July 24, 2008
The Do-Not-Call List
“Do Not Call” Registry effective September 30, 2008
The Canadian Radio-Television and Telecommunications Commission (CRTC) is responsible for the National Do-Not-Call List (DNCL), which contains the names and telephone numbers of the consumers who do not want to receive unsolicited telephone calls from telemarketers.
Telemarketing is the use of telephony technology (telephone, cellphone, fax, etc.) to make unsolicited telephone calls or send unsolicited messages to consumers for the purpose of solicitation. Solicitation is selling or promoting a product or service, or soliciting money.
The object of the National DNCL is to provide a way for consumers to prevent telemarketers from calling them without consumers having to deal with individual telemarketers and their do-not-call lists. Telemarketers will not be permitted to call any of the numbers on the National Do-Not-Call List (DNCL), unless they already have an existing business relationship with the consumer or individual.
The federal legislation creating the framework for Canada’s National Do-Not-Call List was passed in 2005. On December 21st, 2007, the CRTC awarded a five-year contract to Bell Canada to operate the National DNCL, and announced the list would be active on September 30th, 2008. The operator is responsible for registering numbers, providing telemarketers with up-to-date versions of the National DNCL, and receiving consumer complaints about telemarketing calls.
Consumers can register up to three different numbers on the list, and have to renew that list every three years. There is no cost for getting onto the list. Telemarketers are required to monitor the National DNCL and remove any numbers they find on it from their calling lists. Telemarketers have to pay for access to the list.
Real estate brokers and salespersons making unsolicited telephone calls are “telemarketers” within the meaning of the legislation. Realtors can still contact consumers in other legal ways, such as direct mail. But if consumers (including private sellers) put their phone numbers on the National Do-Not-Call List, Realtors cannot telephone or fax them to solicit business.
July 17, 2008
House price increases forecast to continue
Despite easing rates of appreciation, average house prices set to rise by 3.5 per cent nationally by year’s end according to a House Price Survey and Market Survey Forecast report released by Royal LePage.
Canada’s real estate market is poised to maintain the momentum gained from a solid second quarter through to the end of 2008, with Regina set to experience the greatest rise in house prices. While home prices are expected to appreciate in all but two major markets during the year, activity levels across the country are expected to decline from 2007’s record-setting pace, as pent-up demand is satisfied and some buyers retreat to the sidelines in the face of increasing economic uncertainty, according to a House Price Survey and Market Survey Forecast report released today by Royal LePage Real Estate Services.
During the second quarter, average house prices rose across most of the country with rates of appreciation easing from the dramatic spikes that were observed in 2006 and 2007. Continued robust demand led to strong double-digit gains in Saskatchewan, Winnipeg and St. John’s; while a surge in inventory caused Alberta’s white-hot market to record the country’s only major-market price decreases.
“Canada’s resale housing market proved resilient in the second quarter. In fact, we have been pleasantly surprised that strong fundamentals, such as enduringly positive employment numbers and reasonable mortgage rates, have countered increasingly pessimistic consumer sentiment, based primarily on the American housing recession,” said Phil Soper, president and chief executive officer, Royal LePage Real Estate Services.
Added Soper: “After several years characterized by a persistent shortage of listings, home buyers have felt the pressure of bidding wars and take-it-or-leave-it counter offers ease during 2008; home sellers have had to come to grips with the longer time it is taking to sell properties, but can take comfort in a market that continues to support reasonable price increases. Our research indicates that all markets will continue to perform well, albeit at a tempered pace.”
The national average house price is forecast to rise by 3.5 per cent, to $318,000 by the year’s end. Home sale transactions are projected to decrease by 11.5 per cent to 461,000 unit sales by the end of 2008.
Examining figures from the second quarter, the highest average price appreciation occurred in detached bungalows, which rose by 5.6 per cent to $351,587, followed by standard two-storey properties, which rose to $418,943 (5.2%), and standard condominiums, which increased to $248,408 (3.9%), year-over-year.
An extreme inventory shortage has helped pressure prices upwards in the mid-west, while excess supply loosened markets in the previously frenzied Alberta.
While Saskatchewan’s cities recorded the country’s highest price gains, Winnipeg followed closely behind. Growth in agricultural sectors, and subsequently high levels of immigration required housing that simply could not be met by current levels of inventory. The inevitable result of a booming economy was observed as the markets held strongly in the sellers’ favor as house prices skyrocketed in both Saskatchewan and Manitoba.
Despite some mild price erosion during the second quarter in both Calgary and Edmonton, these markets remain strong. Although prices have come down from where they were last year - one of the best years on record - current house prices are far higher than they were three years ago, before energy-rich Alberta experienced its boom. Relative to the rest of the country, Calgary and Edmonton are still home to some of Canada’s most expensive real estate.
Montreal, Toronto and Ottawa all experienced strong second quarters, and are poised to continue to see prices appreciate. In all three cities, listings rose during the second quarter, compared to the same period last year. The increase in inventory has translated into fewer, albeit still occurring, multiple offer situations. Homes priced appropriately had listing periods that often lasted one to two weeks during the second quarter; a relatively short period of time by historical standards.
Echoing the trend of the past few months, St. John’s has become the economic bright spot of Atlantic Canada. With various new oil projects underway, and others to begin shortly, St. John’s is experiencing housing market conditions typically only seen in major metropolitan cities. Skyrocketing house prices and multiple offer situations have quickly swung the city into a sellers’ market. Strong demand in the country’s eastern provinces has led to many Atlantic cities recording double-digit prices increases.
Regional Summaries
In Halifax, strong buyer demand combined with the city’s low inventory levels created an abundance of activity during the second quarter leading to many multiple offer situations. Buyer demand was strong during the second quarter with all types of buyers drawn to the market. Looking ahead prices are anticipated to increase, while unit sales are expected to decline.
St. John’s had a phenomenal second quarter, characterized by an abundance of buyer activity, with multiple offer situations and bidding wars becoming the norm. With various new oil projects underway, and others set to begin shortly, the strong economy in St. John’s has boosted consumer confidence across the city. High buyer demand led to double-digit price increases in all housing types during the second quarter. These strong conditions are anticipated to continue over the next six months.
The housing market in Moncton experienced a healthy second quarter, with moderate house price appreciation expected to continue throughout the year. The job market in Moncton is very healthy - in-migration of Moncton natives returning from out west will continue to create activity in the real estate market with prices increasing slightly to year’s end.
First time buyers helped boost activity in Saint John, showing a preference for homes priced between $150,000 and $250,000. Workers returning from the oil fields in Alberta also entered the high-end real estate market leading to strong activity levels in this housing type during the second quarter.
Charlottetown saw a return to a more balanced market during the second quarter - with an increase in inventory coming on stream, ultimately positioning the market in favour of the buyer. The stable housing market in Charlottetown is anticipated to continue through to the end of the year.
In Fredericton, the housing market experienced more balanced market conditions during the second-quarter with activity in the condo market tempering from where it was several months ago, as more of this property type was listed on the market. Fredericton’s real estate market is anticipated to remain robust for buyers and sellers alike well into the next year.
Montreal’s housing market experienced moderate growth during the second quarter, with average house prices inching upwards by high single-digits. Healthy employment rates and the relatively low cost of borrowing money continues to bolster buyer demand, and will help maintain the strength of the market into the second half of the year.
Toronto’s real estate market is anticipated to see healthy price appreciations throughout the remainder of 2008. The market is expected to mirror the second quarter’s conditions of rising average house prices, which were bolstered largely by healthy buyer demand. During the second quarter, all housing types received considerable buyer attention, with the city’s upper end properties doing extremely well. A heightened awareness of the environment, as well as rising prices at the gas pumps, have contributed to an influx of purchasers relocating to the city’s core, placing properties near public transit at a premium.
The outlook for Ottawa’s resale housing market is optimistic, with average prices anticipated to rise and market activity to remain steady, through to the end of 2008. Bolstered by the combination of a robust and unwavering local economy, and high consumer confidence, Ottawa’s real estate market maintained its title as the country’s most stable market during the second quarter.
In Winnipeg, limited new and resale housing inventory continued to tighten the city’s real estate market, and will do so for the remainder of 2008. The limited supply of housing throughout the city had a dramatic impact on average house prices, which, for all housing types surveyed during the second quarter, experienced double-digit year-over-year increases. Inventory levels were tightened throughout Winnipeg due to an influx of provincial in-migration, during the second quarter.
Prosperity in both Regina and Saskatoon - generated by surging commodity prices and market speculation - continued to fuel interest in residential real estate throughout the province. In Regina, all housing types continued to demonstrate their resilience in the second quarter, as even a five fold spike in inventory levels could not dampen price appreciation. As a result, average house prices continued to demonstrate substantial year-over-year gains. Similar to Regina, second quarter house prices in Saskatoon continued to climb at an exceptional, yet slightly slower rate than that of Regina’s. Market conditions appeared slightly more balanced in the second quarter, when compared to activity in recent months. Look ahead; listing inventory will rise, resulting in a slight period of stabilization.
Calgary’s resale housing market moderated in the second quarter of 2008 - a trend that is expected to continue throughout the latter half of the year. After a period of substantial growth in new housing development and skyrocketing average house prices, Calgary’s real estate market took a collective exhale during what is typically one of the market’s busiest periods. Signs of a market in the latter stages of a hurried boom are evident in Calgary, primarily in the city’s inventory surplus; inventory levels throughout the city will soon return to healthier levels as more speculators move east in search of new real estate development opportunities, while principle-asset homeowners hold onto their existing property until market conditions once again pick-up steam.
Inventory levels - which increased substantially in the last 12 months - also led to a softening of Edmonton’s housing market during the second quarter. The spike in the city’s housing inventory can be largely attributed to new housing construction and market speculation, which, in recent years, have both been rampant. The high inventory levels will dwindle into the second half of the year, and as affordability improves, subsequent market conditions will continue to normalize.
In Vancouver, a spike in inventory during the second quarter simmered the heat in the long-standing hot market, resulting in single-digit average house prices increases for most areas examined, when compared to this time past year. Despite the increase in listing volumes, buyer’s interest remained strong and it is anticipated that much of the inventory will be absorbed over the next few quarters, leading to low single digit price appreciations through to the year’s end.
Victoria’s housing market continued to experience average price increases during the second quarter, compared to the same period last year. While average house prices continued to increase, the pace has definitely tempered from the frenetic pace observed in previous quarters. Victoria is experiencing a more normal and healthier real estate market.
July 16, 2008
Toronto Commercial Real Estate
June Breaks 1,000,000 Square Foot Barrier
In June, TREB Members reported 1,017,518 square feet of space through the TorontoMLS system. “This is the second best monthly performance for the year,” said Mr. Lander. “…and it was largely driven by the lease of a number of 100,000 square foot plus Industrial properties in the Vaughan area. One of the changes in the MLS system over the past several years has been the increasing willingness with which TREB’s Commercial Members have used it to list properties of a significant size.”
On the pricing front, leased Industrial space (all size categories) averaged $5.77 sfn, up three per cent over last June’s figure of $5.63sfn. Commercial space (all size categories) traded for an average of $16.75 sfn, up nine per cent over the same time in 2007.
In June, TREB Members reported 53 sales of IC&I properties, including 23 Industrial buildings in all size categories that sold for $127.36 per square foot. This compares to the $175.47 per sf derived from non-MLS sources, which saw a number of unusually expensive Industrial
properties transact in the last month.
Go to complete copy of TREB’s Commercial Realty Watch Report »
July 15, 2008
Canadian home prices drop
MLS data for June shows first decline in nine years.
House prices in Canada had their first monthly year-over-year decline in more than nine years in June, the Canadian Real Estate Association reported today. Gregory Klump, the association’s chief economist, says the price decline was the first since January, 1999 and reflects a slumping economy and the huge runup in prices in recent years in Alberta’s energy-based economy.
In June, the major market MLS residential average price edged down 0.4 per cent year-over-year to $341,096, says the association as it released its latest Multiple Listing Service statistics.
Klump says the slight decline in average price comparison reflects the impact the surge in average price in Calgary and Edmonton had last year.
The real estate group says the average price in these markets retreated after rising dramatically last year, but has stabilized since March this year in line with a balanced market.
July 15, 2008
Phantom real estate bidding report slammed
Toronto Real Estate Board task force argues system already in place to address ethics breach.
A Toronto Real Estate Board task force report that found no additional enforcement is needed to curb phantom bidding completely misses the mark, says a prominent local realtor.
“TREB evidently doesn’t think that ethics is their responsibility,” said Michael Manley, owner of Prudential Properties in the Beach.
“They should be putting some internal mechanism in place because right now, there is nothing at TREB to deal with this,” Manley added. “They are leaving it all up to RECO (the Real Estate Council of Ontario) to enforce.”
Manley was reacting to a TREB task force report presented to TREB members on their private website yesterday on the contentious practice of phantom bidding, which involves fabricating an offer to spark a higher counter bid.
The report said RECO – which regulates agents and brokers – already has all the enforcement tools it needs to investigate and prosecute agents who flout the rules.
The issue of phantom bids was pushed to the forefront last year when Manley ran for president of TREB. During the campaign, he vowed to stamp out the practice – which many agents agree is widespread in Toronto – through an online mandatory bid registry system.
TREB president Maureen O’Neill said yesterday the report was for internal use only and would not be made public. However, the Star was able to obtain a leaked copy.
In its findings, the seven-member task force concluded “the RECO code of ethics is the only avenue to deal with” phantom offers.
Any agent or broker involved in such tactics is “committing a criminal act,” said O’Neill, who agreed with the six-page report’s findings. She said members of the public can complain to RECO if they have an issue with how agents handle bids.
But Manley said this approach is akin to shutting the barn door after the horse has bolted.
“They are going after agents after they have already broken the rules instead of setting up a system that helps prevent that type of activity in the first place,” Manley said.
He said requiring agents or brokers to register all bids online is the only real solution to the problem.
The report said a registry would be cumbersome and unworkable.
“For instance, it wouldn’t allow for last-minute bids,” said O’Neill who had initially backed the idea.
O’Neill said TREB will issue pamphlets and hold education sessions to help end unethical tactics.