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Are There More Financial Pockets to the Real Estate Industry? Save Max Analysis on Real Estate Trends for 2021 – Financial Post

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Current MLS stats indicate an average house in GTA hit a new record in 2020 & priced of almost
$930,000 | 4,000 new listings in GTA as of a current trend

TORONTO, Feb. 11, 2021 (GLOBE NEWSWIRE) — The Canadian real estate market prices aren’t just fast growing by local standards. They’re growing fast by any given standard determined by any other country. This is mostly because of the influx of immigrants and the saturation of the big cities. Home sales recorded over Canadian MLS Systems did scale up by 12.6% with a total number reaching to 500,000 for year 2020, a new annual record. This has been the new world record set in amidst the pandemic.

The actual (not seasonally adjusted) national average home price was a record $607,280 in December 2020 and was up 17.1% from the same month last year. The new year brought us fewer than $100,000 residential listings on all Canadian MLS Systems, the lowest ever based on records going back three decades. This compared that to five years ago when there were a quarter of a million listings available for sale. Most definitely there is a high demand and low supply to the start of the year. This will only play out when we know the sales and price data as they populate this quarter of how many homes are available to buy in the months ahead. There was only 2.1 months of inventory on a national basis at the end of December 2020 – the lowest reading on record for this measure. At the local market level, 29 markets in Ontario were under one month of inventory at the end of December.

Interesting highlights from 2020 real estate industry include:

  • 95,000+ sales were reported through TREB’s MLS® System – up by 8.4 per cent compared to 2019. This included the month of December, with 7,180 sales – a year-over-year increase of 64.5 per cent.
  • Year-over-year sales growth was strongest in the GTA regions surrounding Toronto, particularly for single-family home types.
  • The average selling price reached a new record of $929,699 – up by 13.5 per cent compared to 2019. This included an average price of $900,000 in December – a year-over-year increase of 11.2 per cent. The strongest average price growth was experienced for single-family home types in the suburban regions of the GTA.
  • After a pronounced dip in market activity between mid-March and the end of May, market conditions improved dramatically in the second half of the year, with multiple consecutive months of record sales and average selling prices.

Save Max has predicted, the gap between the supply and demand fuelled with record low interest rates in the Toronto Market would lead to a strong price growth and sales in the year 2021. Prices are projected to increase another 10% by August of this year.  This is all based on current demand and the spring economic recovery.  Canada’s third quarter GDP growth was 40%. Since there are promises made by the US to renew free trade which should are considered to be positive for Canada and Ontario/GTA exports. This in-turn will benefit businesses and create opportunities for which real estate is essential. The lack of supply of homes is making it difficult to find a home in GTA. At the moment, people are moving to cities such as Vaughan, Bradford, Newmarket, Aurora, Milton, Stouffville, Pickering and Whitby to gain affordable and profitable properties for the long run. In the long run, there may be a drop in prices by an average of 20% basis the market style, the industry is currently portraying. Fundamentals of housing cannot really make a concrete evaluation as the human market demand is an emotional call.

As far as Peel region is concerned, the average detached house price rose 42% in the 416 districts to an astonishing media of $1,475,758. Houses rose 58.5% in the 905-area code to a high of $1,175,753. This trend is expected to continue and in peel region where in shortage of supply combined with historically low interest rates will push the cash rich buyer to look for bigger properties. The resumption of the immigration will increase the ever-growing demand for the house. Brampton & Mississauga market will have prices that are expected to grow in double digit and demand is going to be more than the supply.

Factors that will influence 2021’s real estate market:

  • More demand than the in-stocked inventory of Houses especially in GTA
  • Changing demand for commercial spaces because companies are implementing Work From Home practices.
  • Investment and development strategies in real estate are now emerging as key investment strategies more so right now
  • Sparing home spaces now to gain in extra inflow of income has also become a huge aspect of housing and real estate as there is going to be an influx of immigrants into the country very soon.

To learn more about Save Max or the upcoming real estate trends, visit www.savemax.ca or email info@savemax.ca

About Save Max Group of Companies:
Save Max Real Estate is one of the fastest growing brokerages and opened its first real estate office in Brampton in 2010. From making history in the field of real estate by achieving $100 million sales volume within 16 months of inception to achieving $4.8 billion sales volume and 9000 transactions until today, Save Max has always strived to stay true to its beliefs to deliver an exceptional real estate experience to all its valued clients.

The City of Brampton is home to Save Max and the company has had the opportunity to serve the residents and provide incomparable real estate services for past years and will keep doing the same in the future. Save Max is expanding and operating with 36 Franchisees all across Canada today.

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BCREA: BC Government Proposes Changes to Real Estate Services Act Paving Path for Single Regulator – Business Examiner

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BRTISH COLUMBIA – On March 2, Bill 8: Finance Statutes Amendment Act, 2021 was introduced in the BC Legislature. With its introduction, the BC Government’s intention to create a single financial services regulator, including real estate, announced in September 2019, was finally made clear.

The bill creates the path for the Office of the Superintendent of Real Estate (OSRE) and the Real Estate Council of British Columbia (RECBC) to become part of the BC Financial Services Authority (BCFSA). According to the government’s news release, this is expected to happen “later in 2021.”

BCREA reaction:

We welcome a more cohesive regulatory structure, which is something we asked for early in 2019. Unfortunately, the legislative changes introduced yesterday don’t include the creation of the Professional Standing Committee BCREA proposed more than a year ago.

When the BCFSA becomes the real estate regulator, administration of the Real Estate Services Act (RESA), Real Estate Development Marketing Act and parts of the Strata Property Act will be added to the BCFSA’s current regulatory responsibilities, which include credit unions, mortgage brokers and insurance. BCFSA’s Chief Executive Officer will become the new Superintendent of Real Estate.

As a result of the omission of the Professional Standing Committee, BCREA is concerned that real estate licensees will have fewer opportunities to provide input into rules and policies that impact the practice of real estate. Although the Professional Standing Committee isn’t included in the proposed amendments to RESA, we hope it will be implemented in the practical application of the new regulatory structure. We will continue to work with the BCFSA, OSRE and RECBC to this end. Our goal is to ensure a consistent, meaningful process for practitioner input.

Other Changes:

At a high level, the government also proposes the following changes, among others:

  • expanding the administrative penalty system, including the option of requiring further education and doubling the maximum penalty (currently $50,000),
  • eliminating discipline committees, and
  • strengthening the new superintendent’s options for handling urgent circumstances.

Next steps

BCREA is carefully reviewing the proposed changes to RESA, including seeking legal analysis and meeting with government staff.

This bill – like all bills – will be debated in the legislature and subject to further changes as part of that process. Once it’s passed, it won’t take effect right away. Instead, the government will implement it at a later date by regulation.

As BCREA learns more about the proposed changes to RESA, we’ll provide updates in future blog posts. If you have any concerns, please contact Senior Policy Analyst Norma Miller.

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Manhattan's Real Estate Agents Take Up TikTok to Find Renters – BNN

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(Bloomberg) — TikTok isn’t just a platform for dance videos and investment advice. It’s also a place to hawk Manhattan apartments.

New York real estate professionals are turning to the booming social media app to find tenants in a market where units are piling up amid near-record vacancies. For some, the 60-second videos have changed their jobs completely.

Madison Sutton, an agent at Highline Residential, had just 5,000 TikTok followers in October, when she decided to start taking the app more seriously. Today, she’s up to more than 90,000, and deals sourced from TikTok account for her entire business.

“It was just an immediate reaction,” Sutton said. “TikTok could give an accurate portrayal of the unit while keeping in mind overall convenience.”

Filling Manhattan apartments is especially tough these days, even as rents slide and landlords offer the biggest move-in incentives on record. The pandemic sent many city-dwellers fleeing for the suburbs, and newcomers are finding few reasons to settle down in New York’s costliest borough while nightlife venues are still dark and office towers remain mostly empty.

That’s made alternative marketing strategies like TikTok, which enable agents to connect with renters on their mobile phones, ever more essential.

Sutton said she fields about 45 calls a week from apartment-hunters who found her on TikTok, and she’s grown accustomed to conducting online tours for clients who might have come in person prior to the pandemic. She recently helped two roommates from Austin, Texas, find an apartment at Hudson Yards. They signed the lease without ever stepping foot inside the unit.

“They saw one of my TikToks of the unit, absolutely loved it,” said Sutton, who then gave them a full virtual tour.

Reaching Clients

TikTok uses an algorithm to tailor a user’s “For You” page to their interests — apartments with exposed brick and no brokers’ fees, for instance. A person who has stopped scrolling to watch a video about something related to New York real estate in the past might be shown one of Sutton’s the next time.

That allows agents to reach an audience of potential clients who probably wouldn’t have seen their listings otherwise.

Alexander Zakharin, managing director at GZB Realty, has close to 80,000 TikTok followers, ranging from 18-year-olds “not legal to drink but legal to rent,” to parents whose kids point them in his direction. Contacts through TikTok now make up 75% of his business.

“If you do it right, the algorithm allows you to explode,” said Zakharin, who joined the platform roughly a year ago.

In February, he closed a deal on a $11,000-a-month, two-bedroom apartment in Lincoln Square for a Russian influencer who found him on TikTok.

“There’s no doubt it has a benefit to the marketing process,” said Gary Malin, chief operating officer at brokerage Corcoran Group. “Anything that’s being consumed as much as TikTok is being consumed certainly helps expose property.”

But while TikTok can help show off apartments, leasing decisions for most people will come down to money, he said.

“Ultimately, what I think drives deals are the incentives and pricing that are being offered,” Malin said.

With people stuck at home spending more time on social media, the intimate and unvarnished videos on TikTok may draw an audience that hadn’t considered living in Manhattan before.

Sutton, who calls herself a “real estate influencer” on LinkedIn, recently helped a young professional find a place in Murray Hill. The client’s company had given her the option to relocate from Virginia, and she decided she wanted the New York experience — that “electric sense in the air that you can’t find anywhere else,” Sutton said.

“There’s a misconception that people aren’t coming back,” she said. “It’s the opposite.”

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Manhattan's Real Estate Agents Take Up TikTok to Find Renters – BNN

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 on


(Bloomberg) — TikTok isn’t just a platform for dance videos and investment advice. It’s also a place to hawk Manhattan apartments.

New York real estate professionals are turning to the booming social media app to find tenants in a market where units are piling up amid near-record vacancies. For some, the 60-second videos have changed their jobs completely.

Madison Sutton, an agent at Highline Residential, had just 5,000 TikTok followers in October, when she decided to start taking the app more seriously. Today, she’s up to more than 90,000, and deals sourced from TikTok account for her entire business.

“It was just an immediate reaction,” Sutton said. “TikTok could give an accurate portrayal of the unit while keeping in mind overall convenience.”

Filling Manhattan apartments is especially tough these days, even as rents slide and landlords offer the biggest move-in incentives on record. The pandemic sent many city-dwellers fleeing for the suburbs, and newcomers are finding few reasons to settle down in New York’s costliest borough while nightlife venues are still dark and office towers remain mostly empty.

That’s made alternative marketing strategies like TikTok, which enable agents to connect with renters on their mobile phones, ever more essential.

Sutton said she fields about 45 calls a week from apartment-hunters who found her on TikTok, and she’s grown accustomed to conducting online tours for clients who might have come in person prior to the pandemic. She recently helped two roommates from Austin, Texas, find an apartment at Hudson Yards. They signed the lease without ever stepping foot inside the unit.

“They saw one of my TikToks of the unit, absolutely loved it,” said Sutton, who then gave them a full virtual tour.

Reaching Clients

TikTok uses an algorithm to tailor a user’s “For You” page to their interests — apartments with exposed brick and no brokers’ fees, for instance. A person who has stopped scrolling to watch a video about something related to New York real estate in the past might be shown one of Sutton’s the next time.

That allows agents to reach an audience of potential clients who probably wouldn’t have seen their listings otherwise.

Alexander Zakharin, managing director at GZB Realty, has close to 80,000 TikTok followers, ranging from 18-year-olds “not legal to drink but legal to rent,” to parents whose kids point them in his direction. Contacts through TikTok now make up 75% of his business.

“If you do it right, the algorithm allows you to explode,” said Zakharin, who joined the platform roughly a year ago.

In February, he closed a deal on a $11,000-a-month, two-bedroom apartment in Lincoln Square for a Russian influencer who found him on TikTok.

“There’s no doubt it has a benefit to the marketing process,” said Gary Malin, chief operating officer at brokerage Corcoran Group. “Anything that’s being consumed as much as TikTok is being consumed certainly helps expose property.”

But while TikTok can help show off apartments, leasing decisions for most people will come down to money, he said.

“Ultimately, what I think drives deals are the incentives and pricing that are being offered,” Malin said.

With people stuck at home spending more time on social media, the intimate and unvarnished videos on TikTok may draw an audience that hadn’t considered living in Manhattan before.

Sutton, who calls herself a “real estate influencer” on LinkedIn, recently helped a young professional find a place in Murray Hill. The client’s company had given her the option to relocate from Virginia, and she decided she wanted the New York experience — that “electric sense in the air that you can’t find anywhere else,” Sutton said.

“There’s a misconception that people aren’t coming back,” she said. “It’s the opposite.”

©2021 Bloomberg L.P.

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