Training and career in real estate

Brossard, May 9, 2003 – The Association des courtiers et agents immobiliers du Québec (ACAIQ) has awarded the first Québec Real Estate Brokerage Award to Mr. Paul E. Myre, chartered real estate agent. The award ceremony was held on April 29, 2003 in Laval as part of the Association’s convention.

The ACAIQ created the Québec Real Estate Brokerage Award in order to recognize a real estate agent who contributed in multiple ways to raising and modernizing the standards of practice of the profession. Nominees are evaluated based on four main criteria, i.e. commitment, behaviour, skill and influence. The Québec Real Estate Brokerage Award consists in a bronze medal and a pin symbolizing an immovable under the sign of elevation, cooperation and success.

Recognized for his involvement in the business community in Montréal, Laval and the Laurentians, Paul E. Myre heads the firm Myre Pageau & Associés of Blainville, specializing in industrial and commercial real estate development and investment. Formerly a manager at Bell Canada, he left the company in the mid-70’s to go into real estate.

With his wife, Paul E. Myre then founded Les immeubles TMS inc in Sainte-Thérèse, then successively opened three branches in Saint-Eustache, Saint-Jérôme and Terrebonne. At the beginning of the 1980’s, he acquired two Re/Max establishments in Montréal and Sainte-Thérèse. Professional achievements of note include the development of major industrial parks and shopping centers in Boisbriand, Sainte-Thérèse, Blainville and Chambly.

In addition to his participation in many large scale projects, Mr. Myre has greatly distinguished himself through his social and community involvement. In 1984, he became Chairman of the Montréal Real Estate Board and, three years later, he was named to the same position for the Chambre de commerce de Thérèse-de-Blainville. He was also honorary chairman of the Multiple Sclerosis Carnation Campaign and co-chairman of the 1999-2000 fundraising campaign for the Fondation de l’Hôtel-Dieu de Saint-Jérôme, for which he collected over 3 million dollars.

Paul E. Myre’s nomination for the Québec Real Estate Brokerage Award was supported, among others, by three heartfelt testimonials by Elie Fallu, Mayor of Sainte-Thérèse, Me Marc D’Aoust, Chairman of Fondation de l’Hôtel-Dieu de Saint-Jérôme, and Charles Le Borgne, Commissioner of Société de développement économique Thérèse-de-Blainville. Outstanding commitment, leadership, probity, integrity, reliability and incorruptibility are some of the words used to describe Mr. Myre’s personality.

The Association des courtiers et agents immobiliers du Québec (ACAIQ) is the body in charge of real estate brokerage in Québec. Its mission is to protect the public by overseeing the professional activities of all real estate brokers and agents practicing in Québec, as stipulated by the Real Estate Brokerage Act. The Association’s membership includes approximately 12,000 real estate brokers and agents.

The organization is administrated by a board of directors made up of eleven members. Of these, nine are certificate holders elected by their peers. The other two directors are not real estate brokers or agents and are appointed by the Government after consultation with various socio-economic groups.

Montréal, May 13, 2003 – From January to March 2003, 10,191 resales were recorded through the Multiple Listing Service S.I.A.®/MLS® in the Montréal metropolitan area, for a decrease in activity of 19 per cent in relation to the corresponding period in 2002. The decline was more pronounced on the single-family home market (-22 per cent) than on the plex market (-16 per cent) or the condominium market (-12 per cent).

While the market may have weakened, the level of activity still remains very high compared to previous years. “The resale market posted its second best performance since 1989, after the first quarter of 2002. Total transactions were 3 per cent higher than in the first quarter of 2001, which had been excellent,” pointed out Michel Beauséjour, FCA, Chief Executive Officer of the GMREB.

In a context of scarce supply, demand for existing homes slowed, not for lack of any buyers, but because it is difficult for them to find properties that meet their criteria and because these properties are getting more and more expensive. It should be noted that the results for the first quarter show that the supply of properties for sale is falling at a slower pace than in 2002. Overall, listings fell by 16 per cent while, one year earlier,
they had decreased by 38 per cent.

However, the strong growth in prices that marked the year 2002 continued in the first quarter of 2003 and extended to all housing types. More specifically, the average prices rose by 20 per cent for single-family homes, by 21 per cent for condominiums and by 22 per cent for plexes. “This increase was all the more significant in that prices had gone up modestly during the corresponding period last year, compared to the rest of 2002.

Also, this major hike was attributable to a shift in demand toward more expensive properties,” commented Sandra Girard, Senior Market Analyst.

This information, and much more, can be found in Analysis of the Resale Market: Montréal Metropolitan Area, a quarterly review jointly published by Canada Mortgage and Housing Corporation (CMHC) and the Greater Montréal Real Estate Board (GMREB). This report presents an analysis of the resale market in the metropolitan area, along with data on single-family houses, condominiums and plexes.

Île des Sœurs, June 2, 2003 – Resale housing transactions via the
S.I.A.®/MLS® systems of the 12 real estate boards in Quebec generated
average spin-off benefits of $1.1 billion for 2001 and 2002, according to an economic study conducted last April for the Greater Montréal Real Estate Board (GMREB) by Clayton Research, a firm specializing in urban and real estate economy.

More specifically, the study reveals that for each of the 66,300 transactions
processed annually through Multiple Listing Services® (S.I.A.®/MLS®) in
Quebec, a total of $16,590 in spin-off benefits was generated, which
contributed to the creation or the maintenance of more than 17,500 direct and indirect jobs (on a full-time, full-year basis).

“The amount of $16,590 comes from fees to professionals such as notaries, appraisers, real estate agents, etc. as well as government taxes and fees”, explains Michel Beauséjour, FCA, Chief Executive Officer of the GMREB, who adds that “when families move, they undertake renovations and purchase new appliances and furniture.”

In addition to these major benefits, there was a total of $16.2 billion in sales volume recorded for the past two years ($7.1 billion in 2001 and $9.1 billion in 2002), thanks to the sale of existing homes through agents and brokers members of the 12 real estate boards in Quebec. “Such results clearly demonstrate the importance and the strength of the resale market in the Quebec economy”, says Mr. Beauséjour.

Liability insurance is in a crisis! Real estate brokers are seeing their liability insurance premiums double and even quadruple, due supposedly to a tightening of the market. Insurance companies are blaming the situation on a deterioration of their experience in this area, to a point where most are pulling out of the market. Consequently, we are entering an up cycle, which does not bode well for the coming years. This situation is creating a major problem for real estate brokers and agents. It is also leading to a significant risk for the protection of the public.

An alternative has been put forward by the ACAIQ in the creation of a Liability Insurance Fund, and recommendations have already been made to the government to this effect. However, this project, which the Association has been studying for three years now, has met with some obstacles. To remedy this, the profession must immediately take certain steps, and your cooperation is essential in this regard.

In order to take stock of the situation and the Liability Insurance Fund project, we are organizing a series of information sessions (in French only) for chartered real estate brokers, to be held in several Québec regions, from 9:30 a.m. to 12:00 p.m.

Île des Soeurs, June 10, 2003 – According to the statistics published by the Greater Montréal Real Estate Board (GMREB), a total of 4,593 sales were recorded on S.I.A.®/MLS® in May 2003, roughly the same number as in May 2002, when 4,611 sales were recorded.

In May 2003, the total sales dollar volume of units sold showed a strong increase, reaching $751 million, an 11% increase when compared to the $675 million in May 2002.

As for the number of active listings, although it continues to go down, the reduction is occurring at a slower pace than at the same time last year. As of May 31, there were a total of 21,556 residential listings on S.I.A.®/MLS®, compared with 22,447 at the same time period a year ago. On the positive side, the number of “new listings” was up by 800 in comparison with the same month last year.

“With the number and the variety of new listings entering the market each month, it is still a good time to buy for both first-time buyers and current owners looking for a new property”, says Michel Beauséjour, FCA, Chief Executive Officer of the GMREB. “However, it is important to know that hiring a real estate agent remains the best way to get the latest information on the properties available and the market.”

In May 2003, the average price of single-family homes in Greater Montreal was $166,000, compared with $147,000 in May 2002. This is not necessarily a true indication of the actual price of single-family homes in all sectors of the Greater Montreal area, but rather an indication of the trend in the average cost of properties located in the areas covered by the GMREB.

“Low interest rates continue to benefit the housing market, which remains an interesting investment for first-time buyers and current owners alike”, adds Mr. Beauséjour.

The Greater Montréal Real Estate Board is a non-profit organization and has close to 7,000 members, real estate brokers and agents. It is the third most important board in Canada and its mission is to actively promote and protect its members’ professional and business interests in order for them to successfully meet their business objectives.

OTTAWA, June 9, 2003 — The seasonally adjusted annual rate1 of housing starts was 197,900 in May, reflecting robust construction activity in the residential sector, reports Canada Mortgage and Housing Corporation (CMHC).

"Last month's slight decline in the housing starts trend is consistent with the expected moderation in the level of activity later this year and in 2004", said Bob Dugan, Chief Economist at CMHC's Market Analysis Centre.

"Low mortgage rates, favourable labour market conditions and consumer confidence continue to support healthy levels of activity in the housing market. Rising house prices also yielded higher returns on residential real estate than on bonds and equities, further boosting demand for housing.

"Sales of new homes have stimulated construction activity given the low inventories of completed units available for sale. Year-to-date, actual starts have exceeded last year's level by 2.4 per cent."

While the seasonally adjusted annual rate of urban multiple starts decreased 9.1 per cent to 74,500 units in May 2003 compared with 82,000 units in April, the rate is in line with the average of 76,000 in 2002. Year-to-date actual urban multiple starts having increased 12.5 per cent, remain high compared with the same period in 2002.

The seasonally adjusted annual rate of urban single starts edged down 2.4 per cent to 94,100 units in May from 96,400 the previous month. This was reflected in all regions of the country except Ontario where urban single starts increased 3.1 per cent. In terms of actual starts, urban single starts year-to-date are 5.3 per cent lower than for the same period of 2002.

Rural starts in May were estimated at a seasonally adjusted annual rate of 29,300 units.

1. All starts figures in this release, other than actual starts, are seasonally adjusted annual rates (SAAR) that are monthly figures adjusted to remove normal seasonal variation and multiplied by 12 to reflect annual levels.

2. Figures for the most recent month are preliminary and subject to revisions due to corrections or updates from quarterly enumeration or sampling results.

Over 350 participants attended the fifth edition of the ACAIQ Education Event held on April 29, 2003 at Laval’s Centre des congrès. This event, which gathered members of the Association des courtiers et agents immobiliers du Québec held under the theme Education a continuing benefit!, was organized as part of the organization’s annual general meeting.

The day was kicked off by Larry Smith, president and publisher of The Gazette and former president of the Montréal Alouettes. Kickoff is the right term for this former middle back whom, in his fifties, shows no sign of slowing down. As he entered the room, he dropped to his knees in front a female participant, apologizing in a colourful French for being “the only bloke in the room”. Throughout his address, Larry Smith ignored the podium to crisscross the room, often at a run, simulating a footballers’ feints.

Meanwhile, he gave a veritable human resource management course, drawing from his experience with the teams he knows best, i.e. that of the Montreal daily he runs (approximately 650 employees) and that of the Grey Cup winning Alouettes, which he resuscitated during his term as president. In fact, three of his active players took part in this conference, i.e. receiver Sylvain Girard and halfbacks Bruno Heppell and Éric Lapointe.

The second speaker of the day, Guylaine Barakatt, professor at Université Laval’s agri-food economy and consumer sciences department, demonstrated, using examples and statistics, the impact of service on the expansion of one’s customer base. She put forth that the value-added professional services provided by a real estate agent, combined with the fact that residential real estate is very close to people’s hearts, are almost surefire success factors.

For the third and last address of the day, François Pigeon, ACAIQ syndic, and Me Jean-François Savoie, legal advisor and trainer with the Association, reminded participants, using concrete illustrations, of the basic principles of real estate advertising. Ads that use comparisons, contests and promotions, “Sold” ads and business cards are common ways to communicate with the public, but whose content is often a problem. In fact, Assistance ACAIQ regularly responds to queries on this topic by people in order to avoid errors.

As in previous years, the annual general meeting included a short presentation on the Association’s activities in 2002 by Chairman Serge Brousseau and President and CEO Robert Nadeau. With no contentious topic on the agenda, the meeting flowed quickly and ended with the appointment of the firm Harel Drouin, PKF as auditors of the organization for the year 2003.

In the early evening, the traditional Chairman’s Dinner was highlighted by the presentation of the first edition of the Québec Real Estate Brokerage Award. Surprised and visibly moved, Paul E. Myre, of the firm Myre Pageau & associés, was presented with a bronze medal symbolizing elevation, cooperation and success by Keith Collins, president of the jury. Popular Québec humorist François Morency topped the evening with a most entertaining show.

The 2003 ACAIQ Education Event also included an exhibition by a dozen or so suppliers and event sponsors. Booths included Bell Mobility, Telus, Multi-Prêts Hypothèques, the Canadian Real Estate Association, Collège de l’immobilier, e-list Canada, Prospects Immobilier, Services de titres FCT, Stewart and l’Académie de l’entrepreneurship québécois.

The Association des courtiers et agents immobiliers du Québec recently held a series of information sessions for chartered real estate brokers in several Québec regions to take stock of the professional liability insurance crisis that is currently hitting the real estate brokerage industry.

These sessions have enabled us to observe that real estate brokers view the creation of a Liability Insurance Fund very favorably as a means of remedying the situation. It is now time to proceed with phase 2 of the creation of this Fund. This step will enable the Association to show the government the urgency of the situation by clearly stating facts, i.e. the rarity of insurance and prohibitive costs involved as well as the formal support given to this project by members of the profession.

We urge you to do the following immediately:

In recent years, the ACAIQ has observed a steady increase in the number of candidates to the Association’s certification examinations. In order to adequately meet demand in the Greater Montréal and surrounding areas, the Association will hold examination sessions in December and January for a large number of candidates.

These sessions will be held on December 15 and 16, 2003 and again on January 14 and 15, 2004 at the Radisson Hotel (Longueuil-Montréal), 999 De Sérigny in Longueuil. Please note that the dates of December 16 and January 15 will be maintained only if there are enough applicants.

We remind you that candidates must submit to the Association, at least fifteen days before the date of the examination, a complete file including their application for certification. The official transcript from the teaching institution where the candidate received his real estate brokerage training must be sent to the Association at least five days before the examination date.

On August 1, Louise Clément resigned her ten-year tenure as Director of the Chambre immobilière de Québec (CIQ). Mrs. Clément will pursue her management career with the Association des médecins d’urgence du Québec.

Well-known for her involvement in business and real estate, Louise Clément studied communications at Université Laval and has an MBA from UQAM and Université de Paris-Dauphine. Before heading the CIQ in 1993, she was Director of Communications for the Société des designers d’intérieur du Québec and Sales Coordinator for Hôtel des Gouverneurs in Trois-Rivières.

Louise Clément was also the representative designated by the Office des professions to the Ordre des comptables généraux licenciés du Québec from 1996 to 1999. In 1999, Mrs. Clément was nominated to the board of the Fonds d’indemnisation du courtage immobilier by the Québec government, a post which she still holds.

The ACAIQ would like to thank Mrs. Clément for her invaluable assistance in organizing various professional development events as well as for her contribution as a member of the task force on the Association’s business forms.