Daily Market Update

Oliver says there’s no housing bubble
Some people will never be convinced, but yesterday federal finance minster Joe Oliver again repeated the government’s opinion: “We don’t think there’s a bubble.” He said that the CMHC and the Organization for Economic Cooperation and Development agree. Oliver said the government is monitoring the situation regarding the housing market and levels of personal debt, especially with interest rates trending lower, but they do not see a major concern currently and believe that people are not buying homes they can’t afford. The finance minister was also asked for his opinion on the banks reducing their lending rates by less than that of the central bank, but he would only say that it is a “private sector decision.”
Analysts confident of another rate cut in March
Disappointing data from Statistics Canada that show a weaker labour market in 2014 than previously thought has increased anticipation of another cut in interest rates. With the impact of lower oil prices on inflation and concern over the global economy there has already been talk of further reductions, with economists, including those from TD Bank, expecting the BoC to cut the rate again when they meet in March.
Realtors adapting to ‘disruptive’ technology
Real estate agents are reacting to the new kids on the block that are taking a bite out of their business. Websites and apps that enable vendors to market their homes without a Realtor have been springing up along with other ‘disrupters’ that want to reinvent the realty market. So what is the future for real estate agents? While the new technology may offer a solution for some, many people want the personal service that using an agent provides. A report from The Huffington Post says that some realtors are offering cashback to those using their services -- not to sellers but to buyers -- but one Toronto agent, Andrew le Fleur, says that the practice should ring warning bells for consumers. “You’re dealing with somebody who can’t compete at the same level as a top producer, you’re not going to get the best result at the end of the day in most cases," he said. However, Dan Chan, whose online business offers up to 80 per cent of his sellers’ commission to buyers, says that he’s not trying to compete with traditional agents and is offering an alternative to those what want a different way to do things. Read the full story.

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  • by lou 2015-01-29 7:18:35 AM

    My doctor, lawyer, auto mechanic, secretary nor anyone else will reduce their compensation for a job well done.... so why should I?

  • by JO 2015-01-29 8:26:53 AM

    Real Estate should revert back to being a "full time" business like it used to be. I don't think these "realtors" would be so quick to give their paychecks away if they had to depend on real estate as their sole income. Wayyyyy to many part time people with a license !!!

  • by RH 2015-01-29 8:59:41 AM

    Personal interaction and reading a buyer or seller will never be replaced by a click of a button. Real Estate is an emotional business and one of the biggest financial decisions of their life. The effect will be for years to come on them and their family. The right neighbourhood, the right schools , sports activities and what really fits a family or individual are important factors when buying a property. You also need to know when you are selling a property what you need to do to get top dollar and where should it be priced to attract the most buyers. If you are buying a condo what is the reputation and how well are the developers known for delivering on their promises. What is the historic appreciation value that you can expect on a real estate investment? Full time realtors deal with these properties everyday and know the trend week by week. We all work hard for our money and we would not think of investing in the stock market without knowing something about the company. Interview three realtors get the information , see if it all matches and that pick the one that you feel you can work with the best and will give you the most service for your money. If you do this you will get a better price for your house and as a buyer you will get someone that will negotiate hard for you. Buyers it actually doesn't cost you anything to deal with a full time realtor and the benefits to you are numerous.

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