Second consecutive monthly price decline in October

Canadian home prices in October were down 0.4% from the previous month, according to the Teranet-National Bank National Composite House Price Index™. This retreat followed a September monthly decline of 1.1% that ended a string of 16 consecutive increases in the composite index. Though prices were down in September in all six of the metropolitan markets surveyed, two cities showed a monthly rise in October - Halifax, 0.7%, and Vancouver, 0.1%. Vancouver's marginal gain followed three consecutive monthly declines. Montreal prices were flat from the month before. Prices were down 0.9% in Toronto, 0.3% in Ottawa and 1.0% in Calgary. For Calgary it was a third straight monthly decline.
For the entire article go to the link: http://www.housepriceindex.ca/

Energetic Resale Market in the Toronto Area Drives Sale Prices Up 5%

An energetic resale market in the Toronto area has succeeded in driving selling prices up 5%.
According to recently released November statistics from the Toronto Real Estate Board(TREB) there were  6,510 sales in November, which is  a 13% decline from November 2009’s record levels. The year-over-year sales drop was mirrored by a dip in new listings, indicating that the market was adequately tight to promote continued price growth. The average selling price in November was $438,030--up 5% from November 2009.
When compared to last year’s record-breaking statistics, the actual number of transactions continued to be lower in comparison. However, there are still indications that existing home sales since July are robust.  For the last four months, there has been a consistent seasonally adjusted annual rate of sales, from the July low of 67,900 to 88,100 in November.
"The GTA resale market has tightened since the summer. Healthy market conditions continued to support growth in the average selling price," said Toronto Real Estate Board President Bill Johnston.
“Sales through the first 11 months of the year were down only marginally compared to the same period in 2009. We remain on track for one of the best years on record under the current TREB market area,” continued Johnston.
The average selling price for November transactions was $438,030 - up five % compared to November 2009.
"The average selling price in the GTA is affordable. A household earning the average income can comfortably cover the mortgage payments on an average priced home. Expect the average selling price to grow at a moderate pace over the next year," said Jason Mercer, TREB’s Senior Manager of Market Analysis.

Will We See The End of Land Transfer Tax in Toronto?

Toronto builders and realtors are waiting to see if Rob Ford keeps one of his key campaign promises when he’s sworn in as mayor – to repeal the Land Transfer Tax within the first year.
But exactly how long it will take remains a hot topic.
Ford told the Toronto Real Estate Board’s annual general meeting earlier this month the decision may have to wait until after next year’s provincial election.
“You have to work with the provincial government to eliminate the land transfer tax and the provincial government will be shut down starting probably in April or May,” he told CityNews after the meeting. “So anything that has to be filtered through the provincial government might be delayed.”
TREB spokesperson Von Palmer said late Thursday night Toronto doesn’t necessarily have to filter it through the provincial government. It can impose the tax – and remove it – without any provincial amendments under the City of Toronto Act. But he confirmed Ford could be planning to ask the province to amend the actual act itself, thereby preventing a future mayor from ever re-introducing the Land Transfer Tax.
Ford could also make the decision to repeal the tax retroactive. “This could be a helpful move especially if there is repeal of the tax to minimize any impact on the market,” Palmer explained, in an email to PropertyWire.ca.
Political observers say Ontario Premier Dalton McGuinty may also be more motivated to help remove the tax after this week’s municipal elections. Voters seemed to endorse change in Ford’s overwhelming victory, and Liberals fear that could spill over into next year’s provincial election.
The longer the decision takes, the more money adds up in city bank accounts. Officials confirmed the Land Transfer Tax brought in $183 million for Toronto in 2009.
The tax adds about $3,725 to the cost of a $400,000 home in Toronto.
What are your feelings about Rob Ford setting his sights on the land transfer tax - was it an empty election promise or will this change be coming before you know it?

December, The Month to Plan for 2011

You Can Fail to Plan or You Can Plan to Fail!
Take your choice! Interesting that all effective business people have plans that they follow with their businesses. Business plans are like road maps to your activities for a year. They are essential for an effective business to prosper.
Unfortunately only 3% of real estate business people have business plans states Richard Robbins of Richard Robbins International at his recent Achieve in Toronto. That shows the sorry state of our industry as most sales people simply show up. They do not plan. and they do not implement. The show up say "Here I am!"
That is a plan to fail.
No direction, no consistency, no sustainability.
No Wonder! They have no leadership to show them the way. Top real estate brokers and managers show their staff what a proper business plan entails. They may have a business planning course or session as we do at RE/MAX Professionals Inc. Or they simply have a template that can be followed to put a simple but effective business plan in place.
A second approach is to hire a coach or mentor to assist in your planning. Richard Robbins International and Buffini and Company are two excellent coaching and mentoring organizations.
So do not plan to fail. Create a business plan today!
For further information contact Darryl Mitchell, Managing Broker, RE/MAX Professionals Inc. at dmitchell@remaxprofessionals.ca today!

RE/MAX: Top 5 Reasons to Hire a Selling Agent

RE/MAX Professionals Rolls Out RE/MAX Collections in Mississauga and Toronto

RE/MAX Collections is a distinctive marketing opportunity for our customers to achieve their goal of setting their home apart in an international market place. Only the most prestigious properties shall achieve this status. RE/MAX Professionals offers this opportunity to its staff as an added marketing feature. The exclusive event held today allowed staff to review one of the finest homes in Ontario which is a current RE/MAX Professionals listing.

Over 80 RE/MAX Professionals staff attended this exclusive opening of RE/MAX Collections. 

Christine Mitchell, Managing Broker of RE/MAX Professionals described the qualifications of a RE/MAX collections home to the staff and guests. 

Builder Designer Michael Cerny and his wife Angela, the Listing Sales Person from RE/MAX Professionals described the spectacular home they are displaying.

There is not HST on a used residential home

Help Clear Up Public Confusion on HST and Resale Homes

December 1, 2010 -- Even though consumers have been dealing with the HST since July 1st, it appears there is still confusion about its applicability to the purchase price of resale homes. Consumers buying a resale home do not pay HST on the purchase price of the home. On the other hand, if you are buying a newly constructed home, HST will apply. Although the costs of purchasing or renting a commercial property are subject to HST, businesses are allowed to claim tax credits to offset these costs. Share this accompanying Ad with your clients and customers. Members are encouraged to use this ad and other related material (news release, President's article etc.) for use in Member newsletters, blogs, websites etc.

DID YOU KNOW?

There is

price of resale homes.
NO HST on the

HARMONIZED SALES TAX

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 􀂌 http://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 􀂌 http://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

Why Disclosure is necessary - REALTORS® have a duty to disclose defects

Basement flooding, cracks in the foundation, mould – what do sellers need to disclose and what do REALTORS^® need to find out? 

Real estate professionals have a duty to discover and disclose facts about a property that is being listed or shown to a buyer that could be relevant to a buyer’s decision to buy. As a REALTOR^®, your codes of ethics require you to discover facts pertaining to every property for which you accept an agency. The disclosure issue is covered in Article 4 of the CREA Code and Section 21 of the REBBA Code.

In a new OREA continuing education course called Defects and the Importance of Disclosure, author and course developer Mark Weisleder says all defects should be disclosed in advance. “I believe that REALTORS^® should show the SPIS (Seller Property Information Statement) to every potential buyer, especially if they are told in advance that there are defects in the property. If you disclose everything, then it is extremely unlikely that you or your seller will be sued by any buyer. If you do not disclose, there is always the possibility that proceedings will be brought against you as well as your seller client.”

Weisleder also says that if you are not sure whether the information is something you should disclose, simply ask yourself if it’s something you would want to know if you were buying the property yourself. “If the answer is yes, then you know you should be disclosing this information to the buyer.”

As a general rule, sellers of real estate and their listing agents have a duty to disclose any hidden (latent) defects that they are aware of in the property that could affect a reasonable buyer’s use and enjoyment and/or perceived value of the property.

Physical Defects - Patent and Latent Defects
There are two kinds of potential physical defects in a property -- patent defects and latent defects. A patent defect is a defect that is obvious when you walk into the home; for example a broken window. The buyer cannot complain about this defect because they can easily see it when viewing the home. They are thus governed by the legal doctrine of caveat emptor or buyer beware, and have to accept these defects on closing, unless they include a clause in their agreement that the seller will repair the defect.

A latent defect is a hidden defect, which cannot be observed on a normal inspection. The law is that if the seller knows about a latent defect that makes the home either uninhabitable by the buyer; unfit for the buyer’s intended purpose; or dangerous, then the seller must disclose this defect to the buyer. In addition, the seller cannot intentionally conceal what would otherwise be a patent defect. Examples of latent defects that should be disclosed include a problem with the foundation, or a very serious basement or roof water problem that has not been repaired.

“The Ontario Real Estate Association introduced the SPIS as a means for sellers to put buyers on notice of any physical problems with the property, to alert buyers and to provide buyers with the opportunity to make further inquiries when necessary,” says Weisleder. “It states right on the form that the form is not intended to be a warranty and the buyer must conduct their own independent investigation or property inspection.”

When completing the statement, the seller is asked to respond either “yes,” “no,” “unknown” or “not applicable” to questions such as “are you aware of any water problems” or “are you aware of any structural problems.” These statements have been completed by sellers for years in hundreds of thousands of real estate transactions across Canada, without any liability, especially when they completed the statement truthfully and to the best of their knowledge.

Yet there have also been cases where sellers who signed the statement were held liable for the buyer’s damages when problems were discovered after closing. In a review of these decisions, the judge determined on a factual basis that the seller either knew that what they were saying was false or had deliberately concealed a defect which was found out afterwards. “It was not the SPIS form that got the seller in trouble,” says Weisleder. “It was about not telling the truth when completing the form.”

Finally, Weisleder stresses, “Even if you or your seller are not required by law to disclose the information, the bar in terms of the level of professionalism required of REALTORS^® continues to move higher. By fulfilling your legal and ethical duties regarding the detection and disclosure of defects, you will insulate yourself and your clients from a lot of unnecessary pain and suffering.”

For more information about OREA’s Defects and the Importance of Disclosure online course visit http://www.orea.com/.

Housing market set to return to more normal levels of activity- RE/MAX Fall Market Report

Mississauga, ON (October 5, 2010) -- Residential real estate markets across Canada are set to return to more normal levels of activity after a brief summer pause, but most are unlikely to exceed robust sales posted in the final half of 2009, according to a report released today by RE/MAX.

Market for luxury homes remains brisk, in spite of soft summer

The RE/MAX Market Trends Report Fall 2010, highlighting trends and developments in 19 major centres, foundyear-to-date sales (January to August) ahead of 2009 levels in 11 markets (58 per cent). Prices were up yearover-year in all cities, with five experiencing double-digit gains in 2010 (Vancouver and St. John’s up 16 percent, Sudbury up 13 per cent, and Winnipeg and the Greater Toronto Area up 11 per cent). Balanced

conditions prevailed in most markets (79 per cent), with St. John’s, Kelowna, and Calgary declaring a firm

buyer’s market. By far the most interesting statistic reported was the significant upswing in upper-end sales in

both smaller and larger centres between January and August of this year, led by Sudbury at a 193 per cent

increase, Kelowna with a 163 per cent increase, Kitchener-Waterloo at 145 per cent, and Winnipeg at 104 percent. Last but not least, despite a lot of hype, the threat of higher interest rates, tighter lending policies and

summermonths.

“If anything demonstrates the underlying health of the national housing picture, it’s the surge in sales of luxury

properties this year,” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. “We know from experience that this segment of the market is usually the first to show pressure cracks when a market is softening- that has certainly not been the case this year, even during the summer slowdown.”

Competition Settlement a Godsend

Finally, clearer heads have prevailed and a settlement has been reached between the Canadian Real Estate Association, the governing organization for Canadian Realtors, and the Canadian Competition Bureau. Let us put this to sleep once and for all!
Competition is a corner stone of the Canadian Real Estate Industry. Effective, competitive Realtors of all brands, unbranded and not real estate entities have made the number of options for consumers unlimited. Unfortunately many in the industry have been afraid of the impact of competition, or new competition, or perhaps a better choice of words is fair competition from new sources. We might even say fair competition from old sources.
For years other types of real estate entities from For Sale By Owner groups to outside web entities have caused the real estate industry to defend its right to exist within its own limited bounds. Legitimate rules of engagement were developed by the various real estate boards to limit what was a legitimate real estate entity, sales person or Brokerage. Ethical designs were written to ensure real estate professionals were following reasonable ethical principles for the better of the consumer and the community as a whole. These rules were designed by well meaning. professionals with much for thought.
When the Competition Bureau began to question these rules, turmoil resulted. Not from the industry, which continued to progress as usual with many business models focusing on different commission rates, industry practices and business models. The turmoil came from the general public, uncertain what the changes meant.
The turmoil came from the press which read all sorts of changes into the supposed lack of competition cited. Press articles ranged from "The Industry is Collapsing!" to the "Hounds are at the door!", to "The Sky is Falling!"
So, in my opinion what is the final result of this settlement between CREA and the Competition Bureau? Positive Change!. We have reached a settlement that should allow the continued competition between the established Realtor and other business models. Intelligent consumers will decide to select what ever business model, commission rate and service level they feel meets their needs. That is the way it was yesterday. And.....That is the way it will be tomorrow!
The difference tomorrow is that we now have a definitive decision for framework that the industry will work within for a period of time. At least the model is set. the detail will be sorted out but the model for the future is set. That certainty is good for all. The presses will stop printing the story of "Big Bad Real Estate" and "Bad, bad real estate people" who "over charge the consumer" for Services you do not need." The story will change to "Be careful what you ask for as some services you do not request may hurt your chances of success in the sale of your home." That is a good news story for all!
Some may not totally like what has resulted with the thought that there will be other business models that will attack the traditional way 90% of real estate has been sold to the consumer through the Multiple List Service MLS. They will state that commission rates will erode as these so called new business models will take away some or all of their business. I suggest this has already been the case a less aggressive real estate sales people and other real estate business models already have lower fees and less services. So what will be new as these services attempt to grow and attack the traditional Realtor? Nothing! Bad business models and unprofitable real estate people will continue to be loosing entities. Great successful Realtors with higher service levels and more profitable business models will always find a way for success. Their services are valued byu consumers and Canadian society. The real estate industry will emerge the better. Or at least until the next challenge!

You Asked RE/MAX!

Have you ever had a question that was burning you? Want it answered? Well now RE/MAX Professionals is adding that opportunity for you.
You Asked RE/MAX is a blog designed for answers to your questions on real estate matters. Give it a try?