As of December 1st, Ontario's real estate landscape is undergoing a transformation through the implementation of Phase Two of the Trust in Real Estate Services Act (TRESA), replacing the previous REBBA. This signals a significant shift in the conduct of real estate transactions, impacting almost 100,000 realtors in Ontario. At The Olivera Group, we are dedicated to navigating you through these changes, ensuring a seamless transition while upholding the excellence of our services.

HOW THIS IMPACTS YOU

Disclosures
There will be a heightened emphasis on disclosures, especially when engaging in Multiple Representation scenarios.

Agency
The option for a customer relationship is no longer permissible. If someone prefers not to receive services from an agent, they have the choice to represent themselves.

OUR PLEDGE TO YOU

At The Olivera Group, your needs and aspirations have always been our top priority. These legislative changes provide us with an opportunity to reinforce our commitment to your success in the real estate market. Our team is extensively trained and continuously updated on these regulations to provide you with the most precise and effective guidance.

LOOKING AHEAD

The real estate industry is dynamic, and these changes are crucial for its growth and integrity. As these new regulations come into effect, we anticipate a period of adjustment. However, with our experienced team and dedication to staying ahead of industry developments, we are well-prepared to navigate these changes.

With The Olivera Group, you can confidently embark on your real estate journey, secure in the knowledge that you will receive professional guidance and support at every stage. Our objective remains unwavering: to assist you in achieving your real estate aspirations with trust, transparency, and unparalleled expertise.

Together, let's embrace these changes and continue building a thriving future in real estate.

Find out more about TRESA here: https://www.orea.com/TRESA

Read the RECO information guide here: TRESA GUIDE

Since the peak in 2022, Toronto's real estate market has encountered a period of adjustment. Notable developments during this timeframe include:

1. A decline in property values, followed by a stabilization leading to a lateral market movement, in line with typical seasonal trends.
2. A reduction in property transactions, intensifying the competitive landscape for real estate professionals.
3. An increase in property listings, empowering buyers with greater negotiating leverage.
4. A rise in distressed sellers, evidenced by the prevalence of power of sale listings.

The Greater Toronto Area (GTA) underwent significant changes in its housing landscape in 2023, particularly within the rental sector, due to persistent affordability challenges. Reduced home sales characterized the year, primarily attributed to elevated mortgage rates and stringent qualification criteria.

Highlights from the January release by the Toronto Regional Real Estate Board (TRREB) include:

1. A 12.1% decrease in home sales compared to 2022, with 65,982 sales reported.
2. The average selling price for all types of homes experienced a 5.4% decline from the previous year, settling at $1,126,604.
3. Increased demand for rental properties was observed, influenced by record levels of immigration.

In 2023, the GTA recorded fewer than 70,000 home sales, a figure reminiscent of 2008 when the realtor population was significantly smaller, resulting in a substantial reduction in transactions per realtor. Jennifer Pearce, TRREB's President, remains optimistic about 2024, anticipating a decline in borrowing costs and a resilient economic outlook, potentially fostering a rebound in home sales.

While concrete evidence supporting the economy's resilience is currently elusive, the decline in bond yields suggests a forthcoming reduction in borrowing costs, a typical precursor to an economic downturn. This challenges the assumption of a robust economic performance in the upcoming year.

There is a possibility that the months of December and January mark the nadir in transaction volume (not price) within this housing cycle, reflecting the lowest activity months at the conclusion of the least active year in decades. Consequently, a resurgence in home sales appears plausible.

While real estate professionals may see improved prospects as transactional activity rebounds, the outlook for sellers remains uncertain. The trajectory of housing prices appears contingent upon housing affordability, a multifaceted dynamic encompassing house prices, interest rates, income levels, and job stability. In essence, the resurgence in home purchases may only occur when affordability aligns, and current indicators suggest this milestone is yet to be reached.