RE/MAX Western
Canada
Broker Owner Retreat
Monday, June 3, 2014
Walter Schneider, President & Co-Founder,
RE/MAX INTEGRA Group of Companies
Agenda
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Personal History
Market Update - North America, Europe
Market Trends
Opportunities and Strategies for
RE/MAX Broker/Owners
The Founders
Frank Polzler Walter Schneider
The Schneider's
Simon
Shelby Walter Maria Conrad
RE/MAX Ontario Leadership Team
Frank Polzler
Chairman &
Co-Founder
David Brown
EVP of
Promotions
Shelby Schneider
Director of Public
Relations &
Communications
Nancy Sears
Business
Development
Consultant
Walter Schneider
President &
Co-Founder
Lisa Clark
Vice President
Administration
Carrie Manson
Director of
Marketing &
Sponsorship
Christopher
Alexander
Pamela Alexander
CEO
Dolores Doherty
Vice President
Finance
Gurinder Sandhu
EVP - Regional
Director
Marianne Thompson
Director of Special
Events and
Meeting Planning
Graeme Canivet
Director of IT
Valerie Garcia
Director of
Training
Franchise Sales
Consultant
Michelle Goodridge
Executive Assistant
RE/MAX Around the World
RE/MAX Integra and Europe
AUSTRIA
SWITZERLAND
MINNEAPOLIS TORONTO
BOSTON
INDIANAPOLIS
As of May 31, 2014
OFFICES
Ontario-Atlantic (1980) 392
New England (1986)
222
North Central (1987)
179
Indiana (1988)
75
Europe (1994)
1,524
AGENTS
9,745
2,642
2,350
1,293
12,475
2,392 28,500
RE/MAX Integra and Europe
Ontario-Atlantic
New England
North Central
Indiana
Europe (37 countries)
GRAND TOTAL
TOTAL COMMISSIONS
1,010,441,414.6
260,620,095.38
231,642,572.20
106,028,762.18
1,608,732,844.45
TOTAL TRANSACTIONS
135,974.87
40,041.04
47,418.50
28,054.75
251,489.16
1,935,992,909.67
376,605.03
RE/MAX INTEGRA sells a
property every 75 seconds
Underground Economies
The alleged extent of under-the-table commerce in OECD countries
Percent of official GDP*
31%
Greece
28%
27.5%
Hungary
Italy
23%
22.5%
Spain
Belgium
19%
19%
18%
Sweden
Norway
Denmark
16%
14.5%
14.5%
14.25%
14%
14%
14%
13.5%
Ireland
Germnay
Canada
France
Poland
Australia
Netherlands
United Kingdom
12%
Japan
United States
Austria
Switzerland
8.5%
8.5%
7.5%
SOURCE: Organization for Economic Cooperation and Development
ONTARIO-ATLANTIC CANADA INC.
We didn’t just make the list.
We dominated it!
Canadian Top 250 Real Estate Brokerages
ranked by average transaction per agent.*
159
25
20
13
Royal LePage
Coldwell
Banker
Keller
Williams
Brokerages Report based on 2013 closed residential transactions for participating brokerages. Real Trends is an unbiased, independent third party.
8
Century 21
6
Sutton
Group
BROKER
COMMENTS
Broker Comments
Barrie, Ontario – 3 Offices – 158 Agents – 128,430 Population
Average Sale Price $325,494
• We continue to see tight inventory (3 or less months) – lowest I’ve ever
seen it- price increase of 10% YOY
• I’m seeing some “silly high” prices being paid for RES properties
• Majority of our agents have a solid # of sellers in the hamper so I expect to
see a strong spring flurry of activity in next few weeks
• Agent community as a whole is very positive & bullish about 2014 – all are
either busy or expecting to be soon
Mark Pauli, Manager of Brokerage
RE/MAX Chay Realty Inc., Brokerage
Broker Comments
Stratford, Ontario – 5 Offices – 66 Agents – 30,886 Population
Average Sale Price $254,156
• Slow since November partially attributed to the long winter conditions.
New builds are finally increasing; job stability and buyer confidence is on
the rise.
• Region has been slow to recover but is definitely coming around. I would
estimate a spring rush but steady the rest of the way.
• Farm sales and prices are at all-time highs – land values have jumped from
$12K/15K an acre to $20,000 an acre – this is likely the most volatile area
of our business.
John Wolfe, Broker/Owner
RE/MAX A-B Realty Inc., Brokerage
Broker Comments
Toronto, Ontario – 3 Offices – 124 Agents – 2.5M Population
Average Sale Price $521,268
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Market really consists of three markets: rentals, resales and new sales.
The rental market is now larger than the resale market on TREB – about two times
as big. Challenge is how do brokers make money-a sale commission is nine times
bigger than a rental commission.
Condo re-sales are 6% higher than the same year to date period in 2013.
March new condo sales were 20% higher than condo re-sales. What happens
when these units enter the resale market in four years?
People moving to live downtown is not slowing down/ growing. The preference
for many is freehold properties (multiple offers), the reality is that many will end
up in condos as a cheaper alternative. Hence long term, the whole condo market is
very positive.
Jamie Johnston, Broker of Record/Owner
RE/MAX Condos Plus
Broker Comments
Windsor, Ontario – 2 Offices – 122 Agents – 216,470 Population
Average Sale Price $178,251
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A delayed market that is a sellers' market and in 30-45 days should again be a
balance market.
Windsor & Essex County, an automotive/manufacturing city and about the last 2-6
years ago was known to be the worst city economically in Canada.
Knowing we had a great location weather wise and on the American border with
shopping, Pro sports, restaurants etc. has worked to attract the Baby Boomers
across Canada who are retiring. Great value for retirees
Your sellers sell for $600,000 -$1,000,000 or higher. Buy the equivalent for $200300,000 here. Condo down south and money in the bank on top of their savings.
I believe almost 3-6% of our business over the last 2 years. Not big but put us back
on the map economically!
Glen Muir, Broker of Record/Owner
RE/MAX Preferred Realty Ltd., Brokerage
Why I Have Concerns?
1.
2.
3.
4.
Market affordability
Global concerns (U.S. and China/India debt)
Provincial debt/taxes
New buyers/realtors do not understand
higher interest
5. Geo political situations/stock market
6. Press is pounding negativity
7. Buyer fatigue
Why I Am Optimistic?
1.
2.
3.
4.
5.
6.
7.
8.
Interest rates
A new generation of buyers
Economy is stable
USA is doing well
Best known Real Estate brand in Canada
RE/MAX global powerhouse
Immigration
Broader buyer pool
INFORMATION
RE/MAX Across Canada
Total Agents - 19,189
Ontario
9,836 – 51%
As of May 31, 2014
Western Canada
6,084 – 32%
Quebec
3,269/17%
RE/MAX AGENTS SELL MORE
PROPERTIES THAN OTHER AGENTS.
Canadian Top 250 Real Estate Brokerages
ranked by average transaction per agent.*
16.1
14.7
13.6
Coldwell
Banker
Sutton
Group
Brokerages Report based on 2013 closed residential transactions for participating brokerages. Real Trends is an unbiased, independent third party.
12.0
Royal
LePage
11.4
Century 21
10.4
Keller
Williams
Industry Productivity
TREB = 75% of Realtors in Ontario
Distribution of Teams
CONDO
COMMENTS
New Condo Sales
Rebalance in 2013
Annual New Condo Apartment Sales
Toronto CMA: 2004 to 2013
35,000
30,000
10-yr avg. = 17,727
25,000
5-yr avg. = 19,090
28,190
20,491
17,997
20,000
14,792
15,000
13,965
10,000
5,000
Source: Urbanation Inc.
Urbanation
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
0
2013 Investor Share Pegged at 3044%: Industry Survey Results
What Share of New Condo Buyers were Investors in 2013?
40%
33%
35%
28%
30%
25%
19%
20%
15%
10%
11%
8%
5%
0%
Less than 30%
30% to 44%
45% to 59%
60% to 74%
Source: Urbanation Industry Survey
Urbanation
75% or more
Resale Prices Holding Steady
Average Annual Growth in Resale Condo Prices (psf)
Toronto CMA: 2004 to 2013
12.0%
11.1%
9.6%
10.0%
7.9%
8.0%
6.0%
4.8%
6.0%
5.8%
5.0%
4.5%
4.0%
2.3%
2.0%
2012
2013
2.0%
0.0%
2004
2005
2006
2007
2008
2009
Source: Urbanation Inc., TREB
Urbanation
2010
2011
Record Level of MLS Transactions:
Combined Rental & Resale
Condo Apartment Resale and Rental Transactions
Toronto CMA: 2010 to 2013
40,000
30,647
13,674
15,355
16,976
15,292
15,698
2013
27,180
25,000
20,000
30,650
2012
30,000
35,326
Resale
2011
35,000
Rental
10,630
19,628
15,000
10,000
16,550
5,000
2010
0
Source: Urbanation Inc., Toronto Real Estate Board
Urbanation
LUXURY
COMMENTS
Luxury Market in 2013
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1,908 units +$1.5MM in GTA
18% increase over 2012
Bridal Path SOLD $13.4 MM
Bridal Path Listing for $25.8
MM
ONTARIO-ATLANTIC CANADA INC.
10 Must Dos for Franchise Owners
1. Upgrade the physical quality of your office
2. Lower the average age of your office
3. Develop a real recruiting pipeline
(conventions not for working/don’t want to host)
4. Nothing stays static
5. Understand fear
10 Must Dos for Franchise Owners
6.
7.
8.
9.
Never the right time
RE/MAX is a simple business
Marketshare
Elevate your game/how are you identified in
the market?
10.What does your world look like in 5 years
You’re Invited
October 16 & 17, 2014
JW Marriott Resort & Spa, Minett Ontario
You’re Invited
World’s Largest Pool, Suing, China
*Globe and Mail – August 2011
Muskoka