| TREB statistics show a definite flattening of the number of new MLS listings over the last number of quarters at just under 14,000 listings. This shows the current lowering of of volume is a natural result of this flattening of the new listings. Overall this has left. Decrease in effective homes for sale while the number of actual sales has stayed strong. Pair the above observation with the continuing higher average sales price and you can see demand is strong. There is a very simple correlation between supply and demand. When supply goes down and price goes up, simple economics supply and demand theory states we have a strong market. So do not expect a large drop in prices due to the pent up demand that is still evident in our Toronto and Area market. | ||
Showing posts with label Real Estate. Show all posts
Showing posts with label Real Estate. Show all posts
Sunday, March 3, 2013
Number of new listings on TREB flattening
Terranet National Bank Home Index
The mission of the Teranet – National Bank House Price Index™ is an independent representation of the rate of change of Canadian single-family home prices. The measurements are based on the property records of public land registries, where sale price is available. The monthly indices cover eleven Canadian metropolitan areas: Victoria, Vancouver, Calgary, Edmonton, Winnipeg, Hamilton, Toronto, Ottawa, Montréal, Québec and Halifax. The metropolitan areas are combined to form a national composite index.
In addition to their informational role, the Teranet – National Bank House Price Index™ was developed to be a trustworthy benchmark for financial professionals. Teranet and National Bank of Canada offer licenses covering all index-linked products.
Wednesday, March 2, 2011
Cost savings or.... Investment Freeze?
Too often we cut costs in our real estate sales business with out an investment analysis of the implications of what we are doing. The consequences can be minimal or catastrophic.
What is an investment? It is money, effort or time that is spent to receive a return on that investment. The simplest investment is a monetary investment in a bank account. Deposit a dollar in a bank account today and you will get interest, low interest, agreed, but you will get a return. If you want a greater return you usually must take on a larger risk or greater sacrifice. A Guaranteed Investment Certificate will pay a greater return over a longer period of time. Guaranteed returns come from the sacrifice of time of the investment period. A greater risk again would be the purchase of a stock or bond in a business or company. Greater return from more risk in the investment. We all know the consequences of risk. Without risk our returns would be paltry!
We also understand that in an efficient marketplace we need to hold our costs to as low as possible. The profit equation is simple, the amount of profit from any venture is determined by the gross revenues produced minus and expenses. So when we decrease our expenses our profit will go up! Or will it?
So many times I see mistakes made in determining what are good costs and bad costs, expenses that should be maintained simply to keep your revenue streams increasing rather than holding neutral or even decreasing.
For instance, recently a sales associate in my office decided they should give up their office at our branch as the cost to have an office was just too great to bear in their opinion. This person considered the office cost an expense. My contention is for that particular agent the cost of an office was an investment. It was truly an investment in their business and time. The office allowed them to organize their business. It was a focal point for them to be in business. It allowed them to concentrate and stay in connection with the Brokerage as a whole. They did not consider objectively the true returns that this investment in an office gave them.My bet is that for this particular agent their business will stagnate as they attempt to stay focused in whatever new office organisation they prepare.
Also of concern is the impact a change like this will make in the personal life of a sales associate. I like to go to work to be at work. There needs to be a break from your personal life and your business life to allow sanity to prevail. So for me, an office allows this barrier to exist. I would argue that the cost of an office is indeed an investment in you, not a cost to be reduced.
Some costs are necessary for success and this is just one. I just as easily could have written this article on advertisement, marketing, personal assistants, professional development, personal fitness training, equipment, etc. Office costs are just an example of a necessary evil that our business insists on for success.
Sometimes we just need to prioritize for the better of our business and our lives.We need to invest in our business and ourselves.
What is an investment? It is money, effort or time that is spent to receive a return on that investment. The simplest investment is a monetary investment in a bank account. Deposit a dollar in a bank account today and you will get interest, low interest, agreed, but you will get a return. If you want a greater return you usually must take on a larger risk or greater sacrifice. A Guaranteed Investment Certificate will pay a greater return over a longer period of time. Guaranteed returns come from the sacrifice of time of the investment period. A greater risk again would be the purchase of a stock or bond in a business or company. Greater return from more risk in the investment. We all know the consequences of risk. Without risk our returns would be paltry!
We also understand that in an efficient marketplace we need to hold our costs to as low as possible. The profit equation is simple, the amount of profit from any venture is determined by the gross revenues produced minus and expenses. So when we decrease our expenses our profit will go up! Or will it?
So many times I see mistakes made in determining what are good costs and bad costs, expenses that should be maintained simply to keep your revenue streams increasing rather than holding neutral or even decreasing.
For instance, recently a sales associate in my office decided they should give up their office at our branch as the cost to have an office was just too great to bear in their opinion. This person considered the office cost an expense. My contention is for that particular agent the cost of an office was an investment. It was truly an investment in their business and time. The office allowed them to organize their business. It was a focal point for them to be in business. It allowed them to concentrate and stay in connection with the Brokerage as a whole. They did not consider objectively the true returns that this investment in an office gave them.My bet is that for this particular agent their business will stagnate as they attempt to stay focused in whatever new office organisation they prepare.
Also of concern is the impact a change like this will make in the personal life of a sales associate. I like to go to work to be at work. There needs to be a break from your personal life and your business life to allow sanity to prevail. So for me, an office allows this barrier to exist. I would argue that the cost of an office is indeed an investment in you, not a cost to be reduced.
Some costs are necessary for success and this is just one. I just as easily could have written this article on advertisement, marketing, personal assistants, professional development, personal fitness training, equipment, etc. Office costs are just an example of a necessary evil that our business insists on for success.
Sometimes we just need to prioritize for the better of our business and our lives.We need to invest in our business and ourselves.
Wednesday, January 26, 2011
Why a no-pet rental clause is unenforceable
Mark Weisleder, Toronto Star January 24, 2011
You’ve rented your home out, and there’s a “no pets” clause in the lease. Tenants sign, and move in, and soon two big dogs are living there too. Can you do anything about it?
In Ontario, unless this is a condominium whose declaration prohibits pets, there is little the landlord can do to remove the dogs.
The Ontario Residential Tenancies Act says that any provision in a lease preventing pets is void. In order to remove the pet, the landlord will have to prove that this pet is actually causing damage to the premises, interfering with the enjoyment of the landlord or the other tenants, is dangerous or perhaps causing an allergic reaction to the other tenants or the landlord.
You’ve rented your home out, and there’s a “no pets” clause in the lease. Tenants sign, and move in, and soon two big dogs are living there too. Can you do anything about it?
In Ontario, unless this is a condominium whose declaration prohibits pets, there is little the landlord can do to remove the dogs.
The Ontario Residential Tenancies Act says that any provision in a lease preventing pets is void. In order to remove the pet, the landlord will have to prove that this pet is actually causing damage to the premises, interfering with the enjoyment of the landlord or the other tenants, is dangerous or perhaps causing an allergic reaction to the other tenants or the landlord.
Wednesday, August 4, 2010
Top Team Success Secrets from Ken Goodfellow
Here is the link to Ken Goodfellow's most recent video on Top Teaem Success. Enjoy!Top Team Blueprint Series
In anticipation of our New Top Team program launch on August 11th 2010, we have put together a complimentary video series called The Top Team Blueprint. Click the Agent button below to get immediate access.
Agent Top Broker Blueprint Series
Ken Goodfellow, CKG International
In anticipation of our New Top Team program launch on August 11th 2010, we have put together a complimentary video series called The Top Team Blueprint. Click the Agent button below to get immediate access.
Agent Top Broker Blueprint Series
Ken Goodfellow, CKG International
Thursday, May 27, 2010
Study on HST states true cost to consumer on housing will soar
Premier Dalton McGuinty's plan to harmonize sales taxes threatens 21,200 construction jobs and will cost buyers of new homes at least $800 million, a housing industry analysis warns.
The melding of the 8 per cent provincial sales tax with the 5 per cent GST on July 1, 2010, will be especially onerous to buyers in Greater Toronto due to higher house prices, says the report commissioned by the Building Industry and Land Development Association (BILD).
GTA purchasers will pay $575 million of the $800 million, wrote Altus Group's Frank Clayton, who prepared the 28-page report, the first detailed examination of the new tax's impact since it was announced in the March 26 budget.
Prior to the budget, BILD had estimated it could cost Ontario homebuyers $2. 4 billion if the taxes were harmonized. That was before Finance Minister Dwight Duncan disclosed that residences costing less than $400,000 would effectively be exempt from the HST and there would be partial rebates for homes less than $500,000.
But new houses that cost more than $500,000 would be subject to the harmonized tax.
"The impacts will disproportionately hit new housing in the Greater Toronto Area because of its higher price level and middle-income households," wrote Clayton, whose study will be released today.
"New homes over $400,000 are not exclusively owned by the very wealthy," he noted, adding "a significant number of (such) households are classified as 'middle class.'"
About one third - 36 per cent - of all new homes sold in the GTA cost more than $400,000 and even a 10 per cent to 15 per cent reduction in demand due to the new tax would mean 7,400 to 11,100 fewer units being built.
That translates into 14,100 to 21,200 jobs in construction and related industries and $720 million to $1.1 billion in lost wages.
Interim Progressive Conservative leader Bob Runciman has tabled a motion urging McGuinty "to acknowledge that, due to the current economic downturn, this is the wrong time to move forward with his ill-advised plan to yet again increase taxes on all people of this province."
In addition to housing, the blended 13 per cent tax will boost the price of hundreds of items, such as gasoline, heating fuel, fast food, newspapers, magazines, taxi fares and dry cleaning, among other things, that are now only subject to 5 per cent GST.
Even though Liberal MPPs and cabinet ministers privately share Runciman's concern about the change, the premier insists it is full-steam ahead with the reform. "We need to do this to strengthen our economy," he told reporters.
The harmonized tax will hasten people's decisions to buy homes, said David Poon, a real estate agent with Cathedraltown, a housing development in Markham. "There's still a lot of time but I'm already seeing prospective buyers scrambling to find homes," he said yesterday.
"A lot of people want to beat the deadline. It's not making (buyers) happy. If my house costs about $500,000, I'll have to pay another $40,000 after July 1," said Poon. who called the harmonization nonsense.
2009 by Infomart. This article is protected by copyright and is licensed only for your personal use. All other rights are reserved. This article may not be reproduced, retransmitted, disseminated, sold, distributed, published, broadcast or circulated without the prior written consent of CanWest Global Interactive Inc.
The melding of the 8 per cent provincial sales tax with the 5 per cent GST on July 1, 2010, will be especially onerous to buyers in Greater Toronto due to higher house prices, says the report commissioned by the Building Industry and Land Development Association (BILD).
GTA purchasers will pay $575 million of the $800 million, wrote Altus Group's Frank Clayton, who prepared the 28-page report, the first detailed examination of the new tax's impact since it was announced in the March 26 budget.
Prior to the budget, BILD had estimated it could cost Ontario homebuyers $2. 4 billion if the taxes were harmonized. That was before Finance Minister Dwight Duncan disclosed that residences costing less than $400,000 would effectively be exempt from the HST and there would be partial rebates for homes less than $500,000.
But new houses that cost more than $500,000 would be subject to the harmonized tax.
"The impacts will disproportionately hit new housing in the Greater Toronto Area because of its higher price level and middle-income households," wrote Clayton, whose study will be released today.
"New homes over $400,000 are not exclusively owned by the very wealthy," he noted, adding "a significant number of (such) households are classified as 'middle class.'"
About one third - 36 per cent - of all new homes sold in the GTA cost more than $400,000 and even a 10 per cent to 15 per cent reduction in demand due to the new tax would mean 7,400 to 11,100 fewer units being built.
That translates into 14,100 to 21,200 jobs in construction and related industries and $720 million to $1.1 billion in lost wages.
Interim Progressive Conservative leader Bob Runciman has tabled a motion urging McGuinty "to acknowledge that, due to the current economic downturn, this is the wrong time to move forward with his ill-advised plan to yet again increase taxes on all people of this province."
In addition to housing, the blended 13 per cent tax will boost the price of hundreds of items, such as gasoline, heating fuel, fast food, newspapers, magazines, taxi fares and dry cleaning, among other things, that are now only subject to 5 per cent GST.
Even though Liberal MPPs and cabinet ministers privately share Runciman's concern about the change, the premier insists it is full-steam ahead with the reform. "We need to do this to strengthen our economy," he told reporters.
The harmonized tax will hasten people's decisions to buy homes, said David Poon, a real estate agent with Cathedraltown, a housing development in Markham. "There's still a lot of time but I'm already seeing prospective buyers scrambling to find homes," he said yesterday.
"A lot of people want to beat the deadline. It's not making (buyers) happy. If my house costs about $500,000, I'll have to pay another $40,000 after July 1," said Poon. who called the harmonization nonsense.
2009 by Infomart. This article is protected by copyright and is licensed only for your personal use. All other rights are reserved. This article may not be reproduced, retransmitted, disseminated, sold, distributed, published, broadcast or circulated without the prior written consent of CanWest Global Interactive Inc.
Wednesday, March 10, 2010
CTV Covers the importance of the Home Title Insurance
Source: CTV Canada AM
This excellent CTV Canada AM segment covers the importance of title insurance to protect against several common problems in an existing home purchase. Check the video out.
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This excellent CTV Canada AM segment covers the importance of title insurance to protect against several common problems in an existing home purchase. Check the video out.
javascript:changeVideo('','AM0309_home','00:00:00.00','00:02:17.00','274116','11')
Wednesday, February 24, 2010
Low inventory levels set stage for heated Spring market in most major Canadian centres, says RE/MAX
Active listings down in 81 per cent of markets in January
Mississauga, ON (February 24, 2010) - Lack of inventory will be the greatest challenge facing housing markets across the country this Spring, according to a report released today by RE/MAX.
The RE/MAX Market Trends Report 2010, which examined real estate trends and developments in 16 markets across the country, found that unusually strong activity during one of the traditionally quietest months of the year has led to a sharp decline in active listings in 81 per cent of markets surveyed. The threat of higher interest rates, tighter lending criteria, and in British Columbia and Ontario, the introduction of the new Harmonized Sales Tax (HST) have clearly served to kick-start real estate activity from coast-to-coast, prompting an unprecedented influx of purchasers. As a result, 87.5 per cent of markets posted an increase in sales in January. Average price appreciated in 81 per cent of markets surveyed.
"There have never been so many motivating factors in play at once," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. "We're in for a heated Spring market that will, in all probability, spill over into the summer months, as the window of opportunity draws to a close. The supply of homes listed for sale has been drastically reduced, housing values are once again on the upswing, and banks and governments are moving in unison toward stricter lending policies."
Mississauga, ON (February 24, 2010) - Lack of inventory will be the greatest challenge facing housing markets across the country this Spring, according to a report released today by RE/MAX.
The RE/MAX Market Trends Report 2010, which examined real estate trends and developments in 16 markets across the country, found that unusually strong activity during one of the traditionally quietest months of the year has led to a sharp decline in active listings in 81 per cent of markets surveyed. The threat of higher interest rates, tighter lending criteria, and in British Columbia and Ontario, the introduction of the new Harmonized Sales Tax (HST) have clearly served to kick-start real estate activity from coast-to-coast, prompting an unprecedented influx of purchasers. As a result, 87.5 per cent of markets posted an increase in sales in January. Average price appreciated in 81 per cent of markets surveyed.
"There have never been so many motivating factors in play at once," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. "We're in for a heated Spring market that will, in all probability, spill over into the summer months, as the window of opportunity draws to a close. The supply of homes listed for sale has been drastically reduced, housing values are once again on the upswing, and banks and governments are moving in unison toward stricter lending policies."
Saturday, February 20, 2010
Federal Government Changes Mortgage Rules - Toronto Real Estate Board Release
February 16, 2010 -- The federal government has announced changes to the rules for government-backed insured mortgages (less than 20 percent down payment).
All borrowers will be required to meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter terms.
Reduced maximum amount that can be withdrawn in refinancing a government-backed insured mortgage to 90 per cent from 95 per cent of the value of the home.
Require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner occupied properties purchased for speculation. Borrowers purchasing owner-occupied residential properties will still be able to access government-backed mortgage insurance with a 5 per cent down payment.
Additional detail is available on the follwoing link.
http://www.fin.gc.ca/n10/data/10-011_1-eng.asp
All borrowers will be required to meet the standards for a five-year fixed rate mortgage even if they choose a mortgage with a lower interest rate and shorter terms.
Reduced maximum amount that can be withdrawn in refinancing a government-backed insured mortgage to 90 per cent from 95 per cent of the value of the home.
Require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner occupied properties purchased for speculation. Borrowers purchasing owner-occupied residential properties will still be able to access government-backed mortgage insurance with a 5 per cent down payment.
Additional detail is available on the follwoing link.
http://www.fin.gc.ca/n10/data/10-011_1-eng.asp
Toronto Real Estate Board Early February Results Are Strong
February 18, 2010 -- Greater Toronto REALTORS reported 3,555 sales through the Multiple Listing Service during the first two weeks of February. http://www.torontorealestateboard.com/consumer_info/market_news/news2010/pdf/nr_mid_month_0210.pdf
Toronto Real Estate Board Commercial Members report strong January
February 18, 2010 -- Last month, TREB Commercial Members reported 660,815 square feet of leased space. This result was a substantial increase compared to the 336,029 leased square feet recorded in January of 2009, when the rate of economic decline was greatest during the recent recession.http://www.torontorealestateboard.com/consumer_info/market_news/news2010/pdf/nr_comm_watch_0110.pdf
Tuesday, February 16, 2010
Government of Canada Announces Mortgage Approval Changes
Flaherty announces mortgage approval changes that should strengthen the marketplace. Changes include tighter controls on investors in real estate, higher requirements on qualification for mortgages and more. This is geared to maintain the high confidence that Canadian consumers have in the value of their largest investment, their home. Read this on the following link. - http://ping.fm/WmfDO
Sunday, February 14, 2010
RE/MAX and You
Come join me at RE/MAX and You on February 23rd. Check it out at http://ping.fm/GwcUw
Thursday, February 11, 2010
Competition Bureau Takes Unusual Stand Against organized Real Estate
MLS to respond to Competition Bureau demand for change: http://ping.fm/gkakm
This stand makes one wonder if a bad business plan is still a bad business plan? Should unprofitable business plans be protected? This is not the typical Canadian business story of business efficiency winning the day.
This stand makes one wonder if a bad business plan is still a bad business plan? Should unprofitable business plans be protected? This is not the typical Canadian business story of business efficiency winning the day.
RE/MAX Ontario-Atlantic Broker Meeting
RE/MAX Ontario-Atlantic Broker Meeting Today will be a first for me. I look forward to meeting new partners!
Wednesday, January 27, 2010
Toronto Real Estate Board Reports Strong Early January Activity
Mid-month January Toronto real estate sales were great. What about month end?http://ping.fm/MIjmi
Economic activity in Toronto Ready to Improve States Toronto Real Estate Board
Renewed economic growth suggests that commercial real estate situation to
improve in 2010 states Toronto Real Estate Board http://ping.fm/dZD1k
improve in 2010 states Toronto Real Estate Board http://ping.fm/dZD1k
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