Open houses resume, but the home-buying pastime has drastically changed - CP24 Toronto's Breaking News | Canada News Media
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Open houses resume, but the home-buying pastime has drastically changed – CP24 Toronto's Breaking News

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Anita Balakrishnan, The Canadian Press


Published Sunday, July 19, 2020 3:22PM EDT

TORONTO – Leave the doors open and all the lights on. That’s one of the many new guidelines for people opening their homes – perhaps for the first time in months – so real estate agents can host open houses.

Some provinces are now allowing open houses, with new rules in place, after regulators clamped down on showings amid the COVID-19 outbreak.

The Real Estate Board of Greater Vancouver said earlier this month that open houses will resume, with warnings to potential house hunters. Visitors to open houses there can expect to see signs displaying health precautions, use hand-washing stations and sign a visitor log for contact tracing.

Ontario’s Stage 3 reopening plan, which hit much of the province on Friday, also includes open houses under its new gathering limits of 50 people, or 30 per cent capacity, with physical distancing enforced.

Regina-based real estate agent Tim Otitoju says minimizing the need to touch doors and light switches is one of several ways the open house process has changed.

At showings, he is the one to open any front door – with gloves, sanitized hands and a mask – and he limits the number of people in the home at one time.

Before entering, potential home buyers and sellers answer questionnaires and sign waivers about any symptoms or exposure to COVID-19. Sellers who agree to the open house must sanitize the home.

The situation is all the trickier when landlords look to show properties occupied by tenants.

The Real Estate Council of Ontario has been discouraging unnecessary in-person private showings as well as open houses. But RECO doesn’t have the power to require agents to get a tenant’s consent.

“The imbalance of power that exists between landlord and tenant means renters are not always in a position to speak up and they should not be made to feel unsafe in their home,” said Mazdak Gharibnavaz, in a statement from the Vancouver Tenants Union, opposing the return of open houses.

While open houses are once again an option in many areas, that doesn’t mean every seller is on board, says Otitoju. Many still prefer to stick with virtual showings, and Otitoju himself opts for Zoom instead of in-person meetings for reviewing offers.

“I’ve got little shoe covers in the back of my care. My realtor tools have certainly changed,” says Otitoju, an agent with Platinum Realty Specialists.

“I’m finding that this is working. Now, a lot of people coming out to open houses are in the market to buy that type of house. The time to go around to open houses as a hobby – it’s not the time to do that right now. Buyers know that. Sellers know that. Realtors know that.”

It’s all part of the changing sales process in real estate.

It might seem obvious that for a purchase as big as a house, no one wants to buy a sight unseen. But Anthony Hitt says even buyers of expensive properties are seeing the upsides of virtual tools that were popularized during the pandemic.

A tour where a seller or agent carries a camera around the house, for example, can allow buyers to look closely at finishes, views through windows and inside cabinets, says Hitt, president and CEO of Engel & Volkers Americas.

For sellers, it reassures them that those who end up at in-person showings are interested in buying, he says.

Cameron McNeill, who does marketing of pre-build properties in the Vancouver area with MLA Canada, says that although showrooms have been open for a month, people continue to do more research online before coming to in-person appointments.

McNeill predicts that shopping for homes will become more like car shopping, where much of the research and emotional buying journey is done before hitting the lot.

“The most valuable thing you have is your time,” says Hitt, saying that online tours cut down on travelling.

“I don’t think we are going to eliminate open houses. We may see less of them and they may come at a different time in the process . . . . I don’t think a lot of consumers, even with masks and all the precautions , are ready to run out and be in a crowded property.”

It used to be common to share a meal with a client, but that’s not on Otitoju’s mind these days, he says.

“I don’t remember the last time I shook someone’s hand,” Otitoju says. “It’s not the only way to build relationships. You build relationships with your actions, and people see that.”

This report by The Canadian Press was first published July 17, 2020.

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Mortgage rule changes will help spark demand, but supply is ‘core’ issue: economist

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TORONTO – One expert predicts Ottawa‘s changes to mortgage rules will help spur demand among potential homebuyers but says policies aimed at driving new supply are needed to address the “core issues” facing the market.

The federal government’s changes, set to come into force mid-December, include a higher price cap for insured mortgages to allow more people to qualify for a mortgage with less than a 20 per cent down payment.

The government will also expand its 30-year mortgage amortization to include first-time homebuyers buying any type of home, as well as anybody buying a newly built home.

CIBC Capital Markets deputy chief economist Benjamin Tal calls it a “significant” move likely to accelerate the recovery of the housing market, a process already underway as interest rates have begun to fall.

However, he says in a note that policymakers should aim to “prevent that from becoming too much of a good thing” through policies geared toward the supply side.

Tal says the main issue is the lack of supply available to respond to Canada’s rapidly increasing population, particularly in major cities.

This report by The Canadian Press was first published Sept. 17,2024.

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National housing market in ‘holding pattern’ as buyers patient for lower rates: CREA

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OTTAWA – The Canadian Real Estate Association says the number of homes sold in August fell compared with a year ago as the market remained largely stuck in a holding pattern despite borrowing costs beginning to come down.

The association says the number of homes sold in August fell 2.1 per cent compared with the same month last year.

On a seasonally adjusted month-over-month basis, national home sales edged up 1.3 per cent from July.

CREA senior economist Shaun Cathcart says that with forecasts of lower interest rates throughout the rest of this year and into 2025, “it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well behaved in most of the country.”

The national average sale price for August amounted to $649,100, a 0.1 per cent increase compared with a year earlier.

The number of newly listed properties was up 1.1 per cent month-over-month.

This report by The Canadian Press was first published Sept. 16, 2024.

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Two Quebec real estate brokers suspended for using fake bids to drive up prices

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MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.

Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.

Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.

She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.

The two brokers were suspended in May 2023 after La Presse published an article about their practices.

One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.

This report by The Canadian Press was first published Sept. 11, 2024.

The Canadian Press. All rights reserved.

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