RBC study finds home purchasing intentions rebound

Majority say it's a buyer's market

HALIFAX, March 4 /CNW/ - Homebuying intentions in Atlantic Canada have increased over last year surpassing 2007 levels, according to the 16th Annual RBC Homeownership Survey.

The poll found that 25 per cent of Atlantic Canadians were likely to purchase a home within the next two years, up from 20 per cent in 2008 and 24 per cent in 2007. "We're likely to see increased home buying activity in Atlantic Canada over the next two years, with purchase intentions springing back from last year," said Craig Bannon, regional manager, Mortgage Development RBC.

"The change in sentiment may be due to more favourable mortgage rates and housing prices, which have many in the region convinced it's a buyer's market."

The survey, conducted by Ipsos Reid, found that a majority (58 per cent) believe it is a buyer's market right now. Given current housing prices and economic conditions, most Atlantic Canadians (56 per cent) believe it makes more sense to buy now, rather than wait until next year.

An overwhelming 84 per cent of those polled in Atlantic Canada said that buying a home is a good or very good investment. On average, homeowners in the region approximate the value of their home at $181,555. They also estimate that the market value of their homes increased by 14 per cent over the last two years.

Among those who plan to purchase this year or next, 26 per cent said they will do so because their current home does not meet their needs. Sixty-four per cent said they plan to purchase resale and most (84 per cent) will opt for a detached house. Future Atlantic Canadian homebuyers also said that environmental considerations would weigh on their purchase decision.

Almost all respondents (98 per cent) indicated that buying a home with low energy consumption was important to them and 82 per cent said the same about environmentally-friendly features. Further, 94 per cent of those surveyed were interested in having standardized energy ratings for their homes.

Regional Differences
Nat BC AB SK/MB ON QC AT

Own a home
67% 69% 69% 70% 68% 60% 67%

Percentage of homeowners who have a mortgage
61% 56% 46% 62% 64% 66% 60%

Percentage who believe it is a buyer's market
65% 78% 72% 34% 73% 52% 58%

Owners and renters who are 'likely' or 'very likely' to purchase a home in the next two years 27% 26% 35% 25% 30% 22% 25%

Believe mortgage rates will be higher in one year's time
33% 28% 26% 35% 33% 33% 46%

Believe housing prices will be higher in one year's time
25% 20% 23% 27% 26% 25% 36%

Believe buying a home is a good investment
83% 81% 86% 83% 84% 79% 84%

Homebuyers planning to purchase a detached home
68% 76% 63% 63% 69% 60% 84%

Homebuyers planning to buy a bigger home
47% 42% 40% 69% 52% 49% 20%

Homebuyers planning to buy a resale home
74% 83% 71% 60% 76% 75% 64%

Homebuyers planning to buy a new home
26% 17% 29% 40% 24% 25% 36%

These are some of the findings of an RBC poll conducted by Ipsos Reid between January 6 and 9, 2009. The online survey is based on a randomly selected representative sample of 2,026 adult Canadians. With a sample of this size, the results are considered accurate to within +/-2.2 percentage points, 19 times out of 20, of what they would have been had the entire adult Canadian population been polled. The margin of error for residents of Atlantic Canada is +/-7.8 per cent (N(equal sign)160) and the margin of error for Atlantic Canadian homeowners is +/-9.4 per cent (N(equal sign)108). The margin of error will be larger for other sub-groupings of the population. These data were statistically weighted to ensure the sample's regional and age/sex composition reflects that of the actual Canadian population according to the 2006 Census data. For full tabular results, please see the Ipsos Reid website at http://www.ipsos.ca/. 03/04/2009 /For further information: Lori Smith, RBC, (902) 421-8121; Sean Simpson, Ipsos Reid, (416) 572-4474/ (RY RY.) CO: RBC; RBC Royal Bank ST: Nova Scotia IN: FIN SU: SVY

David Pylyp Not only does the survey reflect my own feelings and experience with the market, it bares out the response that I have had, in the last month, at open houses and with clients when out shopping. There is a definite sense of renewed optimism.

I was contacted by Steven D'Souza, a Video Journalist with the CBC News at 6, in Toronto, to share my views about the market. In the half hour to forty five minutes we spent together answering his questions, I look forward to see the show will be edited and how the video will display when paired down to one minute and thirty seconds.

Does this count towards my 15 minutes of fame?

FSBO sites and embellished claims

I wish I could afford to buy a PUFF piece like this in the Financial Post. Maybe the author; Derek Sankey, Financial Post has a dog in the race. Read the advertorial

PropertyGuys.com is trying to exploit an overlooked niche in real estate sales -- private home sales -- but with a twist. The firm acts as the marketing arm for people who want to handle the heavy lifting themselves, such as showing the home, fielding calls from potential buyers, negotiating price and other details.

Every FSBO website advocates the benefits of advertising with them as the biggest, highest hits, newest, website. You pay them to advertise your house on a website. They sell you a sign and a webpage from $300 to $ 1500.00 The blank forms you can buy at Chapters for $29.95 but the forms have a disclaimer that a lawyer should be consulted to properly create the offers.

FSBO websites are now co operating to trade content (advertising each others listings) to attract additional viewers and justify additional advertising revenue. So.. I took a quick look at the west side of Toronto and scanned 100 listings, (Toronto Real Estate board has thousands) Some were sold on the MLS. There are no dates, no way to query new or old. Most were listed also on the MLS. Yet when the homes sell the FSBO sites claim them as THEIR sales.

Realtors are paid based on performance at successful transaction completion, and if they didn't search title sometimes not at all.

This article states that 50% of the real estate business will be internet based and not require a realtor but they will provide property details for purchasers, negotiate on your behalf and other details. "The firm acts as the marketing arm for people who want to handle the heavy lifting themselves, such as showing the home, fielding calls from potential buyers, negotiating price and other details."

That is called trading in real estate. Colour the issue how you wish, as soon as they offer any advice they are trading. If they provide last sold details about the neighbourhood from a map or however they garnered the information they are providing advice. Do they carry errors and omissions insurance. Will they create agency law obligations of honesty and diligence, fiduciary care with their clients? Its a slippery slope out there.

Why Hire An Agent ?

"WELL, HOW ABOUT .......PEACE OF MIND AND INSURANCE (the agents insurance)

The Consumer for his own protection, must establish in writing that they have engaged the services of the Agent in a fiduciary relationship, whereby the Agent is legally bound to protect and promote the best interest of their Client, together with many other duties imposed upon them under the Law of Agency.

The Retainer Agreement engaging the services of the real estate agent is in this instance generally described as either the “Listing Agreement” executed by a Seller or a “Buyer Representation Agreement” executed by a Buyer, either one of these standard forms in Ontario will establish a fiduciary relationship between the designated parties and their Agent.

Now ..... to the best of my knowledge, a consumer acting for themselves in a residential real estate transaction, cannot purchase errors & omission insurance, per se or even afford it if they could, but they can gain protection under their Agents insurance coverage by hiring and holding their Agent liable for any error & omission as may have been committed by their Agent, while acting on their Client's behalf. "

Don't use me because you can sue me; Use me because I have done it hundreds of times over the last two decades. Check what a few others have had to say. If you are new to town starting a new job, Do you have time to negotiate with a Private vendor? DO you want to see ALL the listings? But here is the real truth. In a changing values market You want to be sure that the purchase you are making is financially sound and at market value (or below). Have a CMA provided by a professional agent as a part of your purchase package.

Experience is not expensive. It's PRICELESS!

FSBO in West Toronto, Etobicoke,Mississauga

With the explosion of the internet in users and websites, it would seem that real estate agents may be compared to being in the buggy whip business according to byowner websites.

While agents are required and responsible to provide accurate property records, exact and post factual data on their listings. Professional experienced real estate agents are very careful in how they answer questions or make promises because they are held to a higher standard that is enforced by any of the 3 or 4 real estate boards they may belong to as well at RECO the provincial licensing authority.

The FSBO sites are plentiful (and embellish their readership and success claims to help you part with your advertising dollars) and I even sponsor a dedicated space on one nationally based website to assist FSBO's marketing efforts, they cannot replace the realtor based MLS.ca (recently rebranded as REALTOR.ca) website when it comes t0 finding MOST the properties that are for sale. When looking thru a sampling of "available" listings for Listing Prospects, I realized that more than 95% has ultimately listed with a brokerage.

If the sites were that successful why was this ratio so high? This was for a sampling of 100 homes located in the Etobicoke, Mississauga west Toronto (GTA).

Yes, I will concede that NO ONE, knows the house better than the owner, but after that, is the owner as versed about the local employers, best mode of transit access, schools, community centers, local information and lore, community action groups, future planning developments and homes/neighbourhoods under construction, financing, special offers from LENDERS, home staging, candid advise about dressing your home for success and pricing your property correctly into the market based on SOLD competition. Who will hold the hand of the Buyers in the car for the next half hour driving thru the neighbourhood and pointing out the last sales and describing or showing the details from their neighbourhood comparible data.

After the concept of SAVE SAVE SAVE the commission, the Buyers who are skilled to buy a private listing are looking to ALSO save save save on the purchase price. Real Estate agents are negotiators; to bring parties together, fascilitors to encourage a transaction, hand holders to nervous buyers, rain makers to bring prospects to your listing, showcase and feature your property both online with IMPACT advertisings and Google search responses.

There was another thought that came to mind after reviewing many of the FSBO sites. The majority of SELLERS were selling the first house they had ever owned; often purchased new from the builder, in heavy traffic neighbourhoods for new construction. Once away from the high traffic areas for buyers its a much tougher road to attract prospects to see your home. In my 20 years of selling real estate and more importantly helping family's fulfill their housings needs, I have rarely come across a FSBO who has sold multiple times.

I merely ask a humble question, after you have sold your home privately, will you be using a REALTOR? The answer always surprises the owner in replying that they would be using an agent.

Mark Argentino articulated a point very well recently when he said "there are four people involved in your real estate transaction; the Seller, The Buyer, and usually two agents. It is inevitable that the person with the strongest arguments, best presented details, negotiation and persuasion skills will take the business to his side.

Having more unorganised FSBO websites with limited content does not detract from MLS.ca or RE/MAX.ca where your listings are prominantly displayed or showcased on my own websites. Your listing can have its own domain name such as the address, or merely a page that is pointed within the website. The result is the same, YOUR HOME is featured online to find a buyer, (regardless of their locale) showings occur and hopefully your home will go under contract.

If you are the Buyer I add a satisfaction guarantee.