Live Play - Georgian Bay

Meeting Consumer's Expectations

2011-11-24T14:47:00.001-05:00

First, some of my readers may have noticed that I have re-branded my blog to "Live Play - Georgian Bay."  Personally, I feel this new name better reflects what our area is all about.  Whether you are into an active, sports oriented lifestyle or prefer the "arts," the southern Georgian Bay lifestyle is what continues to attract people to this wonderful area.
I recently attended the National Association of REALTORS (NAR) Conference in Anaheim California. This four day event drew 18,000 REALTORS® from not only the U.S. and Canada but from other parts of the world as well. This is an excellent conference with a variety of educational sessions scheduled over four days that apply not only to issues pertaining to real estate Boards and Associations but there is also a broad variety of topics for individual REALTORS® and their respective businesses as well.
The real estate profession like many other businesses has essentially been transformed via the Internet and the future holds even greater changes still to come. The NAR conference offered a glimpse into the future of real estate and more importantly the various educational sessions served to educate REALTORS®
in terms of how we need to adapt and re-invent our businesses so-to-speak, in order to meet the needs and expectations of today's consumer.
Humans naturally tend to resist change. Breaking away from old habits or established ways of doing business can be a hard pill to swallow for many. Very few REALTORS® write blogs for example. It's time consuming, requires a flow of ideas and the ability to communicate via the written word. I started the process in the fall of 2007.  Coincidentally that was after attending the NAR Conference in Las Vegas during which time blogging and social networking was somewaht in it's infancy. Four years later and it's virtually become a necessity and or an expectation of consumers.
I've slipped in my writing in recent weeks partly due to the fact that Google has made some changes to their platform that denied me access to my "Blogger" account. Google is a great example of a company that continues to evolve, offering more and more services that they "bundle" together in an effort to take business away from their competition. In future posts I will continue to elaborate on the changes taking place not only in our community but also with respect to real estate market and other issues that affect us as well. In the meantime I'm building a Facebook Fan Page, I've started to "Tweet" via Twitter and soon you will start to see a stream of videos that I will product over the months ahead to further inform and educate my clients and followers on things that matter. Stay tuned.....

Century 21 Wins Lawsuit Against Zoocasa

2011-09-13T17:59:00.000-04:00

For consumers, the Internet has had a very profound impact on the way in which we search for products and or services that we may be looking to procure. Perhaps no other commodity has been so broadly impacted as real estate. This stems partly from the fact that unlike many countries including the U.S., Canada has a nationwide MLS® system that allows consumers to universally search for properties virtually anywhere in the country.
In Canada, the MLS® system and trademark are owned and maintained by the Canadian Real Estate Association (CREA). CREA maintains the consumer real estate website http://www.realtor.ca/ which hosts MLS® property listings coast-to-coast. This site regularly draws 3 million+ visitors per month making it the most frequented consumer real estate website in Canada.
Given the success and far reaching impact of Canada's MLS® system, third parties have tried to replicate its success. Individual REALTORS® as well as companies have on occasion lifted or "scraped" MLS® data from http://www.realtor.ca/ and other legitimate real estate websites for posting on their own online sites. Often, the integrity of MLS® data and property details are compromised in the scraping process, resulting in consumers getting information on a property that may be inaccurate and or misleading
Century 21 Canada recently won a court case against the real estate website www.zoocasa.com which is a subsidiary of Rogers Communications. Century 21 successfully argued that the listing information and data was their property and essentially it is. When sellers sign an MLS® Listing Agreement, that Agreement is essentially the property of that given real estate brokerage. As such it is not free to be used by either individuals or companies for their own commercial gain without permission.
As consumers, we have come to rely quite heavily on our ability to research things online. Whether it's for a house, car, clothing, books or whatever, online information needs to be both timely and accurate in order for it to best serve a buyer's needs. Increasingly, consumer's permission is also needed in order to effectively post some information online. When that information is then acquired unlawfully by a third party and posted online, accuracy is often compromised and privacy perhaps violated so Century 21's success challenge of Zoocasa's activity was justified.

Area Real Estate Sales Decline in August

2011-09-09T10:28:00.000-04:00

Residential sales activity recorded through the MLS® System of the Georgian Triangle Real Estate Board came in below year-ago levels in August 2011. Home sales numbered 147 units in August. This was a decrease of 15 per cent compared to August 2010.
On a year-to-date basis, activity was running six per cent below level in the first eight months of 2010, but remained above levels over the same period in 2008 and 2009. Both new and active listings are currently running at elevated levels. New residential listings numbered 455 units in August 2011, up 17 per cent from a year earlier. There were 1,799 active residential listings on the Board’s MLS® System at the end of August 2011. This was an increase of eight per cent from levels at the end of August 2010.
There were 14.7 months of inventory at the end of August on a seasonally adjusted basis, up from 12.1 months in July. The number of months of inventory is the number of months it would take to sell current inventories at the current rate of sales activity.
The value of all residential transactions in August was $42.2 million, down 16 per cent from a year earlier. Total sales numbered 173 units in August, a decrease of 14 per cent compared to the same month in 2010. The total value of all properties sold in August 2011 was $48.5 million, down 18 per cent on a year-over-year basis.
Please feel free to contact me without obligation for information about market conditions in your specific area.

Area Real Estate Sales Strengthen in May

2011-06-04T10:56:00.000-04:00

Following two months of significantly slower sales activity in March and April wherein sales were approximately 20% below the same months last year, area real estate sales made a stronger comeback May.

Individual unit sales reported through the MLS® system of the Georgian Triangle Real Estate Board (GTREB) in May were down 5% versus May of 2010, totaling 183 sales compared to 193 sales last year. Sales revenue for the month of $51.2 million was 4% below the $53.5 million worth of properties sold in May of last year. Unlike prior months where higher-end sales drove sales revenue, May saw only one sale reported over $1 million versus 3 sales of $1+ million in May 2010. Nonetheless, sales over $1 million for the year are up 44% with a total of 13 sales in this price range to date.
Following the stronger sales activity in May, the gap in year-to-date dollar sales has narrowed. Sales revenue through the end of May totals $211.2 million compared to $219.4 million worth of properties sold in the first five months of 2010. Unit sales year-to-date however remain well off last year's pace with 698 individual MLS® sales reported this year versus 788 through the end of May last year, a decrease in excess of 11%.
Other than Wasaga Beach where unit sales are up 3%, every other local municipality has seen a decrease in unit sales activity year-to-date. Clearview Township -4%, Collingwood -3%, Grey Highlands -10%, Municipality Meaford -37%, The Blue Mountains -14%.
Overall the year appears to be shaping up much like 2009 which saw softer sales activity in the first six months of the year with very robust sales activity through the summer and fall. The latter half of 2010 saw much weaker sales and this has obviously spilled over into 2011.

Economic Resets

2011-06-02T10:05:00.000-04:00

I am just finishing reading a new book available from Collingwood's library titled The Great Reset written by Richard Florida, a leading author, economist and recognized intellectual. The book summarizes the numerous economic downturns that have taken place during the past 100+ years and the economic "resets" that take place after each one.

Florida regards recessions a periods of "creative destruction" which in turn serve to create periods of innovation, invention and economic risk taking that propels economies into new periods of growth and prosperity. Amongst his many assertions, Florida claims that America's love affair with the automobile are over, with an increasing number of people choosing to live closer to where they work thus enabling them to walk, bike or take public transit to their place of employment. Further, technology and an increased number of people seeking self employment etc. will no doubt have people working increasingly fropm home. Florida asserts that charging people to use roads is the only way die hard car advocates with give up their vehicle in favour or alternate forms of transportation. This sounds familiar with the City of Toronto recently talking about toll roads an idea that Mayor Rob Ford calls "nonsense."

The Great Reset is a good read for anyone interested in obtaining insight into the causes of our past economic downturns while examining the trends that will come about as the result of our most recent recession. The U.S. economy continues to struggle and will for some time. It was an economy built on over-leveraged real estate and as Florida points out, after the depression of the 1920's and 30's, it took almost 25 years for the U.S. real estate market to return to a pre-depression level of activity. Anyone thinking about buying U.S. real estate on the pretence that it about to go up in value better think again. With a lagging economy and tens of thousands of foreclosed properties on the market, except for a few select markets, value appreciation in U.S. real estate isn't likely to happen anytime soon.

Royal LePage Garage Sale A Huge Success

2011-05-17T12:03:00.000-04:00

Thanks to the quantity and quality of goods donated by our friends, clients and other supporters as well as dismal day weatherwise, Collingwood shoppers were out in full force last Saturday for our charity Garage Sale in support of the Royal LePage Shelter Foundation.
The benefactor of this event locally is My Friend's House and I am very pleased to report that we raised almost $3,000 for this worthy cause. Shoppers enjoyed a good selection of merchandise including furniture, kitchenwares, books, toys, clothing and more. Special thanks also goes to the owners of the Cranberry Mews shopping plaza for allowing us to use one of the empty units inwhich to hold the sale.
Putting this one-day event together takes a lot of work from picking up donated items, sorting, pricing and lastly the final clean-up. It is very gratifying to achieve the results we obtained knowing that the monies earned goes to such a worthy cause. Again a special thanks to those that donated items for the sale, to my fellow REALTORS® at Royal LePage Collingwood and especially to those of you that came out and made a purchase.

Is It Time for Gas Price Regulation?

2011-05-11T12:41:00.000-04:00

I receive an online summary of the top stories in the Globe and Mail newspaper via email each morning and today's lead story is titled "The Central Canada gas price puzzle." Those of us living in Ontario and Quebec have been hammered in recent days with inexplicably high gas prices while the rest of Canada remains relatively unchanged.
Is it long overdue for the federal government to step in and exercise some control over the pricing practices of the oil companies? I for one think perhaps it is. The recent spike in gas prices comes at a time when the price for a barrel of oil is well below some of the highs we have seen in the past. The recent surge in pricing is being blamed on speculation. Speculation? Whose? Name one other consumer product whose price fluctuates not only day-to-day but often several times within one day? And since when should Canadian consumers living in a country blessed with large surpluses of oil be gouged based on speculation? Our federal consumer watchdogs have turned a blind eye to this for years. With the summer holiday season soon upon, unjustifiable high gas prices can and will have a profound impact on portions of the economy especially tourism and that is bound to hit us here in the Georgian Triangle.
Regulating not necessarily gas prices but the timing and implementation of price increases is perhaps an alternative. For those that might feel this is unreasonable or tantamount to government interference think again. Let's face it, government a different levels exercises control over the pricing of pharmaceuticals, hydro, alcohol, tobacco as well as some other goods and services. Some of these items are less of a necessity to consumers than gasoline yet price increases must be applied for and phased in so-to-speak so as to not unduly harm consumers.
It has become a matter of common practice for oil companies to defiantly and flagrantly disregard any thought of fair consumer practices yet quarter after quarter they report huge profits. There is something dreadfully wrong with a system where the nightly news tells us how much we will be paying at the pump the following day when there are no mitigating circumstances to warrant such change. Huge reserves of oil and gas sit in storage tanks waiting to be distributed to consumers. This inventory was typically produced months ago when the cost per barrel may have been much different than today and as such the cost of that inventory is not directly impacted by "speculation," I recently saw a cartoon where a fictitious oil company had a wheel in their boardroom similar to Wheel of Fortune. The caption in the cartoon read: "It's time to jack up our prices to add to our record profits. Give the wheel a spin to see what excuse we can give to the public." Although just a comic, to some degree you wonder if there isn't some element of truth to it!
To see how much we are over-paying visit Tomorrows Gas Price Today and click on their Rip-Off Chart. The time is long overdue for some form of government intervention and that is the subject of my current online poll. Tell us what you think.

Area Real Estate Sales - It's Looking Like 2009!

2011-05-09T11:52:00.000-04:00

After posting gains in overall market activity in January and February, real estate sales in both March and April have weakened at a time when traditionally the market picks up with the arrival of spring.

Unit sales in April were down 19% from April of last year while dollar revenue dropped 17%. Year-to-date unit sales to the end of April are now 13% behind 2010 with 517 properties having sold this year as compared to 595 last year. Sales revenue for the first four months has held up much better down just 13% driven by increased activity at the upper end of the market. Year-to-date we have had 12 sales over $1 million reported through the MLS® system of the Georgian Triangle Real Estate Board (GTREB) versus 5 sales over $1 million in the first four months of 2010.

Following the recessionary slowdown of 2008 and 2009, sales bounced back very strongly in the first half of 2010 then fell off later in the year. As a result, we are comparing monthly sales in the early part of 2011 to some very healthy sales activity in the first half of last year.

Two addtional factors that have invariably affected sales of late is the weather and the federal election. Weather during the month of April was unseasonably cool, wet and just plain dull and did little to inspire the home buying public. A more significant factor perhaps in dampening sales was the recent federal election. The uncertainty leading into either a federal or provincial election the results of which could bring about change in economic policy and or taxation etc. is bound to halt many from making large purchasing decisions.

The Canadian Real Estate Association (CREA) has forecasted a drop in residential unit sales for 2011 of 1.3%. Sales activity across the country is expected to gain momentum in the latter half of 2011 as the economic recovery continues and employment strengthens. If this is the case, market activity in 2011 will mirror that of 2009 when sales returned with a vengence in the latter half of the year, particularly during the 4th quarter. This far, 2011 is shaping up very much like 2009 and only time will tell if this is indeed the case.

"Smartphone" Real Estate Applications to Search MLS® Listings

2011-05-03T15:04:00.000-04:00

As mentioned in my last posting titled Social Networking and Unmarketing more and more consumers are using their smartphone to access the Internet on a regular basis thus allowing them instant access to their social networking and other sites on demand regardless of where they are.
In response to the increased demand for immediate and efficient Internet access for MLS® real estate listings, the Canadian Real Estate Association (CREA) has released several applications for smartphones that allows ready and convenient access to http://www.realtor.ca/. The most recent release was for Blackberry® devices. I have just downloaded this "app" to my own phone and it works well. Listed below are the various smartphone "apps" that are currently available to access http://www.realtor.ca/

Blackberry®
Apple iPhone
Windows® Phone 7

Coming soon is the smartphone app for "Android" based smartphones.

http://www.realtor.ca/ is by far the most popular consumer reasl estate website in Canada with over 3 million visitors monthly. On this site you will find virtually every MLS® listed residential property in Canada that are currently listed for sale. Worth pointing out is the fact that it takes 24 to 48 hours for new listings to be uploaded from the MLS® systems of the various real estate Boards across Canada to this site. For those that wish to access current listings live and up to the minute, you can do so on many REALTOR® websites including my own. Just click on Search MLS® Listings. This will give you instant access to listings that are current right to the moment without the 24 to 48 hour delay associated with http://www.realtor.ca/ .

Social Networking and "Unmarketing"

2011-04-28T13:49:00.000-04:00

Whether you like them, participate on one or think they are just a fad, social networking sites are here to stay. As with other aspects of the Internet, social networking is having a profound impact on not just the personal aspect of our lives, but also on business as well. Go to many commercial or corporate websites and icons for Facebook, Twitter and other social networking sites are popping up all over and for good reason as many of these sites have hundreds of millions of participants.
Last week I participated in a webinar with a chap named Scott Stratten who has authored a book titled "Unmarketing." Scott speaks with authority about how to market to today's consumer and has 86,000 followers on Twitter. As with other studies I have read, marketing is no longer about screaming a message to the world about your product(s) and or service(s). It's about engaging and developing a relationship with consumers, sharing your expertise in a subtle way, providing them with information that is beneficial to them and without obligation, thus creating an image, brand or reputation for yourself long before you ever meet your readers or followers should that day ever come.
According to Mr. Stratten, one of the fastest growing demographics on social networking sites are those individuals that are 50 plus. In contrast to this, a study conducted by The American Affluence Research Center found that more than half of the U.S. affluent say they do not participate in any type of social media. You would perhaps think that the affluent would be those in the 50 plus age range but not necessarily so. Many of today's wealthy are younger, having made their money in a technology, financial or other field(s). The U.S. ranks third in terms of smartphone usage with 91% or in excess of 284 million Americans owning an iPhone, Blackberry or similar device thus enabling them to access the Internet and or share information and data on-the-fly. A phone is no longer a phone in the traditional sense.
In terms of real estate, many of us engaged in the profession are turning more and more to "unmarketing." According to Mr. Stratten the only person that cares about our picture on a business card, For Sale sign, bus bench or elsewhere is ourselves and I couldn't agree more. If you are in business for yourself as am I, the only thing to think about is your client(s) or potential client(s). If it is not going to be of benefit or value to them, don't do it! Too many marketing initiatives today are all about self gratification with REALTORS® and other commissioned salespersons perhaps being the guiltiest of all. In the new age of marketing and PR "Unmarketing" will win you more points with consumers but that in itself will be a hard sell with many that are mired in the old way of doing things

Where Have All The Great Leaders Gone?

2011-04-20T10:57:00.000-04:00

Last evening the Collingwood Chamber of Commerce of which I am both a member at large as well as part of the executive, held an all-candidates meeting for the upcoming federal election. As was expected, the Legion was packed to a standing room only crowd prompting many to ask is there somewhere larger in Town to hold this. The simple answer is no. Short of the Eddie Bush arena Collingwood lacks a venue to hold and event of this size. Other observations I overhead by those in attendance was the lack of younger people in the audience. By far the majority of those present (myself included) were 50+. I have noted this at other community events of this type leading me to believe that perhaps the younger residents in town are simply too busy with work, family or other commitments to attend politcal or other events that involve issues pertaining to the community or in the case of a federal election, the country.  Perhaps they just don't care and that may stem from a lack of confidence in both the political process and in those individuals that choose to run for political office.
In a prior posting I posed the question where have all the great leader's gone? Last night's meeting certainly did nothing to answer that question. After two hours of listening to the candidates answering questions from local members of the media, there were some choices removed from the group but at the same time no out-front winners. I must admit that Helena Guergis came off "sounding" the best, no doubt due in part to her past experience, her political savvy and the fact that she is fighting for her reputation and job. The Liberal candidate Alex Smardenka simultaneously pulled out a gun, dropped in a bullet and shot himself with his comment about PC Candidate Kellie Lietch when he essentially said "...we don't need a rich doctor with her million dollar home being parachuted in to the riding....." That comment drew prolific boos from the audience no doubt costing Mr. Smardenka signifiant votes in the room if he had many to begin with. It was equally disappointing when later in the evening instead of taking the high road,  Dr. Leitch took an almost equal swipe at the Liberal candidate as payback. And what's with the Dr. title? Does anyone really care? Her skills as a pediatric surgeon are admirable but for the most part are irrelevent to the political job at hand. My father was a doctor (a dentist) and while he was proud of his profession it was a title that outside of his business dealings, he never used.
Election day (May 2nd) is fast approaching and like many I remain unsure as to how I will vote. I must confess I have never aligned myself with any particular party instead, choosing to vote for the individual I feel is best suited for the position. Different times require different measures so in my opinion there is no one party that offers a fix-all solution for everything. Last evening was helpful in ruling out some choices but came no closer to answering the question where have all the great leaders gone?

Market Conditions We Can't Control

2011-04-18T11:17:00.000-04:00

After a somewhat soft sales month in March, real estate activity through the MLS® system of the Georgian Triangle Real Estate Board (GTREB)thus far in April appears to be running at a pace relatively consistent with April of last year. Several things are undoubtedly holding the market back a bit right now one is the weather and to some degree, the upcoming federal election.
Weather definitely plays a role in our market as it has a bearing on the weekend traffic we attract to the area. Skiing is essentially over and with the current cold snowy weather, golf and other recreational activities associated with spring are not yet underway so we are definitely in the mid-season doldrums. We see this reduced traffic through weak attendance at Open Houses and in reduced showing requests for listed properties.
Historically, any pending election will certainly impact the buying decisions of many consumers contemplating a major purchase. A change in government may lead to economic, taxation or other changes creating a cautionary mood that shifts buyers into "neutral."
Another factor impacting our market activity is the pace of sales in the Greater Toronto Area (GTA) as a good portion of today's buyers are coming from the GTA and other parts south of us. In speaking with clients on the weekend that reside in Toronto, the market there has temporarily slowed as well and until that improves, the impact will continue to resonate up here. Further, due to the recreational nature of our market, a good portion of real estate sales in this area are discretionary in nature so often tere is no sense of urgency with buyers to purchase.
As I have told seller clients on numerous occasions, we can't create buyers. We endeavour to implement the most aggressive marketing plan we can in order to expose a property to potential buyers but those buyers have to be our there. In some cases at certain points in time buyers are noticeably absent and often through conditions or circumstances beyond the control of any of us.

Royal LePage Annual Charity Garage Sale

2011-04-14T10:25:00.000-04:00

The Royal LePage Shelter Foundation is Canada’s largest public foundation dedicated exclusively to funding women’s shelters and violence prevention and education programs. Since 1999, this foundation has raised more than $10 million to help women and children across Canada.

Saturday May 14th is the date for this year's National Shelter Foundation Garage Sale. My counterparts and I here Royal LePage in Collingwood are once again particiapting in this event. 100% of the proceeds will go to My Friend's House here in Collingwood and we graciously asked you to support us in this worthy cause.
The event will be held at the new Cranberry Mews commercial plaza located on the west side of Highway 26 by Cranberry Resort. Donations of unwanted furniture, clothing, toys, household items etc. may be made daily by dropping them off at Unit #405 located at the far south end of the plaza. If you have larger items such as furniture etc. to donate with no way of getting them there, please feel free to contract me rickcrouch@propertycollingwood.com or on my cell phone at 705-443-1037 and we can arrange to have them picked up.

We are looking forward to having a very successful sale hoping to raise even more money this year for this great cause.

Area Real Estate Sales Soften in March

2011-04-11T10:05:00.000-04:00

After posting strong sales in January and February, real estate activity reported through the MLS® system of the Georgian Triangle Real Estate Board (GTREB) softened in March with 155 properties changing hands during the month versus 199 in March 2010, a decrease of 22%. Sales volume in March also declined with a total of $48.5 million worth of MLS® listed properties selling as compared to $56.7 million in the same month last year.

Year-to-date MLS® sales total 348 individual properties down 10% from the 387 sales reported in the 1st quarter of 2010. As in prior months, sales at the upper end of the market continue to play a dominant role with respect to sales revenue. Unit sales in most price ranges below $500,000 have declined in 2011 while sales activity above $500,000 remains very strong. To the end of March there have been 10 MLS® sales reported over $1 million whereas last year there were just 2 in the same time period.
The number of new listings coming onto the market has slowed this year which is resulting in more balanced market conditions that favour neither seller nor buyer. Through the end of March a total of 1,497 new MLS® listings have come onto the market as compared to 1,527 new listings in the first 3 months of 2010, a decrease of 2%. The number of expired listings is also on the decline with 692 listings having expired this year versus 719 in 2010, a drop of 4%.
For a complete summary of market activity 1st quarter 2011 versus 2010, please see the latest edition of my Georgian Triangle Real Estate News. To discuss your particular real estate situation or goals, please feel free to Contact Me without obligation.

Through The Eyes of Buyers Part 2

2011-04-05T16:06:00.000-04:00

As previously stated the issue of pricing remains one of the key elements in successfully getting your house sold. Sellers and in many cases REALTORS® are failing to acknowledge this which is why we have such a high ratio of "expired" versus sold listings.
Unfortunately and despite the effort some of us put into it, pricing a property is not a pure science. Comparable sales analysis is the best methodology out there for pricing a property but for some homes and or parcels of land there are no comparables. Increasingly, I find it helpful to have a seller(s) look at their homes through the eyes of a buyer(s). Buyer's certainly expect a property to meet certain conditions in terms of appearance. It is up to date, nicely decorated, well maintained, free of clutter etc. etc. but it also goes much beyond that. At specific price points, certain other expectations emerge that help to establish a home's value. At $350,000+ a home better have a nice master bedroom with an ensuite bath. When you start getting up in the $500,000+ range, today's buyers are expecting finishes commensurate with that price such as granite or other such material for the counters, upgraded trim, better than average bathroom fixtures and kitchen cabinets etc. Many homes in our market are over-priced from the standpoint the features and finishes don't live up to the expectations of the buyer(s). For example, a home listed in the $800,000, $900,000 range that has laminate floors versus real hardwood, Arborite counters not granite, hollow core "800 series" doors and other such finishes typical of a mass produced, tract subdivision home is never going to attract a buyer willing to pay that price. Despite a detailed comparable market analysis or other mathematical gyrations, a property is ultimately worth what a willing buyer is prepared to pay and if a buyer(s) sees a lot of cost ripping out what they perceive are inferior finishes, they will never pay an inflated price.
Looking at your home through a potential buyer's eyes is something your listing REALTOR® should help you with. One other key point to consider is this. When you finally get an offer on your home at a price you turn down, essentially what you are doing is buying your own home for that price. At that very moment, looking at your home through a buyer's eyes is critical as you need to ask yourself, would I pay that for this home? Why? Because that is exactly what you are doing when you turn down that offer.

Through The Eyes of Buyers

2011-03-16T08:46:00.000-04:00

In my last post I commented in general on the matter of pricing a property to sell. This has become an increasingly important component in successfully marketing your home to potential buyers and one of the key reasons for that is the Internet.

Today’s buyers have a tremendous amount of information at their fingerprints and are well informed. You’re reading this blog for example and I presume you are doing so to amongst other things, expand your awareness and to be better informed. Most buyers today for real estate (80+%) and other items spend countless hours online looking for and at the products or services they are contemplating purchasing. Shopping for real estate is without question one of the first online frontiers that consumers flocked to. Here in Canada http://www.realtor.ca/ receives 3 million or more visitors a month looking at properties that are posted on the various Multiple Listing Services (MLS®) of real estate Boards across the country. Everything is there, room and overall house sizes, community and tax information, photos, prices and more. Buyers get a very good picture of what’s out there. They can tell if the same home comes up for sale month after month. They can compare property listings and get a good sense of their relative values, quickly determining in their own minds at least, which ones are priced right and which ones appear to be over-priced. The bottom line is there’s no fooling anyone and sellers shouldn’t kid themselves alone or with the help of their REALTOR®, into thinking they are going to be the lucky ones and find that one unsuspecting or uninformed buyer that is going to over-pay them for their property. In our local market, essentially 1 out of 3 properties listed for sale actually sells so with that amount of inventory to choose from, nobody needs to overpay for anything.
If you are contemplating the sale of youe home this spring I encourgage you to begin the process by looking at your property through the eyes of a potential buyer(s). Buyers obviously have expectations they want met and this goes far beyond just the colour of the walls or the overall appearance and condition of the home.
More to come….

Pricing Your Property to Sell

2011-03-09T11:29:00.000-05:00

I have talked on occasion in the past about the importance of pricing your property to sell in that it must be competitively priced in order to be "in the market" not just "on the market." Whether the home is $200,000 or $2 million correctly having it priced is the only way it is effectively going to get SOLD!.
In 2010, 30% or roughly 1 in 3 of the properties listed for sale on the MLS® system of the Georgian Triangle Real Estate Board (GTREB) sold. In fact for the past six years the number of expired listings has exceeded the number listings that have sold. That to me is a very telling statistic. First, REALTORS® are not doing their jobs in terms of preparing a thorough comparable market analysis in order to arrive at a list price that is consistent with market value and secondly, some sellers just aren't listing.
When I go into a home I have a faily good sense of what the property is worth. At the same time, gone are the days when a REALTOR® can or should, just walk into your home and shoot from the hip, tossing out a price that will ultimately get you the best price within reasonable time frame.
As a Market Value Appraiser (MVA Residential) I put a great deal if time into pricing properties that I am being interviewed by the owners to list. At the same time, no matter how technical or thorough I may be in arriving at a price, it is not a pure science as a property is ultimately worth what a buyer is willing to pay. The thing is if I cannot sit down with a potential buyer that approaches me about one of my listings and demonstrate to them (on paper) why the property is listed where it is, I shouldn't take the listing. A REALTOR® cannot in fact fulfil their fiduciary responsibilities to a seller and or buyer by taking a listing that they know is over-priced. Amongst other things, our code of ethics states: "A Registrant shall demonstrate reasonable knowledge, skill, judgment, and competence in providing opinions, advice or information to any person in respect of a trade in real estate."
In recently securing a listing, the sellers informed me that I had given them the lowest price out of the REALTORS® they had spoken with but I also provided them with the most compelling listing presentation as to why they should list at that price. That's not the first time I have been told this nor will it no doubt be the last. Conversely I also lost a listing recently where the listing REALTOR® gave them a price $200,000 or 30% more than my evaluation. Due to the fact that the pricing of properties is not a science, my analytical work may not always be spot on but I'm not 30% off either.
I am going to spend more time discussing the matter of pricing in future posts as it's a critically important component regarding successfully selling and buying property. In the meantime I am going to leave you with this one thought. As a professional full-time REALTOR® I do not consider myself to be a "sales person." Our roles have and will continue to change dramatically in the years ahead. Similar to a home inspector, lawyer, accountant or other specialist in a given field, we are "service providers." We are held accountable to render conscientious service to clients and customers and there is a difference between those two parties as well. More on that later.....

February Real estate Sales Continue to Show Strength

2011-03-07T21:52:00.000-05:00

Area real estate activity in February continued to show a strengthening in both sales and listing activity across most municipalities in the Georgian Triangle, reflecting further improvements in consumer confidence from the same time last year.

Sales reported through the MLS® system of the Georgian Triangle Real Estate Board (GTREB) posted a 38% increase in dollar revenue for the month with sales of $40.1 million versus $29.2 million one year ago. Unit sales were up slightly during the month, 9% with a total of 117 properties changing hands compared to 107 last year.

As was the case in January, we continue to see significantly higher sales of upper-end properties which is the main factor driving the increased sales revenue. A total of 4 properties sold valued at over $1 million with one property hitting an all time high for the area of $3.25 million. By comparison there were no $1 million dollar sales in the first two months of 2010.

Year-to-date MLS® sales revenue totals $62.8 million up 27% from $49.6 million in the first two months of 2011. The number of new listings that have come onto the market this year total 923 properties up 8% from 856 new listings at the end of February 2011. Despite an increase in the number of listings, there is still for the most part an insufficient supply of properties for sale by property type, in any given area and in several price ranges. This is serving to help balance the market in favour of neither buyers nor sellers. There is however one exception. Despite a sharp increase in the sale of $1 million + properties, there are currently 63 active listings for homes priced over $1 million.

On a year-to-date basis the municipalities of Collingwood and Wasaga Beach are both showing a reduction is sales activity of 7% while sales in Grey Highlands are down 40%. Conversely Clearview sales are essentially equal to the first two months of last year, while sales in the Blue Mountains are up 30%.

Taking a quick look at condominium sales indicates that year-to-date MLS® condo sales total 37 units down from 44 units sold in the first two months of 2010. Condo sales in the Blue Mountains have increased this year with 16 sales being reported compared to 12 in 2010, an increase of 33%. Collingwood condo sales on the other hand have taken a hit this year. Through the end of February there have been 16 MLS® condo sales in Collingwood compared to 30 in the same period last year. This may be just an aberration and we will continue to watch this situation closely in the coming months to see if it is indicating a more permanent trend.

The average residential sale price year-to-date is $352,259 up 22% from the average sale price of $287,239 a year ago. This increase can for the most part be attributed to the significant increase in home sales over the $1 million mark in the first two months of the year and should not be construed as price appreciation across the overall market.

For more detailed markeyt inform ation

Market Forecasting

2011-03-03T08:58:00.000-05:00

Without a doubt one the most frequently asked questions I get at “Open Houses,” social gatherings, in the grocery store and on the street etc. is: "how's the market?” This appears to be one of the most talked about subjects at dinner, cocktail parties and just in general no matter what the economic climate we may be in.

As with almost anything, it’s easy to report on things in a “past” sense. As REALTORS®, we have at our disposal numerous reports on a monthly basis that indicate sales in units, dollars, by price range and much the same applies for listing activity as well. I have always paid close attention to market statistics because frankly I believe it’s a large part of what WE are paid for. Consumers can look at property all day long online without my help. They can even get a sense of what going on by just looking around their neighbourhood at the “For Sale” or “Sold” signs. Helping them better understand the market from behind the scenes is now a crucial component of what we need to do in order to demonstrate the value we as professional REALTORS® bring to every real estate transaction.
Reporting on past market conditions is easy and I will cover year-to-date market activity in my next posting. What about the future? In this ever-changing globally driven world that appears to be an increasingly difficult subject for most to get a handle on. Companies typically did five year business plans. Five years in today’s world is an eternity so making five and even two or three year plans is almost worthless. Look at stock market activity, few seem to be able to foresee the signifiant swings up and or down that regularly happen in this seemingly volatile environment. The same applies for real estate. The old patterns of sales and listing activity for the most part have changed dramatically. Yes, new listings typically increase in the spring and taper of in the fall as do sales but in between those seasons it’s often a roller coaster ride of unprecedented proportions.
As previously noted the Canadian Real Estate Association (CREA) has just “boosted” their forecast for national resale home activity in 2011. Last November, CREA predicted a sales decrease nationally of 4.9% with a total of 402,500 homes anticipated to sell in 2011. In the coming months we will see how accurate these numbers prove to be and if will further forecast revisions will be required. No doubt many of you are experiencing the same forecasting dilemma in your own businesses. Budgeting for inventory, staffing and other requirements is often about as accurate as gazing into a crystal ball. The ball is increasingly cloudy and one must make adjustments on-the-fly in order to capitalize on business opportunities when they arise.
In my next post I will re-cap market activity in our area for the first two months of the 2011. That’s the easy part, what lies ahead is anyone’s guess and I will comment on that as well.

A Cultural Wasteland We Are Not

2011-02-27T12:09:00.000-05:00

Many of the buyers that we deal with on a daily basis in real estate, have been coming to or are drawn to the Georgian Triangle due to the many recreational sports the area offers. Long known as the ski capital of Ontario, the area now is home to many other outdoor activities that is making it a popular choice for both part-time recreational users as well as for retirees. Golf, hiking, biking, cross country skiing and snowshoeing are but some of the many activities available to those seeking an active outdoor lifestyle.

The area however also offers much more than just outdoor sports to keep one busy and physically healthy. There is also a plethora of other interests in this area which are not typically found in smaller communities. I grew up and lived in Toronto for 30+ years before moving to Collingwood in 1985. Following seven years of living here, I spent four years in Chicago before returning in 1998. When I am not working, I spend what leisure time I can afford during the summer at my cottage on Manitoulin Island. Make no mistake about it, I like small towns and will never move back to the city but let's face it, most small places are what can only be described as a cultural wasteland. Not so here. We have a myriad of social activities to satisfy most tastes, enough so as to prolong the need to head south to Toronto or elsewhere for a cultural "fix" now and then. This includes an active arts community, live theatre, a film club, live concerts and more. Last weekend I attended a concert at the Gayety Theatre in Collingwood which was essentially a tribute concert of the 70's rock group "The Band." The band that played is known as King Harvest, named after one the original group's many songs. Members of King Harvest are all local musicians, further testimony to the multitude of talented individuals that call this area home. The show drew a standing ovation, the quality of the performance was excellent and the Gayety was literally rockin.
As I have stated many times, one of my favourite quotes comes from the author David Foot that wrote the book Boom, Bust, Echo. In that book Mr. Foot states that: "...real estate is affected far more by demographics than it is by economics..." Nowhere is this more evident than in the Georgian Triangle. The demographics driving our real estate market are those individuals with a variety of interests and a multitude of talent that once thrived only in the large urban areas to the south of us. Whether you are in to music, theatre, painting, film or a host of other non-active recreational activities, we truly do offer something for everyone.

Collingwood Needs An Economic Action Plan!

2011-02-15T20:45:00.000-05:00

With the exception of four years in the mid 1990’s during which time I lived in the U.S., followed by a couple of years in Kitchener, I have been in the Collingwood area since 1985. Like many I have witnessed the evaporation of Collingwood’s manufacturing sector which essentially commenced with the closing of the shipyards in 1986. I remember stopping on the way out of town on route to my grandfather’s funeral, to watch the last ship built at “Collship” slide down the greased rails into the harbour and along with it the remaining 200 or so jobs that still existed there at closing.
My own employer the one that moved me to Collingwood in the first place, Goodyear Canada, is gone and as we all know there have been many others. Not only is the Goodyear Collingwood hose plant closed, but Goodyear corporately is out of the industrial rubber products business as well as many other product lines it had diverted into, choosing to focus on its core business, tires. Indeed the manufacturing sector not only in our area but across North America has and continues to be redefined and this will continue as the result of emerging economies such as China and India.
You can ask virtually anyone around town and most will readily agree that Collingwood has done an abysmal job of re-inventing itself economically. Better paying manufacturing jobs have been replaced by low wage service industry positions in retail and tourism. Once thriving plants have either been torn down ie: Harding Carpets and Kaufman Furniture or they remain for the most part shuttered and “For Sale” such as the Goodyear facility or used for purposes such as off season car and boat storage. There is 15,000 square feet of office space in a beautiful new building on the east side of town that remains vacant with no tenant(s) over two years after it's completion and likewise for a 15,000 square foot warehouse on the same property.
The Thursday February 10th edition of The Connection ran a small article announcing that Collingwood had won an award from the Economic Developers Council of Ontario for its “Collingwood Has It All Campaign.” The adjoining story on the same page titled “Barber Glass to be auctioned” stood in stark contrast to the celebratory mood reflected on the face of the Mayor and Town staff accepting the aforementioned award at a ceremony in Toronto. At the very least, one might feel that placing these two news items on the same page was poor editorial judgment on the part of The Connection. If you choose to offer up some harsher criticism you might question is it even appropriate for Town staff to be “grandstanding” at an award ceremony when so many are either out of work or have had to leave the area to find it elsewhere? I am sure the 65 or 70 former employees of the short-lived Barber Glass plant find little solace in the Town’s award winning status and the same can no doubt be said of those that preceded the Barber Glass employees with permanent layoff notices at the Shipyards, Harding Carpets, Bendix, Goodyear, Kaufman, Nacan and others.
The only way to gauge the effectiveness of an economic development initiative such as the “Collingwood Has It All” campaign is in the creation of jobs and via other tangible economic measurements. Anything else is smoke and mirrors. Awards don’t put food on the table, buy clothes or pay rent. Residential property taxes have spiralled out of control partly due to the tax imbalance that exists due to reduced commercial activity in the area.
Collingwood is years overdue in developing a comprehensive, focused and above all realistic economic development strategy. We need a definitive plan to rebuild our fractured economy developed and championed by experienced business people not bureaucrats. Enough of the rhetoric about the lack of serviced industrial land or the absence skilled labour. That merely illustrates a “build it and they will come” mentality and in this day and age with continued uncertainty in an economy that is become increasingly global in nature, that attitude and approach simply won’t work. Yes, Collingwood has a lot of outstanding characteristics natural and otherwise, but a well defined path to economic growth isn't one of them.

Canadian Real Estate Association Increases 2011/2012 Sales Forecast

2011-02-09T09:07:00.000-05:00

Based on higher than expected market activity in the latter half of 2010, the Canadian Real Estate Association (CREA) has revised its 2011 sales forecast for residential sales through the Association's MLS® system.
The revised forecast stems from several factors. For one, buyers realize that the current mortgage rates still remain at historically low levels and have no place to go but up. The overall economic outlook for Canada remains positive and is continuing to improve and with it, consumer confidence is also on the move upward. National home sale in 2010 topped 447,010 units. CREA have forecasted a slight decrease (-1.6%) in unit sales for 2011 with sales expected to reach 439,900 homes. Conversely, CREA has improved their forecast for 2012 and are now anticipating sales nationwide to reach 453,000 homes, an increase of 3.0%.
How does Ontario fair in all of this? In 2010 home sales in Ontario reached 195,591 units, a decrease of 0.1% from 2009. Sales in the province for 2011 are forecasted to decline a further 5.2% with a total of 185,500 homes being sold. Slight improvement in Ontario sales activity is expected for 2012 with unit sales increasing to 187,900 an increase of 1.3% over forecasted sales for this year. All of this spells good news for consumers in that we are decidedly moving in the direction of more balanced market conditions which favours neither buyers nor sellers.
For further information relative to the local market please see my Georgian Triangle Real Estate News and my Condo Communique´ newsletters both of which can be subscribed to at www.propertycollingwood.com.

Upper End Home Sales Continue to Drive Area Real Estate Sales Upward

2011-02-08T08:28:00.000-05:00

Although we continue to have a cold snowy winter, certain aspects of the real estate market have really started to heat up early in 2011 most notably the upper end of the market.
To date we have had 3 sales (that I am aware of) ranging in price from $1.8 to $3.25 million. One of those was a property not listed on the local Multiple Listing Service (MLS® which I sold myself for over $2.7 million. Further, two adjoining waterfront properties one of which was a vacant lot sold to the same buyer for $900,000 each so that too was essentially a $1.8 million dollar sale. Three of these upper end sales were waterfront properties in the Blue Mountains. In 2009 and 2010, higher end waterfront properties languished on the market. Now barely six weeks into the new year with the beach areas buried under ice and snow not visible for the buyers to inspect and they are selling quite briskly.
January sales reported through the MLS® system of the Georgian Triangle Real Estate Board (GTREB) were $22.7 million up 11% from $20.5 million in January 2010. Not included in the January 2011 results was the aforementioned sale of over $2.7 million which did not go through GTREB's MLS®. Unit sales in Janaury 2011 actually dropped from the prior year 77 versus 81 sold in January 2010 so the revenue increase was driven purely by the sale of more expensive properties. The Municipality of Meaford and the Blue Mountains are the only two municipalities showing an increase in unit sales for January.
People keep talking about it being a buyer's market but I for one am not buying into the notion. Sure, the number of new MLS® listings this year through the end of January are up 5% but in any given price range, property type or area the selection is quite slim. I have buyers ready and willing to make a purchase right now, we just can't find the right property. All of the aforementioned million dollar sales were at prices that exceeded 90% of their respective asking prices so there were hardly "given away."
One month certainly does not make a year but improving economic conditions, renewed consumer confidence and the threat of higher interest rates down the road are bringing people back into the real estate buying mode, some in a very big way. As the saying goes "an ill wind always blows someone some good." The abundance of snow this winter resulting in fabulous ski, snowboard and snowmobiling conditions is bringing people to the area in droves. This in turn stimulates the local economy including real estate activity so in addition improved economic conditions, Mother Nature deserves some credit as well.

2011-01-31T14:46:00.000-05:00

During 2009, ongoing news reports regularly appeared regarding the Competition Bureau's allegations that Canada's Multiple Listing Service (MLS®) was anti-competitive. The MLS® system which as you will note is a registered trademark, is owned and operated by the Canadian Real Estate Association (CREA).
After months of legal wrangling which cost CREA and essentially those of us in real estate over three quarters of a million dollars in legal fees in addition to the cost born by Canadian taxpayers, a settlement was reached which saw modest changes adopted to the way in which property listings can be placed on the MLS®.
Contrary to public belief, the change does not allow consumers to list their homes or other property(s) on the MLS® by themselves. The MLS® still remains a REALTOR® to REALTOR® service. What the new rules do allow is listings to be simply posted onto the MLS® by a REALTOR®, allowing the home owner to handle as much or as little of the selling process on their own as they wish. If a home owner elects to recruit a REALTOR® that will simply use his ability as a licensed real estate practitioner to "post" the listing on MLS®, the seller can then put up their own sign, conduct their own open houses and handle all the negotiations and paperwork should a potential buyer happen along.
REALTORS® are still required to handle the posting of a property on MLS® in order to ensure the accuracy and integrity of the listing information ie: are the room sizes, taxes and other information about the property correct?
I know of at least one area property the owners are trying to sell on their own which has been posted onto the MLS®. The REALTOR® that posted the listing to the MLS® on the seller's behalf is located 6 to 7 hours from Collingwood. Has he seen the property, measured the rooms, calculated the total square footage and verified other pertinent listing information? Not likely. This was one of the primary concerns that CREA had in adopting this change and rightly so. Canada's MLS® is the envy of many other countries including the U.S. We are one of a few countries that has a nationwide MLS® thus allowing consumers to search for properties online anywhere in the country regardless of where they happen to live. Further REALTORS® are legally held to a high standard via Provincial law and are required to carry errors and omissions insurance in the event we make a mistake. As such, consumers have a much better chance of receiving accurate information and fair treatment with respect to their real estate buyer and seller needs versus dealing with a private individual.
Thus far, we have seen little change in the marketplace as the result of the regulatory changes that took place with respect to the MLS® rules in 2009. The listing and sale of real property continues much the same as it has for years with the majority of properties on the MLS® listed by full service REALTORS® that work with seller clients from start to finish. Other options for consumers now exist and there's nothing wrong with that. For those sellers wishing only to have their property "posted" on the MLS® and are willing to promote and market their property on their own and subsequently handle the negotiations and paperwork associated with the sale process they are free to do do. Buyers dealing with sellers wherein their listing has been merely posted to the MLS® should exercise some caution with respect to the information provided. For sure, a home inspection should be done and further, buyers of these properties would be wise to verifiy first hand tax, zoning and other information relative to the property in question. In this area we also have other regulatory bodies to deal with in certain circumstances such as the Niagara Escarpment Commission, the Nottawasaga Valley and Grey Sauble Conservation Authorities etc. A REALTOR® that is located outside the area may not be familiar with properties that fall within the confines of these governing bodies and the chance of a mis-step is then that much greater. As with any purchase the term caveat emptor applies and even more so when dealing with the unknown.
I want to hear from you. Please leave a comment or take my current online poll regarding this matter, I look forward to hearing from you.

The Emotional Sea of Real Estate Part 2

2011-01-28T11:18:00.000-05:00

In my last post I touched on the emotional aspect of being involved in a real estate transaction and that neither seller(s), buyer(s) or REALTOR(S)® are immune to the flood of emotion that often takes hold of those involved in the purchase of real estate.
Without a doubt the most significant things affecting the emotions of the majority of sellers is the price. While some will confess they have no idea what their property is worth and are thus relying on their REALTOR® to establish that for them, most will harbour somewhere deep down inside a number and usually it's a higher dollar amount than the current market value. A seller's price may be based on what they need to get out of a property to help finance their next purchase or to pay off their mortgage or other debts. Their price may and often is based on what they feel it would cost to replace the home, cottage or whatever. Unfortunately none of these factors affect market price so right off the bat, the seller's emotional tension is starting to build fueled by disappointment once they learn their listing price is not a realistic one. Already on edge with a lower than anticipated list price, the seller's emotions then really erupt when an offer is received that is10% or more below the asking price. If the asking price is realistic, I always recommend a starting point somewhere between 90% to 95% of the asking price. Anything less may result in not getting a sign-back and worse, it creates a very emotionally charged almost antagonistic atmosphere for future negotiations.
Buyer's on the other hand are faced with the emotional element of "fear." Fear of making the wrong choice of area, fear of buying a home with problems, a leaky basement, mould, are the well and septic okay or the most prevalent on today's top 10 list of buyer(s) fears, are we paying too much!
When a buyer and seller are negotiating an Agreement of Purchase and Sale numerous conditions and clauses are always prevalent and while some of these ie: the closing date, accepting an offer conditional on the sale of the buyer's current home are all emotional triggers, none are as flammable as the aspect of price. The seller wants to maximize their price, they are mentally calculating the real estate commission they are going to pay versus the perceived value they are getting from their REALTOR® and lastly, they fear the buyer is just trying to unjustifiably beat them down on price. Some terms in an Agreement of Purchase and Sale are equally as important as the price because in one way or another they too have a financial cost or benefit to the seller, buyer or both These are often overlooked however and it's the responsibility of the REALTORS® involved to point that out.
So what emotions do REALTORS® have. Well, as I stated in my last post, every day we wake up unemployed. That's emotional and you really need to learn to control that or you'd never get out of bed in the morning. Every time we list a seller's property, despite our best efforts, the attractiveness of the property and or its price, there is no guarantee that the property will sell and we will get paid for our efforts. After months of working on a listing, having it not sell and worse losing the listing to another REALTOR® that can be a major let down creating a whole sea of emotional thoughts. The same applies when working with buyers. We load them in the car, spend time driving them around burning up both time and fuel with again, no guarantee of them buying anything thus generating a pay cheque. Obviously these scenarios can lead to frustration, resentment towards the clients and a host of other feelings which all fall into the emotional category.
Perhaps the worst case scenario in a real estate transaction is when the emotions of the REALTOR® or REALTORS® kick in preventing the deal from getting done. Our job is to shrink or preferably remove the emotions of the buyers and sellers however sometimes they are only amplified by the REALTOR'S own thoughts and emotions. REALTOR® egos can sometimes pose a real problem when a listing agent who believes they are 100% right in the price is bound and determined to show up one of their counterparts who may be representing a buyer in the negotiation process and vice versa. Typically there are no winners in this scenario as the deal often reaches a stalemate and is aborted. It's not that the seller and buyer do not want to move on a point, it's the stubbornness of the REALTORS® that is preventing the deal from getting done. Cooler heads needs to prevail and the only way to do this is to remove the emotional elements that are preventing things from moving forward.
Removing or mitigating the emotional feelings with a seller(s), buyer(s) starts with the process of discovery. As REALTOR(S)® we need to determine what the real objection is in order to diffuse the emotional feelings attached to it. The process of dealing with the emotions of seller(s) and buyer(s) can't be addressed when REALTOR(S)® have their own agendas which more often than not are emotionally driven. Our Code of Ethics stipulates that we have to follow the instructions of our clients. That is not to say that we shouldn't step in and bring our knowledges, skills and unbiased opinions into the equation to solve a problem. After all, it is a business transaction and most successful businesses run far more successfully by making fact based decsions versus emotional ones.

The Emotional Sea of Real Estate - Part 1

2011-01-26T09:17:00.000-05:00

One of the seldom acknowledged and or appreciated aspects of real estate is the human emotion that typically plays a significant role in the buying and selling process. As real estate practitioners, one of our fundamental roles and perhaps the most important one, is to remove or at the very least minimize, the amount of emotion associated with the real estate buying and selling process and to treat it emotionally unbiased for what it is, a business transaction.

Emotion involves and affects every person that is party to a real estate transaction. Sellers are often reticent about leaving their home. It is a place where memories have been made. It represents a significant portion of most people's net worth and often includes large amounts of sweat equity for the work they have put into their garden, the basement and or other improvements they completed on their own and so forth.

Buyers on the other hand are filled with trepidation as well. Is this the right home/neighbourhood for us? Is there something wrong with the place? Can we afford it? Are we paying to much? All these questions and more create a flood of emotion with buyers especially when it comes to actually signing an offer to purchase.

REALTORS® are not immune to the emotional aspect of real estate either. One of the issues we face is the realization that every day we wake up unemployed. We have no idea when and or where the next pay cheque may be coming from but that is all part of being self-employed in a commission only based profession. You either accept it and control the emotional uncertainty of being a REALTOR® or get a none to five salaried job.

If you have ever been involved in a real estate transaction think about how you felt and you'll agree, emotion plays a huge role in the process. As such you need someone working on your behalf that calms the stormy seas so-to-speak. Too often, REALTORS® fail to accomplish that and in fact only whip up the waves into more of a tempest than what already exists. In Part 2, I will delve more deeply into the emotions REALTORS® need to manage on behalf of clients to safely navigate through the often stormy seas of the real estate buying and selling process preventing them from landing on the rocks.

Area Condo Sales Increase Show Modest Increase in 2010

2011-01-24T15:55:00.000-05:00

Condominiums have and continue to be a significant segment in the local real estate market and 2010 was no exception. Many first-time recreational buyers in the area start with a modest 2 or 3 bedroom condo purchase then subsequently move up to a second property either in the form of a larger more upscale condominium or to a single family home/chalet. Case in point. In 2004 I sold a 3 bedroom 1,500+ square foot waterfront condo to a couple from Toronto. Four years later they traded up to a 3,800+ square foot home I procured for them that sold for over $1 million. While the monetary magnitude of their second purchase was higher than usual the pattern is not. Condo buyers often find they use their property much more than anticipated and quickly find they need something larger. Further, with an aging demographic many of whom are approaching retirement, the move from a modest condo to something larger for full-time retirement residency is a natural progression.

A total of 331 condo sales were reported through the MLS®system of the Georgian Triangle Real Estate Board in 2010, 6 sales more than in 2009. Condo sales in Collingwood actually dipped slightly from 202 in 2009 to 198 last year. Conversely, condo sales in the Blue Mountains increased from 103 sold in 2009 to 109 in 2010. MLS®condominium sales revenue totaled $75.8 million in 2010 up from $70.6 million in condo sales the prior year. None of the aforementioned statistics include the sale of new condominium units in developments such as The Shipyards and others. When the sales of new units are are added in, the Collingwood and area condo market can only be seen as being vibrant, offering those that prefer the maintenance-free lifestyle of condo living either as a full or part-time residence, plenty to choose from. For a complete re-cap of the condo market comparing 2009 and 2010 please see the winter 2011 of my Condo Communique´newsletter or Contact me for further information regarding specific developments.

How Were Sales in Your Area Last Year?

2011-01-22T12:40:00.000-05:00

Real estate sales activity throughout the various municipalities that make up the market area of the Georgian Triangle Real Estate Board offered up a mixed bag of results for 2010 with many showing continued improvement in sales following the downturn in activity we experienced in late 2008 early 2009. The Blue Mountains, Wasaga Beach however both posted a decrease in the number of residential properties sold during the year as compared to 2009. Unit sales in the Blue Mountains decreased the most, down 8.5% from the prior year with 151 sales as compared to 165 in 2009. Wasaga Beach had 357 sales a decline of 3.3%.

Residential sales in Tiny and Clearview Townships were essentially unchanged in 2010 whereas the municipalities of Collingwood (up 6.9%), Grey Highlands (up 38.0%), Meaford (up5.4%) all showed increased sales activity.

Some significant shifts took place with respect to average pricing in these areas but this should not be construed as being an appreciation in property values. As mentioned in my prior posting, sales activity at the upper end of our market last year grew significantly with sales between $500,000 and $800,000 up 40.0%, sales between $800,000 and $1 million increased 33.3% and lastly sales above the $1 million threshold increased a whopping 86.7% with a total of 28 sales posted through the MLS® system of the Georgian Triangle Real Estate Board. The two areas reflecting the highest average residential prices were Mulmur Township with an average price of $543,140 while The Blue Mountains followed closely with an average residential price of $510,427. Residential sales in Mulmur Township are traditionally made up of acreage or estate type properties while The Blue Mountains is home to many of the area’s higher priced homes close to area ski and golf clubs.

The increased activity we experienced last year with upper-end “luxury” home sales helped to drive the average residential price for our market overall at the end of December to $314,937 from $286,378 one year earlier, an increase of 10.0%. The lowest average price for residential housing can be found in the Municipality of Meaford - $264,954, Wasaga Beach - $267,477 and in Collingwood - $275,895. Moving forward we will undoubtedly see continued growth in the sales of higher priced homes, driven by the influx of buyers from the GTA purchasing these properties for recreational and or retirement use. These higher end sales impact disproportionately both the overall sales revenue and the average residential pricing for our area leading one to believe that overly positive conditions exist when they in fact do not. Whether you are buying or selling, every property transaction deserves a detailed comparable analysis to ensure that the appropriate pricing is applied. For further information with respect to your real estate decision(s) please feel free to Contact me. For a complete summary of area real estate activity 2009 versus 2010, see the latest issue of my Georgian Triangle Real Estate News.

Protecting Our Personal Belongings

2011-01-15T13:20:00.000-05:00

As REALTORS® we are obviously in and out of a lot of properties through the course of our selling and listing duties. When we book showings of seller's homes, it is not too uncommon to be provided with instructions wherein we are told the owner will just leave the door unlocked and personally I find this shocking.
This past week my daughter and I were skiing and snowboarding at Blue Mountain one evening. Having not had anything to eat since lunch, my daughter went to grab a quick bite in the Central Base Lodge and while doing so, had her snowboard stolen. Needlesstosay it was a very upsetting experience. It ruined our evening together and we had also planned to go out the next day. She was upset for having worked hard on her homework all weekend so as to be able to snowboard on her day off from class and secondly because she found in unconscionable as to why anyone would take something that didn't belong to them.
Living in a smaller community away from a large urban centre we tend to be lulled into a false sense of security. This is a small town, everyone knows everyone else, there are no criminals here. Wrong! Police will tell you that crime is often more rampart in smaller places for that very reason, people lower their guard, are more trusting and consequently are more vulnerable. My daughter knew she should have one and had planned during her drive up her to buy a lock for her snowboard. Unfortunately she left it about an 1/2 an hour too late.
Want another example of small town theft? Two years ago I had a $1,000 bike stolen from the garage at my cottage on Manitoulin Island in broad daylight with somewone sleeping upstairs. Now unless I am working outside I keep the door closed. When I leave the propety ie: to go out in the boat the cottage is locked and so is my car. Regardless of where you are and for how short a period to time you might be away, trust no one! This week's tragic event in Toronto where the police officer was killed by a stolen snowplow makes a snowboard theft seem inconsequential and it is.
Three years ago the Georgian Triangle Real Estate Board invested over $100,000 for state-of-the-art lockboxes to use on seller's homes. These lockboxes secure the keys, faciltate easy showings and also track who has been in your home. Small town or not, the world has changed, no one and no place is immune to crime so take every precaution possible to make sure that your home, car and other personal property is secure at all times.

Area Home Sales Over $1 Million Increase 86% in 2010

2011-01-14T10:37:00.000-05:00

During 2010, area real estate sales continued to rebound from the recessionary days of 2008 posting a 2.7% gain in unit sales for the year as reported through the MLS® system of the Georgian Triangle Real Estate Board. After a robust start to 2010, sales cooled somewhat in the latter half of the year particularly at the lower end of the market, $250,000 and below. This segment was the one most affected by higher unemployment, rising interest rates and by the impact of HST which came into effect on July 1st.

Area MLS® sales during 2010 generated $544.8 million in total revenue, an increase of 12.5% over 2009 and over $100 million greater that the value of MLS® sales in 2008. This revenue increase stemmed largely from significantly higher sales at the upper ened of the market. Residential sales between $500,000 to $800,000 totaled 133 properties, an increased of 40.0% over 2009. Sales from $800,000 to $1 million were up 33.3%. Meanwhile sales above $1 million increased a whopping 86.7% over the prior year with 28 properties sold compared to 15 in 2009.
During 2010 the market returned towards more balanced conditions which favour neither sellers nor buyers however, the overall number of homes for sale on the market remained elevated. At the end of December, 1,220 properties remained listed on the local MLS® system which represents a 9% increase in the amount of unsold inventory that existed at the end of 2009. Given the current level of sales activity, there was 12.5 months of housing inventory at the end of 2010.
At the end of December 2010, the 12 month average residential price stood at $314,937 up from $286,378 at the end of 2009. This reflects a change of 9.9% year-over-year and should not be misconstrued as a 9.9% increase in home pricing for the year. This upward shift in the area's average residential price is largely the result of the aforementioned increases in upper end home sales which in turn drove the average sale price higher.
In my next posting I will summarize market activity throughout the various municipalities in our area during 2010.

Communicating With Thumbs - Not Tongues

2010-12-31T08:59:00.000-05:00

It hards to believe that 2010 is drawing to a close. It seems like just a year or two ago since we celebrated the arrival of the year 2000 and anxiously waited with bated breath the anticipated fallout that Y2K was going to have on the technology that drive's much of our world.
Ten year's later and technology's impact has become even more prominent in our day-to-day lives. You don't think so? Well ten years ago there wasn't a "Facebook" now it's home to what 500 million people? Ten years ago cell phones were widely used by many especially those of us in business, now you are in the minority if don't own one and some of us no longer have a land-line at home. With younger generations a cell phone isn't for talking, it's texting. Who would have thought back in 2000 that communicating with your thumbs would replace the use of our tongues. Dial up Internet access is virtually a thing of the past with WiFi connections now being available in coffee shops, hotels and even on city streets. Ten years ago amidst the threat of Y2K, I remember spending $4,000 on two new computers for a retail business I owned at the time, today I could buy vastly superior ones for roughly a tenth of that amount.
Yes a lot has changed technologically in the last ten years and the rate of change we will experience in the future will not only continue, it will escalate in terms of the amount of information we process, the speed at which it is done and perhaps most significantly how it is done. Despite all of this, relationships still count. Whether it's with family, freinds or in business, the fundamentals of what constitutes a strong relationship is still an integral part of our success as human beings. Honesty, trust, integrity, ethics and other qualities that form our basic character make us successful as husbands, wives, parents, teachers, entrepreneurs, employees, politicians and so on and can't be replaced by technology. Technology can enhance those relationships or in some cases hinder them depending on how it is used.
As the year draws to a close, it's a great time to reflect on our relationships and how they can be made stronger with technology or without. Have a very Happy New Year and a healthy, prosperous 2011.

Patronizing Local Business

2010-12-30T17:00:00.000-05:00

Given the state of our local economy and diminishing jobs in the manufacturing sector, I always try to patronize and support local business and I am pleased to say that all of my Christmas shopping this year was done at local merchants. As a REALTOR® I am always being asked do I know a good handy man, painter, plumber or other service provider and in my blog from time to time I will recognize a local businesses that in my opinion provided great service.
Earlier this week I was faced with a bit of a dilema. I had rented a client's condo for the ski season and as the result of excessive snow build-up, the natural gas line leading from the gas meter to the house was damaged wherein Enbridge was forced to shut off the gas. Consequently there is of course no heat for the tenant not to mention the threat of frozen pipes and other damage to the property. As it goes, Enbridge doesn't repair the gas line, they said call Direct Energy. Well Direct Energy doesn't repair gas lines either only furnances, water heaters and other "indoor" equipment. The search then began for a local heating contractor that of course had to be a licensed gas fitter.
Well most everyone was closed until Wednesday to observe the statuatory holidays for Christmas and Boxing days. No heat for two days wasn't going to work so I kept calling until I found a very obliging individual, Steve Hogg of Hogg's Heating Service. Steve very quickly went to the property, ascertained the problem, obtained the necessary parts to repair the broken gas line, re-lit the gas appliances in the house (furnace, water heater etc.) and lastly completed the necessary paperwork for Enbridge certifying the repair had been done. Here is a local business person that realized the need for fast and efficient service given the circumstances. Holidays or not he went above and beyond the normal call or duty to rectify a potentially serious problem and did it quickly and at a reasonable cost.
The tenants were impresssed with the quick response I was able to provide in getting their heat back on and most of that is due to the efforts of Steve Hogg. I will surely use Steve again and will not hesitate to recommend him to others in need of heating service. Thanks Steve and have a very happy New Year.

Modest Real Estate Gains Seen Globally in 2010

2010-12-29T14:57:00.000-05:00

As the year draws to a close, many Canadians are looking at 2011 with a degree of cautious optimism. Scotiabank recently released a Global Real Estate Trends report wherein they tracked housing markets in 12 advanced economies throughout 2010. The overall summary of the report report stated that global residential property markets “experienced a modest but uneven recovery in 2010, supported by ultra-low interest rates and gradually improving economic conditions” but “lost some steam in the latter half of the year”.
This was certainly very true in our market as well as in most parts of Canada. We experienced strong sales activity in the first six months of the year with many buyers electing to purchase prior to the implementation of HST in Ontario and or amongst fears that mortgage rates would increase significantly. At the end of June unit sales in the Georgian Triangle were up 28%, by the end of November that increase had slipped to just a 4% increase.
Sales in December have already surpassed December of last year so by year end we will no doubt see a year-over-year unit sales gain of 4% to 5% in terms of properties sold. Sales revenue on the other hand will be up 10% to 12% thanks to increased sales activity at the upper end of the market. To date we have seen 23 sales in 2010 over $1 million, more than twice the number of $1 million+ properties sold in 2009. In 2010 there have been 4 sales over $2 million last year there were none.
It's anybody's guess as to what 2011 will bring, the overlook would suggest we are in for continued albeit modest economic growth including the real estate sector. The U.S. is still struggling with their economic recovery efforts although the auto sector seems to be turning the corner with stronger sales and a plethora of exciting new vehicles coming to market. Like it or not, this season's early and abundant snowfall has been a great boost to the local economy. As the saying goes, "an ill wind always blows someone some good."
Please take a moment to complete my online survey regarding your thought for our economy in 2011, whether it be good, bad or indifferent.

What Ever Happended to "Real" Money

2010-12-28T12:32:00.000-05:00

Well the Christmas shopping rush is over save for those Boxing week sales. I took the sensible road this year and got all of my shopping done early. I must admit it felt good to have my buying and wrapping done well before the 25th thus allowing me the opportunity to sit back and relax a bit.
Having spent the early part of my career with Canadian Tire I find it interesting to note the changes that have taken place in the retail landscape over the past few years. One of my pet peeves is the checkout lines especially in the grocery stores. The so-called "express" checkouts are anything but largely due to the various methods of payments now being used by today's consumers. We still have cash which appears to be used less and less, debit cards, some with chips some without and of course credit cards. Then there are the point-of-sale terminals themselves. Some you swipe the card with the stripe in, some the stripe is out. Have you noticed how confusing those diagrams are depicting how the card is to be inserted. Maybe they are some form of a secret aptitude test? With a chip card you insert the card in the bottom. Some are touch screens others are not. Some ask you if you want cash back and so it goes, on and on which ultimately leads to prolonged waiting in the check-out line. The most recent cards featuring a chip for added security are in my estimation proving to be a greater headache and security risk than cards without the chip. Why? Well numerous times over the holidays I have seen both debit and credit cards left behind in the bottom of the card reader by the unsuspecting user and I am sure many of you have seen this as well. Unlike bank and other ATM machines, there is no audible warning to remind you to remove your card when the transaction is complete and there should be.
It's a little late now I suppose but some degree of industry-wide standardization governing the design, features and security of point-of-purchase payment terminals would surely have offered consumers greater piece-of-mind if not a faster payment process at the checkout. As far as the grocery stores, how about a true "express" line, 1 to 8 items CASH ONLY! Okay it will never happen but I for one would welcome the no-muss, no-fuss opportunity of paying with cash when picking up a handful of items to get in and out of the store quickly.

Snow, Snow and More Snow!

2010-12-14T11:21:00.000-05:00

I first moved to Collingwood in 1985 having been transferred here with Goodyear from Toronto. The first couple of winters were pretty nasty, I can remember Mountain Road being closed for a couple of days (as it is today) and having to drive down Osler Bluff Road to Highway 26 in order to get to work at the Goodyear plant. As cold and snowy those first couple of years were, I can't remember a time when it snowed consistently for the better part of a week as it recently has
Global TV did a segment on Collingwood last Friday and the impact the early snow is having on business at Blue Mountain, in Collingwood as well as a brief interview with myself regarding the real estate market. As they say, "an ill wind always blows someone some good!"
I love snow and winter but I must admit that spending an hour to an hour and a half every day blowing snow from my driveway is getting a little much. Like many of you I find it irritating to be left with a wall of snow at the base of my driveway left by the plow. It's heavy almost like sand and filled with junks of ice the size of small boulders making it tough to move with a snow thrower. When I was a kid growing up in Toronto our street was plowed with a road grader equipped with a hydraulically operated gate. The operator briefly lowered the gate at each driveway so as to prevent the snow from leaving the blade and filling the driveway. It was simple yet effective and prevented a lot of cursing! Maybe our public works department should look into something similar.
Speaking of cursing, I had some errands to run Monday including a trip to Town Hall to obtain some tax information. Low and behold they closed at noon due to "inclement weather." Every other place of business on Hurontario Street was open except our municipal offices. That hardly sets a good example but it's indicative of the liberties taken when you are not for profit enterprise. With so many businesses downtown allegedly struggling, none of them are saying hey, it's snowing let's knock off for the day at noon. The recent municipal election was all about change, it's time to start the process and it begins with a change in attitude and leading by example. Sure when the weather is bad there's nothing wrong with shutting down to allow employees the opportunity to get home safely but at noon when every other place of business is still open, that's a bit much.

Area Real Estate Sales Soften in November

2010-12-03T12:03:00.000-05:00

Area real estate sales activity slipped in November compared to the same month last year with MLS®

unit sales down 14% and dollar revenue off 18%. Sales in the final 3 or 4 months of 2009 were very robust as the market rebounded from the dark recessionary days of late 2008 and early 2009 so this year's shortfall was somewhat expected.

Sales reported through the MLS® system of the Georgian Triangle Real Estate Board (GTREB)

in November totaled 142 properties compared with 165 in November 2009. In November 2008 only 87 sales were reported so we've come a long way back to stable market conditions. Sales revenue for the month was still a respectable $38.9 million compared to $47.7 million last year and was almost double the $21.9 million worth of properties sold in November 2008. Despite the softening of sales in November, year-to-date MLS® sales activity continues to remain strong. Unit sales for the year are up 4% with a total of 1,820 sales reported through the end of November. Dollar revenue is up 12% and totals $513.5 million for the first 11 months of this year stemming from significantly stronger sales of higher-end properties in the area this year versus last.

MLS® listing activity for the month continued to trend upwards as it has in prior months giving buyer plenty of properties to choose from. A total of 420 properties were listed in November up 4% from the prior year, year-to-date MLS® listings total 6,046 and 8% increase over 2009. With over 6,000 listings year-to-date and 1,820 sales, 1 out of every 3.3 properties or 30% of those listed are selling.

In my next posting I will recap year-to-date sales by area and price range.

2010-11-11T12:07:00.000-05:00

Despite the lingering uncertainty about our economy, we continue to see considerable strength with upper end property sales throughout our area in 2010.

Through the end of October, property sales over $1 million reported through the MLS® system of the Georgian Triangle Real Estate Board are up 92%, totaling 25 sales this year as compared to 13 in the first 10 months of 2009. There have been 17 sales between $1 and $1.5 million so far this year, up from 10 last year representing an increase of 70%. More significantly, sales over $1.5 million total 8 compared to just three last year a whopping 167% increase.

The highest sale to date was a post and beam ski home/chalet in the Blue Mountains which garnered a $2.55 million sale price was 94% of the $2.7 million list price. If you think that's high, we have a long way to go to match the sale of a ski area property in Aspen Colorado. A sale recently closed in Aspen for West Buttermilk Ranch at $31.5 million, the highest price paid in 2010 for an Aspen area property.

The 44 acre estate includes a 13,877-square-foot main house with two master suites, four guest suites, five full baths, and four half baths. It also features a 4,517-square-foot, eight-stall horse stable a 1,112-square-foot guest house with two bedrooms and a one bath, a great room with a large fireplace, “old-world” wood, steel beams and large plank floor, a bar and service area for entertaining. a private office with fireplace, bath, shower and deck, a private guest suite with three bedrooms and a lower level media room including a wine room with a tasting table.

While million dollar sales are on the increase, I don't think I'll live long enough to see a sale of this magnitude in our area. In ski country there seems to be a direct correlation between the size the mountain and the price of properties proving yet again, size does matter.

Changes to the MLS® System Now Offer Sellers More Choice

2010-11-01T09:47:00.000-04:00

As noted in my prior posting, forthcoming changes have been adopted and approved by the Canadian Real Estate Association and the Competition Bureau regarding the listing of properties for sale on the Multiple Listing Service (MLS®.)
Media reports have greatly exaggerated or misinterpreted the impact of these changes which appears to have confused both consumers and REALTORS® alike. In essence, the most significant of these newly adopted changes is that should a seller so desire, a REALTOR® may for a modest fee or even at no charge, simply list a person's property for sale placing the listing on the national MLS® system, period! In doing so, the REALTOR® will provide no other service(s) typically performed by a REALTOR® with respect to completing a real estate transaction. With no additional services being provided by the REALTOR®, no additional monies or "commission" will be payable other than the original listing fee should a sale take place unless agreed to by the seller.
These changes now permit REALTORS® to offer perhaps a choice of services "cafeteria style" with the intent of giving consumers more choices and the opportunity to save money should they choose to handle all or some of the selling activities on their own.
Contrary to some beliefs, sellers do not have direct access to the MLS® system meaning that the MLS® system is still a REALTOR® to REALTOR® service. In order to protect consumers, REALTORS® will still be required to provide and verify all relevant information regarding a property that is being posted to MLS® such as its room sizes, the annual taxes, amenities, features and any other material information pertaining to a given property. REALTORS® and home owners for that matter are also required to disclose any known defects regarding a property that may impact a buyer's decision to purchase. REALTORS® are in fact required by provincial law and through a Code of Ethics to be responsible for the accuracy of all information given to consumers and REALTORS® are also required by law to maintain errors and omissions insurance to cover themselves in the event a mistake is make.
Should a seller wish only to have the their property listing "posted" on the MLS® for a fee, the seller will be responsible for any and all other activities related to the sale process. This may included supplying their own signage, property photos, holding their own Open Houses, incurring all advertising costs and lastly they will negotiate their own sale either with a buyer directly or with the buyer's REALTOR® should they have one to which they will pay a commission of some sort.
Should they elect not to do so, REALTORS® are not obligated to post a listing for a fee. "Posting" fees like commissions are not set and are completely negotiable between the seller and the REALTOR® providing that service. At the end of the day commissions will be negotiable as they have always been. Sellers merely have the option of selecting a REALTOR® that will handle as much or as little of the selling process as the seller(s) wants and are willing to pay for.
The ultimate change with these new rules is that sellers can as desired handle as much or as little of the selling process on their own. Through the ongoing involvement of REALTORS®, MLS® listings will still be subject to the high standards of listing accuracy that have always been in place making the Canadian MLS® system the envy of many other regions in the world. For further clarification of these new rules and how they affect you, please do not hesitate to contact me and I will be happy to answer your questions or respond to comments.

Many Consumers Confused by the HST!

2010-10-28T12:53:00.000-04:00

Prior to implementing the Harmonized Sale Tax (HST) on July 1st, the province of Ontario did a very poor job of communicating what this new tax was all about and where it did and did not apply.
As consumers we were all loathe to the idea of yet another tax increase and rightly so. The HST has taken a bite out of all of us and has no doubt played a role in slowing our economy in recent months. Where I noticed it particularly was at the gas pump. Prior to the arrival of the HST, $20.00 worth of gas included $.95 for GST. Put in $20.00 now and the HST portion is $2.30!
Prior to the HST's arrival, I had numerous conversations with seller clients one of whose home is worth over $2 million, all bemoaning the impact HST was going to have on their net sale proceeds. The Ontario Real Estate Association recently commissioned a survey via Ipsos Reid the results of which revealed that 56% of Ontarians mistakenly believe that the new Harmonized Sales Tax (HST) applies to the full purchase price of a resale home.
The fact is, the HST is only applicable on the various transaction costs associated with the purchase of a resale home that has been previously occupied. Lawyer's fees, real estate commissions, home inspection and appraisal fees are all HST taxable. The purchase price of the home itself is not! With that said, we do have some unique examples in our maket where the HST may apply on the purchase price and this bears close scrutiny. Many condominiums at Blue Mountain and particularly in the Intrawest Village may present some tax implications. Many of these properties are titled in company names and are also in rental programs from which income is derived. These specific situations require due diligence on behalf of a buyer and their REALTOR® with the appropriate clauses and or conditions included in an Agreement of Purchase and Sale.
If you are a Buyer or a Seller contemplating a real estate transaction in the near future and have some reservations about the HST and other tax implications or require some assiatnce regarding current market conditions, please feel free to contact me without obligation with your questions.

The Voters Have There Way!

2010-10-27T11:37:00.000-04:00

In watching the municipal election coverage on Monday night, the message across Ontario appeared to be that voters were not just looking for but were demanding change. Those candidates fortunate to be elected spoke to that in their victory speeches, now it's time for them to deliver. Talk alone with no longer pacify today's voter or consumer. Increasingly we see it in the real estate professional. Retailers and other service providers do as well. People's tolerance has long since run out, especially for politicians and their inherent bungling. The time has come to deliver, walk the talk, provide expertise, knowledge, value, common sense and above all live up to the expectations that others have of you. It's time those same expectations were lived up to by politicians at all levels.
In my prior post "Somebody- Please Stop the Madness" I rendered my opinion on the matter of Collingwood's stance re: patios on Hurontario Street. Well the voters of Collingwood did as well and overwhelmingly threw those incumbents to the curb that voted in favour of approving the curbside patios. It's ironic that such a non-issue, one that should have never commanded the time and consideration that it did of Council, cost so many their political careers.
For every decision each of us makes there is always a potential consequence and I have steadfastly preached that to my kids.  The political losers of Monday night's election learned this first hand and somewhat painfully. How can the public-at-large entrust someone to responsibly govern the municipality's finances and other important assets when such foolish judgment has been used on an issue that isn't an issue at all.
  With a new Council soon to take command, it is now time to get down to what matters most to the residents of Collingwood, financial restraint, debt reduction and subsequently taxes.  Those of us in the real estate profession hear first hand people's concerns over Collingwood's tax rates. Newcomers looking to move to the area are typically aghast at the taxes on properties they view in their search for a home and I can say with certainty many have elected to buy elsewhere.
  The new Council needs to appoint a committee or taskforce that will review the entire operational efficiency of the municipality.  In my opinion, a minimum 10% reduction in operating expenses is attainable in almost any organization if you approach the matter with the right mindset and ask the right questions such as:
- What are we doing?
- Do we need to do it? ie: what's the value to the taxpayer?
- Is there a better more efficient way to to it?

The function of every municipal department should be thoroughly reviewed and senior staff should be challenged to find and attain targeted savings. For profit organizations do it, non-profit ones need to as well. Virtually every organization does things they have been doing for years and doing it the same old way without really asking themselves why.
For those that have been elected or re-elected the time to celebrate is over.  The four year municipal term goes by much quicker than you think and public tolerance for sub-par performance from the next Council will be much shorter than that.

Changes Forthcoming to Canada's MLS® Real Estate System

2010-10-23T20:41:00.000-04:00

For several months now you may have read media reports covering the ongoing allegations from the federal Competition Bureau regarding Canada's MLS® system. The MLS® (multiple listing service) system and MLS® trademark are owned and as such managed by the Canadian Real Estate Association (CREA). In order for a home or other property to be listed on the MLS® system certain criteria must be met and this has meant that only licensed real estate practitioners (REALTORS®) can access the system for the purpose of listing properties for sale. The Competition Bureau charges that this is anti-competitive as it thus far has prevented other real estate companies many of which are not licensed real estate practitioners from accessing the system simply to post a property on the MLS® system without providing all of the other functions typically associated with the buying and selling of real property.

After months of heated debate between CREA and the Competition Bureau, a tentative settlement has been reached that will bring about some changes to the MLS® system as we know it. Executives from real estate Boards across Canada are meeting this weekend in St. John's NFLD and will be voting Sunday on proposed changes that will end the stalemate that has seen both CREA and the Competition Bureau deadlocked in heated and emotionally charged exchanges for months.

Canada is one of the few countries that has a nationwide MLS® system. The U.S. doesn't have one and most countries don't. If you live in Vancouver and are moving to Halifax, you can begin your real estate house hunting online in the comfort of your own home before you ever step on a plane or hit the road for the trip east. More importantly, MLS® rules help to ensure the accuracy and reliability of information that gets posted to a listing about any given property. That is great value to consumers and we are the envy of many countries for having such a system.

So is the system anti-competitive? I have followed for months the media reports and online comments made by consumers pertaining to this festering situation. Virtually every consumer complaint has been centred around the lousy service they received from their respective REALTOR® for the commissions paid. This is not a question of a system that it anti-competitive, rather, it's more a matter of REALTORS® proving poor service and subsequently poor value for the fees charged.

Today's consumer looks for and demands greater value than ever before. Let's face it, I do and so do you. As professional REALTORS® we must first identify what it is that is important to consumers that are engaged in and or are contemplating a real estate transaction. We must provide a level of knowledge, expertise and service that meets these needs in a way that clearly demonstrates the value a licensed REALTOR® contributes to the buying and selling process. As humans we all tend to lay blame for situations rather than accept our responsibility for them. Let's not fault a system that is the envy of many.

Following Sunday's vote I will elaborate in more detail the changes that you can expect to see coming to the rules governing organized real estate and more specifically the MLS® system.

Somebody - Please Stop the Madness!

2010-10-21T15:52:00.000-04:00

In less than a week we will have elected new Councils across our region and indeed across the Province to lead our municipalities over the next four years.
Four those of us living in Collingwood that have attended candidates meetings and followed the electoral process, the issue of the Town's debt and downtown patios have been the most contentious issues. Some incumbents that voted in favour of moving the patios to the curb and tried to justify their decision at the meetings were literally booed. Virtually everyone that was running agreed to either re-visit the matter if elected or to just move forward in having this ridiculous by-law repealed outright.
Thousands of dollars of taxpayer's money have been squandered debating this frivolous issue for which the correct decision is one based on practicality and liability. This matter deserved no more than an hour, not months of Council's consideration after staff reports outlining the pros and cons had been heard, and it will clearly cost some incumbents their positions next week. One candidate's website shows before and after photos of the downtown core with patios against the buildings then moved to the curb, the after photo showing nice wide sidewalks with no people! It's incredible that this would be seen as an improvement.
Last week's Collingwood Connection reported that Sean Cripps the owner of Duncan's Cafe has been charged not once but twice with having an "illegal" patio. It's blatently obvious the decision to move the patios was wrong and the candidates running for Council heard this again and again during the course of this campaign. Despite promises to revisit the matter if not to repeal this by-law altogether and with some candidates making promises such as "Now is the time to be open for business once again" somebody needs to step in and call off the dogs! I think I speak for many in asking will someone please stop the madness!
Please take a moment to complete my online poll. Given the circumstances with a repeal of the by-law potentially going to happen do you think it is appropriate to be laying these charges?

Don't Miss The Best Value in Skiing!

2010-10-19T13:27:00.000-04:00

With the days getting shorter and the nights colder, people like myself start looking forward to the fast approaching winter and the accompanying ski season. Yes, some of you may feel we're sick but hey, we can endure the ridicule equally as well as the cold in pursuit of one of our favourite sports.
I've yet to purchase season's passes for myself and kids at Blue Mountain, the early bird deadline is coming quickly (November 1st) for the discounted rates don't miss out on what is undeniably a great deal. In this day and age where true value for a product or service is often hard to attain, Blue Mountain's 5X7 pass is a real bargain. For those of us fortunate enough to live in the area we can enjoy as much skiing as our aging legs and knees can stand for the modest price of $179 + tax. That's only $5 more than three regular day tickets which are now $58. If you haven't gotten your's yet act quickly as November 1st is fast approaching. Tickets can be purchased online, it's fast and easy. See you on the slopes!

CIBC's Run For Ther Cure

2010-10-06T13:02:00.000-04:00

This past Sunday 1,000 runners/walkers participated in the local event for the CIBC Run For The Cure. A team of us from Royal LePage Collingwood participated and in terms of money raised, our team placed in the top 10 Teams helping the local run generate almost $178,000 in donations, not bad for a smaller community.

Our office has and continues to experience the impact Cancer has. In the past year we've lost a good colleague and more recently another member of our office has had a brush with breast cancer while yet another has a spouse now undergoing treatment for the same.

The weather conditions for this year's run couldn't have been better. Event organizers had a 5km route that was well thought out taking full advantage of the town's trail system with minimal road contact. After not have run any significant distance in years and with a worn knee, I was pleased to have run the entire distance and I will look forward to next year's event. A special thank you to those that donated to my efforts personally as well as those that made a donation to other members of the Royal LePage Collingwood team.

Area Real Estate Sales Volume Slips 11% in 3rd Quarter

2010-10-04T11:26:00.000-04:00

Area real estate sales reported through the MLS® system of the Georgian Triangle Real Estate Board slowed during the 3rd quarter of 2010 versus the same period last year. Lingering concerns about the strength of the current economic recovery, interest rate hikes by the Bank of Canada and the implementation of the Harmonized Sales Tax (HST) in Ontario were no doubt all contributing factors to the 3rd quarter slow down

MLS® statistics for the month of September reflect a softening in both listing and sales activity vs September 2009. A total of 584 properties were listed on the local MLS® system in September 2010 vs 616 in September 2009, a decrease of 5.2%, 169 properties sold in Sept. 2010 vs 188 in Sept. 2009, a decrease of 10.2%. Overall sales volume was $47,189,150 in Sept. 2010 vs $51,358,520 in Sept. 2009 a decrease of 8.2%.

During the 3rd quarter, MLS® unit sales activity dropped 14.7%, with 532 properties selling this year compared to 624 sales in the 3rd quarter of 2009. Total 3rd quarter MLS® sales volume was $149,135,752 which represents a 10.9% decrease over the $167,356,079 worth of properties sold in the 3rd quarter of 2009. Virtually all price segments saw a drop in sales activity during ther 3rd quarter with the exception of the upper end of our market. Properties in the $500,000 - $999,999 range exhibited an increase of 9.8% in number of sales while 3rd quarter sales in $1 million + range this year totaled 8 compared to 5 sales in $1 million+ sales during the 3rd quarter of 2009. Sales below $250,000 posted the biggest decline year-over-year down 20.2% from the same quarter last year. This segment of the market is the one perhaps most vulnerable to increased mortage rates and these results indicate that.
For the first nine months of 2010, a total of 1,516 properties have changed hands year-to-date surpassing the 1,390 properties sold in the same period last year, an increase of 9.1%. MLS® sales volume for the first nine months of 2010 totals $430,145,706 which represents a 20.3% increase over $357,509,894 worth of properties sold in the first nine months of last year. Again, year-to-date sales below $250,000 is the only segment of the market showing a decline with sales down 5.5% vs the same period last year.
Market activity is forecasted to remain steady for the balance of the year. The aforementioned statistics pertain to resale property activity reported throught the MLS® system of the Georgian Triangle Real Estate Board and do not include private sales, new home sales made by developers etc. These sales combined with the MLS® activity reported above reflects the strength we continue to see in our market despite the weaker activity of the 3rd quarter. It would appear that we can expect interest rates to remain stable for the foreseeable future and there remains a good selection of properties on the market for buyers to choose from. The biggest question that remains pertaining to future market activity is the the strength of our economy and the impact it will have on consumer confidence moving forward.

CIBC's Run For The Cure

2010-09-29T09:35:00.000-04:00

Dear Friends, Family, Clients and Colleagues,

Cancer of all types has and continues to touch countless numbers of people across Canada. I lost my father to cancer and more recently my fellow REALTORS® and I here at Royal LePage in Collingwood have seen the impact of this disease on our fellow co-workers and or their families. In order to help arrest one aspect of this dreaded disease, my colleagues and I at Royal LePage here in Collingwood have formed a team to participate in this years Canadian Breast Cancer Foundation CIBC Run for the Cure scheduled to run Sunday October 3rd.

The Canadian Breast Cancer Foundation CIBC Run for the Cure is Canada's largest single day, volunteer-led fundraising event dedicated to raising funds for breast cancer research, and education awareness programs.

Each year, thousands of Canadians of all ages and from all walks of life unite to participate in the Run. Their reasons for participating vary, but they all have the same goal; to create a future without breast cancer.
Please support me and my fellow team members at Royal LePage with our fundraising efforts to raise money for the Canadian Breast Cancer Foundation during this year's walk.

If you feel so inclined visit my personal CIBC Run For The Cure Website to make a donation. No matter what the amount given, together we can work to find a cure.
Sincerely
Rick Crouch

Local Chalet Rental Firm Found Guilty

2010-09-22T12:50:00.000-04:00

It may come as a surprise to many that as licensed REALTORS® we practice our profession under provincial law, specifically the Real Estate and Business Brokers Act 2002 (REBBA 2002). This Act has been in place for many years, 2002 merely denotes the date in which some significant changes and or revisions were added.
Under the "Act," are well defined stipulations that govern virtually ever aspect of what we do from the preparation of listing/sale agreements, financial matters, our signs, advertising guidelines and so on. One of the main requirements of the "Act" is that no one is to trade in real estate without being registered under REBBA 2002. This means that no company or individual can charge a fee for listing, selling or even leasing a property.
On September 16th, the Barrie court convicted a Collingwood company "Blue Mountain Chalets" of trading in real estate without being licensed under REBBA 2002, overturning a decision made two years ago wherein the company was acquitted. At the time of the acquittal, I was President of the Georgian Triangle Real Estate Board and I was present in the Bradford court room at the time. The earlier fate of Blue Mountain Chalets was presided over by a Justice of the Peace who although finding the company guilty of practicing real estate without being licensed, proceeded to acquit them anyway. The company will now be sentenced on October 5th.
While one may ask themselves what all the hullabaloo is about not being licensed, they fact is consumers stand at considerable risk. For example, under REBBA 2002, real estate brokerages are required to maintain and place funds such as deposit monies into trust accounts where they are protected. Non-registered parties can simple cash a deposit cheque and use it for what they want and should the company go under, those funds will most likely be gone. How would you feel about a $5,000, $10,000 or larger deposit of yours being lost?
Due to the recreational nature of our area, numerous individuals and or companies have and continue to exist in our area that are managing rental condominiums, chalets and cottages. With this latest verdict against Blue Mountain Chalets, the Real Estate Council of Ontario (RECO) is going to be pursuing all other non-registrants in the area in order to ensure that consumers are fully protected by law in their real estate transactions. If you are not sure as to whether your are dealing with a licensed REALTOR® simply visit the RECO website and search for the party representing you to see if they are in fact a registrant under the "Act."

The Municipal Race Is On!

2010-09-17T10:21:00.000-04:00

With just 38 days remaining until the 2010 municipal elections across Ontario, the race is now on amongst those looking to lead our area municipalities for the next 4 years.
We could debate for hours (with no clear winners) the performance of the "incumbent" Council members throughout the various municipalities in our area and indeed the Province. Throughout recent weeks, there has been community dialogue and letters to the various papers advocating the widespread removal of all incumbent members of Council here in Collingwood and I suspect the same sentiment exists elsewhere in Ontario as well. Taxes are spiralling out of control, decisions being made contravene not only good business sense but often plain common sense and residents here and across the Province have seemingly had enough.
If I were an incumbent candidate I would be judging the performance of myself and fellow Council members over the past 4 years on one very simple indicator. Merely look around the room at the shear magnitude of candidates now running against you. That is as clear an indicator as you are ever going to get about the performance current Councils and their members have rendered to their respective municipalities over the past term. Knowing the role egos play, no doubt some incumbents here and elsewhere will smugly claim what a wonderful job they have done pointing the finger of blame at either the Mayor or their fellow Council members for failures of the past. Those are the ones I hope fall the hardest and fastest as it's the only way they'll ever get the message. In Collingwood we have 21 candidates running for 7 Councillor positions. In the Blue Mountains and Wasaga Beach, 13 and 12 candidates respectively are running for 5 Councillor positions. Similarly, in Meaford 13 are running for 5 Councillor seats, in Grey Highlands 10 candidates are vying for 5 Councillor positions. Clearview Township has a "ward" system in place nonetheless in many of the wards 3 or 4 candidates are running offering voters lots of choices. Further afield, the City of Barrie has 8 candidates running for the Mayor's position. Too bad Collingwood does not have more choices for this important position as well.
I suspect many incumbents in this area and others will get some tough questions and treatment at upcoming all candidate meetings with the final verdict of their past 4 year's performance rendered on October 25th. As one local candidate proclaims: "It's Time For Change" and there no doubt will be a lot of that.

What A Summer It's Been!

2010-09-03T10:54:00.000-04:00

Well it's hard to believe that we are now into September, someone mentioned the other day there are only 15 or 16 weeks left for Christmas shopping, scary! Nonethless we have had an excellent summer weather-wise and most people I talk to seem to have enjoyed it, feeling that the summer of 2010 has made up for a least 2 or 3 mediocre summers in the last couple of years.
I spent last week at my summer cottage on Manitoulin Island and at the risk of dating myself, this is the 58th consecutive year that I have spent time on Manitoulin, the largest fresh water island in the world. Even during a 4 year stint living in Chicago, I still made the annual migration back to the cottage to spend a couple of weeks escaping the pressures of daily life. Real estate clients are always shocked to learn that I live in Collingwood and yet go further north to a cottage! My answer is always the same, no matter where any of us live, we eventually all need a break from our daily lives including the place where we live.
My mother was originally from Manitoulin hence their is a family connection to that area that goes far back long before I owned property there. I spent many a Manitoulin summer on my grand parents farm, an experience that has played a significant role in who I am today. By most standards, Manitoulin is pretty primitive as a vacation destination which to me is perfect. There are no go cart tracks, amusment parks, night clubs, four star restaurants or other such manner of entertainment. What this is plenty of is water, (there are over 100 lakes on the Island), trees, rocks, wide open spaces and a naturally rugged landscape to drive, hike, bike and enjoy. In particular I feel very fortunate to own almost 2 acres on the water, I am at the end of a dead-end road so it's private yet I also have full municipal services (sewer and water). My kids have grown up enjoying the cottage lifestyle and like me they also have a strong connection to Manitoulin Island due to family roots. My daughter recently returned to Ontario after living for 2 years in Vancouver and what did she miss the most? Her family? Nope, the cottage!
Many people I come into contact with through my real estate practice are looking for the same experience and recreational lifestyle in this area that they too can share with their families, making a lifetime of memories of their own. No one can appreciate those desires and objectives more than me and I'd be delighted to work with anyone looking to make a real estate investment in our area that will create for them what my cottage has provided me and my family.
As the summer of 2010 now draws to a close, I look forward to many more summers inwhich to enjoy my "island" escape. If you've never been to Manitoulin it's worth the visit and I'd be happy to share with you my knowledge of the area.

Area Real Estate Sales Strengthen - But Buyers Remain Cautious

2010-08-31T17:57:00.000-04:00

Area real estate sales reported through the MLS® system of the Georgian Triangle Real Estate Board during the month of August have rebounded strongly following disappointing sales in July. Sales on this last day of the month total $57 million have surpassed total sales for August 2009.
Despite this positive level of activity, buyers remain cautious and are languishing over their purchase decisions forever fearful of overpaying should prices trend downward in the months ahead. Increasingly, we are seeing offers coming in well below the asking price. Sellers are often offended by this but shouldn't be, it's just the nature of today's buyer(s) given the continuing uncertain economic and market conditions we face.
Typically the average list-to-sale price ratio for MLS® sales processed through the Georgian Triangle Real Estate Board is 95% provided the property is realistically priced. An initial offer significantly below that will typically generate one of two results. One the sellers will elect not to sign the offer back or two, the sign-back will be close to the asking price just to send a message. Either way, this tactic creates a very adversarial environment for further negotiations and nobody wins.
Whether you are a seller or a buyer, it is imperative that you are working with a REALTOR® that can provide you with hard factual information regarding current market pricing. Fact and accurate information based decision making are crucial in today's real estate market. If we as professional REALTORS® cannot provide this level of service to our clients then successful real estate transactions will elude, buyers, sellers and REALTORS® alike.
To help you in selecting a REALTOR® that will best meet your needs whether selling or buyer please refer to my Home Cents Help Tip article "Interviewing Potential Realtors®."

Area Real Estate Sales Soften in July

2010-08-11T22:30:00.000-04:00

After several consecutive months of robust sales following the slowdown we experienced in 2008, area real estate sales weakened in July versus the same month last year. Unit sales as reported in the MLS® system of the Georgian Triangle Real Estate Board declined 25% in July compared to July 2009. A total of 162 sales were reported during the month down from the 217 properties sold in July 2009. Sales revenue declined even further during the month as MLS® sales totaled $42.8 million down from the $62.0 million worth of properties sold in 2009 a decrease of 31%
Year-to-date 2010 sales still remain well above the total for the first seven months of 2009 (up 16%) while sales revenue for the year totals $324.1 million up 28% from the $252.5 million sold during the same period in 2009. Sales in the upper price ranges continue to remain very strong. Unit sales between $500,000 to $800,000 total 77 properties, an increase of 64% over 2009. Similarly, sales over $1 million are up 78% with 16 sales reported above $1 million in 2010 versus 9 during the first seven months of 2009.
The reasons for July's softer sales are no doubt varied. Many buyers bought in the first half of the year to avoid potentially higher mortgage rates which were predicted to increase but essentially haven't to the levels forecasted. The implementation of the harmonized sales tax (HST) on July 1st may also have prompted some purchases in the first half although the HST by-and-large does not affect resale real estate.
July and August can be very unpredictable months relative to overall market activity. Many potential buyers are in "holiday mode" and do not resume their house hunting seriously until late August or early September. In the past 10 to 14 days our office has seen a 40% increase in showing activity relative to our office's listings, a clear indication that Buyers are indeed out there viewing properties with the intention to purchase.
The remainder of 2010 should bring with it steady albeit somewhat softer level of sales activity. Interest rates remain at very low levels and there is a great selection of available properties for would-be Buyers to choose from. For details more specific to your particular market area and or situation, please feel free to contact me.

2010 Condo Sales up 43%

2010-07-19T14:17:00.000-04:00

Condominium resales have enjoyed a strong resurgence during the first half of 2010 with unit sales reported through the MLS® system of the Georgian Triangle Real Estate Board (GTREB) up 43% to the end of June. Dollar revenue is up even higher totaling $37.4 million for the first six months of 2010, an increase of 64% from the prior year.
As noted on the accompanying graph, resale condo sales on an annualized basis have not historically posted consistent gains from year to year. In general, resale condominium unit sales have consistently totaled in the low 300 range annually with the exception of 2008 which was abnormally weaker. These sales do not include the sale of new condo units in developments such as the Village at Blue, Cranberry, Lora Bay and others.
Through the first six months of this year, 101 resale condominium units have been sold in Collingwood compared to 75 in 2009, an increase of 35%. Condo sales in the Blue Mountains total 51 units up from 35 last year, an increase of 46%. Condo sales in other municipalities most notably in Wasaga Beach and Meaford make up the difference have have increased from 3 units sold in the first six months of 2009 to 13 units so far this year.
Condominium properties have always been popular with recreational buyers looking for an economical entry into our market either for ski season use or for use as a year round weekend retreat. Increasingly we are seeing first-time home buyers looking at the condominium alternative to a single family home simply because they are more affordable. As an example, a small war-time home 600 square feet in size recently sold for $121,000 and required a lot of work. Conversely, $100,000 to $110,000 will buy you a similarly sized condo or for $120,000 to $130,000 you can buy a condominium with close to twice that square footage. No doubt it is these first-time buyers that is helping to increase the area's condominium sales year-to-date and this trend will no doubt continue. Even with a monthly condo fee, condo ownership can make sense for those on a strict budget without a lot of extra income to put towards maintenance and or renovation expenses.
For additional information pertaining to the local condominium market please see the Summer 2010 issue of my Condo Communique´ condominium newsletter or to discuss your particular condominium buying and selling needs please do not hesitate to Contact Me.

Grey Highlands Leads Area in Sales Increases for 2010

2010-07-12T12:04:00.000-04:00

Unit sales reported through the MLS® system of the Georgian Triangle Real Estate Board for the first six months of 2010 shows that the Municipality of Grey Highlands leads the the Georgian Triangle in year-over-year sales increases 2009 versus 2010. For the period ended June 30th, unit sales in Grey Highlands are up 69% for the first six months of the year totaling 49 as compared to 29 sales in the first six months of 2009. The average residential sale price in Grey Highlands is also up almost 16% year-to-date reflecting the fact that many of the sales in 2010 are of greater value than those reported in 2009, a fact that is consistent across our market this year in general. MLS® sales in both the Municipality of Meaford and the Blue Mountains are running 35% and 30% ahead of 2009 respectively. Other area municipalities are all posting sales gains in the first six months of the year with the Town of Collingwood having the smallest gain of just under 12%. The adjacent chart shows the level of sales activity in each of the various municipalities throughout our area. For additional market news please see the latest copy of my "Georgian Triangle Real Estate News" or as always, feel free to Contact Me for a no oblogation consultation re: your specific real estate buying or selling needs.

First Half 2010 Real Estate Sales Revenue Up 48%

2010-07-07T10:16:00.000-04:00

Area real estate sales reported through the MLS® system of the Georgian Triangle Real Estate Board continued to show strength in the second quarter of 2010 with year-to-date sales to the end of June up 48% over 2009, despite the tightening up of mortgage qualification criteria and slight increases to the historically low mortgage rates. This, coupled with the arrival of Ontario’s Harmonized Sales Tax (HST) effective July 1st, may account for slower growth in sales during the remainder of the year. “According to the Conference Board of Canada’s index of consumer confidence, consumer sentiment lost some ground after having increased in the first quarter, and is now roughly back on par with levels reported at the end of last year. The decrease in confidence reflects weaker outlooks for household budgets and employment, and less enthusiasm about making major purchases.”

Statistics for the month of June 2010, reflect a slight softening in number of listings and number of sales versus June 2009: 503 properties were listed on the local MLS® system in June 2010, vs. 551 in June 2009, a decrease of 8.7%; 197 properties sold in June 2010, versus 206 in June 2009, a decrease of 4.3%. Sales volume, however, was $61,790,689 in June 2010, vs. $50,660,918 in June 2009: an increase of over 21% stemming from increased sales in every price category above $500,000.

For the first six months of 2010, 985 properties have changed hands year-to-date (YTD), surpassing the 769 properties sold same period last year, an increase of 28.1%. MLS® Sales volume of $281,255,054 (June 2010 YTD) represents a solid 47.6% increase over $190,541,815 (June 2009 YTD). As noted in the chart above, all price categories have seen an increase in number of sales June 2010 vs. June 2009: under $250,000 520 vs. 494, or 5.3% increase; $250,000 to $499,999 375 vs. 234, or 60.3% increase; $500,000 to $999,999 75 vs. 34 or 120.6% increase and in the over $1 Million category, 15 sales vs. 7 sales, or an increase of 114.3%.

The current Georgian Triangle MLS® sales-to-listing ratio shows a return to a more balanced market conditions. With the introduction of the H.S.T., the possibility of slightly higher mortgage rates and tighter qualification rules for mortgage financing, sales activity is expected to remain stable in the months yet may decrease slightly from the somewhat hectic pace experienced in the last quarter of 2009 and first quarter of 2010.

The World's Most Versatile Chair

2010-07-06T13:41:00.000-04:00

Most home sellers today acknowledge that we are in competitive market conditions with many homes listed for sale all trying to capture the attention of potential buyers. Sellers are on an ever increasing basis asking their listing REALTOR® for suggestions as to how they can prepare their home to show it to its best advantage including the correct placement or staging of furniture. Well a Chinese entrepreneur may have the perfect solution as to how you can alter the look of your home's living or family room with a minimal of fuss and or investment. Watch the video above to learn more. Who says you need a room full of furniture to give your home a fresh new "look." Home stagers beware!

First Street Reconstruction - The End is in Sight!

2010-06-21T09:58:00.000-04:00

After several weeks of lane closures, residents and visitors alike will soon be able to enjoy the benefits that will be provided via the reconstruction of First Street. The new format will include a much needed centre, left hand turn lane, a feature that has desperately been needed for years. Commencing today (Monday June 21st) final paving is to begin on what has been a lengthy construction process that has often tested the patience of drivers and pedestrians alike.
Westbound lanes, those on the north side of First Street will start to receive their final coat of asphalt starting tonight at 7:00pm continuing through to 6:00am tomorrow morning. The schedule for this work is as follows:

Intersection of High and First Streets 7:00 to 9:30pm
High to Elm Streets 9:00 to 10:20pm
Elm to Spruce Streets 9:50 to 11;10pm
Spruce to Hickory Streets 10:40 to Midnight
Hickory to Walnut Streets 11:30 to 12:50pm
Walnut to Cedar Streets 12:20 to 1:40am
Cedar to Oak Streets 1:10 to 2:30am
Oak to Birch Street 2:00 to 3:20am
Birch to Beech Streets 2:50 to 4:10am
Beech to Maple Streets 3:40 to 5:00am
Maple to Pine 4:30 to 6:00am

The second phase of this final paving will begin tomorrow evening (Tuesday June 22nd) with working being done on the eastbound lanes or the south side of First Street. As with tonight, work will start at the far west end of First proceeding east to Pine Street. The construction schedule for this segment of the work is the same as above. During these time slots access to the respective side streets will be closed for the laying and compacting of the asphalt as well as to provide a safe working environment for the construction crew and their equipment.

Overall, construction for the first Street project is reported as being ahead of schedule. Between the work in this area, the reconstruction of Huronatrio Street and other projects around town it seems at times that we are in a war zone and I can only imagine what visitors to the area must think. The curb lanes on First Street have been effectively closed for a least two months now and while there were some unfinished sections of curbing plus some raised or exposed manholes, these lanes have for the most part been absent of workers during this time. Perhaps with the right measures being taken, those lanes lanes could and should have been reopened at least on weekends.
Nonetheless, the finish line is in sight and none too soon. In less than two weeks school will be out and the summer holiday season will be upon us bringing with it visitors which we hope with have a lasting and favourable impression of our revitalized downtown core and improved First Street (Highway 26) corridor. We may not have had the same investment into our Town that Huntsville has had for the G8 Summit, but in addition to some noteworthy infrastructure improvements, at least we have a "real" lake.

2010-06-10T12:42:00.000-04:00

Real estate sales activity throughout the Georgian Triangle in 2010 continues to show dramatically improved results over the same period last year driven largely to a degree by Canada’s overall economic recovery resulting in improved consumer confidence, combined with continued low mortgage rates and a great selection of listed properties to choose from.
Unit sales for the first five months of 2010 as reported through the MLS® system of the Georgian Triangle Real Estate Board are up 40% from the same period last year. Sales revenue has increased more dramatically with year-to-date sales totaling $219.4 million up 57% from the $139.8 million worth of properties sold in the first five months of 2009. This increase in sales revenue is being driven by significantly increased sales in the upper price ranges with unit sales in the $500,000 to $800,000 price range up 88% (49 versus 26) 2010 compared to 2009. Further, year-to-date sales above $1 million total 9 to the end of May versus 5 in the same period last year. During the month of March, two MLS® residential sales were recorded over $2 million whereas in the history of the local MLS® system there had only been two single family homes sold over $2 million ever.

Many people I meet and talk with comment on the seemingly large number of properties currently listed for sale. Year-to-date, a total of 2,768 new MLS® listings have come onto the market, up 9% from the 2,540 new MLS® listings recorded in the first five months of 2009. It is a fact, Buyers do have lots of choices and they are buying as is evidenced by the 40% increase in unit sales to the end of May. When choices are limited, my experience is that Buyers tend to stand pat waiting for a greater selection of properties to become available before they commit to buy. The number of expired listings May year-to-date have decreased from last year and they now stand at 1,166 properties, down 8% from the same period last year. Many Sellers, unrealistic in their asking prices have decided to remove their properties from the market hoping for a change in fortune at some future point in time.

Breaking the year-to-date unit sales activity down into the various local markets, results in order of the largest year-to-date gains is as follows: Grey Highlands up 95%, Municipality of Meaford up 69%, Clearview Township up 52%, the Blue Mountains up 46%, Collingwood up 28% and lastly Wasaga Beach has increased 16%. As you can see, sales results vary wildly from one municipality to another, please contact me for a no obligation detailed analysis of your particular property.

The Canadian Real Estate Association (CREA) has lowered their 2010 forecast for MLS® home sales nationwide largely the result of weaker home sales in the first five months of the year in British Columbia. BC and Ontario weight heavily in CREA’s annual forecasts and even minor slippage in either of these provinces can significantly impact the overall market numbers. Changes in mortgage regulations are expected to have a marginal affect overall and perhaps even less so here locally. Many Buyer clients I regularly deal with are merely writing a cheque hence mortgage rates are a moot point. Sales across Ontario are predicted to increase by 10% in 2010, my belief is that we will see a significantly higher sales increase here in the Georgian Triangle.
Pricing across our area as well as in Canada overall remains relatively stable. The national average home price now stands at $325,400, locally were are just slightly below that at $312,529 to the end of May up 12% from one year ago. As I have stated in prior postings, the average residential price cannot be used to measure the pricing appreciation or depreciation. Increased or decreased sales activity at different price points can have a significant impact on the overall average price as we have seen here locally, given the aforementioned sales increases above $500,000. Again, for a detailed analysis of pricing for your property please feel free to contact me.

Overall, the future looks like we will be seeing more balanced market conditions for which everyone will benefit. Canada’s economy remains strong and with a history of solid mortgage lending and prudent borrowing by Canadian consumers it would appear that we will avoid the massive realignment of the housing market being experienced in the U.S.

Enough to Drive You to Drink

2010-06-06T13:11:00.000-04:00

The debate regarding restaurant patios on Hurontario Street continues to rage on incessantly and it would appear that the people most affected by the potential change in the bylaw are largely being ignored.
By all reports the restaurant owners themselves are against it both for practical as well as financial reasons. From the numerous letters being written to the local papers, restaurant patrons also appear to be every bit as focused on wishing to see the patios remain where common sense would dictate, up against the respective restaurant building(s) itself.
It doesn't take a lot of thought to envision the impracticality of having patios moved away from the restaurant out to the curb. Wait staff having to dodge pedestrian traffic while manipulating trays of food hot or otherwise is at the very least inconvenient but more importantly represents a very real threat for reduced personal safety and increased liability. From an aesthetics standpoint, sitting at a patio curbside places you amidst vehicles coming and going, exposes you to increased traffic noise from the street and places you squarely in the middle of a great deal of pedestrian commotion, hardly creating an intimate dining experience. For obvious reasons, Collingwood's own Fire Chief is against the concept. In contrast I have not heard one reason to support this move that is anywhere as compelling as the reasons against.
This saga has gone on far too long and consumed far too much time of Council and Town staff not to mention legal expenses (apparently $11,000 to date) and consulting costs. It is the perfect example of a person or group majoring in "minor" things. What I find absolutely incomprehensiblele however is the fact that for months now, this subject has raged on with decisions being made without the most important information of all being brought to the table, that being what are the requirements and obligations for restaurant patios under Ontario's Alcohol and Gamming Commission? (AGCO). If I were a member of Council, making an informed decision with respect to this matter, it would be absolutely impossible for me to do so without this crucial information before us. The very decision itself might very well be made by the stipulations of the AGCO, Provincial legislation that will decidely take precedence over a municipal bylaw no matter how well thought out.
It is very unsettling to think about what other matters, bylaws and expenditures etc. are being debated and voted on around the Council table without all the relevant facts, information and legal information being known. After months of debate, dialogue and anguish amongst downtown restauranteurs, Council have now deferred dealing with the existing bylaw until the governing legislation from the AGCO is brought forth June 14th. Gee, what a refreshing idea! It's about time some logic came to the forefront of this debate in terms of knowing in detail what the Province's legislation stipulates regarding patios and the serving of alcoholic beverages.
My predictiction is we will see one of two outcomes. Patios will remain where they should be up against their respective building(s) or if Council proceeds to move forth against the wishes of the very people being affected we will see patios vanish off Hurontario Street altogether. Let us know what you think in our current poll.

We Take Our Health Care System for Granted

2010-05-31T10:06:00.000-04:00

I've been negligent over the past couple of weeks in my postings, busy with a hectic real estate related scheduled and preoccupied with a caring for an elderly mother now hospitalized in Collingwood's General and Marine (G&M) Hospital. Sooner or later many of us will be caught in the cross-fire of caring for our parents while still with kid's on the payroll and I am getting first hand experience as to what this means.
Fortunately we have a health care system that is (a) accessible and (b) is largely paid for by our tax system. In 1991 my then 14 month old son had open heart surgery resulting in a 3 week stay at Sick Children's Hospital in Toronto. The cost to me? A few hundred dollars in accommodation expenses for my wife's stay in Toronto close to the hospital. Anywhere else other than Canada and I would have mortgaged everything I owned to pay what was probably a $250K tab. A recent stay two week stay in the G&M for my mother cost $45 for the ambulance ride to get there likewise a two week stay at a rehab facility in Penetang for her physical therapy cost $60 for the television rental the rest of which was paid for by tax dollars.
We as Canadians truly take our health care system and its related costs for granted. I lived in the U.S. for four years from 1992 to 1996 and despite having a company benefit plan, routinely had to pay out of pocket for deductibles or expenses not covered by our plan which amounted to a few thousand dollars every year.  Because it seemingly costs us nothing out of pocket, we as Canadians have lost sight of the fact that a 15 or 20 minute trip to see our Doctor is probably a $400 or $500 visit. It's not just the Doctor's time you are taking it's all his other overhead and expenses for rent, heat, hydro, staffing, supplies etc. that need to be covered.
  I gain a keen perspective and appreciation for our system every day while visiting the G&M Hospital to visit my mother. We are truly fortunate to have a facility with such caring staff in our community. With an aging population and a significant influx of retirees migrating into the area, I can't help but think about the added pressure it will place on our hospital and medical community as a whole. Amongst other priorities, the $1 billion being spent on security for the G20 Summit could clearly be better utilized, ensuring that our current and future medical needs are met.

Pricing Your Property To Sell

2010-04-28T10:16:00.000-04:00

Notwithstanding the fact that area real estate sales are up 65% in terms of units for the first quarter of 2010 indicating a strong demand, pricing your property to be in the market and not just on the market is key to achieving a sale.
For five consecutive years (2005 to 2009) the annual number of "expired" listings in the MLS® system of the Georgian Triangle Real Estate Board have exceeded the number of properties that have sold. That to me is a very telling number indicating that sellers and their REALTORS® are failing to price properties reflective of their current market value.
Factors that do not have a bearing on the value of your home are what you paid, what you may have spent on renovations/upgrades, what you owe, what you need to net out to purchase your next home and so on. The most fundamental factor that does serve to establish the value of your property is what have other properties similar to yours sold for?
When contemplating the sale of your home, condo or other property, it is absolutely imperative that the REALTOR(S)® you interview prepares a "Comparable Market Analysis" (CMA). I an increasingly competitive market, it's no longer effective for a REALTOR® to simply walk through a property shooting from the hip to throw out a price. Your response should be "show me!"
Not only will a well prepared CMA help to establish an accurate List Price for your home, it can also be used to illustrate and counsel a potential buyer(s) as to the property's value and what a credible offer price should be. Today's buyers are fearful of paying too much and with a good inventory of properties on the market they don't have to. Furthermore, thanks to the Internet, buyers today are much better educated and informed. They know what is on the market, how long it has been listed and they are readily able to compare various listings to one another quickly establishing a sense of which ones are over-priced.
Just as over-pricing is an issue, so is under-pricing a property. I recently secured a listing which another competing agent had priced $35K to $40K below my price, a difference of almost 20%. Their price represented little more than the "assessed" value which in many cases is still well below market value. Within three days the home in question received two offers and sold for in excess of 98% of the asking price.
Pricing is indeed everything and some good research and effort going in by the REALTOR® you are working with whether it is for a sale or purchase, will make the whole real estate selling/buying process more successful and less stressful for everyone involved.

It's Full Steam Ahead at the Shipyards

2010-04-27T10:32:00.000-04:00

With all of the construction activity going on around the area including the reconstruction of Hurontario Street, the completion of First Street, exterior finishes to the new library, the revitalization of Heritage Park to name a few, none is a more welcome site than the Shipyards. After languishing as a weed infested "no man's land" for the better part of two decades, this much anticipated re-development of the former Collingwood shipbuilding site is really taking shape. Sales/interest in the project is obviously good given the number of units currently under construction.
In my opinion, the highlight of the development will be the waterside promenade that starts at the foot of Hurontario Street and follows along the former side-launch basin out into the harbour. This is sure to be a major draw to both residents and tourists alike creating a waterfront atmosphere that will inject some excitement into our downtown core.
If there is anything about this project that is a bit of a letdown it's the architecture. I've heard many comments about how uninspiring the buildings look on the outside with nothing to differentiate them from any run-of-the-mill condo development you might see in Mississauga or throughout the GTA. This is one of the common shortcomings that we often see throughout the area where both builders and in some cases individual homeowners build the wrong thing resulting in a product that lacks the characteristics buyers are looking for and can be difficult to sell. This is not an "urban" environment and many buyers looking to the area expect if not demand something different to match the lifestyle change they are making by coming here in the first place. In this day-and-age of computer aided design, a little human imagination could be expended to create something truly different and unique. In the case of the Shipyards, something perhaps with a bit of a nautical touch would remind us of the former role this property played in the history of Collingwood.
I do not profess to be an architectural guru but I often read the comments of Christopher Hume the architectural critic for the Toronto Star. Mr. Hume has been to and spoken in Collingwood, perhaps at some point we may here his comments further regarding this particular project.
There are currently 5 MLS® listed Shipyards units for sale and at least one unit with a private for sale sign. No doubt some of the early buyers are looking to flip their properties for a profit others may have just had a change of heart. Whatever your take, this will be a very successful development and a welcomed re-birth of Collingwood's long neglected waterfront.

Collingwood's New Library Now Open

2010-04-24T12:57:00.000-04:00

This past week I finally made a point and took the time to visit Collingwood's new public library. Notwithstanding the fact that numerous details remain to be finished on the exterior, the library has now been open for a couple of weeks and by all accounts is receiving a positive response from the public.

Libraries have often been the focal point in many smaller communities and hopefully ours will continue to be as well. The exterior stills lacks some final touches but overall, the faux heritage look fits in well with the downtown core. Overall, I sensed a much more intimate feel on the inside as the interior dimensions seemed to create the feeling of a much smaller space than what the three storey exterior would suggest. The children's area is well done and overall the building offers ample space to sit and relax in bright sun filled spaces.

Perhaps it's a bit early to tell but I was anticipating more "gallery" space throughout the building that would serve to feature the work of local artists. As a budding artist myself I have always enjoyed viewing the various paintings that often graced the meeting room in the old library and this was a facet of the new building that I had hoped would be expanded.

This building came at a significant cost and there have been times when I questioned whether or not the municipality should be spending the money given the town's increased debt. In this day and age of digital print media and devices such as Amazon's "Kindle" and Apple's new iPad, you really have to question the wisdom of spending millions on the bricks and mortar inventorying and delivery of reading materials.

Every effort should be made to leverage this facility to its fullest extent the potential for which goes far beyond the loaning out of books.

1st Quarter Real Estate Newsletter

2010-04-20T21:57:00.000-04:00

Further to my prior post summarizing the year-to-date sales activity for area real estate, my Georgian Triangle Real Estate Newsletter is now available to download herein or via the link on our website at http://www.propertycollingwood.com/.

In other news, I am pleased to announce the addition of a new member to my real estate team, Mary Ann Burgess who has recently become licensed as a real estate Sales Representative. Mary Ann possess a keen business sense and an enthusiastic attitude which will be invaluable assets in executing her duties as a real estate sales professional.

Mary Ann joins myself and Doug Brown as part of the "Real Value" Team. Our mandate is to provice you with unparalleled service for all your real estate needs, be it a residential home or condominium, recreational property, rural farm/acreage or with a commercial property for investment or business purposes.
Please feel free to Contact Us for a no obligation consultation regarding your real estate buying or selling needs.

1st Quarter Real Estate Sales Jump 65%

2010-04-07T23:22:00.000-04:00

Area real estate sales rebounded significantly in March with unit sales for the month increasing 89% over March of last year. Historically low mortgage rates, strong consumer confidence and a good selection of properties throughout the area during the 1st quarter of 2010 resulted in many buyers realizing it was the time to buy.

Unit sales activity during the 1st quarter rose sharply from the 1st quarter of last year with 388 properties changing hands this year versus 235 in the 1st quarter of 2009, an increase of 65%. The 1st quarter exhibited strong sales activity throughout most segments of the region, with sales volume of $106,750,950 up 91% over that of $55,234,868 in the first 3 months of 2009. Comparing 1st quarter 2010 to the strong 4th quarter results of 2009, unit and dollar volume are down 17% and 16% respectively, reflecting a typically quiet 1st quarter start in annual sales activity. Of the 388 sales during the 1st quarter, 200 alone occurred in March (51%) generating $57,114,570 (53%) of year-to-date 2010 sales volume. 1st quarter 2010 sales increased in every price range over the first three months of last year. Property sales below $250,000 increased 20%, 1st quarter sales between $250,000 - $500,000 increased a substantial 183% while sales from $500,000 - $1 Million increased 92%. Sales over $1 million totalled 2 properties versus 1 sale in the first quarter of 2009. Of significant note, the two sales over $1 million in March were in excess of $2 million, a price which has only been attained on two prior occasions in the MLS® sales history of the Georgian Triangle Real Estate Board. Unquestionably this spring has seen a seasonal upturn in market activity of unprecedented proportions.

The number of new MLS® listings during the 1st quarter of 2010 totals 1,457 units, up 33% from the last quarter of 2009 and 7% ahead of the 1,360 properties listed in the 1st quarter of 2009. In particular March 2010 reflected strong listing activity with 614 new listings which represents 42% of the year-to-date new listing total of 1,457 properties coming to market through the Georgian Triangle. To date, 723 listings expired in the 1st quarter of 2010 down 14% from the number of expired listings in the first three months of 2009.

While market conditions are expected to remain stable in 2nd quarter, sellers who are contemplating listing their property in the months ahead may want to do so earlier so as to avoid the added selling costs associated with the introduction of the H.S.T. on July 1st. For additional market information specific to your area or to discuss your p[articualr real estate buying and selling needs please feel free to Contact Me with your questions.

Upcoming Real Estate Seminar - Saturday March 27th

2010-03-18T14:37:00.000-04:00

Given the economic upheaval of the past year or so affecting market conditions combined with issues such as changes in lending rules, the HST and other matters, many consumers are confused or at least uncertain regarding the current real estate market. Well, help is on the way!

If real estate buying or selling is in your future plans, please plan to attend my FREE real estate seminar on Saturday March 27th. I have teamed up with Michael Stahr of the legal firm Baulke, Augaitis Stahr and the Bank of Montreal (BMO) wherein we are holding a 2 hour information session to address such issues as the following:

Overall market conditions in the Georgian Triangle

Legal issues, the HST, title insurance

New lending rules, mortgage products available

This session will serve to address a number of issues and concerns facing consumers with their real estate buying and seller activities. Bring us your questions and we'll provide answers or we will endeavour to do so if further research is involved. Details of the event are as follows:

Date: Saturday March 27th

Time: 3:00pm to 5:00pm

Place: Collingwood Leisure Time Club,

100 Minnesota Street, Collingwood

Free Parking, Refreshments & Door Prizes, Bring a friend!

For further information please feel free to contact me, rickcrouch@propertycollingwood,com or 705-443-1037. In the meantime I look forward to seeing you on the 27th.

Commercial Vehicles One Step Closer to Invading Your Neighbourhood!

2010-03-16T08:44:00.000-04:00

Collingwood Council last night voted to move forward based on planning department recommendations to allow commercial vehicles to be parked in residential areas.
The recommendation that was approved would permit commercial vehicles 6.2 metres (20') in length and 2.2 metres (7') in height to be parked in residential areas but only in the driveway itself. Further and this is the kicker, larger commercial vehicles up of 7.5 metres (24') in length and 3.2 metres (10.5') will be allowed in residential areas but must be parked in rear yards and can be done so within 1 metre (3') of a property line.
This approval is a great disappointment for many residents who have been following and opposing this matter vigorously. Although not officially adopted as a by-law, passing of this recommendation makes the parking of commercial vehicles in residential areas an integral part of Collingwood's new Official Plan which will no doubt come into effect later this year.
Councillors Foley, McNabb and Mayor Carrier were absent from last night's meeting hence did not cast a vote. Other members of Council in favour of the recommendation allegedly feel that allowing commercial vehicles to park in residential areas is necessary for "economic development."
In terms of planning it would appear we have some inconsistencies with respect to the future look of our Town. We have an increased emphasis being placed on heritage preservation and some urban design standards are being contemplated both of which are aimed at enhancing the overall image and appeal of our Town and it's various neighbourhoods. At the same time, commercial vehicles now seem destined to grace residential neighbourhoods detracting from the aesthetic appeal of both individual properties as well as residential streetscapes in general. Further, Collingwood has some of the most onerous sign bylaws to be found anywhere which have even impacted REALTORS® and our use of Open House signs. What's more offensive, a real estate Open House sign that is temporarily in place for 2 or 3 hours, or a 7.5 metre (24') truck covered in signage parked nightly in your neighbour's back yard?
In addition to spending, increased taxes and other issues, the pending change allowing commercial vehicles to be parked in residential areas is surely going to spark some colourful debate during this year's municipal election campaign.

Real Estate and Money Laundering

2010-03-11T11:06:00.000-05:00

Real Estate transactions have long been identified as a primary area where money from illicit sources has been laundered. How is this done?
Example: A would be Buyer enters into an Agreement of Purchase and Sale for which they submit a $10,000 "cash" deposit. The money is deposited into the listing real estate brokerage's trust account. The offer is conditional upon financing, a home inspection or some undertaking which eventually is not fulfilled and the Agreement becomes null and void. Both the buyer and seller sign a Mutual Release, the deal is aborted and the listing brokerage issues a cheque to the seller refunding their $10,000 deposit. Presto, the $10 grand has just been laundered.
FINTRAC, the Federal government's anti-terrorism/money laundering body charged with cracking down on and tracking the flow of illegally gotten cash, requires that REALTORS® obtain the personal identification from each and every client that we deal with. Most consumers understand this while the odd one takes some offence to this requirement, citing the "Privacy Act" as the reason they do not have to comply with providing their personal information. The Federal government's anti-money laundering terrorism legislation supersedes the Privacy Act. REALTORS® are required by law to record the personal identification of clients. This information does not go anywhere but real estate brokerages are require to maintain this information on file should a FINTRAC inspector arrive for an audit.
Do these audits happen? The answer is yes and failing to satisfy the government's requirements in this regard carries a stiff penalty. A Hamilton area real estate brokerage was fined $27,000 this past January for failing to comply with the FINTRAC requirements.
Call it Big Brother or whatever you want but the fact remains that federal law is not something to be taken lightly and completing the required FINTRAC form for each client is just one more document that needs to be completed for every real estate transaction undertaken.

The MLS® Debate Continues.....

2010-03-08T14:54:00.000-05:00

Further to my post of Friday February 19th entitled: MLS® - What's at Fault, The System or The People? people are beginning to weight in on this hotly discussed topic. The following will link you with an audio broadcast featured on The Real Estate Investment Network™ dealing with the Competition Bureau's allegations that the MLS® system which is owned by the Canadian Real Estate Association (CREA) is anti-competitive.
Listen in at:

http://www.reincanada.com/Video/TabId/74/VideoId/115/Competition-Bureau-Challenges-MLS-Rules.aspx?type=audio

The party featured in this broadcast (Don Campbell) is not a REALTOR® but a real estate investor. He is obviously an ardent user of CREA's consumer MLS® website www.realtor.ca wherein consumers can search for properties all across Canada. Further he feels that www.realtor.ca is ultimately the victim of it's own success resulting in others outside the traditional real estate community wanting to list properties there. His claim certainly has some merit as www.realtor.ca is the most visited real estate website in Canada, typically drawing in excess of 3 million consumer visitors monthly.
One of the more commonly cited concerns of CREA pertains to the integrity of the property information contained in MLS® listings. As REALTORS® we are required to verify virtually every detail of a property listing from room sizes, to the taxes and any other fact that could materially affect a buyer's decision to purchase a particular property. As real estate practitioners we are in fact required to carry errors and omissions insurance in this regard. Too often, property details are not accurately provided and this is not a fault of MLS® but that of those that practice in the profession without exercising due diligence when listing a property for sale.

One For The Record Books!

2010-03-04T12:24:00.000-05:00

I read an article today detailing the sale of the most expensive home in the world.
In 2008 a Russian billionaire, allegedly the wealthiest man in Russia entered into an agreement to purchase a villa on the French Riviera that was originally built for the late King Leopold II of the Belgians. The property was valued at $750 million U.S. which was the highest price ever paid for a residence anywhere in the world. The purchase agreement included a $53 million deposit. Subsequent to entering into the agreement, the buyer's fortunes like a lot of others was impacted by the global recession and he backed out of the deal. French law does not stipulate that a buyer's deposit needs to be refunded in the event the sale is aborted. The issue went to the courts and as expected, the courts awarded the deposit to the seller. Ouch! The seller, not needing the money plans to distribute the money amongst 10 charities.
In Ontario, aborted sales can become a complex issue. A seller may want to retain a buyer's deposit for a sale that was not completed however it's not always that easy. Should the buyer or seller wish to contest the aborted purchase in court is going to cost time and money. In the meantime, the property remains tied up with the seller unable to secure another sale unless a mutual release is signed by both parties and the buyer is unlikely to do so without getting their deposit refunded. It can become a tenuous situation with neither the seller nor the buyer winning. In the case outlined above, French law clearly favours the seller and in this case, 10 charities are the one that are going to come out on top of this aborted purchase.

Area Real Estate Sales in February Remain Strong

2010-03-03T09:36:00.000-05:00

Canada's real estate market continues to lead the country's economic rebound and sales in the Georgian Triangle are no exception. Area sales reported through the MLS® system of the Georgian Triangle Real Estate Board (GTREB) continue to show greatly improved strength over this time last year. Sales in February of $29.1 million were 52% higher than in February 2009 bringing the year-to-date total to $49.6 million an increase of 53% over the first two months of last year.
Unit sales in February totaled 107 properties as compared to 77 properties sold in the same month last year, an increase 0f 39%. Year-to-date sales of 188 units represents a 46% increase over the 129 properties sold by the end of February 2009 clearly reflecting much improved market conditions.
Overall, we are seeing a reduction in listing inventory. Year-to-date the number of new listings has dropped modestly (2.0%) from 860 to 843. There has been a a sharper decline in the number of expired listings which have dropped from 640 last year to 555 this year, a decrease of 13%. As with anything, supply and demand plays a significant role in price. A significant increase in sales combined with less inventory will serve to create a more balanced market with less buyers finding themselves in perhaps a less favourably position from where they have been for the past few months.
As was the case throughout 2009, the Blue Mountains continues to lead area municipalities in sales growth. Year-to-date, 20 MLS® sales have been reported in the Blue Mountains compared to just 9 last year, an increase of 122%. Sales in other municipalities are as follows: Collingwood up 81%, Municipality of Meaford up 50%, Clearview up 29%, Grey Highlands up 25% and lastly sales in Wasaga Beach are up 21%.
With higher interest rates looming on the horizon and tighter lending rules recently improsed by the federal government, what happens in the remainder of 2009 is anyone's guess but all indications are that the first six months of the year should remain strong. Market conditions overall have not regained the same strength as shown in 2008 however slow and steady growth is much more preferable and sustainable than the frantic pace of past markets.

Provincial Land Transfer Tax and HST

2010-02-25T22:36:00.000-05:00

Since the concept of harmonizing the provincial PST with the federal GST was first announced by the Ontario government, the Ontario Real Estate Association (OREA) has been aggressively opposed to the proposal on the basis that it will make the prospect of home ownership more difficult for Ontario residents.
In addition to the estimated $1,500 in additional taxes that home buyers will on average incur upon the completion of a home purchase, there is also the added burden of additional taxes on the ongoing operational costs of a home. It is estimated that the annual hydro cost per home will increase by $100 and the annual cost for natural gas will go up by $125 driven by the combining of the two taxes into the new HST which takes affect July 1st of this year.
To offset the increased taxes resulting from the onset of HST, OREA is proposing that the province reduce the provincial land transfer tax that is payable by buyers on the closing of their home purchase.
The median home price in Ontario for 2009 was just over $318,000. Currently, the provincial land transfer tax payable is 0.5% on the first $54,999 of value, 1.0% from $55,000 to $250,000 and 1.5% on $251,000 to $400,000. The land transfer tax payable on that median purchase transaction of $318,000 would be $3,250. Under the OREA proposal no tax would be payable on the first $55,000 of value and the 1.0% and 1.5% tax brackets would be reduced by 0.5% each. The resulting land transfer tax payable under this new format would be $1,658 a saving of $1,591.
I guess the $64,000 question is will $1,500 in additional taxes resulting from the implementation of HST on July 1st deter buyers from fulfilling their dream of home ownership. I suspect that $1,500 is probably a fairly common monthly payment for many people in Ontario currently paying rent or making a mortgage payment. As such in the overall scheme of things it's not a pile of money.
The OREA proposal is admirable and it is estimated it would cost the province about $311 million annually in lost tax revenue. At the same time if its implementation would enhance home ownership across the province, other tax revenue would be realized as a result. On average, studies show that home buyers in Ontario spent approximately $32,000+ in the 3 years following a property purchase. This includes money spent on appliances, landscaping, and other improvement costs and services. Whether OREA's proposal is seriously considered or not, only time will tell if the implemnentation of the HST on July 1st will harm the current resurgence of real estate sales activity across the province.
Share your opinion by completing our current online poll.

Great Lakes Water Level Update

2010-02-24T11:14:00.000-05:00

Back in December the International Joint Commission studying the impacts on water levels in the Great Lakes issued their summary report. For anyone with concerns regarding the low water levels in Georgian Bay, the summary recommendations or lack thereof were somewhat disappointing.

In summary, the report found that the water level in Lakes Michigan and Huron which includes Georgian Bay have declined approximately 9" from 1963 to 2006. Erosion of the St. Clair River bottom whose increased flow rate has long been felt as one of the major contributors to these low water levels has in fact been relatively stable now for a number of years. In total, the change in water carrying capacity of the St. Clair River is the estimated cause for 2.8" to 5.5" of the aforementioned 9" decline.

The second component of the decline is allegedly caused by a phenomena known as glacial isostatic adjustment. In layman's terms, the earth's crust is expanding (rising) which gives the impression that the water level is decreasing. Glacial isostatic adjustment is particularly pronounced in the area around Georgian Bay and accounts for 1.6" to 2" of the 9" water level decrease.

Lastly and most importantly is the change we are experiencing in climatic patterns ie: global warming. These changes have become more significant in recent years and is said to represent up to 76% of the decline in water levels between 1996 and 2005. Overall. the affect is 3.5" to as much as 6.7" of the total 9" decline that has taken place.

For the time being, no remedial actions of any significance are going to be implemented. Additional studies are ongoing and we can expect these to examine such issues as the St. Clair River, water flow from Lake Superior into Lakes Michigan and Huron as well as other factors.
For those interested copies of the report are available at the following link:

http://www.iugls.org/en/Publications_StudyReports.htm

The next public meeting scheduled for our area is: March 22, 2010 at 7:00pm. North Simcoe Sports and Recreation Centre 527 Len Self Blvd, Midland.

MLS® - What's at Fault, The System or The People?

2010-02-19T11:56:00.000-05:00

A great deal of media attention has arisen of late about how the Competition Bureau has decided to bring a case to the Competition Tribunal charging that the rules of The Canadian Real Estate Association (CREA) governing MLS® systems are anti-competitive, restrict consumer choice and prevent innovation in the market for residential real estate.
Canadian consumers are very fortunate to have an MLS® system that is universally recognized nationwide. If you live in Vancouver or for that matter anywhere in the world and are being relocated to Toronto or you want to purchase a recreational or farm property in Canada, you need look not further than www.realtor.ca the Canadian Real Estate Association's online consumer website for MLS® property listings across Canada. Such a system does not exist in the U.S. for example where there may be multiple MLS® systems within a given state making it much harder for consumers to real estate shop online. MLS® rules govern how properties are listed on the service with the intent of ensuring that the integrity of the information that is available to consumers is complete and accurate. The fact that a home is listed on a real estate Board’s MLS® system provides an assurance to the public that the information regarding properties listed on Boards’ MLS® systems is accurate and reliable and that there is professional involvement and accountability for that information - all of which protects the interests of home buyers and sellers. Nowhere in the MLS® rules does it state what fees or commissions are to be charged. These are now and have always been negotiable between the seller and their listing REALTOR®. Further, REALTORS® are often required to make concessions in the commission payable in order to bring buyers and sellers together that are deadlocked over price.
There are many aspects to the MLS® issue and the action being taken by the Competition Bureau. If consumers were to be asked to render an opinion on MLS® I suspect that very few would describe it as anti-competitive. As is evidenced in the many comments being made by consumers on media websites, the major complaint is one of "value." Many consumers, far too many in fact have had a bad real estate experience. Their REALTOR® was inattentive to their needs, failed to follow-up as promised, failed to provide accurate information with respect to a specific property(s) and so in. In short, the consumer did not receive good value relative to the fee or commission that was paid to the REALTOR(S)®.
The Canadian Real Estate Association conducted a consumer survey some time back asking consumers what they looked for in a REALTOR®. Although the comments and opinions were widespread and varied, they all came down to one thing, value. As REALTORS® we must be knowledgeable both about the market and the product, professional in appearance and demeanor, possess a high degree of integrity, be hardworking and most importantly, place our clients needs and interests above all else. After all, we are being entrusted with handling the largest most valuable asset that most consumers will ever own and as such, it's not unrealistic to have high expectations of the person involved with the sale or purchase of that asset.
Far too often consumer's expectations are not being met. Their dissatisfaction being expressed on blogs and news sites is not the fault of MLS®, it's the fault of some of the people involved in the profession.
My Home Cents© Help Tip entitled "Selecting and Working With a REALTOR®" has some valuable points in helping you select a REALTOR® to handle your buying and selling needs. As consumers all any of us really want is good value for money spent. The real estate community has at times failed to live up to consumer expectations in this regard and rather than blame the system as in MLS®, we need look no further than at some of the people involved.

Tougher Mortgage Rules - What do They Mean For You?

2010-02-17T08:55:00.000-05:00

Worried about the over-heated housing market in some areas of the country and committed to curbing too much consumer debt, federal Finance Minister Jim Flaherty yesterday announced measures to tighten Canada's mortgage rules.
Variable rate mortgages currently at historically low rates are allegedly causing some consumers to pile on too much debt. When interest rates rise and sooner or later they will, some consumers need to be protected from themselves, something which the U.S. government arguably failed at miserably. Increased interest on a variable rate mortgage can be crippling down the road if safeguards are not put in place now. Placing a second or third mortgage on your home or taking a significant mortgage amount with a low variable rate when buying to free up cash to buy a new F150 pickup or boat as our neighbours to the south commonly did is a recipe for disaster.
In summary, the rules news are as follows:

Borrowers must be able to qualify for a 5-year fixed rate mortgage.
When refinancing their home, borrowers can only finance up to 90% of the property's value, previously it was 95%.
Insured mortgages being taken out for speculative real estate purchases which will not be lived in by the owner will now require a 20% down payment up from the previous 5%. If however a buyer is purchasing a multi-unit rental property and intends to occupy one of these units, the 20% rule does not apply.
Unchanged is the fact that mortgages with a 35 year amortization period are still available and a 5% down payment is possible for those homeowners who plan to live on their properties.

How these new rules will affect the local market remains to be seen. Those purchasing a property for use as their primary residence will not be adversely affected. Those looking to purchase and mortgage a recreational condo, chalet or other area property not to be used as their primary residence will no doubt encounter some increased scrutiny by the banks.

In recent months we have seen an increase in the number of power-of-sale listings throughout this area. Ironically the most notable of these have been at the upper end of the market with two sales in 2009 well over the $1 million mark. Typically, power-of-sale properties are no bargain. By the time the mortgage is in default, the bank(s) is in so deep they need everything cent they can ring out of the place.

All in all these new rules are a positive step in helping to maintain a state of sensibility especially in markets like Toronto where bidding wars and sale prices well above the listed price have again become commonplace. We have seen little of this foolishness in our market with supply and demand serving to keep a rein on buyers overpaying and over-extending themselves.

January Real Estate Sales Continue to Show Strength

2010-02-10T15:21:00.000-05:00

Sales of area real estate in January continued to show the same strength and momentum that we experienced in the last quarter of 2009. Sales for the month as reported through the MLS® system of the Georgian Triangle Real Estate Board totaled $20.5 million as compared to $13.1 million in January 2009, an increase of 55%. Individual property sales for the month showed the same trend also up 55% with 81 properties changing hands as compared to just 52 one year ago.

Whether or not we are fully emerging from the latest recession remains to be seen but one thing is certain, consumer confidence remains high and with interest rates still at record lows, buyers are once again looking a properties and moving forward with their purchasing goals.

New listing activity has tapered off somewhat as have the number of expired listings as many sellers, unrealistic with their pricing expectations are electing to remove their homes from the market. The average residential price in January dipped 4.2% from $294,401 one year ago to $282,128 this year. Most if not all of this decrease in average price is attributed increased sales at the lower end of the market which saw sales in January below $200,000 increase by 46% while sales between $200,000 and $350,000 increased by 74% compared to the same month last year.
Overall we are off to a much more positive start with respect to area sales this year. Are we over the hump? Well that remains to be seen but one thing seems certain, at this point real estate seems to be the key area which is leading us out of the current economic doldrums. Seemingly over heated markets such as Toronto are causing some to put pressure on the federal government to tighten the lending requirements. While this may not affect mortgage rates, it will affect the availability of money to those who do not fully qualify.

Another "Billion Dollar" Lesson?

2010-01-30T09:15:00.000-05:00

This past weak debt laden Intrawest sold off another one of it's ski resorts in an effort to avoid an auction of assets by its lenders on February 19th. Panorama Mountain Village located in southeastern BC was sold to a group of local investors that plan to continue building the facility into one of Canada's top family oriented ski resorts. Although the price was not disclosed, it is reported to be far less than the estimated $100 million U.S. Intrawest received for the sale of its Copper Mountain Resort in Colorado.
As Intrawest continues to negotiate with its lenders, no one for sure knows what will transpire come February 19th during the Olympics when the auction of assets is scheduled to take place and no one can speculate what the future outcome will be for Blue Mountain or the Village at Blue.
One thing is certain however, this is yet another example of an acquisition funded with massive debt gone bad. I am currently reading an excellent book entitled "Billion Dollar Lessons" written by Paul Carol and Chunka Mui. For those of you interested in business this is an excellent book chronicling some of the more significant business blunders of all time including acquisitions made by companies that turned into colossal mistakes.
Purchased by Fortress Investment Group LLC in 2006 for $2.8 billion U.S., Intrawest like a lot of other highly leveraged companies has struggled under a significant debt load. As long as a steady stream of cash flow continues in order to make the loan repayments, leveraged buyouts can be a success. More often than not however, many companies in this position find themselves facing changing economic times or a downturn in sales revenue that ultimately means disaster.
Many experts believe that an auction of assets in this economy at distressed prices will not benefit anyone, especially the creditors. Will Intrawest's woes be another footnote in the book Billion Dollar Lessons? I guess with February 19th fast approaching we'll soon know.

How Important Is A Home Inspection?

2010-01-25T12:49:00.000-05:00

In today's residential real estate market, home inspections have become an integral part of virtually every resale property transaction. Most REALTORS® will insert a home inspection "condition" into an Agreement of Purchase and Sale, making the buyer's offer conditional on obtaining a satisfactory home inspection. Does this mean the house has to be perfect? No. Is this a tactic to potentially get out of a deal should the buyer(s) change their minds? No. The purpose of a home inspection is to simply obtain a report on the condition of the property at that point in time. If done thoroughly, a home inspection will help forewarn a buyer(s) about potential problems with a home suggesting that further examination is required ie: bring in a structural engineer or conduct a mold test etc.

Television personality Mike Holmes has repeatedly criticized home inspectors and rightly so. Some inspectors lack the knowledge, training and or experience to thoroughly inspect a property and render an accurate assessment of its condition. However, let's not lose sight of one thing. A home inspection which typically takes 2-1/2 to 3 or more hours is only a "visual" inspection and most inspectors will duly explain that to the buyer(s). A well qualified inspector will enter a crawl space, go up into the attic, pull the cover off the electric panel, run the appliances and so on. They don't however punch holes in drywall to examine an inner wall structure nor can they visually assess the interior of a home's foundation walls if the basement is fully finished. A well trained home inspector will however note certain conditions that could be the tell tale signs that are masking something much more serious.

CBC's program Marketplace recently did a segment on home inspectors the main focus of which was in relation to grow houses. Click on the link below.

http://www.cbc.ca/marketplace/2010/grow_op_cover_up/main.html

In this show, four out of four home inspectors missed and or ignored warning signs that the subject property had one time been a grow house. That's a pretty shoddy reflection on the home inspection profession. To date, the home inspection industry has a long way to go before it is regulated to the same extent that we as REALTORS® are. The Canadian Association of Home and Property Inspectors is working diligently to improve the training and effectiveness of its members. The irony is however, if a REALTOR® were to sell a home with known deficiencies and failed to protect their client, the REALTOR® would stand to be in a lot more trouble than a home inspector that had failed to properly assess and report on the home's issues. A consumer's only recourse with a home inspector is with a civil suit. A REALTOR® on the other hand faces severe consequences both civilly as well as with the Real Estate Council of Ontario (RECO), the body enforces the Real Estate and Business Brokers Act, provincial law with which we must adhere. If found negligent, RECO can bring forth a variety of measures against a REALTOR® including fines, mandatory training, suspension or worse, revoking of a REALTOR'S® license thus ending their career.
It is by far in a REALTOR'S® best interest to recommend a well qualified home inspector, one that will leave no stone unturned in fully inspecting and reporting on the condition of a property. There is nothing to be gained and a lot more to lose by having a buyer(s) purchase a home that turns out to have issues that should have been detected in a home inspection. It's not only a matter of "let the buyer beware," but the REALTOR® as well.

Royal LePage Hospice Ski Day

2010-01-24T20:44:00.000-05:00

This year marks the 25th year of Royal LePage's support of Hospice Georgian Triangle with our annual fundraising "Ski Day." For those of you not familiar with the organization, Hospice is a charitable, volunteer-based group, providing non-medical support to individuals, and families living with any life-threatening illness. 90% of the cases here in the Georgian Triangle deal with cancer.

This year's Ski Day is Thursday February 4th at Craigleith Ski Club. In addition to a great day of skiing, there is a buffet lunch and silent auction. Tickets for the day including skiing are only $100 and this represents one of the best values amongst the many charitable ski events throughout the winter. For those of you that do not ski, lunch tickets are $35, bring your snowshoes and hike up the switchback trail at Craigleith then enjoy apres ski/snowshoe activities in the lodge while perusing the many items available on the auction tables.

Tickets are available by contacting Heather during normal office hours (9:00am to 5:00pm) at our Collingwood office 445-5520. We hope to see many of you on the slopes at Craigleith February 4th!

Special Concert for Haitian Relief

2010-01-22T15:20:00.001-05:00

Disaster relief for the victims of the earthquake in Haiti has spread globally including right here in Collingwood.
A benefit concert is being held this Sunday, January 24th from 3:00 to 10:00pm at Fairways "The Party Place" located at 2-20 Balsam Street (across from Montanas) Admission $10.00 with 100% of the proceeds going to ad the people of Haiti.
Fellow REALTOR® and musician Fran Webster of "The Webster Family" has helped to organize this event which will include numerous local bands and singers including: Aaron Garner, Fig Leaf Jazz Band, Ladies Night out, Jeff Cunningham and others.
This sounds like 7 hours of great music featuring a variety of local talent all in the name of a very worthy cause. John Nichols the Peak FM's morning man has agreed to host the event with Fairways donating the space. Sunday's weather is calling for a temperature of +7 with rain. Sounds to me like a perfect day to stay indoors listening to some good music in support of a great cause.

World Cup Ski Cross Comes to Blue

2010-01-21T08:00:00.000-05:00

Over the past past two days, Blue Mountain Resort has hosted The Rockstar Ski Cross Grand Prix which is part of the FIS Freestyle World Cup. 125 of the world’s best ski cross racers from 25 countries, including Canadian World Cup and World Championship medalists participated in the event creating quite a spectacle for the crowd on hand and heightening the excitement for Canada's entries in the upcoming 2010 Winter Olympic Games.
Canadian ski racer Ashleigh McIvor, the 2009 FIS World Champion in ski cross and Stanley Hayer, the 2009 Winter X-Games winner and multiple World Cup medalist, raced for the first time ever at Blue Mountain. McIvor finished second.
Commencing at the top of the Silver Bullet chairlift, the course arched across the top of the Tranquility and Smart Alec runs before descending into what was previously known as the Yahoo terrain park with the balance of the course snaking its way down Smart Alec terminating at Blue's central base lodge.
For those unfamiliar with ski and snowboard cross style racing, four competitors run the course simultaneously in a roller derby style race to the bottom. The top two finishers of each heat moved on until the field gets whittled down to the final few. All in all it's a pretty exciting format with racers jockeying for position often resulting in multiple spills. I took in a few heats at the top of the course then skied down to the bottom where a sizable crowd was on hand to cheer on the Canadians. Errol Kerr a ski cross racer from Jamaica was on hand and was a popular competitor with the kids, signing their helmets etc. at the bottom of the course. Who can forget the Jamaican bobsled team from the 1988 Olympics in Calgary that inspired the movie "Cool Runnings" with Canadian actor John Candy.
Ski and snowboard cross which started out at the X-Games are newly added events to the Olympics and they will no doubt add a great deal of excitement. The next stop on the ski cross tour is Lake Placid before the racers head to BC for the 2010 Games.

What a Difference a Year Makes!

2010-01-19T08:45:00.000-05:00

One year ago Canadians were being pummelled by overly-negative media reports regarding the global economy including real estate. While cleaning up some files I came across two copies of Maclean's magazine featuring articles that had prompted me to write letters to the editor as did others in the housing business.
As far back as their October 6, 2008 edition, Maclean's cover was emblazoned with the headline "Canada's Looming Real Estate Crisis" followed by the sub-title "Why House Prices May Soon Fall Through The Floor." Further, the Maclean's March 2, 2009 cover story boasted "The value of your home is about to drop another 20%."
Late in 2009, Canada began to show signs of what will be a slow recovery from the current global recession lead by a strong real estate sector. Was there ever a crisis? No. Did home prices drop significantly last year? No they didn't much less did they "...drop another 20%." Sure, some over-heated markets such as Calgary and Vancouver that saw huge run-ups in prices over a short period saw price adjustments but the prediction of a widespread "crisis" by Maclean's and other purveyors of doom and gloom just didn't happen.
Little more than midway through the month of January, real estate sales locally are running more than double what they were in January of last year, currently at $12.4 million versus $11.9 million for the entire month of January last year. I suspect positive information such as this is not going to make the cover of Maclean's or other print media, it simply doesn't sell newspapers or magazines.

U.S. Real Estate Woes Continue

2010-01-14T08:41:00.000-05:00

While the overall Canadian real estate market including activity locally showed renewed strength in the final quarter of 2009, the same cannot be said for our neighbours in the U.S.
The U.S. economy continues to struggle its way towards a recovery and has yet to generate any traction in the all important area of job creation. Many Americans even those with conventional low risk mortgages are under the threat of losing their homes in the next year or two the result of being unemployed. This has now spilled over into the two other segments of the U.S. real estate market as well.
The commercial real estate market is under great threat of collapse. As tenants go bankrupt, out of business or just start to close unprofitable retail locations etc. many investors with significant holdings in commercial real estate are going to incur massive losses. PriceWaterhouseCoopers believe that 2010 will be the worst time in 30 years for commercial property investors in the U.S. to sell their holdings. The question on every one's mind is what impact this will have on the housing market?
In short, this creates the potential for bad news in the luxury residential market. Investors, brokers, builder/developers, tenants and others that are engaged in some aspect of the commercial real estate market are often the buyers and sellers of luxury homes as well. If he commercial real estate market suffers any significant fallout stemming from the ongoing recession being experienced in the U.S. the luxury home market will be sure to take a hit as well.

4th Quarter 2009 Real Estate Sales Increase 101%

2010-01-12T14:28:00.001-05:00

Real estate sales across southern Georgian Bay rebounded strongly in the second half of 2009 particularly during the 4th quarter which saw sales more than double over the 4th quarter of 2008.

Following a lackluster start to 2009 which saw 1st quarter sales decline 47% from the first quarter of 2008, low interest rates, strong consumer confidence and an abundance of properties listed for sale all contributed to fuel increased sales activity during the balance of 2009. As a result, total sales revenue for the year exceeded 2008 by 10% totaling $484.7 million while unit sales rose 8% to 1,857 individual properties sold.

Single family MLS® home sales across the area increased a respectable 4.6% during 2009 with 1,195 homes changing hands. Surprising strength was shown in the condominium market which saw unit sales increase by 22% from 266 units in 2008 to 324 sales in 2009. Neither of the aforementioned results include the sales of new homes and condos made by developers that were not listed on the MLS® system of the Georgian Triangle Real Estate Board.

Of particular note during the latter half of 2009 was the renewed strength shown in the upper-end of the market. Sales above $500,000 for the year increased by 12% to 125 properties compared to 107 in 2008. More significantly, sales from $800,000 to $1 million totaled 15, an increase of 36% while sales over $1 million totaled 15 as well, also reflecting a 36% increase.

Unit sales for 2009 of 1,857 properties reflected an 8% gain over the 1,720 properties sold in 2008. The number of new listings that came on the market in 2009 totaled 5,875 down slightly (2%) from the 6,000 new listing that were recorded in 2008. Conversely, the number of expired listings increased by 6% to 3,112. This was the 5th consecutive year where the number of expired listings exceeded the number sold. Many sellers and/or their respective agents are not listing properties commensurate with current market values. The reduction in new listings relative to sales reflected more balanced market condtions which in turn helped to stabilize prices. Prices throughout the area have remained relatively constant with the average residential price actually increasing in 2009 by 2.4% to $285,785.

For a complete summary of market activity 2009 vs 2008, see my 4th Quarter Georgian Triangle Real Estate News.

2010 Real Estate Outlook

2010-01-07T15:13:00.001-05:00

In a press release out today, Royal LePage Canada has issued their forecast for Canada's real estate market activity in the first half of 2010.
Given the market strength that was shown if the last quarter of 2009, all indications are for the momentum to continue during the first six months of 2010. What is unknown at this point here in Ontario, is the impact that the forthcoming harmonization of PST/GST will have as it will create added costs to both home sellers and buyers. Estimates are the average real estate transaction in Ontario will incur $1,400 to $1,500 in added taxes resulting in new taxes being applied to legal, appraisal and home inspection fees, real estate commissions etc.
As part of their 2010 market forecast, Royal LePage also issued their quarterly house price survey for the last quarter of 2009. Nationally, statistics show that house prices for bungalows and 2 storey homes rose at an annual rate of 6.04% and 5.2% respectively while standard condominium prices increased by an annual rate of 6.35%. Clicking on the above hyperlinks above will give you access to the two Royal LePage publications.
In my next posting I will recap the year-end results pertaining to local market activity here in the Georgian Triangle.

Intrawest Misses Loan Payment

2009-12-31T09:48:00.000-05:00

Several newspapers in the past week or so including the Toronto Star, Globe and Mail and locally the Enterprise-Bulletin have run stories detailing Intrawest's inability to make a scheduled $524 million loan payment. The payment was due just prior to Xmas on a $1.4 billion dollar (U.S.) loan, the payment of which was due after Intrawest had already been given a 60 day extension.

The problem lies perhaps not so much with Intrawest as it does with Intrawest's parent owner, Fortress Investment Group LLC which bought Intrawest in 2006 for $2.8 billion of which 60% of the purchase price was borrowed. As with any leveraged buyout wherein a large percentage of the purchase price is financed, there is little room for a financial miss-step. Loan payments must be made and any significant drop in cash flow as is being experienced in the current economy can be a disaster. I know. I worked in such an environment back in the 90's where "cash was king." Sales had to be generated not just to ensure a profit, but more importantly to pay down debt.

Little known here locally is that 1 year after the purchase of Intrawest, Fortress, a private owned equity fund went public with an initial public offering (IPO) that instantly made the 5 principals of Fortress billionaires. By the end of the first day of trading on the New York Stock exchange, Fortress shares had climbed from $18.50 to $35.00 giving the 5 principals a combined worth of $10.7 billion U.S. Now just 3 years later, one of Fortress' investments (Intrawest) can't make a half a million dollar loan payment. Notwithstanding the fact that they too have taken a hit, maybe the 5 Fortress principals need to reach into their own pockets to help out a bit?

Check Google Finance and you will see that as of today's date, Fortress shares are now worth $4.47 U.S. The pitch of their stock's decline matches that of a black diamond ski run at an Intrawest Resort. This is just one of the countless stories that have help to create the financial meltdown we have witnessed over the past year.

Intrawest's woes will not likely be reflected here locally at Blue Mountain. It's business as usual, all runs are open and the resort has been packed through the holidays. That's a good thing as cash is indeed King!

New Homes and HST

2009-12-30T10:08:00.000-05:00

When the new HST kicks in on July 1st 2010, new homes in Ontario that are currently subject to the 5% Goods and Services Tax will now have the 13% HST applied. How does this affect new home pricing?
Most developers currently list their newly built homes for sale with GST “included in” the purchase price as psychologically, it’s better than hearing the price is $350,000 + GST which adds another $17,500. Further to this new homes purchased as the buyer’s principal residence offer a partial rebate of GST where the maximum sale price of a property does not exceed $450,000. Typically, builders have this rebate factored into their profit margin on the home and the GST rebate is assigned to the builder by the buyer on closing. The HST treatment of real estate transactions including new homes will generally follow the current GST format. Sales of new residential housing will be subject to and will qualify for a rebate(s). Further, the rebate will now be available whether the new housing is to be owner occupied or rented which is an advantage to buyers over the current program.
Under the new format, new homes in Ontario will be eligible for a rebate of 75% of the PST component of the HST paid to a maximum of $24,000. In some other provinces where the PST and GST have been harmonized, there is no provision for a portion of the PST to be rebated back. In reviewing various examples of new home sales both before and after the July 1st 2010 HST implementation date, new home prices should marginally decline. This stems from the fact that there is currently no provision for a builder to obtain a rebate on the PST paid on materials that go into the home. Example: a $300,000 home (GST included) purchased before July 1st 2010 with the GST rebate applied and assigned to the builder means the buyer pays a net purchase price of $290,698. If the same $300,000 home (HST included) is purchased after July 1st 2010 the builder receives a larger rebate amount thus resulting in a net purchase price to the buyer of $285,171 and difference or portential saving of $5,527. Hopefully this type of saving gets passed onto the purchasers of new homes.
The final taxation rules and implications have not yet been finalized so only time and human nature will dictate what really happens.

Real Estate Commissions and HST

2009-12-28T14:42:00.000-05:00

Further to my prior posting re: the forthcoming implementation of HST in July 2010, here are some points that consumers need to be aware of regarding how the HST will affect real estate transactions.
When the HST becomes effective July 1, 2010, real estate commissions which are currently subject to the 5% Goods and Services Tax will transition over to the new HST meaning that real estate commissions will now be subject to the new 13% tax rate. From the consumer seller's perspective, this will increase their tax burden by 8%, the current rate of provincial sales tax in Ontario. As an example, on a $250,000 sale with a 5% selling commission, the HST payable will increase from $625 to $1,625.
While REALTORS® will continue to be responsible for the collection of HST on the closing of a transaction as we currently are for GST, the new HST offers a distinct advantage. As a GST registrant, REALTORS® get to claim the 5% GST we pay on business related expenses while the 8% PST we pay on eligible expenses is lost. Under the new format, REALTORS® will claim an HST input tax credit of 13% not the current 5% which will result in cost savings for us. By rights, this cost savings should be passed on to our clients and I for one plan on incorporating this saving into my seller commision plans for 2010 onward.
Consumers need to be aware that real estate commissions are completely negotiable. From a consumer's perspective, REALTORS® often fail to demonstrate a level of service and overall value commensurate with the commission (fee) charged on a given transaction. The arrival of HST will no doubt present a further challenge to those REALTORS® that both fail to deliver a level of service, knowledge and value for the fee charged as well as those that fail to acknowledge the cost savings that we as HST registrants will realize with the new tax. The same applies to lawyers, home inspectors and others involved in the real estate sale process.
If you plan on selling your home in the latter half of 2010, make a mental note to ask the REALTORS® you interview how they have adjusted their commission structure to compensate for the tax savings they will now be realizing as an HST registrant.

Residential Housing and HST

2009-12-21T10:33:00.000-05:00

Thus far I have not commented on the pending harmonization of the provincial sales tax and the federal GST which will bring forth HST on July 1st 2010. Frequently I am asked by clients what impact this is going to have on the housing market and despite all of the negative media doom and gloom this latest tax grab is causing, my thoughts are as follows:

As Canadians we live in one of the most heavily taxed nations there is. Between high rates of personal income tax, ever increasing property taxes, provincial sales taxes, the GST, excessive taxes on gas, booze, cigarettes and so on, it seems that there is always another hand(s) in our pockets. There was a great hue and cry when the GST was first introduced but did we stop spending? Yes we bitch and complain about our taxes but ultimately life goes on and our standard of living doesn't suffer too badly.

The Ontario Real Estate Association has lobbied strongly to no avail against the province of Ontario over the implementation of HST claiming that it will add between $1,400 to $1,500 to the average real estate transaction in Ontario. This is expected to perhaps cause a flurry of buying activity in the first 6 months of 2010 after which who knows where the market will go. My thought is will $1,400 or $1,500 really impact a person's ability or mindset to purchase a home?

The average house price in the Georgian Triangle to the end of November is $286,000. An additional $1,500 in taxes on that purchase represents 1/2 of 1% of the purchase price. In many cases people are paying more for 1 month's rent.

So is the real estate market going to collapse after July 1st next year? Somehow I doubt it. As Canadians we'll suck up yet another tax and life will go on. Canadian real estate has historically appreciated in value at such a rate that another tax will hardly impact the rate of return most of us have come to realize. One aspect of real estate that may feel the impact is new housing and I will cover that in my next posting.

Collingwood'$ Debt Load to Double in 2010

2009-12-14T14:20:00.000-05:00

As Canadians, we all gripe about taxes. Whether its our personal income tax, the GST or the forthcoming HST, they are all hot topics for discussion. Nonetheless, we begrudgingly accept them, our spending habits continue, life goes on.
Property taxes however seem to draw the greatest level of ire. Maybe it's getting that annual "assessment notice" or the "interim tax bill" or the fact that your bagged leaves never got picked up on time. Whatever it is , property taxes tend to infuriate us more than any other form of government cash grab.
Over the past few days I have heard numerous comments from Collingwood residents pertaining to an article in last week's Connection entitled "Municipal debt will almost double."
The crux of the article is that Collingwood's debt load will double to approximately $48.5 million by the end of 2010. Based on an estimated population of 24,600 including seasonal residents, every man woman and child in town owes $1,971. There goes my Xmas gift budget! Arguably some of the projects mentioned in the article are worthy ones. Others like a $3 million wellness centre? Well I'm not so sure they would stand the financial rigors of justification in the private sector world at least not the one that I came from.
The new library at $6 million is the largest project mentioned up for debenture in 2010. Sure a new library would be nice but when you have the likes of "Google" currently in the process of digitizing every book ever written, it really makes you wonder if spending money on bricks and mortar to house books is the way to go. I know one thing is certain, if libraries in the past had been run as private enterprise profit centres, the threat of books no longer being required in traditional print for people to borrow would be causing the ACME Library Company (if one existed) to close their doors for good or at least to revise their business model to search out sources of revenue elsewhere.
Regardless of where the money is spent, debt payments needs to be made. Spending money within their limits because it is "comfortable " as one Councillor put it hardly puts taxpayers minds at ease. Collingwood has the second highest tax rate in the southern Georgian Bay area second only to the Town of Meaford. The accompanying chart reflects what the 2009 property taxes would be on a house assessed at $350,000 in the area's various municipalities compared to a similar value house in Toronto. Admittedly, Toronto has a much larger tax base to draw from but what happened to the concept of moving to a small town because the cost of living is lower?
As 2009 draws to a close, 2010 will bring with it a municipal election year. The subject of taxes will no doubt be a hotly debated one amongst the various candidates. So the question on my current poll (above) pertains to how happy are you with Collingwood Council's current level of municipal spending?"

Site 41 is Dead - Now Another Land-Use Threat Emerges

2009-12-09T16:17:00.000-05:00

A couple of year back, stories persisted that many of the potato farms between Shelburne and Singhampton had been purchased allegedly for the gravel deposits that were thought to exist below. According to a recent article in the Toronto Star entitled "Limestone quarry threatens price farm land" the stories would appear to be true.
Allegedly the party in question began accumulating farms along the County Rd 124 corridor paying $8,000 per acre over market value under the pretense of becoming the largest potato farmer in Ontario. According to the aforementioned article, approximately 7,500 acres of land has been acquired with a plan to develop a 2,400 acre quarry to extract the limestone that lies below. As would be expected, many people felt duped by the scheme. Considerable public outrage has resulted stemming from the threat many people see to not only the environment but also to the way of life many of the local farming families have engaged in for years.
In addition to the loss of highly productive agricultural land, critics argue that a large quarry operation could have a significant impact on groundwater sources in the area. The same general area has already been subject to a considerable amount of development as a wind energy producer with literally dozens of wind turbines that dot the landscape.
Initiatives such as these will continue to threaten this area as we know it. Opponents to the Site 41 dump site north of Elmvale were successful in their bid to stop that controversial landfill. Hopefully those fighting this latest threat will be as successful in their efforts to what could pose a real threat to not only the agricultural production of the area but to the water deposits below and the aesthetic appearance of the countryside as well.

The Blue Mountains Leads Area Real Estate Sales Rebound

2009-12-04T22:25:00.000-05:00

While Georgian Triangle real estate sales overall continue to make a strong comeback in 2009, MLS® sales activity in the Blue Mountains in particular is showing the greatest strength.
Through the end of November, unit MLS® sales are up almost 20% in the Blue Mountains from last year with a total of 152 properties having sold as compared to 127 last year. Recreational property sales have come back quite strongly especially at the upper end of the market. In a "distant" second place is Collingwood with a 3% unit sales increase. All other area municipalities are either unchanged from last year or are still showing decreased unit sales year-over-year.
Unit sales for the first 11 months of 2009 ranked in order are as follows:

1. The Blue Mountains 19.7%
2. Collingwood 2.9%
3. Clearview unchanged
4. Wasaga Beach -0.3%
5. Grey Highlands -8.1%
6. Municipality of Meaford -20.8%

Pricing across the entire Georgian Triangle area has shown no significant decrease over the past several months with only those properties that were over-priced to start with showing a reduction. As I have maintained in the past, average residential sale prices tend to mask significant shifts necessitating that a more detailed look be taken at specific areas and or neighbourhoods. Nonetheless, the 12-month average residential price for our area overall now stands 2.5% higher than it was this time last year at $286,445. In fact, Clearview Township is the only area municipality where the 12-month average price has declined from where it was one year ago and this number is affected more by the mix of sales.
The Georgian Triangle continues to draw strong buyer attention from the Greater Toronto Area both in terms of recreational property buyers and those looking to retire here. This bodes well for real estate demand and pricing in our area helping to ensure that your investment in Georgian Triangle real estate is a sound one.

November Real Estate Sales Show Continued Strength

2009-12-01T15:54:00.000-05:00

November real estate sales throughout Collingwood and the surrounding area continue to show impressive gains over the same months last year.

Unit sales for the month as reported through the MLS® system of the Georgian Triangle Real Estate Board totaled 165 properties sold versus the 87 sales that traded in November 2008, an increase of 90%. Sales revenue for the month was $47.7 million as compared to just $21.9 million a year ago.

Listing activity in 2009 continues to run at a decreased rate from last year, down 3% year-to-date with 182 fewer properties listed in the first 11 months of 2009 compared to the same period last year. This is starting to tip the scale between inventory and sales but despite strong sales activity, we still have a long way to go before market conditions favour sellers. Expired listings continue to reflect a year-over-year increase, up 10% year-to-date from last year. Year-to-date there have been 2,783 expired listings compared to 1,749 sales with the results being a ratio of 1.6 to 1 properties unsold versus sold. When expired listings exceed the number of properties sold, I feel this is a very telling statistic. Many sellers aided by their REALTORS® are failing to realistically list their homes at prices that reflect current market value. More on this in a future posting.

Overall we continue to see strength in our market and this trend will certainly continue through to the end of 2009. In my next posting I will provide details on sales in the various municipalities around the area. Tune in Thursday.

Plastic Makes Pefect or Collingwood's Downtown Makeover

2009-11-27T14:30:00.000-05:00

The first phase of Collingwood's downtown revitalization is nearing completion and the fences are coming down giving us a better look at what the final outcome will look like next year.

With all of the money that has and is yet to be spent on beautifying our downtown core, I think it's time Council gave serious thought to bringing forth an anti-loitering bylaw. The dictionary describes loitering as: "to linger idly or aimlessly in or about a place or on one's way....."

I certainly mean no harm to those in question that spend an inordinate amount of time on Hurontario Street but enough is enough. What's the point of having a beautiful downtown street scape with the same group of "locals" monopolizing the benches on a daily basis, some smoking and swearing, with others pan handling etc. I was even accosted one day by a woman soliciting sexual acts. Yes you heard me correctly, we have that type of activity in Collingwood.

I suspect that many, especially our out-of-town visitors and the elderly are intimidated by some of this loitering crowd. In all fairness to the merchants, citizens and visitors alike, it's time to hustle along those that detract from making downtown Collingwood a pleasant place to spend time. An anti-loitering bylaw is much more practical and enforceable than the ridiculous anti-idling bylaw we have in place especially with the proliferation of drive-throughs in town.

The Great Garage Door Caper

2009-11-25T12:54:00.000-05:00

In my prior posting entitled "Painting a Good Picture on Customer Service" I recounted a pleasurable experience that I had had with one of our local retailers. Now it's time to share a less than satisfactory experience which directly relates to my own personal real estate (home).
In October I ordered a new garage door from Home Depot here in Collingwood. Home Depot promotes the fact they they install what they sell and offered both a "do it yourself" as well as an "installed" price for the door.
At the time I placed my order, it was my intention to install the door myself but in the interim I have become increasingly business serving my clients and upon being notified that the door had arrived, decided to pay the extra amount and let Home Depot's installer handle the project. Easier said than done.
After making not one but two trips back to the store I was ultimately told they could not install the door. No reason was given but I had my suspicions. Picking up the door was filled with trials and tribulations as well, taking the better part of an hour for their staff to find all the sections to the door and the accompanying hardware, track etc. It was apparent that merchandise being held for customer pick-up could be just about anywhere in the store and not necessarily all in the same location.
Needless-to-say I was not impressed with there unwillingness or inability to install the door nor with the extended waiting period it took for them just to find it. They made losing an 8' garage door seem pretty simple. Too bad having them install it wasn't as easy.
After installing the door (myself) I phoned Home Depot's Customer Care Department to register my dissatisfaction. Low and behold I got the answer I expected. It would appear their "system" as in computer can't handle an installation request for an item once said item has been ordered. In other words if a customer changes their mind, becomes hurt or otherwise can't install the product they had purchased on their own and would like to pay Home Depot to install the item be it a garage door, flooring, kitchen or whatever, too bad, their system won't allow it.
This is a classic case of the "tail wagging the dog." I am a big user and believer in technology but it's there to support your business not dictate how you run it. I suggested their system needed to be re-programmed. When a customer is standing there with cash-in-hand wanting to pay what is one of the largest retailers in the world for their service and they can't help you because their "system" will not allow it, something has gone terribly wrong.
Business these days for many companies is tough enough. When you allow the shortcomings of your computer or data system to prevent you from satisfying a customer and generating revenue, you're in real trouble. It's time Home Depot revisited their procedures and systems in order made some much needed changes that will allow them to be a little more customer driven. There are after all, other shopping alternatives and Home Depot has all but lost me.

Canadian Buys Detroit's "Silverdome" Stadium

2009-11-24T13:31:00.000-05:00

As if we needed further evidence as to the morbid state of the U.S. real estate market, here it is. A Toronto developer is the winning bidder for the 88,000 seat "Silverdome" located outside Detroit in Pontiac, Michigan.

Situated on 127 acres and built at a cost of over $55 million U.S. in 1975, the Silverdome was the former home of the Detroit Lions football team and hosted concerts, monster truck shows and the like. I remember being in the area on business some years ago when Fleetwood Mack arrived at my hotel for a concert in the dome that evening. The winning bid was a paltry $583,000 which needless-to-say wouldn't pay to renovate the washrooms in the place today. Even without the building, the buyer paid just under $5,000 an acre for the 127 acres, a bargain price in virtually any urban market.

Real estate sales such as this bring a whole new meaning to the term "crash." This is not the typical price depreciation you would expect to see in recessionary times and you have to wonder if the the U.S. will ever fully recover to the economic status they once held or are developing countries such as China and India going to be the new global economic super powers of the future?

U.S. Housing Crisis Continues...

2009-11-23T10:40:00.000-05:00

As real estate sales across Canada including the local market continue to show a positive trend with strong sales again in November, the same cannot be said for our neighbours to the south.
With the U.S. unemployment rate climbing, the housing crisis continues to show no signs of letting up with a record 14.4% of mortgages either in foreclosure or delinquent, this according to a recent story in the Globe and Mail. The U.S. unemployment rate is now at its highest level in 26 years and even those homeowners with conventional seemingly low-risk mortgages are facing the prospect of going into default. One in seven U.S. homeowners is either in default or at least one payment behind and millions more are under threat of losing their homes in the next two years.
As I have always maintained, a low interest mortgage is of little benefit if you are jobless and can't make the payment and a growing number of Americans are now finding themselves in this unfortunate position. Housing activity is seen as one of the benchmark indicators to economic health. Real estate sales and the related economic spin-off purchases that come with them play a significant role in driving the economy. The latest sobering statistics pertaining to the U.S. housing market would suggest they are a long way from a full economic recovery.
I couldn't help but notice lately a proliferation of car ads on U.S. television networks by dealers putting a significant emphasis on "credit" availability. Isn't the over-extension of credit how this whole mess started in the first place? Until some stability in the U.S. jobless rate is achieved and people can afford to meet their debt obligations, it is unlikely we will see any improvement to the U.S. economy overall.
As one area newscaster commented on this morning, General Motor's current debt load exceeds that for the entire country at the time of JFK's assassination in 1963. That really puts into perspective the depth of the "muck and mire" our neighbours to the south now find themselves in and it is going to be a long and messy climb back to a healthy U.S. real estate market and economy overall.

MLS® Home Sales Forecast Increased for 2009 & 2010

2009-11-18T09:41:00.000-05:00

Despite the lingering recessionary nature of our economy, real estate activity across Canada in 2009 has far exceeded the expectations of most. Following record sales in the months of July, September and October, the Canadian Real Estate Association (CREA) has revised their 2009 and 2010 forecasts for MLS® home sales across Canada.

Canadian MLS® home sales for 2009 are now forecasted to increase by 6.6% from 2008 to a total of 460,200 units. This revised sales forecast for 2009 is equivalent to annual sales achieved back in 2004 but is below levels attained for the years 2005 through 2007. For 2010, CREA now forecasts that national home sales will increase by 7%. Should this 7% increase materialize, 2010 will be the second highest year of sales on record for Canadian home sales.

Like the rest of Canada, MLS® home sales here in the Georgian Triangle continue to increase significantly. Unit residential sales in October were up 71% while revenue increased 84%. Sales at the end of the 1st quarter were off 47% from the prior year. By mid-year the shortfall had been reduced to 23% and by the end of the 3rd quarter, the shortfall in year-to-date sales had been completely reversed and we were ahead of 2008's results.

Monthly activity in November has continued to remain exceedingly strong. As of today's date MLS® sales in the Georgian Triangle total $30.7 million a full $10 million or 48% more than November last year with 13 days yet remaining in the month.

My own personal forecast is that MLS® sales in our area will reach $500 million or better for the year, up by 14% or more from the $438 million worth of properties sold in all of 2008. Single family home sales for the year will remain constant with those in 2008. Vacant land sales are off 12% and will remain so for the balance of the year. Conversely, condominium sales year-to-date are up 12% driven by increased sales in the $200K to $500K price range. In summary, real estate sales activity in 2009 has exceeded everyone's expectations with robust sales in most markets across Canada including ours. Renewed consumer confidence and low mortage rates are helping to drive sales. In our market the migration of retirees from the GTA is also a large factor in our success and this trend is unlikely to abate any time soon.

Selling A Non MLS® Listed Property

2009-11-05T11:34:00.001-05:00

The renewed strength we are seeing in our real estate market seemingly brings with it an increase in oddities relative to the traditional listing and sale of properties through the Multiple Listing Service (MLS®)
In the last 2 to 3 weeks I have received calls or emails from consumers seeking some guidance with respect to the sale of their homes which at the time of their contact with me were not actively listed for sale. In these instances, the sellers were asked by the REALTOR® representing the potential buyer to either sign a short-term "Listing Agreement" ie: 4 or 5 days, or to sign what is known as a "Seller Customer Service Agreement." The fundamental purpose of these agreements from the REALTORS® perspective is to ensure they get paid a commission should the house sell.
Having a seller sign a formal "Listing Agreement" for a few days in order to facilitate them showing a property to their buyer client is rather pointless. With all of the conditions typically inserted into today's offers ie: financing, attainment of insurance, completing a home inspection etc. it is highly unlikely that all of those conditions will be satisfied in such a short time frame before the listing expries unless the Listing Agreement is extended. One of the short-term listings in question had an offer accompanying it that was conditional on the buyer selling their present home in a couple of months!
The "Seller Customer Service Agreement" is the more appropriate of the two documents to use when bringing forth a buyer for a property not listed for sale and I have used this form for numerous transactions. This Agreement has dates both for the commencement of the Agreement as well as an expiry of said Agreement. Secondly it stipulates the commission to be paid by the Seller either in terms of a percentage of the sale price or just a set fee.
There is however one alternate means for a REALTOR® to sell a home that is not listed for sale and to be paid for doing so. Have the buyer pay the commission. Most REALTORS® dealing with buyers these days have or should have in place a "Buyer Representation Agreement." This Agreement establishes a formal agency relationship between the REALTOR® and the buyer(s) thus appointing the REALTOR® to act as their agent. As with the "Seller Customer Service Agreement," the "Buyer Representation Agreement" also can facilitate a commission to be paid to the REALTOR® by the buyer for successfully acquiring a property on their behalf. Although used less frequently having a buyer pay the commission removes that burden from the seller whose home is not actively listed by them for sale and this can help in the negotiation process with respect to price.
The bottom line is, it is not necessary for a seller to sign a short-term Listing Agreement in order to have a REALTOR® show their non-listed property to a potential buyer or to bring forth an offer. There are other alternatives that can facilitate an accepted "Agreement of Purchase and Sale" being achieved with the REALTOR® being paid for their efforts.

Collingwood & Town Blue Mountain Sales Surpass Last Year

2009-11-03T11:12:00.000-05:00

While overall real estate sales in our area have come back strongly in recent months, Collingwood and Town Blue Mountains are the two area municipalities showing the greatest improvement in sales activity.
Year-to-date unit sales in Collingwood are up 4.9% with 236 proprieties sold to the end of October versus 225 last year. In the Town Blue Mountains, sales for the year now total 136 properties which is a 13.3% increase over the 120 units sold in the same period last year. MLS® sales in each individual municipality for the first 10 months of this year ranked in order are as follows:

Town Blue Mountains 13.3%
Collingwood 4.9%
Clearview -2.9%
Wasaga Beach -4.8%
Grey Highlands -10.0%
Municipality Meaford - 19.5%

The bulk of the sales activity we see continues to be at mid to lower end of the market with 83% of the sales below $350,000. This is a percentage of total sales that has not changed in the last three years. Year-to-date 2009 sales above $500,000 total 102 units compared to 100 in 2008 representing just over 6% of the total market. Again this percentage has changed little in the last three years although it has been in the last 3 to 4 months that higher end property sales have resumed a similar pace to what we were seeing prior to the commencement of the current recession.

The big question on many consumer's minds is that of pricing. As President of the Georgian Triangle Real Estate Board last year, it was my contention that we would not see any significant reduction in prices in our market. One year later that is now essentially fact. The 12 month average price in our area has in fact risen (0.8%) from $280,724 in October of 2008 to $283,009 this year. Average pricing however is an ever-changing number that is affected far greater by the mix of properties selling than by inflation or deflation. To obtain an accurate synopsis of pricing requires an in-depth look at your neighbourhood and or property type. Recent reviews I have conducted in this regard indicate that pricing is fundamentally stable with the only significant price reductions coming from those listings that were over-priced to start with.

As always, if you have any questions or comments please consult the writer and I would be happy to assist you without obligation.

October Sales up 84% Over 2008

2009-11-02T09:01:00.000-05:00

Further to my last post, area real estate sales during October slightly exceeded my earlier forecast totalling $52.4 million versus $28.5 million in October 2008, an increase of 84%. These results are based on sales processed through the MLS® system of the Georgian Triangle Real Estate Board and do not include new home sales in the area.

A total of 195 individual sales were recorded during the month compared to just 114 a year earlier as we entered into the early stages of the global recession. Listing activity for the month saw 27% fewer properties listed for sale as compared to October last year. Year-to-date, the pace of new listings coming onto the market has slowed considerably up just 1% which is significantly lower than the double digit increases we previously experienced. Some sellers, frustrated with a lack of interest in their properties often stemming from having them over-priced are taking them off the market and this is continuing to be reflected in the increase we see in expired listings which are up 11% year-to-date. The slower pace of listing activity is resulting in less inventory which in turn has a stabilizing affect on prices.

Year-to-date sales to the end of October are now 1% ahead of last year's results both in terms of revenue and units sold. Sales for the year now total $410 million and are just $28 million short of the $438 million worth of property sold for all of 2008. I fully anticipate that sales through the remaining two months of 2009 will remain very strong. We will certainly surpass the weak sales activity that we experienced in the dark days of November and December last year. That being said, full year sales for 2009 may very well approach or exceed $500 million.

In my next post I will review sales activity in specific areas throughout our region. In the meantime please see my 3rd quarter Real Estate Newsletter for other statistics pertaining to market activity throughout the Georgian Triangle.