Dramatic rebound characterizes Canada's luxury home segment in 2010

Mississauga, ON (April 26, 2010) - Luxury home sales soared in the first quarter of 2010 as affluent purchasers moved to take advantage of favourable market conditions across the country, according to a report released today by RE/MAX. 69 per cent of markets set records for best-ever first quarter sales!
The RE/MAX Upper End 2010 Report, highlighting sales and trends in 13 major Canadian centres and five sub-markets, found that improved economic performance, increased personal wealth, immigration and foreign investment all contributed to a serious upswing in sales. Virtually all areas experienced double and triple-digit increases between January and March of this year over 2009 figures for the same period. Nine out of the 13 markets examined (69 per cent) shattered existing records - setting new all-time highs for first quarter activity in the upper end."Real estate continues to resonate with purchasers at every price point," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. "With the top end of the market shifting into high gear, every segment of the residential real estate sector is now operating in tandem. Despite the upward momentum, there are still deals to be had - especially at the higher price points-a fact that is motivating buyers to act."

With the market continuing its heated activity, if you're looking to move up, call me now. Inventory is increasing, and the time is right. Buy before July 1st and you'll save a few dollars before the HST kicks in.


Asif Khan, Realtor
Re/Max All-Stars Realty Inc.

Follow me on Twitter www.twitter.com/remaxallstar
Become a Fan...Click Here www.facebook.com/asifkhanremax
Google Me: Asif Khan ReMax

Competition Bureau misguided about MLS

Here is a great article from Mark Weisleder that was printed in the Toronto Star (April 23, 2010).  Mark's thoughts echo my own from my previous blogs, and it is great to see the public starting to question the Competition Bureau's intention. Thank you Mark.

Competition Bureau misguided about MLS

April 23, 2010

Mark Weisleder SPECIAL TO THE STAR

Buying a home is a lot different than buying an airline ticket. Yet if you read the complaint by the Competition Bureau against the Canadian Real Estate Association (CREA), you would think it is that simple to buy or sell a home in Canada, by just using the Internet for support. Unfortunately, it is not that easy.
According to the Bureau, CREA and its member real estate boards effectively control the market in Canada, since 90 per cent of all residential home sales are completed using the Multiple Listing Service (MLS) systems, and consumers thus have no real choice in paying commissions, which, according to the bureau, is usually five per cent of the sale price. It is further claimed that the rules passed by CREA regarding use of these systems prevent anyone from offering different service models, thus eliminating choice for consumers. They would like every seller and buyer to have access to the MLS system, and be able to sell and buy properties themselves, without the services of a real estate salesperson.
No statistics are introduced by the bureau to support any of these claims. The fact is that there are other alternatives for Canadian consumers today, both within the MLS systems and outside it. There are many “For Sale by Owner” websites gaining market share across Canada, offering a flat fee service to sell your home. These include Com Free in Western Canada, Grape Vine in Ottawa and many others who participate in the National FSBO network.
Even within MLS, there is no set commission and consumers can negotiate directly with their salesperson. There are many examples across Canada where salespeople and brokerage companies charge less than five per cent commission, including flat fees.
Now that CREA has introduced changes that permit sellers to post their listings onto MLS through a realtor and not use an agent for any other service, we will see even more business models introduced by salespeople going forward, again offering more choice for consumers.
In my opinion, there is a real danger to consumers in trying to buy or sell their homes without the advice of a real estate professional. Sellers will not know how to qualify buyers who attempt to tour their home, will not understand how to properly price their home for sale and will not appreciate their obligations of disclosure of defects to unwary buyers. This will result in sellers not obtaining the maximum sale price for their homes and potentially involve them in unnecessary lawsuits from buyers.
Buyers will not know if the seller has any authority to sell the home, or whether the property is in fact in the process of being taken over by the bank. Deposits could thus be fraudulently misappropriated.
To try and understand the bureau’s position, let’s say a company bought a 100-acre lot and started selling cars, each one inspected by their certified technicians and advertised across Canada. The company was very successful. Buyers trusted them. Now a private car seller finds out that they cannot get nearly the price or exposure by selling by themselves. Should that person be able to go to the government and demand that he be put on the successful seller’s car lot, with the private seller’s name in the windshield, selling his own uncertified car to the public?
In a sense, this is what the bureau is asking regarding the MLS system, which has been built, paid for and maintained by realtors, to provide Canadians with the widest exposure, security and protection when buying or selling their home across Canada.
When you buy an airline ticket on the Internet, it costs you about $100 if you change your mind. If you make a mistake in the largest purchase decision of your life, it may cost you tens of thousands, and unnecessary legal headaches.
Now that there are new MLS rules in place, my advice to the bureau and CREA is to take some time to monitor developments over the next year, before rushing to trial, where only the lawyers win. I would be pleased to hear your own views on this very important subject.

Asif Khan, Realtor

Re/Max All-Stars Realty Inc.

 

Google me: Asif Khan ReMax

Follow me on Twitter  www.twitter.com/remaxallstar

Become a Fan of "Asif Khan's RE/MAX Dream Team" www.facebook.com/asifkhanremax

New Mortgage Rules Will Not Affect Market

Recently there has been alot of talk about the new mortgage rules introduced by the government.  We've heard through the media that these rules will slow down the incredibly hot real estate market, that the end of the hay days are here for sellers, first time buyers are being squeezed out, etc.  Well, this is all muchado about nothing!  Let's take a closer look at the three new changes:

1.  Investment Properties - Investors are now required to have 20% downpayment rather than 5%.  In the past most banks were insisting on 15 - 30% on investment properties, there were a few that were funding deals with less downpayment.  There will be no significant impact on the sales of these properties.  It is difficult to make a significant profit by only investing 5 or 10% in a property.  The key to making money in investment properties is to have equity in your property, which in turn allows you to make a return through rental income and appreciation.  There have been some in the media that have confused the investment properties with principal residences.  You can still put down 5% if the property will be your principal residence. 

2. Purchasers must now qualify on a five-year fixed rate.  Again, this rule will not be detrimental to home buyers.  Most banks were qualifying on a three-year fixed in the past.  Some were using the five-year rates.  The reason Canada has the highest rated banking system in the world - as opposed to the United States being #43 - is because of our conservative lending policies.  The difference between qualifying purchasers on a five year vs. three year rate would mean that instead of being approved for a $500,000 home, you may only be approved to purchase a $480,000 home. 

3.  Refinancing - Home Owners can refinance up to 90% of the home. Previously, some financial institutions were allowing refinancing up to 95% of the value of the home, however most major banks were already using the 90% benchmark for refinancing.  Having a minimum of 10% equity in our home will prevent us from being put in the same credit crunch that saw the American market crumble. 
As you see, the changes are minor in nature.  They will not affect home buyers much, if at all.  Previously, home buyers were not aware that these rules even existed, therefore now that they have been exposed in the media, the attention seems to scare many.  Everything will continue as is, and the market will continue to roll along.  Real Estate is still the safest investment and if anything, with these rules, it just became that much safer!

If you have any questions, or would like more information on the market in your area, please email me - info@asifkhan.ca.

Asif Khan, Realtor

Re/Max All-Stars Realty Inc.

 

Google me: Asif Khan ReMax

Follow me on Twitter  www.twitter.com/remaxallstar

Become a Fan of "Asif Khan's RE/MAX Dream Team" www.facebook.com/asifkhanremax

THE BIG WAIT

The doctor shortage is getting critical and one town in rural Canada is
desperately trying to recruit physicians. At the same time, three
internationally trained doctors are trying to get licensed to practice
medicine in their new country. This is the potent story documented in The
Big Wait, a new film produced by Joanne Jackson for Brilliant Red Media and
OMNI Television. Watch OMNI Television at 7pm on Sunday April 18, 2010, and catch a glimpse
of the new, state-of-the-art Warden Wood Health Centres. With two locations
- 2361 Warden Avenue in Toronto and 549 Bur Oak Avenue in Markham - Warden
Wood Health has made a commitment to providing exceptional care with
advanced concepts. Full-Service Clinics feature Walk-Ins, Family
Physicians, Cardiology Testing, In-House Labs, Homeopathy, Massage Therapy,
and more. Tomorrow's medical clinics have arrived! The clinics have
attracted the attention of local and foreign doctors, and Warden Wood Health
Centre is doing their best to ease the burden on Hospital Emergency Rooms
and wait times. You can view the trailer through this link http://vimeo.com/10017150. Tune
in to OMNI 2 on Sunday night at 7pm, and catch the documentary in full!

Asif Khan, Realtor

Re/Max All-Stars Realty Inc.

Google me: Asif Khan Re/Max

Follow me on Twitter Become a Fan on Facebook

The doctor shortage is getting critical and one town in rural Canada is
desperately trying to recruit physicians. At the same time, three
internationally trained doctors are trying to get licensed to practice
medicine in their new country. This is the potent story documented in The
Big Wait, a new film produced by Joanne Jackson for Brilliant Red Media and
OMNI Television. Watch OMNI Television at 7pm on Sunday April 18, 2010, and catch a glimpse
of the new, state-of-the-art Warden Wood Health Centres. With two locations
- 2361 Warden Avenue in Toronto and 549 Bur Oak Avenue in Markham - Warden
Wood Health has made a commitment to providing exceptional care with
advanced concepts. Full-Service Clinics feature Walk-Ins, Family
Physicians, Cardiology Testing, In-House Labs, Homeopathy, Massage Therapy,
and more. Tomorrow's medical clinics have arrived! The clinics have
attracted the attention of local and foreign doctors, and Warden Wood Health
Centre is doing their best to ease the burden on Hospital Emergency Rooms
and wait times. You can view the trailer through this link http://vimeo.com/10017150. Tune
in to OMNI 2 on Sunday night at 7pm, and catch the documentary in full!

Asif Khan, Realtor

Re/Max All-Stars Realty Inc.

Google me: Asif Khan Re/Max

Follow me on Twitter Become a Fan on Facebook

Competition.....More or Less?

Interesting article from the Montreal Gazette/Financial Post.  A competitive site to the MLS has filed a complaint with the Competition Bureau, stating that if the Tribunal does go through with the proposed changes and allow access to the MLS then this For Sale By Owner website would be forced out of business.   In essence the Competition Bureau would be eliminating all competiton to the MLS.  Seems a bit counter-productive doesn't it?  Then again, it's the government so it shouldn't be a major surprise.

This emphasizes my points, as stated in my previous two blogs on this subject (A Matter Of Competition or Blatant Discrimination; The Value of a Realtor is About To Change).  The Competition Bureau is using their high-handed actions, not for the sake of competiton, but rather to stimulate their own egos. 

The Competition Bureau has repeatedly stated that the Canadian Real Estate Association (CREA) withholds pertinent information about sellers and sold prices that should be readily available to the consumers.  Now, correct me if I'm wrong, however this information is private.  It should not be public information.  It is not CREA that sets Privacy Laws, it is another arm of the government - The Privacy Commission.  The Privacy Laws state that this information cannot be made public.  They have gone as far as creating Do Not Call Lists to "protect" consumers.  While one arm is assisting consumers maintain privacy, another arm of the government is busy trying to make private information public.  Privacy Laws have been created to allow consumers quiet enjoyment of their lives.  They assist in the prevention of fraud and identity theft.  With the changes set forth by the Commissioner of the Competiton Bureau, the privacy of individuals will be at stake.  Is this not another case of one arm of the government not knowing what the other is doing - and even why it's doing it? Does this mean that the Do Not Call List now falls into the Competition Bureau's lap as being anti-competitive?

Who will win?  By forcing through changes based on a lack of competiton, that does not exist, the privacy of Canadians will be at stake.  Will this be better for us, or will it open up a can of worms that we don't want opened?  Is this really about increasing competition?  As has been stated in my blogs, and various other blogs/reports, there is not a lack of competiton in the Real Estate Industry.  This is not about increasing access to the MLS system.  Access is available to everyone, as are a-la-carte services.  There is no price fixing, there is no set service package.  What CREA provides through its 98,000 members is a high level of integrity in the MLS system, and a tremendous marketing tool for Canadians to use to sell their largest investment.  To mask their hidden agenda, the Bureau is creating a misconception that this is all about the fees involved in buying or selling real estate.  In reality, this has nothing to do with fees.  Just like in any industry, you will always get what you pay for.  If you want low-budget services they will be available as they are now.  If you want value and professionalism, it too will be available.  There will always be the Kia's that will get you from point A to B for a cost, and there will be the Mercedes that will provide value, benefits, and greater return for your investment.

There are competing sites to the MLS.  What happens to these sites now?  Do they declare bankruptcy and fade away?  Is the Competition Bureau going to take responsibility for eliminating competitors in their quest to "increase competition"? Let's just call it like it is.  This has nothing to do with competiton, or the perceived lack of it. 

Isn't it about time that the Commissioner stepped up and clarified her agenda?  Shouldn't the media be investigating the facts and reporting the true features and benefits of the MLS rather than rehashing what the commissioner says?  How about an article on who will now be responsible to maintain the integrity of the MLS?  Should the media not approach banks, insurance companies, or appraisers about how they intend to evaluate properties if the integrity of the MLS is jeapordized? How about the media investigating the problems that our neighbours to the south have encountered with respect to fraud, identity theft, and foreclosures in their real estate industry and comparing the same to the Canadian Real Estate Industry? 

As mentioned above, there was a very interesting article in the Gazette, which I've attached a link to below.  Competitors of the MLS are concerned and may be forced to shut down.  With commissioners that cannot grasp the big picture vision of where these discriminative proceedings could lead, all Canadians should be concerned. 

http://www.montrealgazette.com/business/fp/Listings+make+strange+bedfellows/2776201/story.html

This Month's SoloMag article: http://www.solomag.com/RealEstate/index.php

The new and revamped Solomag is up and running with a great new look and
feel. Visit the magazine at www.solomag.com. You can find my Real Estate
tips and tricks in the Real Estate section every month.

Enjoy the magazine.

Asif

Asif Khan, Realtor

Re/Max All-Stars Realty Inc.

Google me: Asif Khan Re/Max

Follow me on Twitter Become a Fan on Facebook

The new and revamped Solomag is up and running with a great new look and
feel. Visit the magazine at www.solomag.com. You can find my Real Estate
tips and tricks in the Real Estate section every month.

Enjoy the magazine.

Asif

Asif Khan, Realtor

Re/Max All-Stars Realty Inc.

Google me: Asif Khan Re/Max

Follow me on Twitter Become a Fan on Facebook

Bring IT!

Everyday, in every place I visit or pass by, I cannot believe the number of
people that just seem to go through the motions without as much as a thought
of putting effort into their actions. People are out there living life
without an edge. These are the people that will complain about aspects of
their day in which they have no control and then make up excuses for their
lack of production. In whatever you do, work or play, you have to have an
Edge! You have to Bring IT! "Bring WHAT?", you ask? Bring "IT"! "It" is what gives you your EDGE. "It" is a combination of Attitude, Focus,
Passion, Determination and Courage. "It" is what fuels your fire, that
which puts you ahead of your competition. "It" is what keeps on top of your
game. Think back to the 2002 Winter Olympics. Do you all remember the
Canadian Women's Hockey Team? There was a team that was Bringing It! They
had Attitude, Focus, Passion, Determination & Courage. Those five things
are the ingredients to success! Those five ingredients separate the Average
from the Champions. Let's talk about Attitude first. Attitude is something you get to choose
every morning when you wake up. You can choose to be grumpy or upset, you
can choose to be lazy and waste the day away, or you can choose to be happy
and make the most of your day. You cannot choose the fact that people will
react in certain ways, some will look out at the gorgeous sunny morning and
point out a cloud somewhere in the sky. You can't help that. What you CAN
do is play the cards you have, and that is the attitude card. Attitude is
more important than facts, the past, education, training, memory,
circumstances, failures, successes and more important than what people say
or do. It is more important than appearance, talent or skill. Attitude can
make or break a person, team, company, or family. I live by the saying "10%
of life is what happens to me, and 90% is how I choose to react to it". You
are in charge of your attitude. Choose the right one. You may not WANT to
go to work everyday, or school, or the gym. But, you have to be there
anyway, make the most of it. Coming of eight straight losses to the USA in
2002, Team Canada's women could have chosen to be grumpy or upset, how dare
the hockey Gods make them play the Americans again. But they were not
influenced by the past, they CHOSE to compete. That was their attitude
choice for the day.

The second ingredient of your Edge is Focus. Focus is being present at
every moment of the day. Sure you'll have moments when you fall asleep, or
daydream. Every second you are "away" is a second lost. The key is to
bring yourself back. Bring back your focus. Be there for yourself, for
your team, for your family and for your colleagues. There may be times when
you are lost thinking about the fight you just had with your spouse, or the
chance you missed eight years ago in overtime, or the party you will be
going to this weekend. Forget all that, because at the moment YOU ARE
HERE!! You need to focus on the present. Focus on the now. Flashback
again to 2002. Remember all the penalties that the American ref handed our
team? They played shorthanded for MOST of the game, a game against an
opponent that had won eight straight games when we played at full-strength.
Our girls could have used that as an excuse and surely it would have been a
valid one at that. They could have lost focus and let frustration get the
better of them. They didn't. They kept their composure, because they kept
their focus.

The third part of your Edge is Passion. So many times we see people just
going through the motions. It happens in sports, it happens in life, and it
happens at work. If you can't get passionate about what you are doing,
don't do it. You are doing and injustice to yourself and your teammates
(whether they be colleagues or family). You have to want it. How many
times have you watched a hockey game and seen a player skate up and down the
wing not wanting to touch the puck or anyone on the ice? Don't these
players have any adrenaline running through their body? Get Passionate.
Get a life, a pulse. Let us know you're alive. Show us that you're in the
game. If you can't be passionate about what you are doing, it's not worth
doing. If you looked into each players' eyes during that final game in
2002, you would have seen the Passion. You would have seen how much they
wanted that Gold Medal. That was Passion in its truest form.

The fourth ingredient is Determination. Even with all other factors going
for you, if you don't have determination, you won't succeed. No matter what
the obstacles are, what the hurdles are, you need determination to see the
job through. The women were determined to win the gold medal. The
penalties, the eight straight losses, the formidable opponent, these were
obstacles or hurdles. Determination was how they overcame them. The final part of the puzzle is Courage. Courage is imperative in your
drive to succeed. You have to be able to handle all situations with
courage. If you don't have courage, your fight is over before it begins.
It took a lot of courage to stand up to the bigger, stronger, faster
American team. It took courage to fall in front of slap shots while killing
penalties, and it took courage to play short one skater for almost the
entire game. At !work, rest or play, you need Courage! So there you have it. The magic formula for success. BRINGING IT =
Attitude + Focus + Passion + Determination + Courage. Choose the right
attitude, stay focused, be passionate, be determined to persevere, and have
the courage to make decisions! Just BRING IT everyday, and you'll never
look back. The 2002 Canadian Women's Olympic team exemplified Bringing IT.
By doing so, they brought home the Gold. How many of you are prepared to
"Bring IT" on a daily basis? How many of you will choose not to? The
rewards are there for the taking, so don't let them slip away. You owe it
to yourself to succeed. Find your Edge. It starts with you choosing your
attitude! If you're going to go through life anyway, don't choose to be
Average, choose to be a Champion! Choose wisely. Now get out there and
BRING IT!!

Asif Khan, Realtor

Re/Max All-Stars Realty Inc. 


Toronto's Housing Market Continues To Sizzle Through March

March 2010

Greater Toronto REALTORS(r) report March Resale Market Figures

TORONTO, April 6, 2010 - Greater Toronto REALTORS(r) reported 10,430 sales
through the Multiple Listing Service(r) (MLS(r)) in March, pushing total
first quarter 2010 sales to 22,418 - the best result on record under the
current Toronto Real Estate Board (TREB)

boundaries. The average price for March transactions was $434,696. The
average price for the first quarter was $427,948.

"The strong rebound in the existing home market was one of the initial
drivers of economic recovery," said TREB President Tom Lebour. "While we
don't expect to see the same rates growth moving forward, GTA households
will remain confident in ownership

housing as a quality long-term investment, especially as economic recovery
expands across all industries."

The annual rate of growth for new listings continued to accelerate in March.
The number of new listings grew by 42 per cent compared to March of 2009.
"The average home price in the GTA will continue to grow this year, but the
pace will slow

as we move through the spring," said Jason Mercer, TREB's Senior Manager of
Market Analysis. "As growth in new listings starts to outstrip growth in
sales, buyers will experience more choice, resulting in more sustainable
single digit rates of average price growth."