3 minute read
MESSAGE FROM THE CEO
Our hope for Canadians:
The security and joy that can only come from stating, ‘This is our home.’
You may have noticed that the world is a crazier place than usual. I write this understatement with a wry smile. 2016 featured an American election that was stranger than fiction; the logic-defying debacle that was Brexit; and here at home, the greatest regional real estate market disparity in modern times.
On the west coast, already our most costly real estate, prices rose by as much as 40 per cent, adding a startling one million dollars to the value of a West Vancouver house last year. A short hop over the mountains, unemployment in Calgary hit a 20-year high with home sales volumes nearly 20 per cent below normal (prices have been remarkably resilient). The good, the bad and the ugly played out across our vast land.
Craziness attracts the media’s attention. And where headlines go, politicians follow. Alarmingly, governments at all levels began to float ideas on how to “fix” the housing industry and affordability crisis in our two biggest cities.
History is littered with failed attempts by government to control free market asset values. Recently, egregious policy moves have taken the form of land transfer and foreign investor taxes; bad policies that restrict mobility and harm our economy. To improve affordability, policy makers must focus on improving housing supply. At Royal LePage, we work to ensure these important messages are heard. And we always focus on the greater good versus self-interest.
To make sense of this for consumers, we have proactively engaged the media as never before, and The Voice of Canadian Real Estate has never been heard so widely. Royal LePage achieved almost 2.3 billion consumer impressions during the year, dramatically more than any other company, and double our previous year’s total.
Thankfully, our nation’s economy is creating jobs, and lots of them. Over 80,000 net new full-time jobs were added in the last month of 2016 alone. All jobs are important for economic growth, but full-time employment is particularly critical for the health of our housing market. These are our homebuyers.
Two other factors that support confidence in our economy this year: the Canadian dollar and interest-rates are unlikely to go anywhere fast. Although oil could bolster our buck, higher rates south of the border will keep a lid on our currency's appreciation.
The housing industry was on everybody’s mind in 2016, from new graduates to the Prime Minister. Our industry should spend less time on the front page this year. I believe we are moving away from the regional extremes of real estate feast and famine – and that is a very good thing. Our nation’s 150th birthday is a great cause for celebration. As Canada’s Real Estate Company, we have had the privilege of serving Canadians for 104 of those storied years.
A healthy, well-managed national economy is many things: programs that assist in saving for retirement; encouraging people from around the world to move here and help us build a better life for all; and policies that support young adults’ goals to own a home of their own.
To sustain a healthy real estate industry, we must pursue the highest standards of education and professional conduct. At Royal LePage we are fortunate to have built our business on the foundations of ethical relationships.
Be proud of what Canada and your company stand for. Wrap yourself in the promise to do the right thing for your clients, your colleagues and the profession. In doing so, you are contributing to a healthier, stronger place for all Canadians.
PHIL SOPER President and CEO president@royallepage.ca
