Rogers-owned real estate  portal Zoocasa launched a new service this week called “Zoopraisals“. CTV News quoted me in a story they posted on their website which you can read here if you like. They offer anyone a free home appraisal instantly over the internet without any strings attached. This brings Zoocasa one step closer to becoming Canada’s version of Zillow.com which is an extremely powerful real estate search engine in the U.S. and they have been providing property owners “Zestimates” for several years now.

The big question always is, do services and innovations like this mean the end of Realtors as we know it? Will technology and the internet ultimately replace the traditional real estate agent model of buying and selling real estate? Will commissions soon be a thing of the past?

My answer to all these questions is obviously ‘no’. While I give kudos to Zoocasa for creating great tools for the consumer, these tools only serve to highlight the fact that any service professional who can’t prove themselves more useful than a computer model or add any more value to a transaction than an online classified ad will soon be out of business. However, those professionals who are experts in their market niches and understand the many complex variables to go into every single real estate transaction will continue to thrive for many many years. I think you know which group I plan on being a part of!

This is also a great time to plug my own condo evaluation service, which like Zoocasa’s is also free, however unlike Zoocasa it actually contains more than just a single number on a screen as it takes into account my extensive knowledge and experience working in the downtown condo market! If you’d like to know what your condo is worth, please contact me.

CBC Radio Interview from Andrew la Fleur on Vimeo.

OK. This will be the last post on this subject-I hope! I just had to share an interview I did yesterday with Charles Adler on his nationally syndicated radio program (AM640 in Toronto) about “The Smallest Condo in Toronto”.

Charles and I talked for about 6 minutes about the “micro-condo” phenomenon in Toronto. I had a lot of fun doing it and I hope you enjoy the listen! Questions or comments? Please contact me.

CLICK TO LISTEN ->Charles Adler – Sep 29th 2011 – Interview

To download the podcast in iTunes, go here.

Just 24 hours after TheStar.com wrote their article, Sympatico.ca and Yourmoney.ca picked up the story too. You can read it here.

While the articles were a fun read, what I found most interesting were the comments section of each article.

The article on TheStar.com framed me as a landlord and Realtor. The comments were mostly personal attacks on me, essentially calling me an evil, greedy slumlord and that I should be locked up for even thinking about renting out such a horrible, God-forsaken shoeb0x of a condo at such an exorbitant and oppressive monthly rate. “How dare you!”

The article on Sympatico.ca framed it as my own apartment that I would be living in (even though the author knew that it is an investment unit). The comments section on this article are full of praise for me as a smart and even ecologically sound home owner who is living within my means and not being wasteful. “Good for you for making it work!”

This contrast between the two comments’ sections provides a fascinating glimpse into the human physche, but the point I want to make is that it really underscores my belief that investing in real estate is not for everyone. Many people do not and will never understand real estate, and specifically how it can be a vehicle for wealth creation. Some of us ‘get it’. Some of us don’t. I wrote a couple blog posts last year about the difference between those who get it and those who don’t.

Questions or comments? Please contact me.

I never envisioned my face would be plastered on the front page of TheStar.com right next to a picture of Rob Ford laughing diabolically, but here we are. Check out this cute little article-with video- that Susan Pigg (The Star’s new real estate reporter) wrote about my investment unit at One Park West. What is interesting or ‘newsworthy’ of this condo is that it is possibly the smallest condo in the entire city at 301 square feet.

I guess you could say I put my money where my mouth is when it comes to the Regent Park revitalization project. I first started blogging several years ago about One Cole, then last year it was One Park West, now this week it’s Paintbox. It’s no secret I am a believer in the redevelopment that is happening in Regent Park, and I’m happy to say my own piece of the puzzle has turned out fantastic.

I know that many people within the real estate industry in Toronto are still highly skeptical that Regent Park will overcome it’s stigma and reputation as a ‘bad’ area, built progressively over the last 50+ years, but I’m not one of them. I believe when the redevelopment is complete in around 5-7 years this area will be a great middle-class, family-type neighbourhood in the heart of downtown. Something unique and an affordable area that people will not only want to live in, but also spend their free time in.

Questions or comments? Please contact me.

I guess this makes it official: everyone is talking about the Toronto condo market. I was interviewed a couple weeks ago for an article on our condo market by a writer for the Wall Street Journal, and today that article hit wsj.com. Read the entire article here. See what people on Twitter are saying about the article here.

The article certainly has a bearish slant to it, with the basic thesis being: the market has been booming for so long it therefore must crash. Certainly not something we haven’t heard before many times over the last decade, but should this article give individual investors pause as to whether or not they should be buying a condo in Toronto right now?

I was asked my opinion on the market and the prospects for a ‘correction’. What I told the writer was the same thing I’ve been saying on this blog for a while now: the likelihood for a correction in the short term is very low, the fundamentals right now are strong. However, even the most bullish investor must admit that a key driver to this market has been the lower-than-low interest rates we have had over the last few years. If rates continue to stay low, demand will continue to be strong, prices will continue to rise, and thus, the potential for a correction will grow. In other words, no market can rise at 6-8% per year ad infinitum, but as long as money is cheap, the market will likely keep its momentum.

I would love to hear your comments. Leave one below or email me.

Graphic above taken from the wsj.com article.

I’ve been working with one buyer downtown for the past few months. Let’s call him MJ. MJ owns a condo townhouse near Yonge and Eglinton that has appreciated significantly since he bought it and he’s looking to sell and move downtown. After seeing several units in different buildings and in different areas, MJ narrowed it down to 2-3 buildings he liked and was looking for a 2 bedroom unit up to around the mid $500s. Problem was, there was nothing available for sale. We waited. We waited some more. Nothing was coming up in these buildings. Frustration was starting to set in. Time to get creative.

Some agents will solicit listings by  flyering or directly sending letters to specific units in specific buildings. The message being, “I have a buyer who will buy your condo for top dollar!”. I suspect this approach is not very effective as it inherently reeks of ‘spam’ mail. I decided to take a different approach.

There just so happened to be a unit FOR LEASE in the exact building that MJ was very keen on, and this unit’s floor plan was one he had seen before and liked it. I called up the listing agent for this unit that was for lease and asked if the seller had any interest in selling instead of leasing it. He said unlikely since he just bought the unit last year. I let him know MJ was a serious buyer, and low and behold after a few phone calls back and forth, we submitted an offer in writing and that offer was accepted! MJ was thrilled that he found a great condo in a great building and he did not have to go through the pain of a bidding war to get it! He’s now getting his townhouse at Yonge and Eglinton ready for sale.

Thinking of buying or selling a condo this spring? I’d love to help you achieve your real estate goals. Contact me to discuss.

The most recent case was an email that I received from a prospective client. He forwarded me an email that he received from another Realtor (whom I have never met) about Theatre Park. The client was confused at the origin of the email and thought I was involved with it somehow. Reading through it I realized that the words of the email were copied and pasted from my recent blog post about Theatre Park. Brutal!

I know that the Toronto condo market is the NFL of condo markets, and that I am part of a hyper-competitive industry (30,000 Realtors in the Toronto Real Estate Board). We all copy each other to some extent (myself included), but when imitation crosses over into plagiarism, I can’t help but throw up a flag and call a foul.

So I wanted to put it to my loyal readers and followers: what should I do about these plagiarizers? Should I expose them publicly on this blog or some other forum? Should I threaten legal action (or actually pursue it) where warranted? Should I stop taking myself and my blog so seriously and ‘get over it’?

The angle I have taken to date has to simply ignore them, keep my eyes locked in the forward position, and concentrate my energies on creating the best, most informative, most BS-free, and most insightful Toronto condo blog on the Internet. What say you readers??

The immediate needs are obvious: people need food, shelter and water desperately. I have faith in the International Community to provide for these basic needs in the weeks to come. But when the dust settles and all the bodies are buried, Haiti will need to literally rebuild itself. This will take years and probably hundreds of  millions of dollars.

This is why I have decided that for the next 30 days, for every client of mine who buys or sells a property, I will donate $1 for every $1000 spent to a charity of their choice to help the relief efforts in Haiti. For example, a purchase/sale of a $300,000 condo will mean a $300 donation. The charity must be directly involved on the ground with the relief work that is happening in Haiti. And to be clear, the donation will be made in the name of the buyer/seller – so there is no financial benefit for me personally.

I realize this will be more of a gesture of good will than any major significant contribution to the cause, but I feel like I have to do something more than just give personally, and I see an opportunity here for my business (helping people buy and sell real estate) to do some good.

And just a thought to all the Toronto Realtors out there who are reading this blog: if you want to join with me and do the same with your clients, I think that would be great. With a little momentum, we could start to make a significant difference. If you have any questions please feel free to contact me.

Update 1: 24 Hours after posting this I am happy to announce that 3 other Realtors have joined in the cause. Katy Galica of Re/Max Condos Plus, Kenny Shim of Re/Max Condos Plus, and Mark Savel of Re/Max Realtron.

Update 2: I’ve joined the Toronto Works For Haiti team. Toronto Works for Haiti is a collective of Toronto area small business owners who are offering services in exchange for donations to the relief efforts in Haiti. It’s all about raising money and awareness for Haiti so I am all for pooling resources and joining this group.

I would like to highlight one organization’s efforts in Haiti: Habitat for Humanity.

Habitat’s early response to the earthquake is threefold:

• Cleanup
  To clear the way for home repair and construction, Habitat will assist in the cleanup by mobilizing people to remove debris and salvage materials that can be recycled in new shelter.
• Shelter kits
  Shelter kits include building materials and tools and are designed to help families and neighborhoods make immediate repairs to damaged homes. The kits typically include items such as wall panels, roofing sheets, hurricane straps and a hammer and nails. Habitat also has a cadre of certified masons and carpenters to assist families with immediate repairs.
• Transitional shelter
  Small transitional shelters can be built quickly and provide permanent base structures that can be expanded over time. The shelters will meet humanitarian standards of adequate living space and provision of water and sanitation. The structures will also be designed with hurricane- and earthquake-resistant features

Other organizations who were very active in Haiti before the earthquake and will be there for years to come include:

• World Vision
• Red Cross
• Oxfam
• Doctors without Borders (MSF)

Consider giving to one or more of these organizations if you have not already.

IN REVIEW
Most Forecasters never look back – that’s because they don’t want you to look at their ‘near’ misses. Our 2009 Forecast called for more sales than in 2008 (and we told you that would happen in the second half of the year)! Everyone else predicted sales at 2001 levels (a big time recession). Who was right? We also recommend that you review our ten year forecast made in 2007 whereby we said condo prices would double and the long term trend would be upwards with some pauses but not corrections along the way!

WHAT TO LOOK FOR IN 2010
1) NO real estate ‘bubble’ this year! Some doomsayers are falling back on this tact after the failed sales crash of 2009 forecast. For anyone who has studied real estate trends, it usually takes three years of double digit price increases to produce the effect. And in the condo market we have had about 8 months so far!

2) NO interest rate spikes this year. The Bank of Canada and Finance Minister are left with nothing but ‘moral suasion’ in an attempt to slow down this market. Our bank rates (variable) are not going higher until the U.S. raises theirs, and that wont’ be in 2010. Fixed rates could move slightly higher if Governments start heavy borrowing in Canadian markets to cover their deficits.

3) DON’T get sidetracked by Canadian real estate markets. Focus on the condo market – particularly downtown. The bad news about the U.S. market is really centered on 4 states and 21 counties. I was recently in South Florida. Miami condos are a disaster (as everyone knows) but 5 miles across the causeway in South Beach, the market is still going strong – no foreclosures and rising prices! Why? There was no SPEC construction and there is a limited supply of product. So what happens in Vegas stays in Vegas! And that too is real estate.

4) HST (JULY 1ST) will impact the real estate market. First it will bring sales forward from the second half of the year and secondly, a new tax always causes consumers to stop spending on everything for a period of time. Remember the City Land Transfer tax and the introduction of the GST? After several months of complaining, Canadians will just get on with life, accept more taxes, and resume their spending habits.

5) Watch the average price per sq.ft. differential between the resale market and the new condo market. That will tell you where the investors are going. Seven years ago the differential was only $25 and investors poured into new projects. Over time the gap rose to about $150 per sq.ft. and investors moved back to the resale market. Investors returned to the new project market in the fall of 2009, when the differential had dropped to under $75. Today the average price for resale condos is about $500 and for new projects it is $600 per sq.ft.

WHAT TO DO IN 2010
1) What are driving prices in this market are NOT cheap mortgage rates but rather a lack of listings and a race by buyers to purchase before the HST! Again this year will be made up of two markets. The first half of the year will be a sellers’ market. SELLERS should list NOW or be prepared to wait until 2011.

2) In the condo market over the past five years there have been very few buying opportunities. One presented itself in the first half of 2009. (We reported in our April Report of ’09 that the market had bottomed in the first week of February).The second opportunity for BUYERS will be this fall. Don’t expect prices to drop but do expect prices to stabilize and ‘multiple offer’ scenarios to drop significantly. Besides the HST, a significant number of new condo projects will be registering in the second half of the year and we expect an additional 2,000 units will come on the market from investors (that is about a 3-4 months’ supply) which will significantly reduce the listing shortage in the back end of the year.

3) BE A PLAYER IN THE ASSIGNMENT MARKET (buying and selling properties before they are registered) an often overlooked area by buyers and sellers. Sellers can bring their property to market earlier (and beat the slowdown in the latter half of the year) and buyers can escape from the ‘multiple offer’ frenzy and move in earlier. To be a PLAYER you need a knowledgeable realtor who knows how to structure the deal and you need a skilled lawyer who knows how to close the deal!