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.
Monday, March 8, 2010
Thursday, March 4, 2010
One For The Record Books!
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.
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.
Wednesday, March 3, 2010
Area Real Estate Sales in February Remain Strong
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.
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.
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