Jamie Henry
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A new study says that we will need another 4.5 million homes over the next three decades. The report from Urban Futures points to population growth and increasing life expectancy and shows a marked departure from the predictions that had historically been reported. The generation that followed the baby boomers was smaller in number, leading to forecasts that there would be a meltdown in the housing market as the boomers vacated their homes. However growing families and strong immigration has changed that. Urban Futures says there have been 2.2 million extra occupied homes since 2000, or around 185,000 per year on average and with a large number of seniors living longer and being able to stay in their homes for longer, this figure is edging higher. The study predicts that 82 per cent of those in homes today will still be alive in 2033 and 73 per cent by 2041. With net migration around 1 million it’s easy to see how the figures stack up.

Read the full report.

Copyright © 2014 Key Media Pty Ltd

Olivia D’Orazio
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Housing starts across Canada remained flat year over year in November, although seasonally-adjusted numbers point to growing momentum in British Columbia and Quebec as developers ramp up to meet immigration demands.
 
“The trend essentially held steady for a third consecutive month in November,” said Bob Dugan, CMHC’s chief economist, in releasing November numbers Monday. “This is in line with our expectations for 2014, of a stable national picture with new home building concentrated in multiple starts, particularly in Quebec, British Columbia and Ontario.”
 
Seasonally adjusted starts in November climbed 6.5 per cent month-over-month to 195,620 units. More than half of those starts were multi-unit properties in urban centres, led largely by Ontario and Quebec, though British Columbia posted the largest gains – 26.7 per cent – from October.
 
It’s important to note, say analysts, that starts were flat from the year-ago period.
 
While reports suggested overbuilding would become a problem for Canada’s major urban centres, CMHC said more housing is needed to fill the demand created by healthy immigration.
 
“Ask any real estate developer in any of Canada’s major cities about the risk of overbuilding, and the first line of defence would be immigration and its critical role in supporting demand,” said Benjamin Tal, CIBC’s deputy chief economist. “It turns out that, at least for now, this claim is more valid than widely believed.”
 
New immigrants account for 70 per cent of the increase in Canada’s population. Half of these new immigrants are aged between 25 and 44, representing the country’s economic engine, according to CMHC’s 2014 Canadian Housing Observer.

Copyright © 2014 Key Media Pty Ltd

Olivia D’Orazio
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The widespread use of technology is effectively pushing agents out of the equation, say industry players arguing clients are increasingly finding their own dream home.
 
“The role of the Realtor is definitely changing,” says Carl Langschmidt, the founder of MrLoft.ca, Condos.ca and Property.ca. “It’s not about finding a home and educating [clients] on the prices. When it comes to selling, you’re selling your marketing skills and your expertise in negotiating. They know the price of their property, they saw what the house down the street sold for.”
 
In 2001, Langschmidt says, eight per cent of buyers found their own home. That number jumped to 42 per cent last year.
 
“My clients have a ton of information coming to the table,” says Ricky Chadha, an agent in Toronto. “They’ve done all their research, they have access to all the information, so they’re very well-prepared. It makes it more important for agents to be equipped with that knowledge as well.”
 
“Ten or 20 years ago, the role of the agent was to educate your clients,” Langschmidt. “We were more the gatekeepers of the information, but now buyers are educating themselves.”
 
That shift in the value proposition of an agent means sales reps need to work even harder to develop a personal relationship with clients. Older agents, though, who have built a business based on referrals have seemingly slipped through the digital world, and escaped unscathed on the other side.
 
“I think seasoned older agents typically have a very large network and I’m surprised at those agents who have very little online presence but who have large numbers,” Chadha says. “If you’re a younger agent, though, it’s imperative that you’re online.”

Copyright © 2014 Key Media Pty Ltd

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In what will surely become a landmark move, the Québec Federation of Real Estate Boards (QFREB) has filed an application for authorization to institute a class action suit against a major for-sale-by-owner player in the province.
 
The proposed lawsuit accuses for sale by owner (FSBO) company DuProprio of “systematically engaging in deceptive advertising campaigns for years, misleading Québec consumers about the so-called savings associated with DuProprio’s services, and about the supposed advantages of its real estate services compared to those of brokers,” the QFREB said in a press release this morning.
 
The board conglomerate, which represents the province’s 12 real estate boards and 13,000 real estate professionals, says DuProprio explicitly promises its clients they’ll incur less financial strain by using its services as opposed to paying a real estate agent’s commission. The QFREB says that statement fails to consider the various real estate commission structures available to buyers and sellers.
 
Further, the QFREB asserts DuProprio slanders the industry by claiming agents do not protect consumers from the perils of purchasing real estate. Again, the FSBO company fails to consider the insurance programs offered by many brokerages for the purpose of consumer protection, the federation argues.
 
“In Québec, the legislator has ruled that real estate brokers should have received professional training and hold a licence issued by the OACIQ,” says Éric Vallières, a lawyer with McMillian, the Montreal firm representing the QFREB. “They are also subject to strict requirements and high standards of service.”
 
The fight against FSBO models is prevalent across the country, leading to advertising campaigns on both sides of the argument. Agents in the REP forum, however, have been pushing back against companies like DuProprio and Property Guys, arguing an agent’s services go well beyond an MLS post.
 
“If you get an experienced agent who knows how to negotiate, who spends money on advertising, who can do the open houses, who ensures they have a legitimate buyer, then you’re way better off than selling by owner,” Janette Graf-King, a real estate agent with Re/Max, says. “You get what you pay for.”

Copyright © 2014 Key Media Pty Ltd

BCREA
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 The BCREA Commercial Leading Indicator (CLI) rose 1.4 index points to a record high of 118.4, surpassing the previous high of 117.1 set in the second quarter of 2014.

The CLI has now advanced for seven consecutive quarters. That trend signals significant strength in the economic environment underlying the commercial real estate market. A rising trend in the CLI generally points to growth in investment, leasing and other commercial real estate activity two to four quarters ahead. Given the current trend, we would expect growth in the commercial real estate market to continue for the remainder of 2014 and the first half of 2015.

The third quarter marked the first time in over a year that the economic, employment and financial components of the CLI all contributed positively to gains in the index. 

 The BCREA Commercial Leading Indicator (CLI) rose 1.4 index points to a record high of 118.4, surpassing the previous high of 117.1 set in the second quarter of 2014.

The CLI has now advanced for seven consecutive quarters. That trend signals significant strength in the economic environment underlying the commercial real estate market. A rising trend in the CLI generally points to growth in investment, leasing and other commercial real estate activity two to four quarters ahead. Given the current trend, we would expect growth in the commercial real estate market to continue for the remainder of 2014 and the first half of 2015.

The third quarter marked the first time in over a year that the economic, employment and financial components of the CLI all contributed positively to gains in the index. 

 In particular, a surge in office employment and a fourth consecutive increase in average quarterly manufacturing employment pushed the employment component of the index up sharply. In addition, the economic activity component of the CLI continues to trend higher. A rebounding US economy has helped boost shipments of manufactured goods and resurgent spending by BC households has driven retail sales growth to its strongest showing since 2007.

Financial conditions, as measured by the CLI’s financial component, remain positive for commercial real estate activity. The TSX Canadian REIT index finished the third quarter higher as investors continued to look for attractive yields while risk spreads on corporate borrowing remained low and stable. 

Copyright British Columbia Real Estate Association

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According to a report from the Canadian Real Estate Association, the average price of a home in October topped off at $419,699, however the latest report from RBC indicates that home ownership is slightly more affordable than it was last quarter. Sadly, or not, the RBC report considers markets outside of Toronto and Vancouver. The Huffington Post complied on list of properties realtors, investors and homebuyers may be looking for.

For all the emotions brought out by the housing bubble/no housing bubble debate, it’s almost comforting to hear there are places in Canada that have two-storey houses on the market for under $300,000.

Though when we do hear about those deals, the first reaction is often skepticism.

Data from the Canadian Real Estate Association pegged the price of an average Canadian house in October at $419,699, another all-time high. But a recent report by RBC concluded ownership is slightly more affordable than it was in the last quarter.

But that’s only if buyers consider markets outside of Toronto and Vancouver – two cities where affordability remains a chief complaint among residents.

So, among the under-$300,000 deals we managed to find:

There’s a heritage two-storey house in Winnipeg with its original hardwood flooring, a renovated kitchen, fireplace, and large porch out front – for $299,900. Compare that with a bright one-bedroom 752 sq.-ft. apartment in Victoria – for $290,000.

Situational preference is, of course, subjective. The two cities have their own draws, issues, and different climates. A big, beautiful home in a city nicknamed “Winterpeg” or a garden-level suite in an area of the country known as the “city of gardens” … to each their own.

Frank O’Brien
Other

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Inside a $750,000 Vancouver ‘starter home’

Other

If you’re looking to sell a home in Vancouver, it may be wise for your clients to know they’ll need at least a $1 million to close the deal. According to data from the Canadian Real Estate Association, Greater Vancouver was among Canadian cities to post the biggest gains in home prices year over year, up 6.03 per cent for the month of October. The average price for a home in the city is

Anyone hoping to get into the Vancouver housing market by finding the cheapest home in the city still needs seven figures to close the deal.

An effort to find the cheapest detached home for sale in Vancouver turned up a mere six listings for homes less than $700,000.

And because the homes could use a lot of work, estimated $250,000 renovation costs could push the price of entry past $1 million.

A two-bedroom home, located near Victoria and Hastings streets in East Vancouver, was listed for $699,000. Its cramped, 500-square foot main floor includes a dated kitchen with a bathroom right off the eating area.

Crammed into the 300 square-feet of space on the top floor are two bedrooms, a tiny bathroom and no closet space.

The basement is unfinished.

The owners received four offers for the home, which ultimately sold for $757,000.

According to the latest statistics from the Canadian Real Estate Association, Greater Vancouver was among the cities to post the biggest gains in home prices year over year, up 6.03 per cent for the month of October.

The average price for a home in the city is $819,336, according to the October statistics.

© 2014 Bell Media All rights reserved..

CREA
Other

At the annual REALTORS® Conference & Expo, a National Association of REALTORS® event held earlier this month, CREA and more than 500 of its members had the pleasure of participating and meeting with REALTORS® from all over the globe.

Whether it was REALTORS® from the US with clients considering buying Canadian real estate, or real estate agents from places like Ecuador seeing an increase in vacation properties being purchased by Canadians, the takeaway from the conference was clear: the world is open for business for REALTORS® in Canada.

Our member research also supports this fact, revealing that transnational activities are becoming a bigger part of our members’ business:

• 31.4% of REALTORS® in Canada have worked with at least one international buyer during the past 12 months.
• In 2014, 5% (or 1.5M monthly) of all visits to REALTOR.ca are coming from outside Canada, compared to 4% in 2013.
• Countries outside the top 9 REALTOR.ca international traffic sources have increased from 30% in 2013 to 47% in 2014 of all international traffic.

From an outbound perspective — Canadian consumers buying outside Canada — there is also a wealth of opportunities for CREA members to participate in these transactions. Looking at the US alone, Canadians purchased properties estimated at $13.8 billion in value between March 2013-2014.

The opportunities are there for REALTORS® in Canada…but where and how to start? Here are seven things you may not know about available resources for CREA members:

Get educated on transnational real estate

1. 1. The Transnational Referral Certification Course (TRC) – a great intro course, and completely available online. It was designed to help increase international business opportunities for brokers and agents interested in making and receiving referrals for foreign buyers and sellers.
2. 2. The Certified International Property Specialist (CIPS) designation – provided by the National Association of REALTORS®, it is a more comprehensive program and provides a designation, but does require a greater time commitment. The designation can be completed online, in classroom, or a combination of both. It also provides a network of CIPS designees to help collaborate globally once you have the designation.

Market and get listed globally

1. 3. Remember that the world is coming to REALTOR.ca. International buyers expect to see pictures, video and information of your property and the surrounding community as part of your listing. The more that you help consumers visualize/imagine what owning that property would be like, the more attention it will receive from buyers far away.
2. 4. Market your listings in 19 languages with one click. As a member of CREA, your basic listings that appear on REALTOR.ca can also be displayed for free on WorldProperties.com. If you are a user of DDF® Module 3, you are just one click away from making this happen. Just look for Worldproperties.com under the list of third party destinations, or call CREA Member Support at 1-888-237-7945.

Collaborate with professionals globally

1. 5. Understand the market and industry practices of your prospects – before promoting your services. WorldProperties.com is an excellent resource that provides overview profiles on countries, economic and market conditions, purchasing and financing details as well as business and industry information. View country market information.
2. 6. Take a look at your profile at WorldProperties.com. As a CREA member, you have a basic online profile for free in the ProxioPro platform (which is like a LinkedIn for real estate agents across the globe), and this also makes you visible to consumers on WorldProperties.com.  You also have the option to upgrade your account for more resources through the platform if you like.
3. 7. Use the Transnational Referral Contract in WEBForms® – CREA’s most popular member service was recently updated to include quick access to the Transnational Referral Contract (a form created by ICREA),  which facilitates the process of collaborating with agents from other countries.

Copyright © 2014 Canadian Real Estate Association. All rights reserved.