Archive for August, 2018

Tips for Buying a Home Under Probate

Tuesday, August 28th, 2018

You can get a great deal if a home is part of an estate

Leo Wilk
REW

You can get a great deal if a home is part of an estate – but there are particular conditions you should include in your offer

First, what is probate?

Probate, in short, is the court procedure for two things:

  • Official approval of the will by the court as the valid last will of the deceased; and
  • Appointment of the person (or persons) who will act as the executor of the deceased’s estate.

Essentially, it is the court process that gives the executor (or executrix) the authority to act on behalf of the deceased.

Special Subjects in Your Offer

In probate real estate purchases, because reaching probate does take some time, you can be hit with delays in the purchasing process.

When you make an offer on a home or condo under probate, you will have all your usual subjects as a buyer (inspection, financing, and so on). However, you must also have a subject for the seller that reads:

“Subject to the Seller receiving the following by _   (date)__:

“(1) a copy of a grant of probate or letters of administration that allow the Property to be sold; and

“(2) assurance that everyone entitled to claim under the Wills, Estates and Succession Act has waived or released their claims against the Property. This condition is for the sole benefit of the Seller.”

To make sure the offer does not collapse if probate is not granted by the time you have reached the subject date, you may want to add an automatic extension of the subject. This way you are covered if probate has not been granted by your subject date and you will not have to get everyone to sign an addendum. 

You may also want to add an additional clause about extending the closing date if probate is delayed. It will read something like, “If probate has not been granted by the closing date, the closing date will automatically be extended to 15 business days after probate is granted.”

Typically you will want to make this subject-to-probate date two to three months away.

What Happens Next?

Once an accepted offer is handed in to the party in charge of probate, they will expedite the file. Which means, it goes from the bottom of the pile of documents to the top at the lawyer’s office. 

Once the buyer has removed their subjects the property is technically sold. Unless something very unforeseen happens during the time the lawyers are granting probate, the property will sell. However, until the seller (the executor) removes their subject to probate, the listing will stay live. This means that, despite all the listing agent’s attempts to communicate that it is technically sold, they will still be inundated with calls and inquiries about the property.

When it comes to a probate sale, it would be wise to hire an agent who has some experience in this area, as there are many things that they know where others would not.

© 2018 REW. A Division of Glacier Media

Tips for Buying a Home Under Probate

Tuesday, August 28th, 2018

You can get a great deal if a home is part of an estate

Leo Wilk
REW

You can get a great deal if a home is part of an estate – but there are particular conditions you should include in your offer

First, what is probate?

Probate, in short, is the court procedure for two things:

  • Official approval of the will by the court as the valid last will of the deceased; and
  • Appointment of the person (or persons) who will act as the executor of the deceased’s estate.

Essentially, it is the court process that gives the executor (or executrix) the authority to act on behalf of the deceased.

Special Subjects in Your Offer

In probate real estate purchases, because reaching probate does take some time, you can be hit with delays in the purchasing process.

When you make an offer on a home or condo under probate, you will have all your usual subjects as a buyer (inspection, financing, and so on). However, you must also have a subject for the seller that reads:

“Subject to the Seller receiving the following by _   (date)__:

“(1) a copy of a grant of probate or letters of administration that allow the Property to be sold; and

“(2) assurance that everyone entitled to claim under the Wills, Estates and Succession Act has waived or released their claims against the Property. This condition is for the sole benefit of the Seller.”

To make sure the offer does not collapse if probate is not granted by the time you have reached the subject date, you may want to add an automatic extension of the subject. This way you are covered if probate has not been granted by your subject date and you will not have to get everyone to sign an addendum. 

You may also want to add an additional clause about extending the closing date if probate is delayed. It will read something like, “If probate has not been granted by the closing date, the closing date will automatically be extended to 15 business days after probate is granted.”

Typically you will want to make this subject-to-probate date two to three months away.

What Happens Next?

Once an accepted offer is handed in to the party in charge of probate, they will expedite the file. Which means, it goes from the bottom of the pile of documents to the top at the lawyer’s office. 

Once the buyer has removed their subjects the property is technically sold. Unless something very unforeseen happens during the time the lawyers are granting probate, the property will sell. However, until the seller (the executor) removes their subject to probate, the listing will stay live. This means that, despite all the listing agent’s attempts to communicate that it is technically sold, they will still be inundated with calls and inquiries about the property.

When it comes to a probate sale, it would be wise to hire an agent who has some experience in this area, as there are many things that they know where others would not.

© 2018 REW. A Division of Glacier Media

Home prices in 20 metros post smallest gain since 2016

Tuesday, August 28th, 2018

Home prices in 20 U.S. cities rose in June at the slowest monthly pace in almost two years

Bloomberg

Home prices in 20 U.S. cities rose in June at the slowest monthly pace in almost two years, as demand cools in the face of affordability constraints including elevated mortgage rates, according to S&P CoreLogic Case-Shiller data released Tuesday.

Highlights of case-shiller home prices (June)

  • Seasonally adjusted 20-city index rose 0.1% m/m (est. 0.2%) after 0.2% gain the prior month; smallest gain since July 2016 20-city property values  index increased
  • 6.3% y/y (est. 6.4%), after rising 6.5% the prior month; smallest since Dec.
  • National home-price gauge  advanced 6.2% y/y after 6.4%; slowest advance since Nov.

Key takeaways

The figures reinforce other recent signs that the residential real estate market is softening. The National Association of Realtors said purchases of previously owned homes fell to a two-year low in July amid supply constraints and escalating prices. Government data showed a similar trend in the new-home market, with sales dropping to a nine-month low.

While a strong job market and elevated consumer optimism have continued to provide support for home sales in major cities, hurdles include mortgage rates near a seven-year high, as well as a dearth of listings. Wage gains also remain tepid.

Las Vegas led the latest gains with a 13 percent annual increase, displacing Seattle as the fastest gainer, as employment and population advance in the Nevada city, according to the report. Seattle had a 12.8 percent increase, followed by 10.7 percent in San Francisco. While all cities posted advances from a year earlier, New York was the only metropolitan area to see a drop from the previous month, as changes to tax deductions hamper demand.

Official’s view

“Even as home prices keep climbing, we are seeing signs that growth is easing in the housing market,” David Blitzer, chairman of the S&P index committee, said in a statement. “Sales of both new and existing homes are roughly flat over the last six months amidst news stories of an increase in the number of homes for sale in some markets.”

Other details

  • After seasonal adjustment, Las Vegas had biggest month-over-month rise at 1.4 percent, followed by Cleveland, Detroit and Minneapolis, each with a 1 percent increase
  • After New York’s decline, Dallas had smallest gain at 0.4 percent 

Copyright Bloomberg News

Copyright © 2018 Key Media Pty Ltd

Most Metro Vancouverites rooting for market crash – even homeowners

Monday, August 27th, 2018

Two thirds of renters hoping that home prices will drop by 30 per cent or more, finds poll

Joannah Connolly
Western Investor

The majority of Metro Vancouver residents – even those who own their homes – are rooting for a real estate market correction, according to an Angus Reid poll released August 27.

Some 62 per cent of respondents, all in the Metro Vancouver region, said they hoped prices would come down soon to improve housing affordability. Just over a quarter (26 per cent) said they would like to see a modest price drop of around 10 per cent, and a further 36 per cent said they supported a price reduction of 30 per cent or more. This includes responses from both renters and homeowners.

Unsurprisingly, when looking at renter responses alone, the support for a price drop was even more significant. Two-thirds of renters (67 per cent) said they’d like to see a 30-per-cent-plus crash, with a further 19 per cent supporting a 10 per cent correction – totalling 86 per cent of renters rooting for a price decline in the region.

But even homeowners revealed a surprising amount of support for a market correction, showing that 49 per cent would be willing to give up some of their equity if it meant more affordable homes in the region. And, at 20 per cent of homeowner respondents, the same amount of owners said they would like to see prices drop by more than 30 per cent as the proportion who would like to see prices keep rising.

The poll respondents cited the top two causes of high housing prices as speculative investment in real estate. Six in ten (59 per cent) said they believe it is foreign investors who are primarily driving up costs, and 43 per cent said it was real estate investment by wealthy individuals. (This finding follows a recent poll by Insights West, which found that the blame for high home prices on foreign investors was even stronger among its respondents, at 84 per cent.)

The cost of housing was identified as the key concern in the region, by nearly two thirds (65 per cent) of all respondents – far higher than the second-placed issue of transit/transportation. The 65 per cent concerned about housing costs breaks down as 82 per cent of renters and 56 per cent of homeowners.

However, Angus Reid said, “Three-quarters of homeowners say the cost of buying in Metro Vancouver is unreasonably high, and an even greater number of renters say the same about the cost of renting here. That said, both groups are significantly less critical of their personal situation.”

The poll report added, “It would appear that many have settled into a situation that they’re able to perceive as reasonable or at least understandable in terms of cost. However, when they look beyond their own walls, the prospects of renting in that same community, or elsewhere in Metro Vancouver appear daunting.”

Copyright © 2018 Western Investor

TREB studying ways to keep sold data protected

Monday, August 27th, 2018

Toronto Real Estate Board wants sold data protected

Tara Deschamps
REP

The Toronto Real Estate Board is studying ways to ensure Greater Toronto Area home sales data is “protected,” even as realtors are rushing to publish the numbers.

TREB fought the Competition Bureau to prevent the data’s online release for seven years, citing privacy and copyright concerns.

The Supreme Court of Canada’s refusal to hear TREB’s appeal case last week enabled realtors to post the data on password-protected websites, prompting a flood of companies to start publishing the numbers.

A 2016 Competition Tribunal order that demanded the data’s release and gave 60 days for TREB to allow for its publication now applies.

Many realtors have been scrambling to get home sales data up on their websites in the days immediately following the ruling. And some are not protected behind a password.

But it’s unclear if TREB is ready to give up its fight as the board said it will study ways to protect the data it has just been ordered to release, but would not elaborate on the statement’s meaning.

“TREB believes personal financial information of home buyers and sellers must continue to be safely used and disclosed in a manner that respects privacy interests and will be studying the required next steps to ensure such information will be protected in compliance with the tribunal order once that comes into effect,” board chief executive John DiMichele said in a statement.

Because TREB appealed the order at least two times since it was released, there is debate over when the 60 days it was given began. While TREB believes the clock started running on Thursday with the Supreme Court decision, the Competition Bureau thinks the time ran out long ago between TREB’s numerous appeals.

Despite numerous requests for comment, TREB refused to say if it would take legal action against companies that published the numbers prior to TREB allowing it. It also declined to say what it believes the data needs protecting from, how it might go about protecting the numbers and whether it will try to modify the Competition Tribunal’s order.

Real estate experts said TREB has little, if any, chance of getting the order modified.

“I think this is the final round… This should be it,” said Jonathan Bitran, a McCarthy Tetrault lawyer specializing in competition and anti-trust cases. “There could be some esoteric angle (TREB is) thinking of, but it would be not a regular course type of thing.”

He said it’s possible that TREB will try to come to an agreement with the Competition Bureau on any outstanding concerns it has and they can together ask the tribunal for modifications, but without many previous cases of this nature, Bitran was unsure if even that would work.

Cameron Forbes, the general manager at the RE/MAX Realtron Realty Inc. brokerage, said he thinks TREB’s talk of “protecting” the data is probably just the organization wanting time to further consult with the 50,000 agents it represents.

Realtors need to be educated on what can be published and the Real Estate Council of Ontario, which forbids realtors from publishing home sales data without the permission of buyers and sellers, needs to adjust its regulations, he said.

“There is a lot to how you implement something like this,” he said. “It doesn’t just happen.” 

The  Canadian Press

Copyright © 2018 Key Media Pty Ltd

Some sellers bypass agents suggestion to stage the home to save money

Sunday, August 26th, 2018

Realtors say staging is becoming increasingly popular

REP

When Farah Al-Harazi and her husband were selling their Toronto condo, they asked real estate agents they were considering if they should hire a “stager” to beautify their home in order to fetch top dollar — an increasingly popular practice, but one the agents agreed wasn’t necessary.

Farah, an accountant with an eye for design, kept their two-bedroom condo in such pristine condition that all the couple had to do for showings was stow items from their overflowing closets with family and neighbours and hide their baby’s toys to help prospective buyers envision the home as a more adult space.

The tweaks are typically the final steps in a stager’s process, which often includes refurnishing, redecorating and repainting the home to show off its best features and lure in buyers. Realtors say staging is becoming increasingly popular as more Canadians move towards browsing properties online, where a well-designed home can stand out in photos, entice buyers and earn sellers more.

The Real Estate Staging Association has said that homes across North America spent 90% less time on the market in 2016, selling within an average of 23 days in comparison to unstaged homes which took an average 184 days to sell.

Farah said keeping a home in designer condition, like she did, or staging a property yourself can save hundreds or thousands of dollars as realtors increasingly include staging costs in their commission and fees.

“We were able to negotiate a lower rate because I said: ‘you guys don’t have to do anything for staging, so we should be getting a discount’,” Farah recalled. “It worked out well.”

Marie Whittaker, who runs Couture Staging in the Greater Toronto Area, said if you can’t stomach the cost, which many stagers say averages around $2,000 but fluctuates depending on the size of the home, she suggests hiring a stager to do an assessment.

“They will put together a detailed action plan to help you stage it yourself and it goes into things that are small like put this vase on this coffee table, but also big things like what colour to paint your walls,” she said.

Stagers may not advertise the service, but they do offer it for a few hundred dollars, depending on the size of your space, she said.

For those who insist on doing it themselves, Whittaker said to declutter your home and remove personalized items that will distract buyers from picturing themselves living in your place.

Give away or move around awkward or big pieces of furniture to make rooms look bigger or transform spaces used for storage into an office or another bedroom, said Meray Mansour, a realtor who owns a staging company.

She stressed self-stagers should “keep it simple” by making their place look lived in, but by someone who is neat and organized.

“I find sometimes when people do it themselves they bring in too many things,” she said. “It doesn’t need to look like an Ikea catalogue.”

If you need to bring in furniture, but don’t want to spend a lot, Mansour suggested rental companies that lend out sectionals or statement pieces for about $250 per month.

If you need to stow items, she said to shop around for a storage company that offers low rates for short-term rentals.

Whittaker suggested Second Closet, a Toronto-based business that will pick up, store and return items to you whenever you want for as little as $3 a month. She said it comes in handy if you want to store a few items or a bulk piece of furniture like a china cabinet, but don’t want to rent out an entire locker.

If renting furniture and storage are out of the budget, Whittaker and Mansour suggested slathering a coat of paint on anything aging the home or looking worn, such as cupboards, backsplashes, tiles, bathtubs and trim around doorways and windows.

Paint helped do the trick for one of Mansour’s neighbours that initially listed her home with cellphone photos showing off red walls and old eighties furniture. The property sat on the market for weeks before the neighbour turned to Mansour, who painted the outside trim and the whole home in neutral tones, decluttered, removed the eighties furniture and repurposed some of the rooms.

The home sold within three days at asking price, Mansour said.

She estimated someone staging their own property could do a decent job with $2,000, but the key is to keep in mind how much you’re hoping to increase the value from staging before you open your wallet.

“Only spend according to what you think is going to come back to you from it.” 

The Canadian Press

Copyright © 2018 Key Media Pty Ltd

Spirit Bay in Metchosin, B.C offers character, quality and energy-efficiency

Saturday, August 25th, 2018

Seaside development will include 400 single-detached homes across 100 acres

Marty Hope
The Vancouver Sun

For more than two years, Jim and Mary Quinn had been searching for the “just right” location, a place that felt right, that would serve as their retirement home.

The Calgary retirees put a lot of thought, effort, and miles in their lifestyle search, travelling as far as Scotland, hitting more than a few spots in the United States, checking out “in great detail” the Alberta foothills, along with Bragg Creek, Canmore, and across the Rockies to Fernie, Nelson, and Vernon.

But after two years of looking, none of those locations came up to the standards of their search criteria — until near the end of a day-trip up the coast of Port Renfrew on Vancouver Island.

“We just stumbled onto Spirit Bay by chance on our way back to Victoria,” says Jim. “All our boxes were ticked.” Spirit Bay, being created by Spirit Bay Developments on the Salish Sea in Metchosin, B.C., will have 400 single-detached homes spread over 100 acres of seaside landscape 35 minutes from Victoria on the south shore of Vancouver Island when the five planned phases are complete.

The first phase of 58 homes is 75 per cent sold, with 20 homes complete and another 18 under construction. Current pricing has cottages from $390,000 to $550,000, and larger homes from $550,000 to more than $1 million. Custom home lots are priced from $400,000 to $1 million, according to Geoff Gosson, Spirit Bay ’s director of marketing.

In May of last year, they moved into their new full-time home, a 3,000-square-foot Stonington model with vaulted ceilings, comes with three bedrooms, three baths, a study, gym, cellar, and 30-foot deck.

“We were looking to downsize but into something with character, style, quality, energy-efficiency, and a great location,” says Jim.

But getting the home that blended with their retirement lifestyles — Jim worked in the Calgary oilpatch and Mary was with Alberta Health Services — was just one the many boxes ticked off. “It’s near the water, but more than that, there is the sea air, amazing coastline, trails and forests, a dark sky lighting mandate, really good community feeling, and the developer’s plans and vision for the community,” says Jim.

The vision for Spirit Bay is multipronged, says Gosson.

“Firstly, this isn’t a housing development, it’s a thriving village with central square with real businesses that provide real needs for the residents,” he says. “And it was our goal to create the most sustainable development anywhere where humans are seen to be a contribution to the ecosystem.”

Then there is the architectural identity of Spirit Bay. For Spirit Bay, it was the look of a fishing village.

“One of the distinguishing characteristics of most fishing villages, no matter where they are found, is their colourfulness. A second characteristic is the architecture. By keeping consistent with the fishing village roots, which in Spirit Bay goes back millenniums, we can continue to keep traditions alive, including with the resources of the sea,” Gosson says.

The developer, along with a pair of partners — the Trust for Sustainable Development, and the Beecher Bay First Nation — has sustainability as a pillar of its development strategy — places that work with nature, where people can live and grow together, he adds.

The Quinns took all of this into consideration that day they stumbled into Spirit Bay.

“It was location, the Spirit Bay staff, the architect, the flexibility of design — and waking up to a spectacular view every day,” says Jim.

THE BUYERS

Jim and Mary Quinn retired from their jobs in Calgary and, after extensive investigation, decided to buy a full-time home on the Salish Sea at Metchosin, 35 minutes from Victoria.

WHAT THEY BOUGHT

The 3,000-square-foot Stonington model, which the Quinns customized to suit their lifestyle, comes with vaulted ceilings, and has three bedrooms, three baths, a gym, study, cellar, and 30-foot deck.

ABOUT SPIRIT BAY

Spirit Bay is more than a housing development, it’s a village with a central square and a variety of businesses that cater to the needs of the residents.

It is being created by Spirit Bay Developments, along with partners the Trust for Sustainable Development and the Beecher Bay First Nation.

At build out, Spirit Bay will have 400 single-detached home priced from $390,000 to more than $1 million, along with custom home lots priced from $400,000 to $1 million. Amenities include a homeowners’ club, sports fields, tennis court and marina.

There are views of the Olympic Mountains and the Salish Sea, and sits adjacent to a 3,500-acre wilderness park.

© 2018 Postmedia Network Inc.

The Trails 603 East 2nd Street North Vancouver 300 three bedroom townhomes by Wall Group of Companies

Saturday, August 25th, 2018

The Trails takes a site in a reimagined North Shore neighbourhood

Kathleen Freimond
The Vancouver Sun

Project: The Trails

Project address: 603 East 2nd Street, City of North Vancouver

Developer: Wall Group of Companies

Architect: IBI Group

Interior designer: BYU Design

Project size: Over 300 townhomes (First phase: 62 townhomes)

Bedrooms: Three

Unit size: 1,266 to 2,183 square feet

Price: Starting from $1,159,000

Construction: Fall 2019

Sales centre: 603 East 2nd Street, North Vancouver

Sales centre hours: Noon to 5 p.m. Sat — Thurs, or by appointment

Phone: 604-929-9333

Website: thetrailslonsdale.com

The first phase of The Trails, the Wall Group of Companies’ redevelopment of an eight-acre site in the City of North Vancouver’s emerging Moodyville neighbourhood, brings contemporary Craftsman-style architecture to the area, along with interiors inspired by the location’s natural surroundings.

Moodyville, one of North Vancouver’s oldest neighbourhoods, is undergoing a transformation following the rezoning of the area east of St. Patricks Avenue to Queensbury Avenue and south of East 4th Street. Once the redevelopment is complete, it will comprise approximately 1,500 homes, with about 300 of these in The Trails.

The rezoning of the area allows for increased density and buildings up to four storeys, says IBI Group’s Martin Bruckner, lead architect for The Trails development on the corner of East 2nd Street and St. Patricks Avenue.

The first phase of The Trails comprises 62 three-storey townhomes and two-storey stacked townhomes on a 68,000-square-foot site.

“The contemporary Craftsman-style [buildings] have durable material on the exterior – including brick and composite panels – to create an interesting and varied architectural appearance,” Bruckner says.

One of the architectural features set to define phase one of the development is the distinctive box windows on the units facing East 2nd Street.

“We wanted to create architectural accents and articulate the façade to make it visually interesting and differentiate one set of townhomes from another, providing homeowners with a sense of identity for their unit,” Bruckner says.

In another nod to putting their own stamp on their homes, homebuyers can choose the colour of their front door, with options including white, black, green, teal, blue or red.

Homebuyers also have choices to make on the interior colour schemes.

 “There are two palettes, North Shore Beach with grey and white tones, and North Shore Natural with its warm woods,” says Ada Bonini principal at BYU Design, the firm responsible for phase one’s interior design.

“We were inspired by the environment in North Vancouver and these are very natural, calm palettes,” she says. “We didn’t want anything overly modern and wanted an esthetic that feels like a single-family home.”

Sample boards showing the colours and materials in each palette are on view at the sales centre at 603 East 2nd Street.

The kitchen is Bonini’s favourite room in the townhomes, which range in size from 1,266 to 2,183 square feet. She says her own fondness of cooking is reflected in the kitchens.

“I love to cook, and the kitchens are designed for someone who uses a kitchen. There is extra storage space and pantries and the touch-less faucet and farmhouse sink is really great.”

The Shaker-style cabinets and island in the North Shore Beach option are a soft-grey that complements the white quartz countertop and grey and white tones of the herringbone-patterned mosaic marble backsplash. The 30-inch refrigerator and freezer will be behind integrated panels while the black stainless-steel gas range with canopy hood fan and dishwasher – along with the black matte hardware – will contrast against the lighter finishes.

In the North Shore Natural option, the cabinetry is a wood-laminate finish and the creamy colours of the marble mosaic backsplash and nickel hardware support a softer colour scheme, Bonini says.

The sample boards at the sales centre also present the choices for the bathrooms.

“We wanted a fabulous master ensuite; there’s a free-standing tub and a large shower with a tiled shower pan,” she says. The ‘floating’ vanity will allow the floor to extend under the cabinetry, giving the room a spacious ambience.

The 12-by-24-inch porcelain wall and floor tiles in both colour schemes will also contribute to the ensuites’ airy feel, while three wall sconces mounted to illuminate the two mirrors above the double sinks will make the spaces feel special, Bonini adds.

Wide-plank laminate floors will connect the living spaces and the longer-than-usual 80-inch boards visually extend the space, she says.

The development, scheduled to be completed in 2019, will be built to LEED gold standards, says Bruckner. This requires high R-value insulation and, although large, the windows are less than 50 per cent of the exterior wall area to reduce heat loss. There is a stormwater system to control rainwater run-off from the site and the development is also connected the Lonsdale Energy Corporation (LEC).

The LEC uses a network of underground pipes to circulate hot water to heat the buildings that are connected to its system, according the City of North Vancouver. LEC currently provides heat to 75 buildings, including more than 4,500 residential units.

Phase one’s planned amenities include landscaped areas with seating where neighbours can socialize or host get-togethers.

The Trails will also feature a greenway that will connect East 2nd Street to the section of the North Shore Spirit Trail that runs along the southern boundary of the site.

All homes include parking (some have private garages) and there is also visitor parking in the underground parkade.

“This is going to be a great neighbourhood for families; it will be pedestrian and bicycle friendly and there will be a vibrant community living here when it is completed,” Bruckner says.

© 2018 Postmedia Network Inc.

Canadian housing market is bouncing back says TD Economics

Friday, August 24th, 2018

Vancouver not rebounding yet

Steve Randall
REP

Things are starting to improve in Canada’s housing markets according to a report from TD Economics.

Deputy chief economist Derek Burleton and economist Rishi Sondhi say that recent data has confirmed TD’s view that there would be some traction gained after initial sharp impact to tighter lending restrictions at the start of the year.

“Past experience has shown that markets begin to stabilize after about 4-6 months following the implementation of major changes to housing policy. True to form, sales activity and average prices have come off a floor in most major markets since May,” the economists’ report says.

The report notes recent stabilization in the GTA with increasing resales for both single-family (20% estimated) and condos (10% estimated) and prices climbing.

However, the TD Economics team say that Vancouver is not yet seeing the same rebound as the market’s low affordability. The economists say that the market has yet to find a bottom as provincial cooling measures are also in play alongside the tighter mortgage lending rules.

While the signs of stabilization and even a comeback are evident, the report warns of uneven conditions across Canada’s markets and the spectre of economic conditions, interest rate rises, and trade tensions impacting job markets.

The full report is available at economics.td.com 

Copyright © 2018 Key Media Pty Ltd

Did TREB stifle competition?

Friday, August 24th, 2018

TREB’s protectionist stance hurt them

Neil Sharma
REP

The Supreme Court of Canada yesterday refused to hear the Toronto Real Estate Board’s appeal that would have continued the prohibition on sold data, effectively ruling in favour of the federal Competition Bureau, and most observers aren’t surprised.

Sarita Samaroo, principal lawyer at SST Law Professional Corporation, believes TREB took a protectionist stance during litigation rather than one born of earnest fears over consumer privacy.

“I’m quite surprised that TREB has been against the decision as it stood,” said Samaroo. “I thought it was quite strange, given who they represent, and that there should be as much real estate data as possible. I understand the protectionism, because they want to ensure the public hires realtors to access that information, but I don’t see how it can harm realtors for the public to have more information on hand. I thought it strange that TREB has been against this from the beginning.”

She moreover asserts that real estate professionals will not, in fact, suffer diminishing commissions because of the decision. On the contrary, Samaroo thinks that availing the public of the disputed data protects realtors from being cut out of transactions.

“The agent is due their commission payable, irrespective of whether the listing is suspended or not,” she said. “If it’s expired, withdrawn or terminated, that is different. But where an agent is involved, they could lose their commission. It could prevent more private sales because there is a tendency right now with a lot of buyers and sellers in this market get rid of their realtor because the market is slower. They may just suspend the listing and try to sell privately, but that cuts out the realtor. However, that information is now available publicly. That could help realtors.”

Like Samaroo, Tom Storey, a sales representative with Royal LePage Signature Realty, isn’t surprised by the outcome of the years-long litigation. For starters, going through a sales agent to access sold data has never been arduous, but Storey welcomes better educated clients.

“I could understand, and even support, the reason TREB doesn’t want the data to be released,” he said. “If I buy a property and it closes in 60 days, it would be posted online right away and that would be problematic, so I see both sides, but the days of people coming to us because we hold that information ended a long time ago. Our job is to go through that data with our clients to educate them on how they can use it to their advantage.”

As for losing business to fledging virtual office websites, as they’re known, Storey isn’t the least bit concerned.

“I know where my business comes from, and it’s from my database,” he said. “It comes from repeats and referrals. Any realtor will tell you that’s where their business comes from.

“For the industry as a whole, I think this is good for us.”

At the heart of the matter is the Competition Bureau’s contention that TREB stifled competition by withholding sold data access to the detriment of virtual office websites, the latter of whom often undercut industry standard commission rates.

“It’s interesting that the Competition Bureau had to get involved in order to have this available to consumers, but again I have to agree with the Competition Bureau’s stance that TREB had anti-competitive restrictions,” said Samaroo. “I think TREB was insulating its members previously, and I think now it will open up more room. There will be more companies able to share that data with the public so we’ll probably see an evolution.”

Sold data is available in the United States, which Samaroo is sure played a crucial role in the Supreme Court’s decision not to hear TREB’s appeal. The ruling might also hasten a major American player’s entry into the Canadian market.

“I think those online models will push that data and they will become more prevalent because they’ve been limited to this point,” said Storey. “Zillow is coming to Canada eventually and they’re going to love this.”

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