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Jan
04
Housing Outlook 2012
Canadian residential real estate defied conventional logic and outperformed expectations in 2011, posting another solid year of housing activity virtually across the board. The trend is expected to carry forward into 2012 as Canadians continue to demonstrate their faith in homeownership, despite concerns over the European debt crisis and its impact on the global economy, according to a report released by RE/MAX.
The RE/MAX Housing Market Outlook 2012 examined trends and developments in 26 major markets across the country. Eighty-eight per cent (23/26) anticipated average price increases by year-end 2011—with percentage hikes ranging from one to 16 per cent. The forecast for 2012 shows the upward trend moderating, but still ahead of 2011 figures. Overall home sales are expected to remain on par or ahead of last year’s levels in 85 per cent (22/26) of markets in 2011—including Saskatoon with a year-over-year percentage increase of 13 per cent and an eight per cent uptick in Calgary, Winnipeg, Hamilton-Burlington and Sudbury. Almost half of Canadian markets will match the 2011 performance, while the remainder should post increases ranging from one to five per cent next year.
By year-end 2011, an estimated 460,000 homes are expected to change hands, up three per cent from the 447,010 units reported in 2010. Sales are expected to climb one per cent to 464,500 units in 2012. The value of a Canadian home is set to climb to $363,000 this year—an increase of seven per cent over the $339,030 posted one year ago. By year-end 2012, the average price in Canada is forecast to appreciate two per cent to $371,000.
The Canadian housing market has demonstrated tremendous resilience in recent years, but 2011 stands out. Instead of responding to economic concerns both here and abroad with a retreat in sales and prices, residential real estate markets actually experienced an upswing in the volatile third and final quarters. While clearly not impervious to the impact, Canadian consumers are intent on making their moves now, in advance of higher housing values and rising interest rates down the road.
Improvement in both provincial and local economies, especially during the second half of 2012, should serve to further stimulate home-buying activity. Calgary, Saskatoon, and Halifax-Dartmouth will likely lead the country in unit sales in 2012, each with a projected increase of five per cent. Regina, Greater Toronto, Saint John, Moncton, and St. John’s anticipate a three per cent increase in home sales next year.
The economic underpinnings support ongoing demand, particularly as job creation efforts continue and unemployment rates edge down further. Nationally, we remain on an upward track, and the confidence consumers have demonstrated in housing over the past decade will prove well founded once again next year. The rising belief in homeownership is key, especially among Generation X and Y—some of whom are making their moves sooner. Boomers and retirees are changing, too. They’re healthier and more active, with longer life expectancy. Overall, we’re seeing an extension of the homeownership cycle, and it’s great news for housing.
While tighter supply levels contributed to steady price appreciation in most major markets across Canada this year, an increase in inventory more in line with years previous should ease upward pressure on average price in the year ahead. The highest appreciation is expected in Regina, where values are forecast to increase eight per cent, followed by Greater Toronto, Halifax-Dartmouth, and St, John’s—each posting a five per cent gain. Overall, 81 per cent of the markets examined are forecast to set new records for average price next year. Noteworthy milestones include Greater Vancouver, which will break the $800,000 threshold, as well as Regina and Kitchener-Waterloo, which will reach the $300,000 mark.
While prices will remain on the upswing, buyers will benefit from greater selection moving forward. Stability or modest growth will characterize sales activity while GDP moves forward at a more muted pace in 2012. Whether markets will meet or potentially exceed projections will hinge largely on consumer confidence. An unexpected call for interest rate hikes could also serve to bolster sales.
Other highlights include:
- Population growth and immigration are major factors expected to prop-up housing demand and household formation in the coming years. Since 2000, Canada’s population has experienced double-digit growth of 11 per cent. By 2031, over 42 million people are expected to call Canada home.
- Investment will also continue in Canada’s major centres, with income-producing properties at the top of the most wanted list. Low vacancy rates and stock market volatility reinvigorated this segment of the market in 2011 and the very same factors are forecast to influence sales moving forward.
- Condominiums are expected to gain an increasing share of the marketplace, particularly in Western Canada and Ontario. A focus on higher density urban growth is impacting purchasing patterns and introducing new, affordable options—critical to the attainability of homeownership as prices continue to move upward.
- Housing stock in major Canadian centres will improve as municipalities focus on redevelopment and revitalization.
Oct
17
CRM: It's about service!
Customer Case Study: Google Apps integrated with Solve360 CRM moves people, literally
Here’s a story most business folks can relate to — established in 1959, Taylor Moving starts with 1 truck and a handful of employees. Dad grows the business. Sons take over, expanding to 100 staff and operate a network handling international employee moves.
Fast forward to the present and those sons find themselves asking “How can we stay competitive and keep growing the business?” Son Rick Taylor knew more of the same wasn’t going to cut it. “Our coordinators, our sales team, they were spending far too much time doing internal stuff and not talking to clients.”
The solution started when they looked at their email which, despite being mission critical for dealing with overseas moves, was unreliable. A friend introduced Taylor to Blair Collins, founder of Interlockit.com, who was asked to help. “They were paying $1000 per month for IT support yet none of their email history was backed up because it was scattered across the hard drives of everyone's computers.” , noted Collins. InterlockIT introduced Taylor to Google Apps and helped with the implementation. With email issues now out of the way they now had the resources to look at how they organized their moves.
For years, Taylor Moving managed moves through a paper-based filing system and initially a document management system seemed like the answer. The narrow access point of paper files was causing chaos and a lot of wasted time. “In the past, there would be a sales person at a coordinator’s desk eight times a day… they were always looking for information.”
But after a review, InterlockIT introduced Taylor to Solve360, which is a client management sowww.taylorinternational.cwww.taylorinternational.caes on helping businesses like Taylor manage their customers and their projects. “We quickly realized that a fully integrated CRM solution like Solve360 with its included project management could do far more for their business“ , said Collins.
Taylor was quickly impressed by Solve360’s flexibility. Now any adjustments made to the move are now seen in real time, company-wide. Now everything is in one place, and easily accessed. “This is a big step up.”
Taylor and his team experience seamless integration between Solve360 and Google Apps. In fact, Taylor himself barely acknowledges a separation between the two, viewing them as a single system. The Gmail contextual gadget for quick access to contacts/projects, the ability to easily capture emails, the simple linking to Google Docs, and the Google calendar integration are key features for them. “Once you’ve got [Gmail], which I find to be a very user-friendly system, the changeover to Solve360 was far easier than I had expected. I expected a much harder learning curve.”
Streamlining the internal systems allowed Taylor and his team to turn outward and address what matters most to their business — the customer. “In a service industry, you’re only productive if you’re talking with a client… if you’re doing background stuff, that’s offering no value back to your service. So, what are the things you can do behind the scenes so that you’re spending the majority of time with your clients?... That’s why we brought the system on.” Solve360 allowed his team to focus on what would really drive business forward.
Growing his business with Google Apps and Solve360 “is something he’s looking forward to” , says Taylor. “With software and servers you need to manage all the changes yourself to keep up. Now [with Google Apps and Solve360] that’s done for us automatically so we can focus on serving our clients.”
Sep
06
Ontario's Housing Forecast
TORONTO, ONTARIO--(Marketwire - Aug. 24, 2011) - Ontario housing activity is set to moderate in the next few months and isn't expected to stabilize until the latter part of 2011 according to the 2011 Third Quarter CMHC Housing Market Outlook - Canada Edition released today.
Highlights of the Ontario forecast include:
- Ontario economy lags activity in rest of Canada during 2011/12 after leading in 2010
- Current trends suggest existing home sales will slow before growing modestly into 2012
- Owing to economic uncertainty, Ontario sales will range between 172,000 to 216,000 transactions this year and next
- After sharp increases early this year, Ontario home prices will ease in the next few months and grow closer to inflation by 2012 as markets move to a more balanced state
- Ontario home starts will moderate the rest of this year and into 2012 before growing later next year
- Owing to economic uncertainty, starts will range between 53,000 to 68,000 units this year and next.
- Demand for apartment ownership and rental accommodation will remain strong.
"Consumer buying patterns, particularly in more expensive southern Ontario markets, will increasingly shift to less expensive housing over the next few years thanks to higher home prices. This bodes well for the apartment ownership and rental sector," said Ted Tsiakopoulos, CMHC's Ontario Regional Economist. "Northern Ontario housing markets are an exception as strong activity in the mining sector and relatively more affordable housing will support growing demand for low density housing," added Tsiakopoulos.
Jul
27
Ribfest will soon be here!
Canada’s Largest Ribfest, organized by the Rotary Club of Burlington Lakeshore, is ready for its 16th year of bringing you a family-friendly, four-day food extravaganza! As one of the leading annual events in the Greater Toronto Area, Canada’s Largest Ribfest brings together 18 Ribber Teams from across North America, hungry to compete for the Best Ribs Title, and more than 100,000 people hungry to taste their mouth-watering fare! But that’s not all! There are also great musical guests, and activities and games for kids of all ages – all in beautiful Spencer Smith Park in Burlington on the north shore of Lake Ontario. The proceeds from this event go directly to the community – a good cause, good food, good times and the perfect way to bid farewell to summer.