President's message: Your Board and your dues in a time of emergency

We’re living in extraordinary times. This global pandemic has impacted all aspects of our personal and professional lives.

As REALTORS®, we’re having to balance serving our clients’ shelter needs with our responsibility to follow the government’s physical distancing requirements. We all want to do our part to prevent the further spread of COVID-19. We also need to keep our personal finances afloat in this emergency.

To help with this, some members have suggested that REBGV suspend member dues for a period.

The challenge is that the costs to run the systems, tools and services that members use every day continue. The declining Canadian dollar has made paying some of our largest suppliers, like the makers of Paragon, even costlier.

REBGV’s management and Board of Directors are looking at all aspects of our finances to determine the best way to serve you, reduce our costs, and responsibly manage our association through this crisis.

Your monthly dues payment to the BC Real Estate Association is $12. To be a member of the Canadian Real Estate Association, you pay $25.83 a month.

For REBGV, your monthly member dues are $57. If you’re on the monthly MLS® access fee, you pay an additional $75. Members not on the monthly access fee pay an MLS® fee only when they complete a deal ($225 per end). Members who subscribe to Sentrilock pay a monthly fee of $16.

Depending on how long today’s situation lasts, we’re concerned that REBGV’s reserves could be depleted. Suspending your $57 monthly dues right now would significantly increase this risk and could endanger the long-term viability of our association.

This risk, in my view, significantly outstrips the potential financial benefit that a dues suspension would have on our Realtor community.

This crisis is still in its early stages and things could change. We don’t yet know what the full impact will be on our communities, us as Realtors, our profession and our Board.

MLS® activity has just begun to drop off but high demand for our other member services continues.

Our Education team is hosting online PDP courses for approximately over 500 members a week. Our Helpdesk is taking your regular calls. Our IT staff is keeping our MLS® and other core systems up and running. Our Ethics Guy® is fielding increased member queries and is now doing virtual office presentations. Our Communication team is sending you daily updates and helping to represent you to the media and public. Our GR people are in regular contact with BCREA and CREA as we collaboratively advocate on your behalf with government to ensure the new economic relief measures will address your needs and those of your clients.

If you’re in particularly difficult financial times right now, we feel for you and want to do everything we can to help you get through this. The best way we can accomplish this is to keep advocating for you and ensuring you have the information you need to access government’s support measures, while at the same time ensuring our services are available to you so that you can continue to serve your clients.

All REBGV services remain available to you by phone, email, and online. Please reach out to us if you have thoughts or questions on how we can serve you better.

We’re in uncertain, unprecedented times. There’s no playbook to follow. We’ll continue to closely monitor the impacts that this evolving situation is having on members and adapt in your best interest.

Wishing you and those around you the best of health.

Sincerely,

Ashley Smith

President

Real Estate Board of Greater Vancouver

COVID-19: How government aid applies to REALTORS®

The federal and provincial governments have announced financial aid packages for Canadians struggling in the face of COVID-19.  

Here are some of the programs Realtors can apply for if they’re eligible. 

If you’ve lost income 

The Canadian Emergency Response Benefit (CERB) is a $500 weekly payment intended to support workers unable to make a living due to the COVID-19 pandemic. 

To be eligible for the benefit, you must have: 

• ceased working for reasons related to COVID-19 for at least 14 consecutive days within a four-week period for which the individual is eligible for CERB; and 
• made more than $5,000 of total income in 2019 or in the 12 months prior to the date of your application. 

To keep receiving the benefit, you can’t receive income from employment or self-employment between March 15 and Oct. 3, 2020. 

CERB applies to anyone who has self-quarantined or closed their businesses due to COVID-19. Being declared an essential service won’t impact your eligibility. 

There’ll also be a one-time, $1,000 supplement from the province to support the CERB. 

Application details will be available through My CRA and My Service Canada starting April 6. 

CREA is working with the government to fully understand how this program will specifically apply to Realtors. As soon as they have more information, we’ll let you know.

If you have employees 

If you have salaried employees, like assistants, you may qualify for the Canada Emergency Wage Subsidy. 

The program will provide an up to 75 per cent wage subsidy on the first $58,700 of an employee’s salary for up to three months. 

This would amount to up to $847 per week. 

To qualify for this subsidy, a business's revenue must have declined at least 30 per cent during the pandemic. The government will measure this by comparing revenue from March, April, and May 2020 to the revenue in the same months in 2019. 

An eligible employer’s entitlement to this wage subsidy will be based on the salary or wages actually paid to employees.  

The government expects employers to top up salaries to the maximum wages covered. 

Eligible employers will be able apply for the subsidy through the Canada Revenue Agency online portal and will need to reapply each month.  

This subsidy will be backdated to March 15 and is intended to help employers continue to pay employees during the pandemic. 

Organizations that don’t qualify for the subsidy may continue to qualify for the previously announced wage subsidy of 10 per cent of remuneration paid from March 18 to before June 20, up to a maximum of $1,375 per employee and $25,000 per employer. 

More details will be available soon. 

BC Hydro power bill relief 

BC Hydro announced new relief measures for both residential and commercial customers impacted by the COVID-19 pandemic. 

Residential customers who lost their jobs or are unable to work as a result of COVID-19 will receive a credit to help cover the cost of their electricity bills. The credit will be three times their average monthly bill over the past year. Customers won’t have to repay this credit. 

As well, BC Hydro will forgive the power bills of small businesses that have been forced to close due to COVID-19 for three months. BC Hydro is waiving bills for these customers from April to June 2020. 

On top of these relief measures, BC Hydro is also reducing rates by one per cent as of April 1. 

ICBC bill payment deferment 

ICBC is extending deferrals to up to 90 days during the COVID-19 pandemic. 

The Ethics Guy®: May you live in interesting times

It’s a saying we’ve all heard before: “May you live in interesting times.” It originated in China, where it may have been used as an insult. In our times, it’s come to mean, “Life can be dull so I hope yours isn’t.” It’s not quite like, “Live long and prosper,” but has a similar vibe. 

Sheesh! I think we’ve collectively been granted our wish. How quickly our times have changed from the world we knew to the new one we know so little about.  

We, here at your Board, have been scrambling to do our collective best to help you understand what’s going on amid daily change. I liken our current situation to a log floating down a raging river. We know we’re moving fast to an unknown destination. We know we’re a log and water is wet. And that’s about all we know. As I said in my last column, property buyers and sellers need us to help them understand what’s going on in the market. They need our advice, even if this advice is, “Let’s wait a bit to see how things are next month.”  

Our colleagues still need us to put accurate information into the MLS® System. Plus, of course, they expect us to return their calls and cooperate. We know we’re REALTORS®, but we’re now confused about how to be one when things are changing so fast. Add to this the stress of having to pay our bills and we end up with an unprecedented situation.  

But, we’re not alone. Everyone is being affected. And since we’re all in this together, this is our opportunity to bring out our best. We’re helpful by nature. Why else would we have gone into the real estate business? So, let’s help each other as much as we can, even if this help is only a word or two of encouragement to others. Right now, a few kind words can help someone get through a very tough day. 

My mother and father have told me so many stories of what they faced in 1940 World War II England. Some were horrific, such as my mother’s house being destroyed in a nighttime bombing raid while she and her parents were hiding in the Anderson bomb shelter behind their house. “Shelter” is not a particularly apt description, since theirs was just a bit of corrugated metal roofing covering the pit in which they were hiding. 

“Boom” went the bomb, and with that, the house fell over. All of a sudden, my mother was covered with dozens of escaping rats. They’d run into the pit from the bombed-out house. She doesn’t think much of rats to this day.  

As awful as their situation was, life continued, everyone made do, and eventually matters improved. In fact, for the 75 years since the end of the war, we’ve all been relatively safe, healthy, and prosperous. So if history is anything to judge by, some periods are tough but things rebound, and when they do, we need to be ready. But what to do in the meantime?  

Here’s a list to consider: 

• Get your PDP hours of credit all done. Courses are being taught via webinar. Contact Member Service for details. 
• Clean up your database of contacts. Go through each one, making sure the information is accurate, and also update the information about their current real estate situation. 
• Sharpen your listing presentation skills. Now’s the time to work on your scripting. 
• Sharpen your offer presentation skills. Talk to a top producer. Ask them how they deal with humanity’s three top objections: “I want to think about it;” “It’s too expensive;” and “I want to talk to someone else.” 
• Develop a client communication plan using your updated client list. Your plan could be a series of letters or other kinds of communication. The content should be a mix of helpful information with a friendly, “call me” veneer. Tip: Don’t forget to follow the rules of CASL (Canada’s anti-spam legislation) and the Do-Not-Call Implementation Act.  
• Have another look at your business plan. Do you have one? Some adjustments may be necessary to keep things realistic. Think about the listings and sales you made last year. How did you meet the clients with whom you did business? Do they have anything in common? If they do, consider these commonalities and build an advertising campaign with them in mind. 
• Set a goal to take 25 listings in 2020. Even if five don’t sell, you’ll have 20 sales to take to the bank. If you take one listing for every three presentations, you’ll need to make 75 listing presentations in 2020. If it takes you three warm contacts to find a lead, you’ll need to contact 225 warm leads to get those 75 presentations. If you’d rather contact potential clients you don’t know (cold contacts), you’ll need to contact many more of them to find solid leads. I’d estimate 200 for every solid lead, meaning you’ll have to sort though a lot more potential clients (about 15,000 or 60 to 70 per day if you want to take time off during the year). Trust me, you’ll need the time off.  
• Review the Rules of Cooperation and REALTOR® Code of Ethics. Go to Council’s new website and have a good click around. 

In closing, while I may not be out there with you, dealing with buyers, sellers, and other members, I’m there with you in spirit. Take one day at a time, setting reasonable goals for each day. Keep at it, and someday soon, you’ll be rewarded with much better circumstances. 

Top Tip 

When I “came into work this morning,” commuting to the kitchen from our bedroom, I powered up my laptop and Jabber phone app to find some concerning messages. One message was from a member and another from a member of the public. Both reported members for holding open houses when the Board has said they should not do so. I should think every passerby who saw those open house signs will have made judgments about the members and their brokerage. Some people won’t have cared. But many will have thought, “What on earth are those Realtors doing?” Folks, let’s do our bit to stop the spread of this virus. Don’t hold open houses. 

The provincial rental freeze, evictions ban, and what it means for you

The provincial government brought a new Rental Tenancy Order (RTO) into effect March 31, restricting rent increases and evictions during the COVID-19 pandemic.   

Here’s what you need to know about these changes. 

Eviction moratorium – Landlords can no longer give a tenant a notice to end the tenancy except in situations where people or the rental unit are at significant risk. However, if a landlord gave a tenant a notice to end the tenancy before March 30, then the notice remains in effect, subject to the dispute resolution process, and an order of possession can still be granted. 

If a seller and a tenant sign a "Mutual Agreement to End a Tenancy", and the tenant refuses to vacate the premises, this will not be enforceable until the emergency orders are lifted.  

This may be complicated in cases where a tenant is under mandatory quarantine, self-isolation or is in a medical facility. In those cases, it’s probably best to seek legal advice.  

Landlord’s right to enter a rental unit – A landlord can enter a rental unit for repairs or showings, as long as the tenant consents. Landlords must follow the standard procedure of requesting access at least 24 hours in advance, noting the proposed date and time – and they must  wait for the tenant’s consent. Landlords can enter rental units without tenant consent if there's an emergency in relation to the COVID-19 pandemic and the entry is necessary to protect the health, safety or welfare of the landlord, the tenant, or the other occupants.  

Rent freeze – Rent increases set to occur while this order is in effect, including previously announced rent increases set to take effect from March 30 onwards, can not take effect until after the state of emergency has ended. An exception for a rent increase would be if one or more occupants are added to a unit and the tenancy agreement specifies how the rent varies with the number of occupants.  

Restricting access to common areas – Landlords can reasonably restrict access to common areas to prevent the spread of COVID-19.  

Resources 

The provincial government created an FAQ on these rental changes. Click here to read it. 

LandlordBC also has an FAQ on the subject. Click here to read it.  

Provincial government lists REALTORS® as an essential service

The provincial government announced last week that real estate agents are an essential service in BC.

Other real estate-related essential services include:

• Land registration service
• Construction work
• Professional services, including lawyers and accountants
• Insurance services
• Building code enforcers and inspectors

The BC Real Estate Association made this recommendation to government prior to the announcement.

What does it mean to be an essential service?

The recognition grants REALTORS® the privilege to continue to practice real estate in a socially responsible manner in strict adherence to the Provincial Health Officer’s orders. 

This includes limiting in-person interaction as much as possible and following physical distancing requirements until the state of emergency is lifted. 

BC’s Superintendent of Real Estate Micheal Noseworthy said in a recent letter that the essential service designation means that real estate services are encouraged to remain open, but must follow the guidance provided by the Provincial Health Officer and other relevant government agencies to ensure safe operations and reduce the risk of transmission of COVID-19. 

For example, the provincial government announced on Wednesday that, while the provincial emergency order is in place, landlords are not permitted to enter a tenant’s rental space (for showings, routine maintenance etc.) without the tenant’s consent.

Where consent is granted to access a property by the home owner, and any tenant, you must adhere to the BC Centre for Disease Control’s prevention and physical distancing guidelines.

“If the guidelines cannot be followed, real estate professionals should not conduct the showing,” Noseworthy said. 

The provincial government has empowered municipal bylaw officers to enforce the provincial health office’s orders. The City of Vancouver announced they’ll start fining residents and businesses who aren’t following physical distancing practices. 

Strata insurance update, and speeding up the development process

Strata insurance update 

The effect of rising insurance premiums on strata property buyers, sellers, and owners continues to be a key concern for your Board. Here’s what we’re doing. 

Read more. 

Speeding up the development approval process  

The process for approving development had become so complex, lengthy, and expensive, the BC government launched a stakeholder group to find out why and come up with solutions. Here’s what they found.   

Read more. 

Home buyers and sellers adjust their activities in March amid challenging circumstances

Metro Vancouver’s* housing market saw steady home buyer demand to begin March and a levelling off of activity as the month went on and concerns about the COVID-19 outbreak intensified. 

The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,524 in March 2020, a 46.1 per cent increase from the 1,727 sales recorded in March 2019, and a 17.4 per cent increase from the 2,150 homes sold in February 2020. 

Last month’s sales were 19.9 per cent below the 10-year March sales average. 

“The first two weeks of the month were the busiest days of the year for our region with heightened demand and multiple offers becoming more common,” Ashley Smith, REBGV president said, “Like other aspects of our lives, this changed as concerns over the COVID-19 situation in our province grew.” 

Daily residential sales on the region’s MLS® were 138 on average in the first ten business days of the month. In the final ten business days of the month, the daily average declined to 93 sales. 

“Many of the sales recorded in March were in process before the provincial government declared a state of emergency. We’ll need more time to pass to fully understand the impact that the pandemic is having on the housing market,” Smith said. 

“In recent weeks, REALTORS® have been working to help and guide their clients through this uncertain period. Many people have understandably chosen to put their home buying or selling plans on hold for now. Other people have more urgent housing needs and we’re trying to work with them to address these needs in the safest and most responsible way possible.” 

There were 4,436 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in March 2020. This represents a 10.4 per cent decrease compared to the 4,949 homes listed in March 2019 and a 10.8 per cent increase compared to February 2020 when 4,002 homes were listed. 

The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 9,606, a 24.8 per cent decrease compared to March 2019 (12,774) and a 4.5 per cent increase compared to February 2020 (9,195).

“Realtors were named among the province’s list of essential services last week,” Smith said. “This means that we have a responsibility to do what we can to help residents meet their housing and shelter needs while strictly following the most up-to-date public health orders and physical distancing requirements from our health officials and government agencies.” 

For all property types, the sales-to-active listings ratio for March 2020 is 26.3 per cent. By property type, the ratio is 21.1 per cent for detached homes, 33 per cent for townhomes, and 28.9 per cent for apartments.

Generally, analysts say downward pressure on home prices occurs when the ratio dips below 12 per cent for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months. 

The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,033,700. This represents a 2.1 per cent increase over March 2019, and a 1.3 per cent increase compared to February 2020. 

Sales of detached homes in March 2020 reached 852, a 61.1 per cent increase from the 529 detached sales recorded in March 2019. The benchmark price for detached properties is $1,450,700. This represents a 0.7 per cent increase from March 2019, and a 1.2 per cent increase compared to February 2020. 

Sales of apartment homes reached 1,179 in March 2020, a 35.1 per cent increase compared to the 873 sales in March 2019. The benchmark price of an apartment property is $687,000. This represents a 2.9 per cent increase from March 2019, and a 1.4 per cent increase compared to February 2020. 

Attached home sales in March 2020 totalled 493, a 51.7 per cent increase compared to the 325 sales in March 2019. The benchmark price of an attached unit is $791,800. This represents a 2.5 per cent increase from March 2019, and a 0.9 per cent increase compared to February 2020.

Click here to download the March 2020 stats package. Click here for a version you can share with your clients.