CREA Economist Explains July's National Home Sales Activity

     Are you a fan of line graphs, bar charts, and market stats analysis?  If so you'll love the above YouTube video posted today by the Canadian Real Estate Association (CREA).  For the rest of you, Mr. Cathcart's breakdown of what's happening in the Canadian real estate market at the moment is still very much worth a look.  I've also listed some of the video's key points below.

• The soft sales figures we're seeing right now can be attributed in part to accelerated home purchases earlier in the year.
• Buyers rushed into the housing market before announced changes to mortgage regulations took effect, interest rates moved up, and the HST came into effect in British Columbia and Ontario.
• In other words, the real estate market was "borrowing from the future" and much of the activity that normally would’ve happened late spring and through the summer actually took place in the first quarter of the year instead.
• It’s also important to keep in mind that actual (not seasonally adjusted) year-over-year comparisons are going to be amplified by the fact that July 2009 was an ALL TIME RECORD month.  The numbers from July 2010 can’t help but pale in comparison to what we saw a year ago.
• The good news is that new listings have been on a decline since they peaked in April.  This decline will help maintain the balance between supply and demand in the marketplace and temper home price volatility. 
• Activity may remain at lower levels for some time but with the factors responsible for recent volatility now largely in the rear view mirror we do expect a more stable market to emerge, characterised by a flattening out of prices and demand coming back into line with economic fundamentals.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Happy Canada Day!

     It's been a helluva couple of weeks here in Toronto.  An earthquake, the G20 summit, a devastating World Cup loss for fans in Corso Italia and Little Italy.  It's safe to say I'm not the only one looking forward to taking it easy for a few days.  What better way to get started than with a little Stompin' Tom Connors?  Happy Birthday Canada!  Enjoy the long weekend!

The Benefits Of Signing A Buyer Representation Agreement

     The Toronto Real Estate Board recently posted the above video on their YouTube channel.  While it does a good job of pointing out some of the reasons why one should sign a Buyer Representation Agreement, I thought I could expand on this a bit further.

For starters, here’s a list of some of the key benefits of signing a B.R.A. (this list and more info can be found on TREB’s website dedicated specifically to the B.R.A., www.brafirst.ca):

• Reassurance of the duties the brokerage owes to the buyer.
• Included in those duties is full disclosure of all property information known to the  brokerage about a particular property
• These duties help to ensure that you receive expert, professional advice from your REALTOR
• A listing on the Buyer Registry Service, so selling REALTORS can find you easily because your home “must-haves” can be registered
• Peace of mind that your best interests will be protected
• Diligent and attentive service

What is a Buyer Representation Agreement?

Essentially, the B.R.A. is a contract between a real estate brokerage and a buyer.  The brokerage promises to provide a set of services and owes the buyer a number of fiduciary duties (accountability, confidentiality, full disclosure, etc.).  In return, the buyer agrees to work exclusively with the brokerage in their search for a home.

Among other things, the B.R.A. also specifies the geographical boundaries of the home search, the type of property being searched for (e.g.  “single-family residence”), and the commission that the brokerage shall receive (which is most often paid by the listing brokerage or the seller).

If I sign a Buyer Representation Agreement do I have to purchase a home?

It’s important to note that, while a B.R.A. is an exclusive contract, there is nothing in the agreement that says you must buy anything.  I’ve had buyer clients change their plans, mid-contract, and decide that it’s just not the right time for them to purchase a home.  No problem.

When should the Buyer Representation Agreement be signed?

Realtors are required to have a B.R.A. signed prior to their buyer clients signing an offer-to-purchase a property.  Generally, it's best to have the B.R.A. signed and dealt with as early as possible so that everyone involved is fully aware of the all aspects of the buyer-agent relationship. 

While there are some realtors out there who won’t even step foot into a property with a buyer client until they’ve signed a B.R.A., I personally like to go out once or twice with them before we make that commitment.  It’s a two-way street and not only does a buyer have to be comfortable moving forward with me as their realtor, I need to be comfortable with taking them on as a client. 

If you've got any questions about the B.R.A. or would like a more detailed explanation of its contents, feel free to give me a shout.

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

After Attending Doors Open Toronto 2010, I'm Hooked!

     I have to confess, this was actually the first year that I participated in Doors Open Toronto.  I’d planned on doing so in years past, but for whatever reason it just didn’t happen.  This year however, I held firm to my resolution and I have to say, I’m much better for it!

As a realtor I spend quite a bit of time driving around the city, passing by many of Toronto’s landmark buildings without ever stepping foot inside them.  So for me, Doors Open Toronto 2010 was an opportunity to slow down and really absorb some of the architectural beauty and historical significance of my surroundings.

Part of the attraction of an event like this is the relatively short period of time for which it exists (until its return next year, anyway). There`s something powerful about the fact that for only a few precious hours we’re granted access to spaces that are otherwise off limits to the general public. 

I was made even more aware of this on my elevator ride up to the 17th floor of the Canada Life Building.  The operator informed us that, "You're very privileged to be going up to the Tower Room.  Even the regular staff in the building don`t have access to this space other than during Doors Open Toronto."

The excitement was palpable outside as well.  I was actually sidetracked from my planned route because I just couldn`t pass up the enthusiastic recommendations of a few fellow participants.  "You have to see Osgoode Hall - the Library is beautiful!"  "The King Eddy tour is not to be missed!"

Needless to say, my original intention of sticking primarily to some of the taller buildings in the downtown core (inspired by a recent trip to Manhattan) was changed to include a more well-rounded assortment of structures. 

All in all, the weekend was a success for me.  I finally got around to doing something that I've wanted to for awhile.  And my relationship with the city was expanded and deepened.  After I finish writing this post I plan on going over the buildings I missed this weekend, adding them, in anticipation, to next year`s list.

What about you? 

Did you attend Doors Open Toronto 2010? 

Any highlights?

What's The Smallest Space You Could Live In?

      A few weeks ago I came across the above YouTube video of architect Gary Chang's incredible Hong Kong apartment.  Since then I've seen a few newspaper articles focusing on exceptionally small living spaces here in Toronto.  There were two in Saturday's Toronto Star alone (which you can read here and here).  All this talk of tiny homes has me asking the question, "What's the smallest space you could live in?"  500 square feet?  How about 400 square feet?  Could you live in 300 square foot apartment?  (Yes, they do make condos that small).

The smallest home I've sold was a 400 sq ft bachelor condo in the Pantages building on Victoria Street.  The buyer of this property put location at the top of her list.  Size was secondary.  As with any purchase, budget dictated the size of unit we could find within the specific location.  A bachelor unit was her only option.  Fast forward a few years - she's still there, she's happy with the space, and she has no plans of moving anytime soon. 

I'm no stranger to small spaces myself.  One of the first places my wife and I had together was a 400 sq ft bachelor apartment in the Annex.  We lived there for about a year, rearranging the layout 3 times until we found the perfect configuration to maximize the space.  With two people in such tight quarters we had to find the most economical placement and use of our furniture.  We'd try to multi-purpose anything we could ("This guitar amp could double as an end table..."). 

Could we live in such a small space now?  No.  But we did, happily, for almost a year.  And the clients that I've helped purchase smaller condos are very happy with their spaces.  The reality is, in a city like Toronto there will always be a market for small properties. 

There will always be renters who are looking to purchase their first home and the fact that these smaller properties exist allow them to do so.  There will always be someone looking to expand their real estate portfolio and a 400 sq ft condo offers them the opportunity to purchase their first investment property.

Of course, there will also always be those who balk at living in such small spaces.  They need to remember though, that in a city like Toronto real estate values are not the same as those in Windsor or London or Guelph...  Not everyone can afford an 1500 sq ft house here.  Without these smaller spaces a number of buyers simply wouldn't have an option. 

Just be happy that you're not in Vancouver where rental units as small as 270 sq ft are soon to hit the market.  Although I'm sure it's only a matter of time...

If you’re thinking of making a move and would like to know how I can help, feel free to contact me for more info.

Great Deals For A Great Cause

     There are a number of reasons that I'm proud to have Royal LePage as my brokerage.  Sitting near the top of this list is the fact that I get to contribute to and be a part of the Royal LePage Shelter Foundation.  It has the distinction of being Canada’s largest public foundation dedicated exclusively to funding women’s shelters and violence prevention and education programs. 

On Saturday, May 15th, Royal LePage offices all over the country will be participating in the foundation's 2nd annual National Garage Sale for Shelter, with 100% of the proceeds going to help women and children living with abuse.  My office, located at 905 King Street West (at Strachan Ave) will be joining in.  The hours are from 8:00am - 2:00pm and we'll be serving coffee, breakfast sandwiches, and cupcakes, as well as live music and raffles. 

Right now we're looking for donated items for the garage sale.  If you've got anything that you're happy to part with for a good cause, give me a shout and we'll schedule a time to swing by and pick it up.

Acceptable items for donation are as follows:

• Furniture in good condition
• Books
• CD's & DVD's
• Small appliances & electronics
• Toys with all parts
• Jewelry
• Kitchen ware
• Decorative accessories like candleholders, art prints, etc
• Sporting goods
• Tools

To learn more about the Royal LePage Shelter Foundation, check out their website here and their Facebook Page here.

Looking forward to a great turnout on the 15th and a successful garage sale!