Chair's message: Watch our #DifferentTogether anti-racism video

REBGV recently joined BC Lieutenant Governor Janet Austin’s anti-racism campaign by taking the #DifferentTogether pledge.

In the video below, REBGV Chair Colette Gerber discusses our participation in the campaign and encourages you to take the pledge.

Supporting this campaign means standing against racism and hate and promoting respect and opportunity for people from all backgrounds in BC.

Click here to learn more about the campaign and how you can participate.

Expert Series: Three questions with BCREA Economist Brendon Ogmundson

In our new Expert Series, we're asking prominent figures from across the real estate industry to share their insights and expertise with our members. Today, we’re featuring BC Real Estate Association (BCREA) Chief Economist Brendon Ogmundson.

The arrival of COVID-19 caused stock markets and oil prices to fall and unemployment rates to rise. In response, the Bank of Canada significantly lowered the prime interest rate and our provincial and federal governments launched a series of relief programs to help those impacted.

Locally, COVID-19 caused home sale and listing activity in Metro Vancouver to initially slow to about one-third of the pace witnessed prior to the pandemic. Our REALTOR® community was quick to adapt, converting most services, like open houses, to a virtual environment.

While housing market activity is beginning to pick up, some commentators have suggested that COVID-19 could cause home prices to decline longer term.

To help us make sense of these developments, we asked Brendon a few questions. Here are his responses.

1. What long-term impact will COVID-19 have on our economy and housing market?

For the first time in over a decade, the BC economy is in a recession. But this recession is unprecedented in that it didn’t happen due to collective poor business decisions, rapidly rising interest rates, bad loans, or misadventures in financial engineering. Rather, the economy has been purposely halted for the greater good. The implication being that, the shorter the duration of this unusual period, the more likely it is that demand can more readily return to where it was pre-COVID-19 and the outsized employment losses experienced this year can be reversed.

The ultimate impact of COVID-19 will depend on how quickly economic activity can return to its pre-COVID-19 level. The speed of  the recovery will depend on the level of comfort people feel in getting back to work, going to the store, or catching a movie with friends, a variable that’s ultimately unforecastable. As the economy “re-opens” and as the industry along with buyers and sellers adapt and innovate, we expect home sales will rebound, aided by record low mortgage rates and pent-up demand.  

While the way we do those things in a post-COVID world will certainly change, I’m optimistic the economy will bounce back strong in 2021, with the housing market leading the way.

2. What market advice should Realtors give their clients today about home price changes and other long-term trends that you expect to see?

The impact of the current pandemic and associated recession on home prices is largely determined by the reaction of supply. If the inventory of listings accumulates significantly, and particularly if that inventory represents foreclosures or motivated selling by those affected by rising unemployment, then prices will be more severely impacted.

However, given the unusual nature of COVID-19, the supply of listings for sale has declined for at least the first month of the pandemic.  It’s likely that even as social distancing measures ease and normal recession dynamics take over, the total supply of homes for sale will peak at a lower level than would be expected given the underlying economic turmoil.

A muted rise in for-sale inventory along with plummeting interest rates and pent-up demand may translate to home prices remaining relatively firm in 2020. In fact, this is a scenario we often see during recessions. Look back on the 2008/2009 financial crisis and recession, truly a frenetic and frightening time.  While benchmark home prices in Vancouver moderated slightly, by early 2009 they were rising once again, leading to a double-digit average increase over the next two years.  While a repeat of the post-financial crisis prices growth isn’t our baseline forecast, it’s illustrative of how Vancouver home prices have fared, even under an otherwise extremely challenging economic climate.

3. What should Realtors do to adapt their business given today’s environment? Are there opportunities?

On this question, Realtors certainly don’t need the advice of an economist. The real estate sector has shown itself to be remarkably resilient in the face of this pandemic. In a relatively short period, Realtors have adapted to a complicated new environment while dealing with enormous uncertainty.

Whether through virtual tours or combinations of other high- and low-tech solutions, transactions continue to take place and Realtors continue to serve their clients while adhering to measures necessary to mitigate the spread of COVID-19.  While activity is still far below where it would be normally, sales and listings do seem to be picking up quickly and I’m optimistic this trend will continue through the summer.

Watch our first Innovation Series video with Kim Spencer

We’re launching a new Innovation Series of videos aimed at helping REALTORS® discover new practices, tools, and knowledge to help you adapt and evolve your business.

Our first video features the Ethics Guy® Kim Spencer. Watch as Kim provides five tips to help you position your business to thrive during and after the COVID-19 pandemic.

We’ll share more videos in our Innovation Series, featuring different guest speakers, in the weeks ahead!

Coming soon advertising

Over the past 10 to 12 weeks, we’ve been encouraging members to think about how to do the same old things in new ways. We’ve talked about managing our time better and we’ve polished up our virtual business skills. 

An area not focused on much, except maybe as a potential area to cut back, is advertising. 

When you’re facing a grim bank balance, some expenses have got to go or, at least, be managed. This includes, for example, the bits of the ancillary advertising we do. Every member has their own way of generating business, from advertising in all the usual places to sending out flyers and notepads, and hiring bus stop benches, grocery carts and the backs of buses. (It’s amazing how good looking we seem to be when we’re on the backs of buses.) 

And, of course, there are websites and Facebook and other social media advertising. 

One form of advertising not used much around here, as far as I know, but one getting considerable profile south of the border, is “coming soon” advertising. 

“What’s that,” you ask? 

Coming soon advertising is when you put up a for sale sign, run an ad, or otherwise promote a property listing you’re about to get—one that hasn’t yet been signed. (As an aside, if it isn’t actually listed, this also means you’d have no protection from someone else swooping in with a buyer and going around you, directly to the seller. But that’s a story for another day.)

The reason, we assume, for a coming soon promotion is to whet buyers’ appetites for the property so they’re positively salivating when they can see it and write an offer. And, of course, the motivation for this kind of promotion for the seller client is that the result will benefit them, not just you, as their agent. (Hint: click the link below.)

Whatever floats your boat, as they say. If you want to do some coming soon advertising, your pals at the Board wouldn’t want to be seen to be micromanaging your business by standing in your way, at least for now. But the devil is in the details, so consider a few pointers first: 

• The Canadian Real Estate Association has published a brochure on coming soon marketing. Please read it and use it as your guide.

• The Board doesn’t have specific standards related to coming soon advertising other than, of course, the REALTOR® Code of Ethics and the Rules of Cooperation. Be sure you're in compliance.

I’ve also informally asked Council if it has anything to add. As of copy deadline I haven’t heard back, but when I do, if there is information you should be aware of, I’ll certainly update you.

Top Tips:

1. Please tell your colleagues who you are when you phone or text them or walk into an open house (whenever they start again). Getting off on the right foot in a business relationship brings dividends, for example, an easily arranged showing appointment, offer presentation, or whatever else it is you might need from a colleague. You could say, for example, “Hi, this is Mary Wong from ABC Realty,” as a preface to the conversation or showing to follow. This isn’t difficult to do and for many members, it’s considered a respectful way to get things going. I have to admit to a bit of irritation when I receive a call from someone who doesn’t first identify themselves. As they drone on, I’m trying to figure out, are they a member? Are they a buyer? Are they a seller? What axe do they want to grind? And, while I’m doing that, I’m not concentrating on what they’re saying, which isn’t good. I don’t think I’m alone in this.

2. Reciprocity advertising—where you advertise other members’ listings on your real estate website and/or brokerage real estate website—is okay as long as your brokerage has a reciprocity agreement with the Board and all the display requirements are met (see Rules of Cooperation, Rule 8.12 for more information). Note, Rule 8.12 defines these websites as an “Internet website controlled and operated by an MLS® Reciprocity Participant”; an “MLS® Reciprocity Participant,” as being an REBGV Corporate Member “that is a party to an executed ‘MLS® Reciprocity Corporate Member Agreement’; and an “MLS® Reciprocity Active Member,” as being a Member who is “a party to an executed ‘MLS® Reciprocity – Salesperson Agreement.’ ” 

When your brokerage signed a reciprocity agreement with the Board it agreed that other members need not ask for advance permission to advertise your brokerage’s listings, in consideration of you not having to ask for other brokerages’ permission to advertise their listings. So, what’s the catch? Reciprocity advertising is only allowed on your brokerage’s and your own personal real estate websites, not social media sites like Facebook, Instagram, WeChat and the like. Advertising other members’ listings on sites like these is a potential breach of REALTOR® Code Article 14 and, Rules of Cooperation, Rule 8.03/8.04. Finally, Rule 8.12.06 says, “The MLS® Reciprocity Data or any portion thereof may not be displayed on any Internet website except an MLS® Reciprocity Internet Website.” (Facebook/Instagram/WeChat are not MLS® Reciprocity Internet Websites).

CMHC tightens lending standards, foreign buyers exemption, funding strata insurance premiums

CMHC tightens lending standards, making homes less affordable 

Effective July 1, 2020, Canada Mortgage and Housing is tightening lending standards. How much will this raise the cost of buying a home for first-time buyers? 

Read more.

Foreign buyers tax exemption for certain limited partnerships 

Foreign entities and taxable trustees may now be exempt from the foreign buyers tax, an additional property transfer tax of 20 per cent. Find out if your clients qualify. 

Read more.

Funding insurance premiums and calling general meetings  

Two additions to the Strata Property Regulation on May 29, 2020 will make life easier for strata corporations grappling with sky-high insurance premiums. 

Read more.

Feature more multimedia links in your listings

Did you know there are two additional fields in Paragon you can use to include videos and other multimedia links in your listings?

The fields are called ‘Property Brochure’ and ‘Alternate Feature Sheet’ and can be found in the Marketing section of Paragon (the same place you enter REALTOR® and Public comments to your listing).

You can enter multimedia links (i.e. YouTube or Matterport videos) in both of these fields. These links will flow through to Realtor.ca, giving you two more ways to promote your listings to the public.

Contact Help Desk at 604-730-3020 if you need assistance with these fields.