London, ON

I had the opportunity to listen to a CMHC (Canada Mortgage and Housing Corporation) speaker recently present their information of London Ontario's real estate market and economy. I will briefly recap some of the main points discussed. This information refers to London, St. Thomas and surrounding area.

CMHC predicted around 7000 real estate sales for the market for 2009. This is about a 25% drop from 2008. They had previously predicted a 10% drop prior to the fallout in the US in October.

Homes for sale will be around 17,000 - which is around the same as 2008. (To compare, 2006 had about 8,500 homes for sale). One of the major reasons for the increase are homeowners cashing out their equity that they built up during the price increase from 2001 to 2008. The increase in homes for sale is the number one reason why it's a buyers market now compared to the sellers market of 2006.

Consequently, new home construction is suffering since homebuyers have ample resell homes to purchase and usually choose a resale home over a more expensive new home if given the option.

CMHC predicted average sales price to be -1% to no change from 2008. In other words, prices should flat line. (Remember this is average for the entire London region for every price range. There are certain price ranges that have seen a decrease etc)

Talked about the demand factors for the city and region:

1) Employment

Employment overall is fairly steady. It's increased from 7.1 to 7.8. (In early 90's it was around 10%).
We all know that the manufacturing sector has been hit really hard. So why hasn't unemployment risen to a higher level? It's because there are other sectors that are creating jobs. Health care and service sector are both creating jobs. (Hard to know that since the news always reports the negative stories). This is one of the strong points of London as I've mentioned before - diverse economy has helped ease the pain felt in some areas of the economy.

2) Population Growth

London has a 5% birth rate. Ontario overall has 7%. London lags behind the average a bit but a least it's growing.

3) Migration

London has a net migration (meaning more people move here compared to moving out)

Seeing international migration to the city. While still a fairly conservation city, it's a very slow change as immigrants are moving here.
Seeing migration from larger centers to London - namely Toronto area. The 25-45 year old age group is finding London a lot less expensive and more affordable. $200,000 vs $350,000 for the same house.

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Vacancy rate for 2009 is predicted to be 4.2%. It was 3.9 in 2008 and 3.2 in 2007. The main reason for the increase is the completion of new apartment buildings (If you want proof, look at the skyline of downtown). So these new units will take a little time to be absorbed into the market.
Who are going to fill this apartments? empty nesters (older people selling and renting), international migrants and students, cautious renters, and youth moving our from parents house.


Mentioned also was that first time buyers and baby boomers (ages 25-45) will push the market. This demographic has always had a big influence over the London Ontario real estate market. The conditions are there for them to be purchasing real estate (low interest rates, supply, and steady economic conditions). The CMHC speaker mentioned that consumer sediment is a major factor right now with the public. I agree - the buyers are out there, it's just a matter of them feeling confident to do so.

Learning something new everyday is our number one priority. We make it a point to find new opportunities and avenues to learn from.

The best way to do this is to learn from the best! If we want to be the best, we have to do what the best does!

Being a part of such a dynamic and knowledgable team like Realty Executives Elite Ltd in London ON makes this easy!

Everyday in our office we are surrounded by what we perceive as "the best in the business!" ( and I am sure we are not alone in this perception.) So we have access to some of the most informative brains out there. And the greatest part about it is, they are all ao willing to share!!

Being able to work so closely with such successors has made is possible for us (the rookies) to excel and provide our clients with quality service just as "the best" have done in the past. And still do for that matter.

So go on and ask us!! How have we become successful? We learn from the best!!

In a household with young children.. a constant background noise in our house is TREEHOUSE.. if you are a parent to a toddler or preschool aged child, you know what we are talking about.

A theme song we hear quite often is from the Wonder Pets, "What's Gonna Work? TEAMWORK!! What's Gonna Work? TEAMWORK! We're not to big, we're not to tough! But when we work together, we've got the right stuff!" ( I know it's really sad that we know this song so well right? )

We believe this song rings true. Not just in everyday life.. but in the life of real estate as well.

Yes, it is a competitive business and essentially we are all working against eachother to get the deal or gain the client. But being competitive (cut throat and viciously competitive) really won't get us anywhere!!

We are all working to get the same goal.. so why not work together so we can all acheive it?

Especially now.. when the market and economy are on such a downturn. We have to rely on fresh new ideas for marketing ourselves and growing our business. Our best resource is eachother. But we are finding more often these days when we ask, "How are you finding business?" we are met with tight lips, and shrugged shoulders.

I say.. SHARE THE LOVE!! If we have a good idea.. the first thing we should be doing is share it with everyone, so they too can reap the benefits. After all, it's not a very good idea if you keep it to yourself.

We all deliver the same product. The same service. And the general public knows this. So it's not a matter of who does what better. It's a matter of who that particular buyer/seller meshes with. And more likely then not, they are gonna mesh with the nice guy... and nice guys are a part of the TEAM!!

The more we work together and help eachother gain success, the better image we will portray to the general public, the consumer. And the less they will think of us as people just out to get their money. They will see us for the people we ARE!! Hard working professionals working as a TEAM to help market, and ultimately sell their old house, or their new house. We ARE the better solution to selling their home on their own.

It's simple.. if this makes sense in the eyes of a child.. it should make sense to us! So what's gonna work?? TEAMWORK!!... of course!!

Real Estate homes sales numbers have been updated for the month of February. The news report can be read HERE

480 Homes exchanged hands for the month. I predicted in my previous post the number would be around 500 so I was pretty close. This number is obviously down from 2008 February which was one of the best on record. Looks like the London area market is on pace for around 7000 sales for the year - which is off for the 8000 plus we've seen in recent years when the market was a strong sellers market - but is still good enough for what you would call a "normal" year.

Communicating with a lot of buyers, there are a lot of purchasers ready to jump in the market. A lot of these buyers will be first time buyers - these are the buyers that traditionally make the London market move. Once the weather warms up, and people get past of the negativity they keep hearing in the news and realize the market is still fundamentally strong, they will take advantage of historically low interest rates and a great selection of homes to purchase their home of choice.

We are not cold callers... it's just not in us. However, we have heard from others it's a great way to obtain new business.

But that came to a screeching halt when the DO NOT CALL LIST was introduced early last fall. Millions upon Millions of Canadians were eager to sign up.

Everyone knows how annoying those telemarketing/sales calls can be.. they always call at the perfect time. Right at dinner, the baby's bath time.. whenever you really don't want to answer an obscene amount of questions about lawn care, or whatever they are selling. So when the prospect of this never happening again was introduced.. this so called DO NOT CALL LIST.. of course everyone was on board.. waiting by to sign up. And they all did!!

Unfortunately, for those of us the rely on gaining business by calling prospective clients this meant big trouble. Now, if any person on that list is contacted by a REALTOR or any solicitation for that matter there are substantial penalties.. for not only the individual, but also the brokerage. So if that didn't deter the phone calls.. I don't know what did!!

Not long after this all came about, we began hearing rumours of the validity of the DO NOT CALL LIST. We heard it has been sold to solicitors in the U.S who do not have this and therefore do not have to abide by it. We have heard there are special circumstances around who can call and who can't... we have heard a great many things. Then we came across this article that highlights the good, the bad and the ugly....

Let us know what you think!

DID THE DO NOT CALL LIST MAKE THINGS WORSE?

Did you register for the national Do Not Call List (DNCL)? Thousands of people who did are now questioning whether they did the right thing.

Since its official debut on September 30, Canadians have registered more than 5.8 million phone and fax numbers -- for their home, business and cell phone -- all in an effort to cut down on those annoying telemarketing calls. The service promised both a reduction in calls (with some exceptions, of course) and a way to report and punish companies who broke the rules.

However, if you've been watching the news lately, you already know that not everyone is happy about the DNCL. Thousands of people have complained that they've seen an increase in calls since they registered. Even before major news services such as Global TV and CTV ran stories on the problems, many publications who announced the arrival of the DNCL received comments from their audience criticizing the service. The gist of the reports and feedback: The DNCL is working for some, but failing miserably for others.

So what's going on?

The Good

Has the DNCL list made things better for Canadians? Yes, according to the Canadian Radio-television and Telecommunications Commission (CRTC) who's in charge of the service and enforcing it. In recent media reports, representatives from the CRTC called the service a "success" and note that the organization has received plenty of positive feedback from Canadians saying they've seen a decrease in calls.

But what about those increases in calls? The CRTC points out that they may not have anything to do with the DNCL. Phone numbers can be accessed from other sources -- like 411.ca or when legitimate companies share or sell their marketing lists.

For now, it's business as usual and the CRTC is investigating over 500 complaints. A representative told Global TV that it's working with telemarketers to ensure they're complying with the rules. The CRTC doesn't have any plans to make changes, and instead recommends that people continue to report callers who are breaking the rules.

The Bad

Right from the beginning critics of the service were sceptical. The many exemptions -- like researchers, political parties and charities -- meant that people won't get the break they're hoping for. The list wasn't going to stop scammers (who have no qualms about breaking the law to begin with), or people using automatic diallers or "robocalling". Furthermore, U.S. and offshore companies don't have to comply with the rules because the CRTC can't do anything about non-Canadian companies.

Still the promise of a reduction of calls was enough to convince millions of Canadians to register their numbers. Unfortunately, many of those registrants now find themselves worse off than before. There are a couple of loopholes companies are taking advantage of: Some are posing as exempt companies from the DNCL by pretending to be a market researcher or "your" credit card company. Others use a legal technique call "phone number spoofing" -- where a generic phone number like 000-000-0000 or 123-456-7890 is programmed to show up in your call display -- to hide their number. They'll hide details like their company information, or simply hang up when asked for specifics. As a result, people on the receiving end of the calls can't always report them to the CRTC.

In addition, many people who registered their cell phones as a precautionary measure are now finding they've started getting calls.

And there's a more serious problem: Virtually anyone can access the list. Global TV's Jackson Proskow proved all it takes in a little time, some false information and a nominal fee to get access to people's phone numbers. Unscrupulous companies can easily obtain a list of Canadian numbers that are guaranteed to be in service. In the U.S., companies are required to provide an Employer Identification Number or the owner's Social Insurance Number to get access, but similar information is not required by the CRTC.

In short, the "Do Not Call List" has become the "Do Not Hesitate to Call List", according University of Ottawa to law professor Dr. Michael Geist. He's been a critic of the DNCL from the beginning, and even set up his own service,iOptOut.ca, to address some of the gaps. His service was formally recognized by the CRTC who announced that companies will have to honour requests coming from iOptOut.

Geist, as well as many consumer protection and advocacy groups, are calling for changes to the list -- like tighter controls on who can access it, better monitoring of how the list is being used (or misused), cooperation with the U.S. to overcome cross border issues, and more power for the CRTC to enforce penalties. Some countries such as Australia are able to prosecute not just the companies who make the calls but anyone who helps them obtain the numbers. The CRTC'scomplaints processappears to cover the telemarketers only, not the people who aid and abet them.

And the ugly...

Unfortunately, the issues don't end there. Dale Goldhawk, a well-known Canadian broadcaster who focuses on consumer issues -- did a little more digging after a deluge of complaints to his call-in radio show,Goldhawk Fights Back. His research turned up more concerns for Canadians. For instance, according to his source the list has been shared or sold to at least two companies in the U.S. and one in India, and the recipients are free to call you because Canadian law doesn't apply.

And it's more than just phone numbers that are at risk. One company in Quebec has paired the DNCL numbers with data from other places to create a master list -- including a map function with satellite images. Telemarketers can check a certain area and see names, numbers and addresses, and zoom in on specific houses to look for indicators of economic status -- like how big your house is and if you have a pool. While this database does indicate which phone numbers are "do not call", it won't stop companies from contacting you through legitimate tactics like sending junk mail or salesperson to your door.

For the full details, see Goldhawk's article,Do not call service full of problems.