To view John's full presentation click here

Click here to download the slides from Johns presentation

What are the characteristics of a livable, vibrant, sustainable neighbourhood?

To View David Baxter's full presentation click here

A narrative for the Alberta Real Estate Industry

What do birthdays tell us about people? Not much says David Baxter, the second Thought Leader in the Alberta Real Estate Foundation's 20th anniversary series. Real Estate is complex and the industry is one that focuses on many variables and not a single issue. Those looking for a simple explanation on how the industry will change and what that means for their individual business practice, will be disappointed. The challenge is to become informed, proactive and adaptable to the variables that make up the industry. Baxter's presentation was rich with data and statistics relevant for both Calgary and Edmonton industry professionals. It is worth mentioning a few of the leading issues he believes face Alberta Real Estate practitioners.

The changing nature of the housing consumer

Many REALTORS® are focusing on the baby boomer demographic, which according to Baxter is not a strategic frame. The REALTOR® is better off developing strategies based on people's living needs and not on external characteristics. When thinking about the housing consumer, we should be asking, "How are people choosing to live?" Factors that contribute to changing housing patterns include longer life expectancy, couples living in their homes together longer, adult children living at home while going to school and skipping the rental phase and net migration of young people to Alberta.

The home as a principal asset

The home can be viewed as a place to live and as the principal asset for many home owners. The Real Estate industry needs to celebrate the fact that home ownership has expanded over the past few years. The home is now part of a diversified financial portfolio and financial strategy as people age. Some may choose to sell early and pay for their retirement, while others will view their home as pre-paid accommodation and a tax-free investment. Those that see it as a long-term investment often stay in the home as long as they are able. And according to Baxter, they are able to stay in their homes longer should they choose to do so as our country is seeing longer life expectancies. Additionally, the life expectancy gap has narrowed between men and women. This means senior couples may stay in their homes or in a downsized dwelling longer relying on two pensions instead of just one.

Mindfullness of legal issues

The topic of elder financial abuse is one that REALTORS® need to pay special attention. The capacity for a senior to sign and list their home may come into question as legal documents and family matters come into play. The industry should be looking at how it protects elderly vendors from potential financial abuse and how REALTORS® can identify if this is happening. He also notes that REALTORS® need to protect themselves if they are confronted with someone saying the older buyer entered an agreement without the capacity to do so. 

Overall, Baxter was optimistic about the Real Estate market in Alberta stating that low interest rates, continued migration and rising incomes in the province will continue to create demand. His presentation contained many statistics, anecdotes and stories. If you missed the presentation but would like to view it in its entirely you can connect to the session David gave in Calgary from this link.

The Thought Leaders Series is part of the Alberta Real Estate Foundation’s 20th anniversary.

Download 

Dr. Dewald’s executive summary report.

Oh The Times They Are a-Changin' for Real Estate in Alberta

Bob Dylan's words seem to ring true for the real estate industry - change is coming. Dr. Jim Dewald, Associate Dean at the Haskayne School of Business at the University of Calgary, stated the results of his research on the Real Estate industry as part of the Thought Leaders series hosted at the Calgary Real Estate Board on May 19th. He predicted change is on its way within the next 5 years to a packed room. This is not a prophecy, rather a prediction based on Dr. Dewald's depth of experience in the Real Estate industry and by interpreting the results of a recent survey he conducted with Alberta and British Columbia brokers in May 2011 on the changing environment. In this study he found that over 80% of respondents felt that significant change would occur in the next 5 years (around 2015).

The major change discussed involves the role that intermediaries such as brokers and REALTORS® will play in future transactions. The reliance on the internet for information has opened up a new world for buyers and sellers to receive and post information about real estate transactions. Is there an upside to change? According to Dr. Dewald, other industries have survived the concept of disruptive change and used it as a lucrative business opportunity. He predicts the way forward will include more professional training and education for REALTORS®, the incorporation of technology as a way to leverage consumer value and better consumer education on the intricacies of the real estate transaction.  Dr. Dewald acknowledges that more research is needed to assess the theme of change in the Real Estate industry. He ended his talk with some advice in the way of a quote from Yogi Berra, "When you come to a fork in the road, take it!" For a REALTOR® that fork could be the choice between offering enhanced or reduced services.