URBANATION SAYS “FOURTH QUARTER FLURRY” DRIVES 2010 TORONTO CONDO MARKET TO NEAR-RECORD SALES

Q4 2010’s 6,280 new Toronto CMA unit sales were the 4th highest quarterly total
on record: with aid of robust resale activity, 2010 market powers to strong finish
FINAL – TORONTO – January 31, 2011…Urbanation Inc., the leading source of information
and analysis on the Toronto condominium market since 1981, today released its Q4-2010 market
overview.
For the second consecutive year, the Toronto CMA new-condominium market finished with a
bang. A flurry of sales activity in Q4-2010 resulted in 6,280 new condominium units sold in the
quarter. This represents an impressive rebound from the 3,805 new unit sales in the preceding
Q3-2010.
Said Urbanation Executive Vice President and Editor Ben Myers, “The Q4-2010 new unit sales
were much higher than expected, spurred by tremendous results at a number of new project
openings in the City of Toronto. In the end, 2010’s total annual new and resale condominium
sales of 37,041 units were just three per cent shy of the historic 2007 record of 38,306 units
sold.”
Compared to 2009, 2010’s sales represent an increase of 20 per cent over 2009’s 30,939 new and
resale condominium units sold. 2010 sales soared 27 per cent over 2008’s sales of 27,187 new
and resale volume.
Myers added, “Even more impressive than the sales results were the number of construction
starts, a Toronto CMA record of 18,221 high-rise condominiums started in 2010, more than
twice as many as 2009. There are now 34,548 units under construction in the CMA in 132
projects”.
The key to Q4-2010’s strength, and the overall 2010 annual sales success, seems to have been a
combination of developers continuing to restrain pricing at new project launches to appeal both
to the general market, and to investors looking to acquire suites as future rental properties.
A 2010 Urbanation survey of condominium industry professionals indicates that their major
concern with regard to 2011 sales levels will be affordability. In the Toronto CMA overall, the
unsold unit index price for new projects (the average asking price of available product per square
foot), rose eight per cent annually from $493 to $530 psf in Q4-2010. The unsold index price in
the former City of Toronto was $646 psf in Q4-2010 and $723 psf in the Downtown Core.
Pricing in the resale market has flattened in recent quarters, but has risen six per cent annually
from $352 psf in Q4-2009 to $374 psf in the fourth quarter of 2010. Resale index pricing in the
former City was $487 psf in Q4-2010 and $518 psf in the Downtown Core. There were 3,538
condominium apartment resale transactions in the fourth quarter in the CMA, with the average
unit selling for $339,000.
“Urbanation expects 15,000 to 17,000 new units to launch in 2011, with approximately 16,000
sales, representing a slight drop-off following the ‘boom’ conditions in 2010” said Myers,
“Moderate growth is expected in the resale condominium market, and Urbanation is forecasting
17,000 resales in 2011.”
ABOUT URBANATION
Urbanation is Canada's leading condominium market research company. Since 1981, Urbanation
has analyzed the Toronto condominium market, publishing the “industry bible” – Urbanation’s
Condominium Market Survey. This quarterly Report tracks new, resale and future condominium
projects. Urbanation also provides the development community with essential consulting
services, which include site and topic specific market studies and surveys.

Starting a Social Media Campaign for your business

To help you create a social media campaign best suited for your business I will be blogging twice a week with information to assist you in your long term goal of an effective, low cost method of promoting you and your business for profit and even a bit of fun. So here goes.
First step in building an effective social media campaign is to start. It is that simple. Do not be intimidated that you cannot do it. Your campaign can be simple or broad. The simple fact is you must start.
Let's break down the most useful Social media components for you to use into the following categories:
- Blooging
- Microblogging
- Social Networking
- Social Bookmarking
- Multimedia
- Reviews and Opinions
- Wikis
Each of these unique techniques have specific elements that can be used to assist you in your approach. For instance in the Social Networking area Facebook has become the leader. Myspace is also a tool that can be used in this area as well.
Blogging has other tools, Blogger, TypePad and WordPress for instance. And so on.
This is the age of Internet 2.0. In Internet 1.0 interaction was one way. An Internet site was set up to inform people. Very little interaction occurred. You informed you clients and customers about you, your business and perhaps your success and achievements. People searched for you and only interacted by email or other one way communication techniques.
Today we expect more two way communication. In Facebook for instance we attempt to have a social experience. The largest growing group in Facebook is women over 55 years of age! This group uses Facebook to interact with children and grand children, friends and family! WOW! Who would have thought!
So let go of your fears, Change your mind set and enjoy the journey.
Next time - Blogging!

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.

Third consecutive monthly price decline in November states Teranet-National Bank Composite Price Index

Canadian home prices in November were down 0.2% from the previous month, according to the Teranet-National Bank National Composite House Price Index™. This retreat followed monthly declines of 0.4% in October and 1.1% in September after a run of 16 consecutive increases. November prices were down from the previous month in four of the six metropolitan markets surveyed. Declines of 0.9% in Ottawa and 0.5% in Toronto were each the third in a row. The Calgary decline of 0.7% was the fourth in a row. Halifax prices were down 0.8%. Montreal prices were again flat from the month before. Prices in Vancouver were up 0.6%. After three consecutive months of decline in the composite index, Canadian home prices are still 4.8% above the pre-recession peak of August 2008.
To see the entire article click o nthe link above.

RECO outlines various questions you may have on The Competitions Agreement

Real Estate Council of Ontario

The following questions and answers are related to the Consent Agreement between the Canadian Real Estate Association (CREA) and the Commissioner of Competition filed with the Competition Tribunal on October 25, 2010 and the Real Estate and Business Brokers Act, 2002(REBBA 2002).
This document will be updated as additional questions may arise in the coming weeks.
The Consent Agreement
Under the Agreement, the CREA must allow “mere posting” of a listing by a broker or salesperson who is a member of CREA who has chosen or agreed not to provide services to a seller other than submitting the listing for posting on the MLS® system.
Application in Ontario
Regardless of the terms of the Consent Agreement, all persons registered to trade in real estate in Ontario must comply with the Real Estate and Business Brokers Act, 2002 and its Regulations including the Code of Ethics (Ontario Regulation 580/05).
Question: As the listing brokerage, if I provide a mere posting service on MLS® and do not provide any other services, am I obligated to verify the accuracy of the information in the listing?
Answer: Yes, the listing brokerage is obligated to verify the accuracy of the information before posting on MLS® and is responsible for its accuracy.
Question: Can I opt out of any of the requirements under REBBA 2002 or the Regulations?
Answer: No, REBBA 2002, including the Regulations, is provincial law and no one can opt out of a provincial statute or regulation.
Questions & answers related to REBBA 2002 and the consent agreement Published by the Real Estate Council of Ontario Real Estate Council of Ontario 􀂌 Tel: 416-207-4800 􀂌 Toll Free: 1-800-245-6910 􀂌 www.reco.on.ca 􀂌 asktheregistrar@reco.on.ca
Page 2 of 3 􀂌 Nov. 9, 2010
Question: As a buyer representative, am I obligated to inform a buyer of properties that meet his/her criteria when the listing brokerage is not offering a commission or the seller is offering a commission lower than I expect?
Answer: Yes. As a registrant you are obligated to inform buyers of properties that meet their criteria regardless of the amount of commission or other remuneration, if any, being offered.
See Section 19 of the Code of Ethics (Ontario Regulation 580/05).
Question: If a seller is not being represented by a brokerage, except for a mere posting on MLS®, and I, as a buyer’s representative, have an offer that I wish to present to the seller, how do I ensure the details of my client’s offer remain confidential in a situation where the seller obtains multiple offers on the property?
Answer: You can attempt to have the seller enter into an agreement regarding the confidentiality of the offer; however, the unrepresented seller is not obligated to agree. Please remember that REBBA 2002 and the Regulations do not govern the conduct or actions of non‐registrants.
Question: If I merely post a property on MLS® and do not provide any further services to the seller, should I complete a Trade Record Sheet?
Answer: Yes. See sections 17 (Ontario Regulation 579/05) and 30 of the Code of Ethics. You should keep a record of the listing agreement, the listing information, receipt of remuneration and any other documents pertinent to the property.
Question: What if I am representing the buyer?
Answer: If you are the buyer’s representative, you are required to make a Trade Record Sheet where your client enters into an agreement of purchase of sale. See Section 17 (Ontario Regulation 579/05).
Real Estate Council of Ontario 􀂌 Tel: 416-207-4800 􀂌 Toll Free: 1-800-245-6910 􀂌 www.reco.on.ca 􀂌 asktheregistrar@reco.on.ca
Page 3 of 3 􀂌 Nov. 9, 2010
Question: As a buyer’s representative how will I know whether I can contact the seller directly?
Answer: Refer to the listing for clear direction and if there is any question, contact the listing brokerage directly and obtain written consent to contact the seller. See Section 7 of the Code of Ethics (Ontario Regulation 580/05).
Question: Where a listing broker merely posts a property for sale and my buyer wants to submit an offer to purchase, who is the deposit payable to?
Answer: It is negotiable between the buyer and seller. You will want to inform the buyer of RECO’s insurance program which provides consumer deposit protection when a registrant holds a deposit.
Question: In a mere posting situation am I required to get the permission of both sellers and buyers of a property before I can advertise the sale?
Answer: Registrants are required to obtain permission of both buyers and sellers before advertising a sale. (Please refer to the Advertising Matters column in the Fall 2010 edition of For the RECOrd for further information.)
Question: If I have an agreement to merely post the property on MLS® that includes a payment to me of a flat fee and the seller at a later time, within the term of the agreement, decides they want me to provide other services on the same property, what remuneration arrangements can be made?
Answer: If a flat fee was charged for a mere posting a registrant could negotiate an amendment to the listing agreement to provide further services for further flat fees, if agreed to by the seller.
Question: What if I have further questions?
Answer: If you have further questions, please contact RECO at theregistrar@reco.on.ca.

Price declines in all six markets in September

Canadian home prices in September were down 1.1% from the previous month, according to the Teranet-National Bank National Composite House Price Index™. The monthly decline ended a string of 16 consecutive increases in the composite index since the last monthly deflation in April 2009. For the first time since February 2009, prices fell in all six of the metropolitan markets surveyed. The declines were 2.4% in Halifax, 2.2% in Calgary, 1.6% in Toronto, 0.5% in Ottawa and 0.3% in Montreal and Vancouver. For Vancouver it was the third consecutive monthly decrease and for Calgary it was the second.
This result was reflected in a further deceleration of the 12-month price increase in September, to 7.9% for the composite index. It was the third consecutive month of deceleration, leaving the 12-month rise the smallest since last January. The 12-month increases range quite widely from market to market: 9.2% in Vancouver and Ottawa, 9.0% in Toronto, 7.6% in Montreal, 3.6% in Halifax and 1.7% in Calgary.

The Full Service, Industry Leading Real Estate Brokerage

RE/MAX Professionals Inc., Brokerage
The Full Service, Industry Leading Real Estate Brokerage

The Competition Bureau’s recent agreement with the Canadian Real Estate Association will soon be in effect. This agreement, ratified by the Canadian Real Estate Association on October 24th will allow varied service models to compete on the Multiple Listing Service (MLS) across Canada. Speculation has been circulating that our industry is, or will be, in peril due to this change. After a thorough review of the change affected by this agreement, it is the opinion of RE/MAX Professionals’ leadership team that our industry will remain strong, unchanged by the subtle change of this agreement.

One clear statement we can make is that RE/MAX Professionals Inc. is, and has always been, an industry leader in the Greater Toronto Area as a full service real estate brokerage. This has not changed with the requirements to allow different business models to be possible in MLS. Our sales representatives will offer full services at fair, negotiable commission rates to the consumer in our marketing area. RE/MAX Professionals Inc. clearly will not offer mere listing services to customers. Our chosen path is to provide buyers and sellers with listing, marketing, advertising, negotiating and buyer service packages. It is our belief that anything less is poor representation of the clients and customers we serve. Other brokers and brokerages may choose to do less. RE/MAX Professionals’ sales force will not … …

So, what do we expect to be the implications of these changes to the MLS services across Canada? Just as in 1973, when RE/MAX changed the face of real estate in Canada and the United States, changes and evolution of our industry will make the industry, ten years from now, different from today. RE/MAX changed the way our industry was organized at that time, putting more emphasis on the agents and their freedom to manage their businesses effectively. The prior employee-based industry became one of independent contractors, negotiable commission rates and high technology. These changes revolutionized an industry, making the agent central to the transaction with the consumer.

So, change is not an unfamiliar characteristic for RE/MAX. We are a vibrant, ever-changing brand, known worldwide as leaders in our industry. Change is welcome at RE/MAX, as we put the efficiency of our sales people first, in order for them to represent our clients better than any other recognized brand.

Just as the RE/MAX business model changed how our industry thrives, other business models will come and go. Some may prosper. Most will fail dismally. One thing is certain in our minds. The RE/MAX model, which emphasizes the highly productive sales person will continue to remain profitable for thriving independent contractors. Our resolve is to change and adapt to these changing times; to compete with these new models in a fair and consumer friendly manner. So they must beware, RE/MAX Professionals, will out-compete them all with pure customer service, the type of full service consumers have grown to expect of the RE/MAX model.

It is our contention that the technology that has transformed the way we do business will continue to change us and how we do business. Who would have thought, years ago, how the FAX machine transformed our industry? The movement of our industry to computer allowed our data to be instantaneous. Internet services in Web 1.0 allowed us to promote ourselves and our listings to the world at the click of a mouse. Web 2.0 has allowed interactivity with the ever more sophisticated consumer. Now more than ever, digital and video technology has transformed us to make Open Houses virtual and consumers even closer. RE/MAX has been at the forefront in all of these technologies and will continue to lead, not follow, as others attempt to copy our leadership.

You work with the leading Brand RE/MAX with over 35% of all home sales in Canada this year. You work within an industry-leading Brokerage, RE/MAX Professionals Inc. We offer full service real estate services in our designated area. We are proud to be Realtors. And we are proud to be RE/MAX.

So, let us go and do what we do very well. Compete fairly with our knowledge, full service and competence.