Spotlight: The truth about REALTORS®: The side of real estate you don't see - OrilliaMatters | Canada News Media
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Spotlight: The truth about REALTORS®: The side of real estate you don't see – OrilliaMatters

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The public’s perception of agents and the truth about agents can be vastly different, says REALTOR® Kaleb Streeter.

Public perception today seems to be that REALTORS® are wildly successful, making money hand over fist right now. People are interpreting the current high listing prices as real estate agents making a lot of easy cash.

“The reality is that list prices are only this high because there are so few homes for sale,” says Streeter. “When you have that few homes, it takes all the current buyers on the market and it forces them to bid on the same properties.”

If, for example, there are ten offers on a house, two things happen, he explains. One, that house gets sold for a large amount over asking because there were so many offers on the table. Two, that means nine agents aren’t getting business and nine families who are not getting a house.

“When the public perceives a high sales price as ‘Wow, REALTORS® are making a killing right now. It’s a good time to be a real estate agent,’ in fact, that’s only 10% true. Only one in ten has been successful. It’s hard to retire off one listing,” he says.

The perception may be that real estate agents are severely underworked, overpaid and making a killing, but the reality is that many agents gave up their licenses last year in Orillia. Some are giving up because of this market; others have been forced into early retirement.

Streeter also worries about the entire market of buyers who have been ostracized because of pricing. “When you see a house listed for $599K and you know it’s going to sell for $800K or more, you get people thinking it’s the REALTORS® who are greedy. But it’s the buyers who actually choose the price. REALTORS® write the offers but they don’t pick the price; they also don’t have control over how many offers there are going to be or what somebody may be willing to pay for a place.”

This super-competitive market, which started in June 2020, is tough on them too.

“We’re hopeful it turns and that this is just a blip on the radar,” says Streeter. “We don’t want it this way either. We’d be doing a lot more business—and more comfortable business—if things weren’t out of control like this.”

It’s not uncommon for REALTORS® to receive threatening calls, for staff to be intimidated or brought to tears. What used to be a rare or occasional occurrence has unfortunately become more commonplace since the start of the pandemic. The problem is a little bit situational, definitely reflective of this unique moment in time. There’s a lot of distrust.

Some feel like they have a really good handle on how real estate works and are challenged by the current conditions. They may have already bought and sold four or five times in their lives. “But the truth is that the market changes by the month,” says Streeter. “And unless you’ve bought and sold in the last 30 days, your relevance decreases big time. That doesn’t only apply to clients; that also applies to your REALTOR®.”

Buyers often accuse sellers of being greedy, but are they? If a seller lists their home for $899K and a buyer comes along with an offer for $1.2M with no conditions—and the seller isn’t signing anything back for more money—that’s just the price they’re getting. There’s nothing nefarious in the mix.

To search hundreds of homes locally, check out the Streeter Team’s listings or call 705-323-9212.

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Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

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TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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Homelessness: Tiny home village to open next week in Halifax suburb

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HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

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Here are some facts about British Columbia’s housing market

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Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

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