Real estate service uses voice activated search

Neil Sharma
REP

A Mississauga, ON brokerage is leveraging technology to make buying and selling homes a breeze for consumers.

Better Homes and Gardens Real Estate Signature Service in Mississauga is incorporating voice activation technology—namely Amazon Alexa and Google Home—to help consumers search for real estate. By simply saying, “Alexa, open Mississauga real estate,” they will be asked a series of questions and then provided three results corresponding to the criteria they provide.

“From wherever you have a smart speaker device, all you have to do is simply ask it to open Mississauga real estate, in our case, and it will prompt you to answer questions, and then it will send the top three that best meet your criteria,” said Nelson Goulart, broker of record and owner of Best Homes and Gardens Real Estate Signature Service.

“You’ll also receive an email list with the rest of the results that best meet your criteria. The listings come from our board [TREB], but as it expands across Canada it could be any board that partners with offices that choose to use it.”

Goulart expects the feature to be a hit with consumers because Canadians have been quick to adopt smart speaker technology and, to his knowledge, nobody else offers the same service in Canada.

“Smart speaker adoption in Canada was growing faster than in the U.S.,” he said. “It grew by 8% in one year in Canada; in the United States it grew 7% after three years, so we’re adopting at a faster rate than the U.S.”

Whether sitting at their breakfast island sipping a latte or on the couch watching television, the ease of use is undeniable, especially because users will be guided through a short questionnaire of sorts.

“It asks some basic questions, like the number of bedrooms and bathrooms, price range and community,” said Goulart. “It will ask if you want a parking spot, a garage—basic questions that most consumers would search for themselves, only the difference here is that the answers are provided for you. It repeats the top three candidates and emails the rest. You could have 15 or 20 listings sent to you.”

Sellers, too, will be able to take advantage of the feature because they can research comparable selling prices on their street or in their neighbourhoods. Goulart noted that consumers do their research before hiring a sales representative, and using voice activation technology is yet another tool at their disposal.

“You can see what’s going on in your neighbourhood and what people are asking for their properties, and if you’re selling this is an additional portal you can use,” he said. “Whether it’s Realtor.ca or TREB, this is one more platform for people to find listings—and they will be better informed when they do hire a realtor.”

Copyright © 2019 Key Media Pty Ltd

Vancouver’s industrial real estate market is magnetizing foreign investors

Ephraim Vecina
Canadian Real Estate Wealth

Amid intensified construction activity, Vancouver’s industrial real estate market is steadily magnetizing foreign investors, a trend that might pose a major challenge for the domestic buyer segment.

Numbers from Colliers International indicated that nearly 4.9 million square feet of industrial space was under development across Metro Vancouver as of the end of 2018. Almost half (45%) of this activity is in Surrey, Richmond, and Delta.

According to Avison Young, Burnaby and Coquitlam were the region’s stand-outs, with transactions involving industrial property in these locales being rapidly snapped up in a frenzy of “insatiable” demand.

“While Burnaby and Coquitlam remain highly sought after by owner-occupiers, tenants and investors, sales and leasing activity will likely slow in 2019 due to a lack of such opportunities in those markets,” Avison Young stated, as quoted by Business in Vancouver.

 “With very limited new supply in the development pipeline and ongoing strong demand, vacancy in both markets – already at or near record lows – is expected to remain extraordinarily tight for the next 18 months,” the brokerage added.

This is also expected to feed into a virtuous cycle of rising rates and strong cash flow for owners, with net lease rates in Burnaby and Coquitlam hovering between $7.95 and $18 per square foot, Avison Young reported.

“We’re seeing offshore money, for the first time, coming into industrial because they understand and can see the quality of the investment,” Todd Yuen of the Beedie Development Group said. “The rents have finally caught up to the point where we can start to push the development cycle a little bit.”

Copyright © 2019 Key Media Pty Ltd

Vancouver Island among others have a balance between supply and demand

Steve Randall
Canadian Real Estate Wealth

Home sales in BC were down 33.2% in January compared to a year earlier.

Figures from British Columbia Real Estate Association show that 3,546 sales were recorded by the MLS in January. Prices were also lower with an average MLS price of $665,590, 7.7% below January 2018.

“BC households continue to grapple with the policy-induced affordability shock created last year by the federal government,” said Cameron Muir, BCREA Chief Economist. “The resulting pullback in consumer demand is largely responsible for January’s lacklustre performance.”

The decline in sales meant a further build-up of inventory to 29,522 units, a 41.2% rise year-over-year. The ratio of sales to active residential listings declined from 25.4 per cent to 12% over the same period.

“Many BC regions are now exhibiting buyer’s market conditions,” added Muir. “However, BC Northern, the Kootenay, Okanagan Mainline and the Vancouver Island markets continue to reflect balance between supply and demand.”

Announcing an overall year-over-year decline in national sales activity (of 4% not seasonally-adjusted), CREA also acknowledged the impact of policy on some regions.

“Sales, market balance and home price trends are out of synch among major Canadian cities that have the greatest impact on national results,” said Gregory Klump, CREA’s Chief Economist. “It’s clear that housing market conditions remain weaker in the Prairie region and the Lower Mainland of British Columbia. Notwithstanding the intended consequences, tighter mortgage regulations that took effect in 2018 combined with previous tightening will weigh on economic growth this year.”

Copyright © 2019 Key Media Pty Ltd

At Foxridge Homes’ Parkview Estates, homebuyers can select from dozens of finishing touches

Barbara Gunn
The Vancouver Sun

Parkview Estates

Project address: 16525 — 103 Avenue, Surrey

Developer: Foxridge Homes

Architect: In-house

Interior designer: First Impression Design

Project size: 64 single-family home lots

Unit size: four-, five- and six-bedroom homes; 3,300 — 4,300 square feet

Price: from $1.38 million

Sales centre: 16525 — 103 Avenue, Surrey

Hours: noon — 5 p.m., daily

Telephone: 604-427-1803

Website: www.foxridgehomesbc.com

Have it your way. That may well be an appropriate catchphrase for Foxridge Homes’ new singlefamily residential community in Surrey’s Fraser Heights neighbourhood.

As is typical of the offerings by Foxridge, the Parkview Estates single-family home community will offer buyers a plethora of options.

And that’s putting it mildly.

The 64-unit development has more than 14 plans on offer, and buyers have the ability to choose finishes for everything from exterior stonework to paint colour to flooring to backsplashes and cabinet knobs and handles.

That’s courtesy of the project’s ‘Colour Room’, an on-site area in one of two handsomely outfitted show homes, where all the options are on display. It’s here where buyers are able to sit down with Parkview Estates sales staff and sort through the offerings, which also include countertops, mirror frames, handrails and dozens of different carpet colours.

 “Everyone picks their own finishes, inside and out,” says Diane Zarola, Foxridge’s director of sales and marketing. “It sets us apart and always has. No one else does it. No one. There will be colour schemes A and B, or sometimes A, B and C. But most builders are going down to two colour schemes now — light or dark, sun or moon, whatever you want to call it.

“So this is heaven for people…Our staff have been doing this for years, and are excellent at helping (with finishing choices.)”

Parkview Estates is near Tynehead and Surrey Bend regional parks, and minutes from urban amenities that include restaurants, retail outlets, Guildford Town Centre and the Fraser Heights Recreation Centre. It is also within walking distance to the Pacific Academy private school.

Homes, which have four, five and six bedrooms and range to a spacious 4,300 square feet, have been attracting families, and the private school has been a significant factor, according to sales manager Trinity Sanchez.

They’re predominantly from the immediate area “or wanting to be in the area because of the school,” she says, adding that proximity to Highway 1 is also a big draw.

“All the buyers (so far) have children. They want more space for their families,” says Zarola, adding that “there’s been nothing (new) in Fraser Heights for years and years.”

Outside, the residences have what Foxridge describes as “West Coast-inspired architecture”, with fibre-cement board, painted wood and/or stone trim and details, double-car garages and landscaped yards. Double-glazed windows will have Energy Star Low-E glass with black exterior frames.

Zarola notes that while buyers will be able to choose some of the exterior finishes, the developer has design guidelines in place to ensure that the community has a cohesive feel.

Inside, residences will have 10-foot-high ceilings, oversized windows and engineered hardwood flooring on the main levels.

Great rooms, many of which have ceilings that soar to 19 feet, will be fitted with natural gas fireplaces with stained wood mantels and ceramic tiles, while laundry rooms have quartz counters and ceramic flooring.

Kitchens have open-concept layouts, centre islands, ample storage and walk-in pantries. They include Bosch stainless steel appliance packages, undermount double-bowl sinks, Shaker-style soft-close cabinets, quartz counters and full-height ceramic tile backsplashes.

Most master suites have vaulted or coffered ceilings, while ensuites will have free-standing soaker tubs, frameless walk-in showers with ceramic tile surrounds and quartz countertops with porcelain undermount sinks. Heated floors are an optional upgrade, but the closet organizers in the roomy walk-in closets are standard in all homes.

All bathrooms have maple-stained soft-close cabinets, wood-framed bevelled mirrors and ceramic flooring, except for powder rooms, which have wide-plank hardwood.

Basements have nine-foot-high ceilings and are fully finished. A legal suite with a separate entrance in the lower level is an optional upgrade on offer to homebuyers.

Meantime, Foxridge has this year received five finalist nominations in the coveted Georgie Awards, a program that honours excellence in provincial residential construction and renovation. One of those nominations is the Grand Georgie for Single Family Production Home Builder of the Year.

Winners will be named at a gala on March 9 in Vancouver.

Zarola says Foxridge has found it “really rewarding” to be on the receiving end of the industry recognition.

“We’ve been here for over 30 years now, but two years ago was the first time we’ve ever entered,” she says, noting that Foxridge was then honoured with three awards. “And this year we entered and we have five finalist (nominations).”

Today marks the grand opening of the two new show homes, one with a suite in the basement. To mark the splashy occasion, all visitors will be able to enter a couple of draws, one of which will be for a $1,000 Fairmont Hotels gift certificate.

© 2019 Postmedia Network Inc.

This BC suburb sees second-largest home price gains in North America

Josh Sherman
other

Move over, Vancouver. Surrey has had the second-fastest rising home prices in North America over the past five years, suggests a study of 83 major North American cities that also sees five other Canadian cities make the top 10.

Between 2013 and 2018, Surrey home prices soared 88 percent — which works out to an increase of $395,287 in Canadian dollars — according to Point2 Homes, an online real estate portal with millions of monthly visits.

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The Point2 Homes team says population growth is a big factor supporting the rapid price appreciation Surrey is experiencing. Its relative affordability — at least compared to nearby Vancouver, where the benchmark price of a home is $1,019,600 — is also playing a part in creating demand.

“Employment, investments and average income are easily comparable to those in Vancouver. With more affordable pricing and demand growing, Surrey has been changing and people see the value in this market. Vancouverites are fleeing the crazy city prices and Surrey provides them affordability with its benchmark home price of almost $850,000,” reads an email statement attributed to analysts.

Should the market remain healthy, analysts say prices are expected to push higher. “There might be concerns if Surrey follows the same trajectory as Vancouver,” they add. In five years, Vancouver prices have grown by 68 percent, or $417,000. Point2 Homes notes that amount would be enough to buy a home in numerous Canadian markets.

In fact, the average price of a Canadian home is $455,000 — but that’s warped by high prices in Vancouver and Toronto. Without these two cities, the average price is about $360,000.

Detroit was the only city to surpass Surrey’s rate of growth with prices spiking 97 percent. However, Point2 Homes notes that over the five-year study period, prices only climbed $30,143, in US figures, which would simply be the pace of inflation in other cities. That lifted Detroit home prices to $61,328, which even with the exchange rate is a bargain by Canadian standards.

Beyond Surrey and Vancouver, four other Canadian cities made the top 10: Brampton, Hamilton, Mississauga and Toronto.

Point2 Homes mined the numbers in the study from a variety of sources, including the Canadian Real Estate Association (CREA) and the stateside National Association of Realtors (NAR).

There were five-year home price gains of more than 50 percent in 18 of the markets Point2 Homes examined, with Canada laying claim to six.

“In markets like Manhattan or Vancouver, which already boast stratospheric home prices, even the smallest changes impact homebuyers’ pockets in a very big way,” reads the Point2 Homes blog post about the study.

© 2019 BuzzBuzzHome Corp.

There?s no right answer to the rent or buy debate

Haider-Moranis
The Vancouver Sun

To buy or not to buy, that is the question.

A recent report by the National Bank of Canada suggests it might be cheaper to rent than to own in some expensive real estate markets in Canada. Many thus wonder whether they might be better off renting if the monthly rental payments are lower than the monthly mortgage payments.

There is no one right or wrong answer to the question of whether to rent or buy. In fact, the answer depends on individual circumstances, taste preferences and housing market conditions.

In the long run, though, homeowners often fare financially better than renters because homeownership enables forced savings that accumulate over the years, growing into a sizeable nest egg.

The National Bank report revealed that the monthly mortgage payment on a median-priced condominium was higher than the average monthly rent for a similar unit in Toronto, Montreal, Vancouver, Victoria or Hamilton. At the same time, monthly mortgage payments were lower than rents in Calgary, Edmonton, Quebec City, Winnipeg and Ottawa.

The Bank’s report compared the total mortgage payment with rent. But in so doing, the report unintentionally exaggerated ownership costs and understated rents.

The monthly mortgage payment comprises two parts: the mortgage interest and the principal amount. The principal being repaid each month is a form of saving. A comparison of the net mortgage payment that excludes the principal is likely to change the calculus in ownership’s favour.

In fact, a report comparing the ownership and rental costs by veteran housing economist Will Dunning revealed that when the principal repayment is netted out, the cost of ownership is less than renting in most combinations of housing types and locations.

Before the principal repayment is subtracted from the monthly mortgage payment, the author found that, on average, the “cost of owning exceeds the cost of renting an equivalent dwelling by $541 per month.” After the principal is subtracted, however, the net ownership cost is $449 less than that of renting.

In markets with growing demographics and economies, housing prices often rise over time, resulting in even greater capital appreciation. Dunning’s calculations, though, did not include price increases over time because of the uncertainty associated with the magnitude and timing of house price changes.

The long-term financial benefits of ownership are also well established. Dunning used data from Statistics Canada to compare the wealth status of renters and owners. As expected, he found that homeowners were “distinctly better off financially compared to tenants” with similar age and income profiles.

Rental units are often not of the same quality as owned units. The difference in structural quality, especially in purpose-built rentals, is part of the reason that rents on average are lower. A true comparison would require comparing the rents and ownership costs for the same units.

Even when one agrees with the numbers presented in the National Bank report, other challenges with renting remain. For instance, the cities with high housing prices and lower average rents might seem attractive to rent, yet renting could prove challenging given the low rental vacancy rates.

In Toronto and Vancouver, the rental vacancy rates are down to one per cent. Finding a rental unit in one’s desired neighbourhood has become increasingly difficult because many households who would have changed tenure from renting to owning, couldn’t do so anymore because of higher prices and stringent mortgage regulations.

The result is an even higher demand for renting, which is pushing rents higher and vacancy rates lower.

Statistics Canada’s data on income dynamics show that the average household income of owner households is twice that of the renters. Whereas the renter households’ incomes have grown faster than owner households from 2006 to 2016, the gulf between their incomes is too large to be narrowed considerably even in the long run.

Higher household incomes not only facilitate the transition from renting to owning, they also enable households to select more desirable neighbourhoods, for example superior-quality school districts, where rental units may be few or non-existent.

Renting might still be preferred for younger cohorts, such as the millennials, whose careers might take them to different cities or countries. The fixed costs associated with home purchases in the form of transfer taxes and commissions could prove a deterrent to relocate for exciting opportunities elsewhere.

It makes sense to many in Montreal to rent and in Calgary to own. Thus, a prudent answer to the question of whether one should rent or buy is ‘it depends.’

© 2019 Financial Post, a division of Postmedia Network Inc.

Redfin in Vancouver coming soon

Steve Randall
REP

One of America’s fastest-growing real estate firms has now launched in Canada.

Redfin positions itself as a “technology-powered residential brokerage with a mission to redefine real estate” to favour consumers; and has expanded swiftly in the US with 85 markets. It has also launched a homebuying service and mortgage operations south of the border.

For Canada, the firm has begun with a Toronto launch Tuesday. Vancouver will follow in the spring with further cities expected to be added later.

“I’m not sure when I’ve seen the people at Redfin as excited as we are today to open for business in Toronto,” said Redfin CEO Glenn Kelman. “Many of us have lived, worked or traveled in Canada, and we’re excited to give the people here our best service, good value, and all the benefits of our technology.”

Tech savings cut costs The firm says that its efficiency savings through using technology means they can offer a 1% listing fee for sellers and can refund of portion of its commission to its homebuying clients.

“Our technology makes it easier to buy and sell for clients, and our business model rewards agents for delivering the best service,” said Blair Anderson, who will run Redfin’s real estate operations in Toronto. Anderson brings over a decade of local real estate experience to the Redfin team.

Although tech is at the heart of the firm, it employs its own real estate agents who are salaried and paid a bonus based on customer satisfaction. Customer feedback is published on agents’ profiles.

Search portal Along with its Toronto launch, the firm has also launched its redfin.ca search site and mobile apps where customers can search all the agent-listed homes for sale in most provinces and see sale prices of homes in the GTA.

“Canadians are discerning and tech-savvy, and I suspect they’ll be very receptive to Redfin’s unmatched combination of agent service, technology and value. Especially given today’s shifting Canadian real estate market, buyers and sellers will appreciate the transparency of the data Redfin provides on recent home sales and market trends,” Anderson said.

Copyright © 2019 Key Media Pty Ltd

Low commissions and rebates a hit

Neil Sharma
REP

There’s a new realty brokerage in town and it’s already a hit with consumers.

Justo Inc. has only been operating in the Greater Toronto Area since September, but the reception it has received from consumers has been resoundingly positive. One reason is that the brokerage returns 50% of the buyer’s fee. For example, if a home is sold for $750,000, the buyer receives $9,375.

The brokerage has been a success with agents, too. Although the commission fee is lower than the industry standard 2.5%, agents recoup that money by having all of their marketing expenses paid for, in addition to the brokerage providing them voluminous qualified leads.

“We produce all the leads and take care of the costs the agents would have to cover if they were working on their own,” said Vicki Schmidt, Justo’s co-founder, COO and broker of record. “We give them access to a territory where they can do the things they enjoy about real estate, instead of paperwork, lead generation and marketing, which we also take care of for them.”

Agents are given vast territories—outside of Toronto, it could be entire suburbs; inside it could be Forest Hill, Rosedale, or the downtown condo market—and they have the option of managing their own teams.

“They focus on gaining expertise in their markets and being very involved in the day-to-day,” said Schmidt. “If someone is a lead territory manager, they can build a team underneath them in that territory and have other opportunities for residual income, so sky’s the limit in terms of what they can build in their large territories. It can be very financially lucrative being that they’re managing clients and a team with real presence inside a designated market.”

That Justo also pays for everything from agents’ marketing to staging, virtual tours, professional photography, and more, agents are free to focus on the qualified leads provided by the brokerage. And while the brokerage is keen on accommodating its agents, it does the same for the public.

“The public’s response has been overwhelmingly positive since we launched in September, and our clients are very engaged with the model and love the transparency and fresh approach to real estate, as well as the savings,” said Schmidt. “Our listing fee is half of what a typical listing fee is; we offer additional services to buyers and sellers—for the former it’s paying for home inspections and lawyer fees and for the latter it’s the staging, virtual tours and we bring in professional photographers. We do these things so that we can get more buyers to access the property.”

It appears to be working. The brokerage is inundated with inquiries and its staff is busy preparing clients’ listings. Another reason Schmidt believes the community has been so welcoming is that the price of homes has shot up in the GTA over the last few years and every penny saved goes a long way. It’s through innovative offerings like lower agent commission fees and cashback incentives that the brokerage keeps its pipeline brimming.

“A realistic income for our agents would start around $100,000 annually and could easily reach $400,000-plus, depending on the market and the agent’s conversion rates, but they can expect to convert more transactions because they’re receiving more qualified leads.”

Copyright © 2019 Key Media Pty Ltd

Bureaucratic roadblocks hinder housing supply

Neil Sharma
Canadian Real Estate Wealth

Bureaucratic roadblocks continue to have a major influence on Metro Vancouver’s housing supply, as these intricacies have led to massively overdue project approvals, according to the recently released Market Intel real estate report by MLA Canada.

Burnaby, Vancouver, and the District of North Vancouver are the areas hit the hardest by these delays, with development approval timelines being among the longest (at nearly 2 years) in the region.

n addition, construction costs have increased by almost 50% on average over the past 5 years. This burden is almost always absorbed by the end consumer, the MLA study noted.

“2019 is expected to be highly competitive, but an overall balanced market with nominal price escalation will provide purchasers with choice and value,” MLA Canada chief advisory officer and partner Suzana Goncalves said.

One bit of good news is an increased volume of new stock incoming. MLA Intel is expecting 13,975 pre-sale units to be released this year, considerably above the 11,584 in 2018.

However, the study quickly added that B.C.’s population will experience consistent growth for the next several years, with roughly 50,000 new residents in 2019 alone.

“With job opportunities remaining high compared to other provinces, interprovincial migration will likely remain constant over the next three years. As housing starts are expected to decline in Metro Vancouver over the coming two years, this adds pressure to the housing market.”

MLA Canada executive director and partner Cameron McNeill urged the government at every level to “be progressive in our solutions to provide housing – the long-term viability of our cities depend on it.

“BC’s fundamentals remain stronger than elsewhere in the country. This means pressures on our housing market will continue, particularly with population increasing and housing starts declining.”

Copyright © 2019 Key Media Pty Ltd