United States, there are several high-profile class-action lawsuits challenging the way real estate commissions are structured and disclosed. As a result, the U.S. real estate industry faces significant legal and regulatory challenges that could reshape its commission practices.

Myers pointed out that while the real estate industries in Canada and the U.S. share similarities, there are critical differences. “In Canada, we have a much more transparent environment regarding how buyer agents are compensated,” she explains. “Over 80 per cent of transactions in Canada involve written service agreements that clearly outline how agents are paid, ensuring transparency for all parties involved.”

One of the key distinctions Janice highlighted is the regulatory environment in Canada. “Our regulatory framework is robust and designed to protect consumers,” she says. “This includes clear guidelines on commission disclosure and the roles of buyer and seller agents.” 

The structured regulatory approach in Canada helps mitigate many of the concerns that have fueled the lawsuits in the U.S. In Canada, the existing lawsuits have not been certified as class-action to date either. 

Going forward

Janice Myers’ first 100 days as CEO of CREA have set a strong foundation for the future. Few could have stepped into this role with her level of qualification and understanding of the industry’s challenges.

Leaving the meeting, I felt confident that CREA and the industry are in capable hands. Even on issues where there might be disagreement, Myers’ openness, transparency and willingness to engage are reassuring.

I understand why those I spoke with before this interview were excited about her becoming the CEO of CREA. I’m excited to see what she can do. She’s got her work cut out for her, but all signs point to success.

If we do a follow-up interview with Janice Myers in 12 months, what would you hope she accomplishes in that time? Let us know in the comments.

📞 Your Next Step Starts Here—Contact Me Today!

Tara Kennedy
REALTOR® ABR, RENE, SRS
✨ Tara Kennedy Real Estate 🏘️
☎️ 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com
🇨🇦 Royal LePage ELITE West

Always Putting Your Best Interest First! 🌟

#TaraKennedyRealEstate #TaraKennedyRealtor #TricitiesRealEstate #CoquitlamRealtor #PortMoodyRealEstate #PortCoquitlamHomes #RoyalLePageEliteWest #BCRealtor #HouseHuntingBC #BuySellInvest #HomeSweetHome #DreamHomeFinder #RealEstateExpert #MoveToBC #RealtorSince2007 #TaraKennedyHomes #TricitiesRealtor #YourTricitiesRealtor #GreaterVancouverRealEstate #InvestInRealEstate #SellingHomes #BuyingHomes #LuxuryRealEstate #RoyalLePageRealtor #TaraKennedySellsHomes

This is based on my market — Calgary — but the same theory applies to every Canadian market. Even if your market conditions are much more negative, there’s still a certain point where you pass the peak of the spring market. You just need to take the time to analyze your own numbers. (The change may actually be much more severe than it is here. Believe me, I’ve been through every different type of market. But the main point of this is that one of the keys to success is the ability to quickly adapt.)

Welcome to the late spring market, a significant transition point past the peak of the market in terms of sales volume.

Think you may be past the peak? The answer lies in the trend.

Looking at the weekly and daily stats, I can see that sales climbed steadily throughout April until mid-May, and they’ve been declining ever since. A detailed analysis allows me to accurately state that May 15 was the peak of the market for detached homes in Calgary.

What does this mean in practical terms?

It means that sellers need to adjust their expectations.

1. The available inventory has risen steadily since February 1 and is now about 50 per cent higher than it was then.

2. Sales have steadily declined since mid-May, as mentioned. This trend will continue, with little or no deviation from now until December or January. I can confidently state this, backed by two decades of diligent market observation and analysis.

3. Fewer multiple-offer scenarios are occurring now compared to a month or two ago. This trend will also continue, partly due to different market conditions with more listings and fewer sales, as already discussed. But there’s one more important caveat.

“Early spring” buyers are more willing to jump into multiple-offer scenarios and bid much higher than the list price to get a property. They’re early adopters with a different mindset than “late spring” buyers, who tend to be more conservative and less inclined to write much over asking. (This partly explains why they haven’t bought anything yet!)

Another significant factor your sellers should consider

At any given time, only a limited number of buyers might consider buying in your geographical area and price range. For the sake of simplicity, here’s a breakdown of when 50 theoretical buyers might buy a single-family detached home between March and August:

• March: 8

• April: 12

• May: 12

• June: 8

• July: 6

• August: 4

Based on this, if you wait until July to list a home, 80 per cent of potential buyers have already bought! AND, the remaining buyers have much more inventory to choose from! AND, these remaining buyers tend to be more conservative!

Can you see now why sellers need to adopt a different mindset in the late spring? Anyone can look back on what happened in March, April and May and assume it will be the same moving forward. That’s a huge mistake and one you can help your clients avoid.

Many other factors also affect the market, but “early spring vs late spring” is a significant one that must be considered to achieve success. The bottom line is that in “late spring” (now) it’s even more critical to:

1. Price it right from the start (not too low and not too high), and

2. Ensure that your property stands out from the crowd.

As a skilled and experienced agent, you’ll guide your clients in accomplishing both objectives. Even more importantly, you’ll constantly alter your mindset to adjust to changing trends and always tell your clients precisely what you believe to be true.

📞 Your Next Step Starts Here—Contact Me Today!

Tara Kennedy
REALTOR® ABR, RENE, SRS
✨ Tara Kennedy Real Estate 🏘️
☎️ 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com
🇨🇦 Royal LePage ELITE West

Always Putting Your Best Interest First! 🌟

#TaraKennedyRealEstate #TaraKennedyRealtor #TricitiesRealEstate #CoquitlamRealtor #PortMoodyRealEstate #PortCoquitlamHomes #RoyalLePageEliteWest #BCRealtor #HouseHuntingBC #BuySellInvest #HomeSweetHome #DreamHomeFinder #RealEstateExpert #MoveToBC #RealtorSince2007 #TaraKennedyHomes #TricitiesRealtor #YourTricitiesRealtor #GreaterVancouverRealEstate #InvestInRealEstate #SellingHomes #BuyingHomes #LuxuryRealEstate #RoyalLePageRealtor #TaraKennedySellsHomes

In Canada, gardening season is in full-swing now that the sun is shining and temperatures are warmer. This has many homeowners heading to their local greenhouse to pick out some new plants to add to their garden.

If you’re new to gardening, you may want to start off with low-maintenance, robust plants that are easy to maintain without an expert-level of horticultural knowledge.

Before picking out you plants, here are a few mindful tips for the beginner gardener to help you get started:

Sunlight and shade

Put the right plants in the right place! Surprising to some, but not all plants love the sun. Be attentive to where you place your plants in your garden to ensure they’re in a spot optimal for their specific growing needs – some plants thrive in full sun conditions, while others do best in a mix of shade and daylight.

Soil

You’ll be tucking your plants into their garden bed, so it’s important to ensure they’re comfortable. The soil surrounding your home might not be ideal for growing certain types of plants. You can bring a soil sample to your local greenhouse for testing to determine whether or not it’s usable, and if new soil is required.

Water

Some plants are drought-resistant, while others require regular watering. Keep the specific water needs of each plant well documented so your hard work in the garden doesn’t go to waste.

Perennials versus annuals

Before adding any plants to your garden, it’s important to distinguish between varieties that are seasonal and those that stand the test of time. Annuals are the plants that join your garden party for just one season, while perennials are your trusty, long-term garden companions, returning year after year without replanting. Both are wonderful in their own way, adding their unique charm to your outdoor space.

Climate

It’s important to be aware of your surroundings and pick plants and trees that are best for the climate you live in. If you live in a region where temperatures dip below zero, you should also keep an eye on the frost report in your area at the beginning of spring and wait to start gardening until after the frost lifts.

Now that you’re familiar with some basic gardening know-how, here is a list of seven beginner-friendly plants to start with in your garden this year: 
 

Boxwoods are the perfect addition to any garden because they are incredibly resilient. They are drought-resistant, low-maintenance, evergreen shrubs that offer year-round greenery – perfect for the beginner gardener, and loved by even the most seasoned.

1. Boxwoods

Boxwoods are the perfect addition to any garden because they are incredibly resilient. They are drought-resistant, low-maintenance, evergreen shrubs that offer year-round greenery – perfect for the beginner gardener, and loved by even the most seasoned.

2. Hostas

Hostas are the go-to choice for beginner gardeners in Canada because they offer lush greenery while requiring minimal maintenance. They’re perfect to use for lawn borders, ground cover, or adding greenery throughout your property. Hostas are available in different sizes and colours. Place them in partial- to full-shaded areas of your garden – this is where they’ll thrive!

3. Black-eyed Susans

Black-eyed Susans add a beautiful pop of colour to your garden. To grow these blooms in abundance, don’t be afraid to cut them back to encourage abundant blooms — the more you prune, the more they’ll grow. Black-eyed Susans are known pollinators, perfect for attracting bumblebees and butterflies to your garden. These flowers are available in a few different colours, including the most popular variety – yellow! These flowers love the sun, so be sure to plant them in an area with full sun exposure.

4. Garden Phlox

Garden Phlox are available in a variety of colours and smell amazing. Hummingbirds and butterflies love these flowers. They bloom from mid-summer to late fall, and will blossom more vigorously in areas with full sun and ample air flow. Deadhead these pollinators and water them often to have them grow more plentifully.

5. Lavender

Lavender, known for its calming fragrance, is an excellent choice for beginner gardeners due to its resilience and easy upkeep. Lavender thrives in well-drained soil and full sunlight, and is drought-tolerant once established, making it a perfect flower for a beginner’s garden. Be sure to water lavender regularly and prune them lightly after flowering to encourage bushier growth.

6. Daylilies

Daylilies add beauty to your garden with their vibrant and long-lasting flowers. They’re great for beginner gardeners due to their resilience and adaptability. These hardy perennials thrive in various soil conditions and light levels. This makes them easy to grow in almost any garden. Show love to these plants with regular watering and deadheading, and they’ll flourish.

7. Peonies

Peonies are known for their fluffy fragrant blooms and are one of the most commonly used flowers in bridal bouquets. Lucky for the novice gardener who wants to add elegance to their home, these stunning stems are an excellent choice. Not only are they incredibly resilient, but these perennials are available in an abundance of colours.

Happy gardening!

📞 Your Next Step Starts Here—Contact Me Today!

Tara Kennedy
REALTOR® ABR, RENE, SRS
✨ Tara Kennedy Real Estate 🏘️
☎️ 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com
🇨🇦 Royal LePage ELITE West

Always Putting Your Best Interest First! 🌟

#TaraKennedyRealEstate #TaraKennedyRealtor #TricitiesRealEstate #CoquitlamRealtor #PortMoodyRealEstate #PortCoquitlamHomes #RoyalLePageEliteWest #BCRealtor #HouseHuntingBC #BuySellInvest #HomeSweetHome #DreamHomeFinder #RealEstateExpert #MoveToBC #RealtorSince2007 #TaraKennedyHomes #TricitiesRealtor #YourTricitiesRealtor #GreaterVancouverRealEstate #InvestInRealEstate #SellingHomes #BuyingHomes #LuxuryRealEstate #RoyalLePageRealtor #TaraKennedySellsHomes

Heat pump water pumps are an energy-efficient solution to gas and electric pumps that could save homeowners money.

urfinguss / Getty Images Plus

More home buyers than ever are choosing energy-efficient heat pump water heaters over fossil-fueled water heaters. In 2022, American homeowners installed over 4 million HPWHs(link is external), and sales of HPWHs increased by 26%. Sales of gas water heaters decreased by 17% for the same period. When homes switch from a standard electric or gas model to a HPWH, they can save as much as one ton of carbon emissions(link is external) each year.

Not only do HPWHs perform up to three times more efficiently than conventional systems, they also last longer and cost less to operate. With the current rebates, tax incentives and low-interest financing options available, now is the prime time for real estate professionals to get up to speed on water heater efficiency to better serve clients.

What should home buyers know before making the switch?

How Heat Pump Water Heaters Work

The HPWH is a highly efficient way to heat water as it transfers heat rather than creating it. The unit is around three times more energy efficient than standard electric or gas models.

HPWHs use electricity to extract heat from the surrounding air to warm water in a storage tank. A fan pulls in the surrounding air and blows it across evaporator coils filled with refrigerant. The warmed refrigerant is pumped through a compressor to increase pressure and temperature before traveling through condenser coils to transfer the built-up heat to the water. After cooling, the refrigerant returns to the evaporator coils and repeats the process.

Benefits of Heat Pump Water Heaters for Homeowners

HPWHs are a cleaner, safer, more efficient and affordable option to heat water. Because the process of transferring heat also draws moisture from the air, HPWHs offer additional dehumidification benefits if installed in a humid environment like a basement.

• Cleaner & safer: HPWHs eliminate the risk of occupant exposure to carbon monoxide and other indoor air pollutants produced by combustion and also produce fewer greenhouse gas emissions.

• Efficient: HPWHs are two to three times more efficient than gas or electric options. Effciency means less running time thanks to faster heating. As a result, HPWHs can cut your water heating costs by as much as 50%, depending on how much hot water you use and the type of heater being replaced.

• Affordable: Nationally, heating water is usually the second-largest household energy expense after space heating and cooling costs and can account for as much as 20%(link is external) of a home’s energy consumption. The average household spends approximately $400–$600 each year on water heating. Switching from a standard electric to a HPWH can cut that in half.

Some states offer rebates or other incentives to encourage your clients to upgrade to a more efficient option. In New York, for example, homeowners can save more than $3,000 between federal tax credits and utility rebates(link is external) with additional rebates coming later this year when Inflation Reduction Act Home Energy Rebates become available.

To learn more about tax credits, rebates and incentives in your market, visit your state or local government’s energy authority.

Installation and Maintenance Considerations

HPWHs are relatively simple to install without major disruptions to your home life. Water heaters are typically located in the basement or garage of a home, and the space must meet certain criteria:

• Maintains a temperature between 40°F and 90°F

• At least 500 cubic feet of air space around the water heater or a ducted air source

• Includes access to pipe condensate to a drain system

• Access to a 240-volt, 30-amp electrical circuit

For a typical single-family home, the tank will range in size from 50 to 80 gallons, and systems often include a backup heater. While you can find HPWHs sold at most large retailers, be sure to encourage clients to choose a professional installer who can recommend the best location for installation and size based on energy use needs for their homes. Professional installers will also provide any necessary plumbing or electrical needs for proper installation.

Like conventional water heaters, HPWHs require routine maintenance. Performing this maintenance or getting your HPWH serviced regularly can extend the water heater’s life and minimize loss of efficiency. Routine maintenance can include visual inspection for damage, draining once a year to avoid the buildup of sediment or checking the pressure relief valve and anode rod for functionality throughout the year. Alongside this routine maintenance, homeowners should be aware of a few HPWH-specific maintenance checks:

• Wash the filter: Homeowners should routinely check the air filters. Typically located at the top of the unit, air filters should be checked every few months or when a unit alerts them to the need for cleaning. Filters can be washed using mild detergent or soap. Make sure the filter is dry before placing it back in the water heater.

• Clean the condensate lines: It is important to clean the condensate drain annually to prevent any backup. To clean condensate drain lines, pour a cup of bleach into the access opening to ensure that no algae, mold, or mildew will form in the pipe throughout the year.

• Check the operations manual: Before performing any routine or HPWH-specific maintenance, make sure to consult the manufacturer’s operations manual for specific guidance and step-by-step instructions for your particular HPWH model.

Whether your clients are buying or selling, pay attention to the water heating system and consider whether it might be time for a replacement. If the water heater is more than 10 years old, has visible corrosion, or is leaking, it might be time for an upgrade. If a HPWH isn’t an option for the space, there are other energy-efficient options to consider, including electric storage water heaters, electric tankless water heaters, or solar water heaters.

📞 Your Next Step Starts Here—Contact Me Today!

Tara Kennedy
REALTOR® ABR, RENE, SRS
✨ Tara Kennedy Real Estate 🏘️
☎️ 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com
🇨🇦 Royal LePage ELITE West

Always Putting Your Best Interest First! 🌟

#TaraKennedyRealEstate #TaraKennedyRealtor #TricitiesRealEstate #CoquitlamRealtor #PortMoodyRealEstate #PortCoquitlamHomes #RoyalLePageEliteWest #BCRealtor #HouseHuntingBC #BuySellInvest #HomeSweetHome #DreamHomeFinder #RealEstateExpert #MoveToBC #RealtorSince2007 #TaraKennedyHomes #TricitiesRealtor #YourTricitiesRealtor #GreaterVancouverRealEstate #InvestInRealEstate #SellingHomes #BuyingHomes #LuxuryRealEstate #RoyalLePageRealtor #TaraKennedySellsHomes

The number of homes changing hands in Metro Vancouver decreased last month while the number of properties available to buy climbed in tandem. 

In May, the number of transactions recorded over the MLS dipped compared to typical trends for this time of year in Metro Vancouver, according to the most recent insights from Greater Vancouver REALTORS® (GVR). Residential sales hit 2,733 in May 2024, a 19.9% drop from the 3,411 sales the market saw in the same month in 2023. This total comes in 19.6% below the 10-year average for the month of May, which usually hits around 3,398 sales.

This slower pace of sales means the inventory of Vancouver homes for sale has been stacking up. Currently, there are over 13,000 homes actively listed on the MLS, leaving more options for buyers.

“The surprise in the May data is that sales have come in softer than what we’d typically expect to see at this point in the year, while the number of newly listed homes for sale is carrying some of the momentum seen in the April data,” said Andrew Lis, GVR’s director of economics and data analytics, in the board’s monthly release. “It’s a natural inclination to chalk these trends up to one factor or another, but what we’re seeing is a culmination of factors influencing buyer and seller decisions in the market right now. It’s everything from higher borrowing costs, to worries about the economy, to policy interventions imposed by various levels of government.”

New listings on the rise in May

There were 6,374 new listings for detached, attached, and apartment properties in May 2024, a 12.6% increase from the 5,661 new listings in May 2023, and a 7% bump from the 10-year average of 5,958.

Currently, the total number of properties listed on the MLS in Metro Vancouver is 13,600, a staggering 46.3% increase from May 2023, which had 9,293 listings. This number is also 19.9% higher than the 10-year seasonal average of 11,344.

“With market trends now tilting back toward more balanced conditions, as the number of new listings outpaces the number of sales, we should expect to see slower price growth over the coming months,” said Lis. “Up until recently, prices were climbing modestly across all market segments. But with rising inventory levels and softening demand, buyers who’ve been waiting for an opportunity might have more luck this summer, even if borrowing costs remain elevated.”

Sales-to-Active Listings Ratio hovers around 20%

The sales-to-active listings ratio for May 2024, sits at 20.8% across all property types. Here’s a breakdown by property type:

• Detached homes: 16.8%

• Attached homes: 25.1%

• Apartment properties: 22.5%

Home prices generally face downward pressure when the ratio dips below 12% for a sustained period of time. Conversely, when the ratio goes above 20% for several months, we often see upward pressure on home prices.

Home prices see slight increase

The MLS Home Price Index (HPI) composite benchmark price for all residential properties in Metro Vancouver is currently $1,212,000, a 2.3% increase from May 2023, and a slight bump (0.5%) from April 2024.

Here’s how the different property types are faring:

• Detached homes: Sales reached 846, an 18.9% decrease from May 2023. The benchmark price is now $2,062,600, up 5.9% from last year and 1.3% from April 2024.

• Apartment homes: Sales reached 1,338, down 22.7% from May 2023. The benchmark price is $776,200, a 2.2% increase from last year but a 0.3% decrease from April 2024.

• Attached homes: There were 523 sales, a 14% drop from May 2023. The benchmark price is $1,145,500, up 5.2% from last year and 0.9% from April 2024.

📞 Your Next Step Starts Here—Contact Me Today!

Tara Kennedy
REALTOR® ABR, RENE, SRS
✨ Tara Kennedy Real Estate 🏘️
☎️ 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com
🇨🇦 Royal LePage ELITE West

Always Putting Your Best Interest First! 🌟

#TaraKennedyRealEstate #TaraKennedyRealtor #TricitiesRealEstate #CoquitlamRealtor #PortMoodyRealEstate #PortCoquitlamHomes #RoyalLePageEliteWest #BCRealtor #HouseHuntingBC #BuySellInvest #HomeSweetHome #DreamHomeFinder #RealEstateExpert #MoveToBC #RealtorSince2007 #TaraKennedyHomes #TricitiesRealtor #YourTricitiesRealtor #GreaterVancouverRealEstate #InvestInRealEstate #SellingHomes #BuyingHomes #LuxuryRealEstate #RoyalLePageRealtor #TaraKennedySellsHomes

The cut translates to reduced borrowing costs, but analysts stress that the real impact of the cut will unfold gradually

In a move widely anticipated by economists, the Bank of Canada announced a 0.25 per cent interest rate cut Wednesday, and while the reduction is a step towards easing borrowing costs, industry experts caution that it will take time before any significant impact is felt in the housing market.

The decision to lower the benchmark interest rate to 4.75 per cent comes amid concerns about economic growth and inflation. While the cut translates to slightly reduced borrowing costs, potentially making financing for new construction projects more accessible, analysts stress that the real impact of the cut will unfold gradually.

“We don’t think lower rates will translate into a construction boom. Monetary easing will take time to stimulate projects currently on hold, and Canadian housing construction faces myriad structural challenges. These will likely limit our homebuilding and affordable housing ambitions for the next few years,” Desjardins said in its recent housing outlook.

“Interest rates don’t have an impact on the time it takes to build. It doesn’t have an impact on the approvals process and it doesn’t have an impact on any of the red tape that impacts builders,” said Karen Yolevski, chief operating officer of Royal LePage Real Estate Services Ltd. “So certainly a decrease in rates is welcomed news, but not a silver bullet that’s going to get housing built faster.”

Historical data supports this cautious outlook. Previous rate cuts have often had a delayed response in the real estate sector, as it takes time for lower borrowing costs to translate into increased developer confidence and construction activity. In the short term, developers may remain cautious, still grappling with high material costs, labour shortages, and regulatory hurdles.

“You have to have the zoning, you have to have the materials, and you have to have the labour, so building more homes is going to take time. I don’t think you’re going to see a significant change anytime soon. It’ll slowly increase,” Dream Unlimited Corp. chief executive Michael Cooper said.

However, Cooper explains that when the resale market is sluggish and houses are slow to move, it directly hampers the construction of new homes. “The initial step will be for people to absorb existing inventory, whether through resales or properties held by developers. This absorption is a crucial precursor to any significant increase in new housing construction activity,” he said.

Several other factors continue to exert pressure on the housing market. Stricter mortgage stress tests, introduced to ensure borrowers can withstand higher rates in the future, have indirectly affected the pace of new housing starts. Additionally, rising household debt levels and stagnant wage growth limit the financial capacity of many potential homebuyers, even with lower interest rates, which in turn affects developers’ decisions to start new projects.

“The stress test is still an impediment for some people. It can be a challenge when you’re getting tested at six or seven per cent on your mortgage rate –– those are heavy levels, and I think from a builder’s perspective, if the buying environment is challenging, that does weigh on you,” Bank of Montreal Canadian rates analyst Benjamin Reitzes said.

While the immediate effects of the rate cut might be muted, Reitzes says the long-term outlook offers more optimism.

“Builders are probably quite cognizant of the fact that supply on the resale market is starting to pick up and I’m sure that’ll catch some developers’ eyes to kick-start projects as rates go down.”

Reitzes explained that lower borrowing costs can spur increased demand for housing, as buyers become more confident and financially able. A rise in demand could ultimately stimulate housing starts, offering a much-needed boost to the construction industry. Nevertheless, patience is key.

“If you look at the broader picture for housing, given where prices are, and given where rates are, one of the two of them probably needed to fall today, and it was rates. Whether that’s enough to really balance the market and bring supply and demand back into balance –– we’ll have to wait and see.

The Bank of Canada decided to reduce its target for the overnight lending rate from 5% to 4.75%. The move was widely expected by financial markets and marked the Bank’s first rate reduction since the onset of the pandemic four years ago, bringing rates down to where they stood exactly one year ago.

In a scheduled announcement on Wednesday, June 5, 2024, the Bank noted Canada’s economy picked up in the first quarter of 2024 but still came in weaker than anticipated. While growth in consumer spending, business investment, and the housing market remained solid, the Bank once again made note of the fact that employment has been rising at a slower pace than working-age population growth.

The Bank continues to focus on elevated shelter costs as a significant contributor to inflation. However, it also noted that both headline and core measures of inflation are showing signs of downward momentum and are close to historical averages.

With inflation now back in the Bank’s preferred range of 1-3% and increased confidence that inflation continues to move toward its 2% target, the Bank stated, “monetary policy no longer needs to be as restrictive” in its decision to lower the policy rate by 25 basis points.

The Bank of Canada’s will make its next scheduled interest rate announcement on July 24, 2024, as well as publish its full outlook for the economy and inflation in its next Monetary Policy Report.

📞 Your Next Step Starts Here—Contact Me Today!

Tara Kennedy
REALTOR® ABR, RENE, SRS
✨ Tara Kennedy Real Estate 🏘️
☎️ 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com
🇨🇦 Royal LePage ELITE West

Always Putting Your Best Interest First! 🌟

INTRODUCTION

In a widely anticipated rate announcement today, the Bank of Canada (BoC) has decided to drop the overnight lending rate by 0.25 percent to 4.75 percent. This comes as a welcome relief for many consumers, economists and industry professionals, as Canadians have been weighed down by a high interest for over two years.

The CPI (Consumer Price Index) for Inflation has been steadily decreasing since August 2023 from four percent, coming down over half from the high of 8.1 percent in June 2022. This steady decrease to April’s value of 2.7 percent is a welcome sign that the economy has softened back to manageable levels and inflation has eased to the target band of one to three percent for the Central Bank. This morning’s rate decrease mirrors this sentiment that the Bank of Canada is satisfied with the ease in inflation. That being said, it’s likely that another rate cut might not happen until later in the year as they do not want to be too premature and lead us back into high inflation territory.

How will this impact mortgages and the housing market?

So, what does this mean for consumers? With the rate cut, individuals on variable/adjustable rate mortgages will see a bit of relief in their cost of borrowing. Mortgagors on adjustable rate mortgages should see a payment decrease , whereas borrowers on static variable mortgages will likely not see any change on their payments if they have yet to hit their trigger point on their mortgage. The trigger point of a mortgage is the point at which the monthly payments do not cover the interest of the mortgage anymore and the outstanding balance exceeds a certain percentage of the original purchase price, so the lender would force the borrower to either fix their mortgage into a fixed rate mortgage or pre-pay a lump sum to keep their amortization in line. Many borrowers saw their mortgage hit this trigger point in 2023, so this rate cut would be a welcome change for many individuals that saw their interest rate go up by 4.5 percent or more in the past two years.

Fixed rate mortgages will continue to track the bond market, which moves independent of the prime rate, but decreased borrowing costs will likely offer relief for the fixed rate soon after, as well. With lower rates on the horizon, bond investments become more attractive in the short term which in turn push up the price of bonds and subsequently decrease the yields. Fixed rate mortgages move very closely to government bonds of the same term, so the lower yields on bonds inevitably lead to lower mortgage rates for consumers. We expect this steady decline to continue into Q3 and Q4 of 2024, with rates hopefully settling into the low 4 percent to high 3 percent range, which is consistent with interest rates pre-pandemic.

Consumer confidence in the market has been high, with many waiting on the sidelines to jump once the central bank signals the first cut. With today’s announcement, we expect more buyers to enter the market, which will drive up competition and home prices. We saw an uptick of 4 percent in buyer activity and the Composite HPI (Home Price Index) from January to April already, so lower rates will inevitably increase this value even further. If Q1 2024 was any indication of the real estate market for the rest of the year, we believe a nine percent increase in price by the end of 2024 is not out of the question, compared to the same period last year, based on data from Royal LePage.

Advice for Homeseekers following the rate cut.

For individuals looking to purchase within the next four to six months, I’d highly recommend starting a pre-approval sooner rather than later to ensure you solidify your budget; the market moves quickly so the best thing to do is to be prepared! Have the down payment ready, ensure your mortgage broker or advisor has all the necessary documents, and keep an open channel of communication with your realtor about realistic closing timelines. We’ve already started to see offers go in without subject to financing or other waivers, so we may see more of those as rates drop in the following weeks.

For borrowers who are looking to renew in the next four months, I’d also recommend reaching out to your mortgage advisor to ensure they are securing the best rate for you ahead of renewal. The banks typically do not offer the best renewal rate upfront, so it’s always a good idea to see what other options are available in the market. If rates drop prior to renewal, your advisor can always float the rate down to the new, lower rate, so there’s no disadvantage of starting earlier.

One last note to consider: consumers have been in a high-rate environment for about two years now and we’ve seen prices come down considerably from highs of 2022 due to increased borrowing costs. If you compare the aggregate HPI for Canada over all property types, prices have dropped about 14 percent, reflecting about a $120,000 drop in the benchmark price. Borrowing costs have gone up about 4.5 percent in the same time span, so buyers in this market are still better off than individuals who bought at the peak of 2022 at low rates—a rough savings of around 5 percent or about $43,000 over the past two years, based on the benchmark price. This understandably comes with caveats based on property location, price and whether individuals took a fixed rate mortgage vs a variable rate, but the math holds true when comparing the prime rate over all property types in Canada. With the end in sight, there hasn’t been a better time to buy in the past two years than right now, before market demand catches up with home prices.

As always, our suggestion remains the same to all our clients: invest with intention. We never suggest buyers purchase a property for the sake of a “quick flip” or to try and time the market. If the property fulfills your needs, whether it be for a primary residence or for investment, and the payments are manageable for your long-term goals, purchasing real estate has always been the leading path—albeit not the quickest—towards lasting wealth among Canadian families.

📞 Your Next Step Starts Here—Contact Me Today!

Tara Kennedy
REALTOR® ABR, RENE, SRS
✨ Tara Kennedy Real Estate 🏘️
☎️ 236-992-8989
🌐 TaraKennedy.ca
📧 TaraKennedySells@gmail.com
🇨🇦 Royal LePage ELITE West

Always Putting Your Best Interest First! 🌟

Down Payment Grants

The standard 20% down payment isn’t always feasible for first-time home buyers, turning them off from the idea of purchasing a home altogether. If this is the case for your client, investigate available down payment assistance options.

 “[Many] lenders have grant programs or down-payment assistance—and in certain cases zero down even for a non-veteran—for first-time buyers who are strapped for cash but desire to own a home,” says Tia Coates, a real estate professional based in Phoenix, Arizona. “There are also zero-down loans for USDA and VA loans for veterans.”

 She says that some grant programs vary state-by-state, but that federal programs from agencies like Fannie Mae and Freddie Mac are available across the country. In some instances, grants of $5,000 or more are available. 

Group Economics

Amid ongoing housing supply challenges and rising prices, many first-time homebuyers are turning to joint ventures or “group economics” in lieu of a solo purchase. In real estate, starting somewhere is crucial, and collaborating as a group often enables greater progress versus acting alone.

 “Typically involving two to four individuals, this strategy entails pooling financial resources and collective purchasing power to acquire property,” says Isaiah Hazward, director of sales for the Coalition Properties Group in Washington, D.C. “By combining their resources, individuals who may lack sufficient funds individually can achieve homeownership collectively.”

Along with getting into a home, this strategy reduces overall financial risk since costs and ongoing maintenance are shared equally among participants. Coates adds that an alternative to this is to utilize a co-signer—such as a parent with well-established credit—to help offset the closing costs and down payment.

NACA Purchase Program

The Neighborhood Assistance Corporation of America (NACA) is a non-profit organization committed to “closing the racial wealth disparity gap through character-based lending.” The nationwide program serves as an economical solution for low-to-moderate income earners buying for the first time.

 “With a proven track record of over $20 billion in mortgage commitments, NACA offers fixed-rate mortgages featuring below-market interest rates, waived down payment and closing costs, and no mortgage insurance, which often creates an increase in purchasing power when compared to traditional loans with mortgage insurance requirements,” explains Hazward. 

Additionally, NACA provides complimentary credit counseling services with no minimum credit requirements for purchases.

Unconventional Purchases

The current housing market guarantees some pretty stiff competition, particularly for first-time home buyers who may not have as much financial leverage compared to those coming in hot with full cash offers. In this case, it may make sense to look into less conventional avenues.

The first option is to consider bank-owned properties in your search, says Tezeta Roro, a real estate professional based in New Jersey. “While the process, decision makers, and paperwork involved is often different from buying from a private owner, it can be a good option for first time homebuyers who may have a hard time competing in the current market due to low down payment,” she says.

Another option is to consider buying from a family member or friend you know. This helps eliminate some competition and can serve as a win-win since it maintains generational wealth. To that end, Roro adds that those looking to downsize can potentially leverage the 1031 exchange tax code to postpone capital gains taxes and buy a property that can be written into a will to be gifted to the adult child, making it a tax-free gift upon death.

Negotiated Seller Concessions

When people talk about what they can afford, they often have a monthly mortgage payment in mind. Coates says that negotiating seller concessions is vitally important to saving your client hundreds of dollars each month. 

“In some areas, we still see sellers willing to pay closing costs for buyers, which helps offset how much the buyer needs to bring to the table,” Coates says. Other examples of seller concessions include covering some maintenance or home repair costs prior to closing, contributing to the down payment, including furniture or appliances in the sale, or buying down the interest rate.

If your clients are feeling the pinch of soaring home prices and inflation, consider whether any of these solutions can relieve financial tension and get them in their dream home sooner than they imagined.

They could save “hundreds of dollars a month” by doing this one simple task, a housing expert says.

© South_agency - E+/Getty Images

As mortgage rates once again move above 7% this week, more home buyers may be desperate for savings to better afford homeownership. But housing experts say a common mistake could be costing them thousands of dollars in potential savings: failing to shop around for their mortgages.

Slightly more than half—54%—of recent buyers who recently took out a mortgage say they only gathered one quote from a loan office. But for those who did take the extra effort to shop around, they say their lowest offer didn’t come just from the first lender they contacted, according to a new survey from LendingTree.

“The exact amount that a borrower can save by shopping around for a mortgage will vary based on factors such as the rates they’re offered and the size of their loan,” says Jacob Channel, LendingTree’s senior economist. “That said, it’s not out of the realm of possibility for someone who received multiple offers and then picked the one with the lowest rate to save hundreds of dollars a month, thousands of dollars a year and tens, if not hundreds, of thousands of dollars over the lifetime of their loan.”

Indeed, a separate study from Freddie Mac found that borrowers who received multiple lender rate quotes saved between $600 and $1,200 annually on their home loans. A different survey from LendingTree put the savings at potentially $84,000 over the lifetime of a loan when gathering multiple quotes, or even possibly savings of $234 a month.

Yet, only 22% of recent home buyers say they gathered offers from two lenders, while 14% got offers from three lenders. Only 2% received offers from four lenders, according to the LendingTree survey.

Buyers who gathered just one quote said they mostly did so because they felt confident they received the best rate after contacting just one lender, or they just went with the lender their real estate agent recommended. They also said they felt in a rush to lock in financing due to the competitive housing market, the LendingTree survey finds. Fifty-four percent of buyers say they received their current mortgage from a lender whom they use for other services like checking accounts, auto loans or credit cards.

Older generations tend to be the most likely to accept the first mortgage offer without shopping around (72% of baby boomers, ages 60 to 78) versus 59% of Generation X (ages 44 to 59) and 38% of millennials (ages 28 to 43), according to the survey.

Better Shop Around

Calling multiple lenders may seem daunting, but could be worth it for potential savings—particularly as home buyers find themselves at the top of their budgets. Experts recommend gathering quotes from multiple types of lenders, like banks, mortgage brokers and mortgage banks. Also, The Mortgage Reports recommends gathering quotes from at least three to five lenders, and comparing interest rates and lender fees to secure the best deal.