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Toronto's real estate decline is still to come: CMHC – NOW Magazine

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The Canada Mortgage and Housing Corporation (CMHC) expects declines in major real estate markets will happen later in the year, and the average house prices in Toronto, Montreal and Ottawa to recover sooner than in Vancouver, Edmonton and Calgary.

In a special edition Housing Market Outlook published June 23 following a spring 2020 report, the CMHC predicted the Canadian real estate market wouldn’t fully recover from the coronavirus pandemic until 2022, indicating that while activity, demand and prices will fall in major Canadian cities, the rate and magnitude of the declines and the subsequent recovery will vary depending on the city.

As of now, Toronto-area realtors Odeen Eccleston and Meray Mansour say business is good.

“I find that the market is hot,” says Eccleston, a broker with WE Realty, who says the lull caused by COVID-19 was shorter than expected and she’s now just as busy as she has been in previous summers. Just two days ago, Eccleston listed a fixer-upper bungaloft in Pickering that she priced high. She is speaking to me on a Saturday morning while preparing to firm up that property’s purchase. “People are out there in droves looking for houses.”

“It’s still very much a sellers market in Toronto, Ajax and Pickering,” says Mansour, a realtor with Re/Max Hallmark Realty. She adds that low interest rates and inventory is keeping demand in Toronto high, with the average home price rising above 2019 levels to $863,599 in May.

But these figures are lower than what was expected for Toronto in 2020, pre-pandemic, and Mansour is warning customers that COVID-19’s affect on the real estate market may have yet to kick in.

“Look out for September and October, when mortgage deferrals come due,” says Mansour, wary that homeowners who have lost employment and can no longer put off mortgage payments may end up listing, bringing up supply and dragging prices down.

Mansour’s forecast is in line with what the CMHC is predicting, with the average home price in Toronto potentially declining as low as $825,000 in the fall before dipping somewhere between $739,000 and $840,000 in fall 2021, and potentially recovering up to $880,000 in Fall 2022.

Currently, both realtors are seeing multiple offers and higher than expected sale prices. They say there’s a preference for renovated properties where buyers don’t have to spend any additional money on the home and that the real estate with the most optimal presentation and pricing goes faster.

Eccleston also reports that some realtors are using COVID-19 like a buzzword to drive purchase prices down. On the same morning we spoke, a realtor presented Eccleston with a lowball offer on a listing, coupled with a warning that higher offers could fall apart come closing due to COVID-19-related pressures. When Eccleston grilled further, the realtor admitted having never experienced that herself.

Both Eccleston and Mansour also report an abundance of caution among buyers. According to Eccleston, buyers aren’t as eagerly diving into bidding wars just to get in on the real estate market as they did 2017.

“They’re really cognizant about overpaying,” she says.

Mansour adds that there are more offers coming in with conditions.

“Usually if you’re competing with four or five or more offers, you would never think to come to the table with conditions,” says Mansour. But she’s been noticing that since banks have made getting pre-approved mortgages more difficult, buyers have been left feeling less secured.

“I’m seeing two or three out of five offers with conditions. That’s different. People are a little more cautious.”

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Real estate sales and sales volume are up in Estevan; time spent on market is down – Estevan Mercury

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The Saskatchewan Realtors Association says the province’s real estate market is showing strong signs of recovery.

Data released last week shows sales from across the province were up close to 50 per cent from June of last year, and down only .3 per cent for the first six months of the year.

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Sales in southeast Saskatchewan were up 35.1 per cent, going from 37 in June 2019 to 50 in June 2020. It’s also up 20.2 per cent from the five-year average (and 8.3 per cent below the 10-year average).

The total number of sales in Estevan rose 57 per cent, going from seven to 11, and 14.3 per cent in Weyburn, from 14 to 16. Sales in Estevan were 17.0 per cent above the five-year average, but 35.7 per cent below the 10-year average

So far this year, sales in Estevan have grown from 40 to 51.

Sales volume in Estevan rose 13.9 per cent from $9.2 million to $10.5 million in 2020.

The number of new listings in Estevan was down from 44 last year to 35 this year, which is a 20.5 per cent decrease. Active listings are down 35 per cent in Estevan, from 226 to 147.

The sales to listing ratio was 31.4 per cent, suggesting to the Realtors association that market conditions favour buyers.

Homes in Estevan stayed on the market 105 days on average in 2020, down from an average of 140 days last year

Median home prices in Estevan went from $247,000 in 2019 to $290,000 (an increase of 17.4 per cent) and were approximately two per cent above the five-year average. 

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10 Real Estate Tools Entrepreneurs Should Be Familiar With – Forbes

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The real estate market is a great place for entrepreneurs looking to be their own boss or counter the risks they take with their new businesses. I got involved in real estate at a very young age, and that experience taught me a lot about business and was the driving force in my ability to start my own successful company.

 Whether you’re looking to fully commit to the real estate industry or are an entrepreneur in another field looking to diversify, you should be aware of these 10 tools and what they can do for you:

Keeping in touch with potential clients helps them along the sales journey, which is important for every industry. Happy Grasshopper specializes in automated messaging in the real estate world, from emails and text messages to handwritten cards.

 The best thing about Happy Grasshopper is the professional writers hired to create content that you can use in your communications. As an entrepreneur looking to invest on the side, having this help can be a game changer.

When you’re looking to make an investment, you could end up in a bidding war with others, driving up the price and costing you the property. You can’t always avoid it, but DealMachine steps in to help you locate potential investment properties that no one else knows about.

 It accomplishes this by helping you drive leads off market. Not every property is listed for sale, but contacting owners and making offers could lead to great deals for both sides. DealMachine will help you receive informed prospects and convert them to investments.

As the real estate realm continues to evolve, so does consumer behavior. Knowing the best way to communicate with potential buyers and sellers is critical to your success. That’s why Lead Sherpa designed a text messaging platform specifically geared toward the real estate industry.

 Text messaging gets higher response rates than cold calls and direct mail and is a faster way to communicate. Hardly anyone will leave a text without reading it, so you’ll be comfortable knowing that almost everyone gets the messages you send.

InvestorPO forms a part of RealEstateInvestor.com, serving as one of its primary tools for helping investors with real estate. It offers a cloud-based customer relationship management solution; as an entrepreneur, you know just how important customer relationships are.

 Investors tend to have other things on their plate. Using software like this, they can effectively manage and guide leads, even when their attention is elsewhere.

A vital part of successful business in 2020 is a well-designed and functional website. A good website attracts interest, generates leads, and helps your business succeed, even outside of a brick-and-mortar establishment.

 Hoozip provides website design specifically for generating and converting leads on real estate properties. It helps investors with both buying and selling, making it faster and easier to find what you need. Keep track of your website’s data analytics, and you’ll be able to visualize the impact Hoozip has on your success.

Another easy place for generating leads is through Facebook. It’s one of the world’s largest social media sites for a reason. With people glued to their news feeds now more than ever, smart targeting can lead you to hopeful buyers and sellers with perfectly placed ads. This is where StreetText comes in.

 Social media allows you to expand your reach, which is helpful for those in the real estate industry looking for new clients. There’s little you can do, after all, without a client base. StreetText uses AI to target the right people with your ads so you can establish relationships and strike deals.

Maybe* expands your social media reach among real estate entrepreneurs by taking your social media accounts and consolidating them in one control board. This will generate reports and statistics about your social media efforts to help you plan campaigns and reel in deals.

 With detailed analytics, you can see when and what terms are trending in order to push content that gets high levels of engagement. Keeping up with real estate trends allows you to capitalize on opportunities.

When dealing with real estate, it’s important to effectively manage capital reserves. To beat the curve in this industry, SmartProperty developed a cloud-based service to help you track and manage your capital revenue expenditures for effective budgeting and forecasting.

 Staying on top of all this can be a handful, especially if you’re an entrepreneur looking to do real estate on the side. SmartProperty will help you save time and money and avoid surprises that can leave you flat on your back.

Take the future into your hands with Hauzd. It provides interactive 3D images of real estate properties for an in-depth look, no matter where you are. This unique approach at real estate marketing captures attention and leads to increased engagement and progression with clients.

 This is particularly valuable, given the hesitancy people may have due to the coronavirus. In-person showings and meetings are on the decline due to health and safety measures. Learning to navigate this difficult time while closing deals is essential to keeping the economy, and your personal finances, afloat.

Meet RAP Success Systems’ AI bot, REN. This wonderful piece of software works around the clock to make your real estate ventures succeed. It’ll track and score leads, letting you know which ones are ready to be taken on.

 Artificial intelligence is heading the charge of innovative industries. It works hard without needing a break, allowing you to get needed rest while continuing to manage your business. RAP Success Systems harnesses the power of artificial intelligence to make managing the real estate industry a breeze.

Real estate is a fickle beast, even in the most lucrative of times. During a global pandemic, it pays to have as many efficient tools at your disposal as possible. Not only will they make your real estate ventures a success, but they’ll also make your work manageable — something every entrepreneur can appreciate.

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RECA Changes Announced – Real Estate and Construction – Canada – Mondaq News Alerts

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To print this article, all you need is to be registered or login on Mondaq.com.

On June 3, 2020, major changes were announced to theReal
Estate Act
, the legislation that governs realtors, mortgage
brokers, appraisers, and property managers in Alberta. The changes
stem from a 2019 KMPG review which criticized RECA’s former
counsel, following which the council was dismissed and an
administrator was appointed.

While most of changes relate to governance and oversight of
RECA, of particular note to condominium managers is that they will
officially be managed under RECA. The timeline to complete that
process remains unclear as as it depends on how quickly RECA
develops manager licensing requirements.

Another major change for realtors, brokers and managers is that
RECA will not longer be offering educational requirements.
Education will be provided through qualified third parties.

Further changes are summarized below.

Industries Regulated by RECA

  • Condominium managers will be
    regulated by RECA (once the licensing process is developed)
  • Appraisers will no longer be
    regulated by RECA but still must belong to one of three other
    appraisal industry associations
  • All property management, including
    condominium management will be considered a separate activity (not
    as a “trade in real estate”)

Mandate and Education

Ove the next two years, RECA will transition out of providing
licensing education.RECA will now focus onlicensing and
regulation.
Industry Councils will set out education
requirements and third party providers will provide education.

Governance

RECA’s governance will now be split into:

  1. a)a Board of Directors responsible
    for running RECA composed of one member appointed from each
    Industry Council (below), three public members appointed by the
    Minister and a Chair, to be one of thepublicmembers;
  2. b)four separate Industry Councils,
    being
  1. Residential Real Estate
  2. Commercial Real Estate and Commercial
    Property Management
  3. Residential and Condominium Property
    Management; and
  4. Mortgage Brokers

Industry Councils will be made up three elected industry
members, two public Members appointed by the Minster, and a chair
to be elected within each Industry Council.

Bylaws and Rules

RECA bylaws will be passed by the Board of Directors. Industry
Councils will then set rules to establish industry standards
including education and licencing requirements for their
industry.

Roles and Responsibilities

The Executive Director will be responsible for the
administration of RECA, including hiring of a Registrar who will be
responsible for investigations and enforcement. Annual performance
reviews will be conducted for both the Registrar and the Executive
Director. The RECA bylaws will separate roles of the Board, the
Industry Councils, the ED and the Registrar.

Dispute Resolution

To reduce internal conflicts and limit legal expenses, a dispute
resolution will be put in place for the Board and Industry Council
members by the Board that will be used if:

  • a Board Member or Industry Council
    Member has allegedly engaged in a prohibited act under the Real
    Estate Act or
  • if there are conflicts within
    Industry Council, within the Board or between a Board and an
    Industry Council

Prohibited actions include using confidential information for
personal gain, impeding the purposes of the Board or Industry
Council, breaking rules for their industry in the course of
business. Members may be suspended during the dispute resolution
process or removed is it is determined they violated the Act.

Lifetime Withdrawals

Industry Council will not be allowed to accept a withdrawal if
allegations of fraud or criminal activity have been made that
warrant an investigation. This is to ensure these allegations are
fully investigated and referred to the appropriate authorities.

Government Intervention/Oversight

After a review, the Minister will have the power to dismiss
Board members, Industry Council members, or employees if the review
support this action, without further Order. The Minister will be
able to issue orders for RECA to take specific action without doing
a review first.

New Transparency Requirementsfor minutes,
agendas, salaries/honoraria and disclosure of annual business plan
and financial plan

Separation– Board/Industry council
members will not be on hearing and appeal panels. Hearing and
appeal panels will be made up of licensees and members of the
public.

Originally published 09 July, 2020

About
Mackrell International – Canada
– Scott Venturo LLP is
a full service business law firm in Calgary, AB and a member of
Mackrell International. Mackrell International – Canada is
comprised of four independent law firms in Alberta, British
Columbia, Ontario and Quebec. Each firm is regionally based and
well-connected in our communities, an advantage shared with our
clients. With close relations amongst our Canadian member firms, we
are committed to working with clients who have legal needs in
multiple jurisdictions within Canada.

This article is intended to be an overview and is for
informational purposes only.

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An executor “executes” your will, carrying out the terms of your will and administering your estate.

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