What Canadians think about your housing market… and assignment sales

by Justin da Rosa02 Mar 2016
No matter where you operate, this latest study on consumer sentiment regarding housing prices is a must-read for all agents..

Consumer sentiment has been well-tracked in both Vancouver and Toronto – the country’s hottest real estate markets – but one firm as expanded that to include all provinces in a study it says is the first of its kind.

“It’s clear that Vancouver-area residents remain most frustrated by real estate costs. However, as the following graph demonstrates, a significant proportion of residents in smaller urban centres don’t exactly see themselves rolling in clover when it comes to their own markets,” the Angus Reid Institute said in its study entitled Beyond Vancouver & Toronto, most Canadian city dwellers say home prices either high or unreasonable. “No fewer than 45% in Edmonton, Calgary, Winnipeg, Montreal or Halifax view prices as either “high” or “unreasonably high.”

The public interest research firm conducted a random online survey across Canada from February 2-10, which included 5,867 Canadians. The survey data contains a margin of error of +/- 1.3%. A separate survey included 1,513 participants and had a margin of error of +/- 2.5%.

This is how participants responded to a question about the affordability of housing in their respective communities.



Source: Angus Reid Institute

The study also asked participants to weigh in on the controversial practice of assignment sales.
Perhaps surprisingly, sentiment around the practice – which some agents have reportedly used to purchase homes from clients before selling for a higher price than original asking – is somewhat split.

Source: Angus Reid Institute

COMMENTS

  • by Jeffrey Joseph, Broker 3/2/2016 10:46:30 AM

    A Realtor With 47 Years Of Career Experience Says: "People Do Not Usually Buy What They Need; They Usually Buy What The Want",
    So, If You Feel Prices Are Too High For What You Want, Buy What You Need, Or Do Not Buy. If Enough People Showed Resistance To
    The Prices And Just Stepped Back And Waited, Then, Prices Should Probably Fall, But Please, Do Not Ask Your Government To Interfere
    In The Marketplace Of A Free, Democratic, Capitalistic Society; It Would Be Bad Legislation; Really Bad. Ontario Saw That Picture On
    Friday, April 9, 1974. What A Costly Mess Those MPPs Created For The Public They Were Hired To Serve, And I Wonder, Just How Many
    Of Those 'Insiders' Benefitted Because They Knew What Was Coming, And When.

    Jeffrey Joseph, Broker
    Harvey Kalles Real Estate Ltd., Brokerage
    Toronto, ON
    jeffreyjoseph@realtor.com
    416-782-7000

  • by 3/2/2016 11:37:12 AM

    Assignment offers - No issue provided full disclosure spelt out, although I have a hard time believing a seller would accept an offer with disclosure stating "I as a Real Estate Professional am including an assignment clause in my Offer to Purchase for the purpose of resale and self profit prior to the actual closing date set for this transaction" If included, there should also be a clause allowing for lawyer approval on behalf of the sellers, anything less is under handed.

  • by COMMERCIAL GUY 3/7/2016 9:13:27 AM

    The inaccurate info that I keep seeing in these comments/debates is that it is the agent buying from the owner. WRONG.

    The agents are paying a bounty for their staff or friends or even a stranger to buy from the owner - NO AGENT INVOLVED.

    Then the agent buys from the straw buyer , using the assignment clause, therefore severing his/her fiduciary duty .

    The original owner was never the agent's client - so no legal disclosure needs to be made.

    Get it people there are no laws being broken - especially civil liability laws - so there is no recourse.

    This is a loophole that could be closed by new legislation or regulation that only affects agents - not the market.

    Over the course of my 28 years in the the commercial game I have used assignment clauses regularly - but not to profit personally.

    They are a necessary aspect of some contracts depending on circumstance.

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