With the exception of four years in the mid 1990’s during which time I lived in the U.S., followed by a couple of years in Kitchener, I have been in the Collingwood area since 1985. Like many I have witnessed the evaporation of Collingwood’s manufacturing sector which essentially commenced with the closing of the shipyards in 1986. I remember stopping on the way out of town on route to my grandfather’s funeral, to watch the last ship built at “Collship” slide down the greased rails into the harbour and along with it the remaining 200 or so jobs that still existed there at closing.
My own employer the one that moved me to Collingwood in the first place, Goodyear Canada, is gone and as we all know there have been many others. Not only is the Goodyear Collingwood hose plant closed, but Goodyear corporately is out of the industrial rubber products business as well as many other product lines it had diverted into, choosing to focus on its core business, tires. Indeed the manufacturing sector not only in our area but across North America has and continues to be redefined and this will continue as the result of emerging economies such as China and India.
You can ask virtually anyone around town and most will readily agree that Collingwood has done an abysmal job of re-inventing itself economically. Better paying manufacturing jobs have been replaced by low wage service industry positions in retail and tourism. Once thriving plants have either been torn down ie: Harding Carpets and Kaufman Furniture or they remain for the most part shuttered and “For Sale” such as the Goodyear facility or used for purposes such as off season car and boat storage. There is 15,000 square feet of office space in a beautiful new building on the east side of town that remains vacant with no tenant(s) over two years after it's completion and likewise for a 15,000 square foot warehouse on the same property.
The Thursday February 10th edition of The Connection ran a small article announcing that Collingwood had won an award from the Economic Developers Council of Ontario for its “Collingwood Has It All Campaign.” The adjoining story on the same page titled “Barber Glass to be auctioned” stood in stark contrast to the celebratory mood reflected on the face of the Mayor and Town staff accepting the aforementioned award at a ceremony in Toronto. At the very least, one might feel that placing these two news items on the same page was poor editorial judgment on the part of The Connection. If you choose to offer up some harsher criticism you might question is it even appropriate for Town staff to be “grandstanding” at an award ceremony when so many are either out of work or have had to leave the area to find it elsewhere? I am sure the 65 or 70 former employees of the short-lived Barber Glass plant find little solace in the Town’s award winning status and the same can no doubt be said of those that preceded the Barber Glass employees with permanent layoff notices at the Shipyards, Harding Carpets, Bendix, Goodyear, Kaufman, Nacan and others.
The only way to gauge the effectiveness of an economic development initiative such as the “Collingwood Has It All” campaign is in the creation of jobs and via other tangible economic measurements. Anything else is smoke and mirrors. Awards don’t put food on the table, buy clothes or pay rent. Residential property taxes have spiralled out of control partly due to the tax imbalance that exists due to reduced commercial activity in the area.
Collingwood is years overdue in developing a comprehensive, focused and above all realistic economic development strategy. We need a definitive plan to rebuild our fractured economy developed and championed by experienced business people not bureaucrats. Enough of the rhetoric about the lack of serviced industrial land or the absence skilled labour. That merely illustrates a “build it and they will come” mentality and in this day and age with continued uncertainty in an economy that is become increasingly global in nature, that attitude and approach simply won’t work. Yes, Collingwood has a lot of outstanding characteristics natural and otherwise, but a well defined path to economic growth isn't one of them.
Market Conditions We Cant Control
After a somewhat soft sales month in March, real estate activity through the MLS® system of the Georgian Triangle Real Estate Board (GTREB)thus far in April appears to be running at a pace relatively consistent with April of last year. Several things are undoubtedly holding the market back a bit right now one is the weather and to some degree, the upcoming federal election.
Weather definitely plays a role in our market as it has a bearing on the weekend traffic we attract to the area. Skiing is essentially over and with the current cold snowy weather, golf and other recreational activities associated with spring are not yet underway so we are definitely in the mid-season doldrums. We see this reduced traffic through weak attendance at Open Houses and in reduced showing requests for listed properties.
Historically, any pending election will certainly impact the buying decisions of many consumers contemplating a major purchase. A change in government may lead to economic, taxation or other changes creating a cautionary mood that shifts buyers into "neutral."
Another factor impacting our market activity is the pace of sales in the Greater Toronto Area (GTA) as a good portion of today's buyers are coming from the GTA and other parts south of us. In speaking with clients on the weekend that reside in Toronto, the market there has temporarily slowed as well and until that improves, the impact will continue to resonate up here. Further, due to the recreational nature of our market, a good portion of real estate sales in this area are discretionary in nature so often tere is no sense of urgency with buyers to purchase.
As I have told seller clients on numerous occasions, we can't create buyers. We endeavour to implement the most aggressive marketing plan we can in order to expose a property to potential buyers but those buyers have to be our there. In some cases at certain points in time buyers are noticeably absent and often through conditions or circumstances beyond the control of any of us.
Weather definitely plays a role in our market as it has a bearing on the weekend traffic we attract to the area. Skiing is essentially over and with the current cold snowy weather, golf and other recreational activities associated with spring are not yet underway so we are definitely in the mid-season doldrums. We see this reduced traffic through weak attendance at Open Houses and in reduced showing requests for listed properties.
Historically, any pending election will certainly impact the buying decisions of many consumers contemplating a major purchase. A change in government may lead to economic, taxation or other changes creating a cautionary mood that shifts buyers into "neutral."
Another factor impacting our market activity is the pace of sales in the Greater Toronto Area (GTA) as a good portion of today's buyers are coming from the GTA and other parts south of us. In speaking with clients on the weekend that reside in Toronto, the market there has temporarily slowed as well and until that improves, the impact will continue to resonate up here. Further, due to the recreational nature of our market, a good portion of real estate sales in this area are discretionary in nature so often tere is no sense of urgency with buyers to purchase.
As I have told seller clients on numerous occasions, we can't create buyers. We endeavour to implement the most aggressive marketing plan we can in order to expose a property to potential buyers but those buyers have to be our there. In some cases at certain points in time buyers are noticeably absent and often through conditions or circumstances beyond the control of any of us.
Where Have All The Great Leaders Gone?
Last evening the Collingwood Chamber of Commerce of which I am both a member at large as well as part of the executive, held an all-candidates meeting for the upcoming federal election. As was expected, the Legion was packed to a standing room only crowd prompting many to ask is there somewhere larger in Town to hold this. The simple answer is no. Short of the Eddie Bush arena Collingwood lacks a venue to hold and event of this size. Other observations I overhead by those in attendance was the lack of younger people in the audience. By far the majority of those present (myself included) were 50+. I have noted this at other community events of this type leading me to believe that perhaps the younger residents in town are simply too busy with work, family or other commitments to attend politcal or other events that involve issues pertaining to the community or in the case of a federal election, the country. Perhaps they just don't care and that may stem from a lack of confidence in both the political process and in those individuals that choose to run for political office.
In a prior posting I posed the question where have all the great leader's gone? Last night's meeting certainly did nothing to answer that question. After two hours of listening to the candidates answering questions from local members of the media, there were some choices removed from the group but at the same time no out-front winners. I must admit that Helena Guergis came off "sounding" the best, no doubt due in part to her past experience, her political savvy and the fact that she is fighting for her reputation and job. The Liberal candidate Alex Smardenka simultaneously pulled out a gun, dropped in a bullet and shot himself with his comment about PC Candidate Kellie Lietch when he essentially said "...we don't need a rich doctor with her million dollar home being parachuted in to the riding....." That comment drew prolific boos from the audience no doubt costing Mr. Smardenka signifiant votes in the room if he had many to begin with. It was equally disappointing when later in the evening instead of taking the high road, Dr. Leitch took an almost equal swipe at the Liberal candidate as payback. And what's with the Dr. title? Does anyone really care? Her skills as a pediatric surgeon are admirable but for the most part are irrelevent to the political job at hand. My father was a doctor (a dentist) and while he was proud of his profession it was a title that outside of his business dealings, he never used.
Election day (May 2nd) is fast approaching and like many I remain unsure as to how I will vote. I must confess I have never aligned myself with any particular party instead, choosing to vote for the individual I feel is best suited for the position. Different times require different measures so in my opinion there is no one party that offers a fix-all solution for everything. Last evening was helpful in ruling out some choices but came no closer to answering the question where have all the great leaders gone?
In a prior posting I posed the question where have all the great leader's gone? Last night's meeting certainly did nothing to answer that question. After two hours of listening to the candidates answering questions from local members of the media, there were some choices removed from the group but at the same time no out-front winners. I must admit that Helena Guergis came off "sounding" the best, no doubt due in part to her past experience, her political savvy and the fact that she is fighting for her reputation and job. The Liberal candidate Alex Smardenka simultaneously pulled out a gun, dropped in a bullet and shot himself with his comment about PC Candidate Kellie Lietch when he essentially said "...we don't need a rich doctor with her million dollar home being parachuted in to the riding....." That comment drew prolific boos from the audience no doubt costing Mr. Smardenka signifiant votes in the room if he had many to begin with. It was equally disappointing when later in the evening instead of taking the high road, Dr. Leitch took an almost equal swipe at the Liberal candidate as payback. And what's with the Dr. title? Does anyone really care? Her skills as a pediatric surgeon are admirable but for the most part are irrelevent to the political job at hand. My father was a doctor (a dentist) and while he was proud of his profession it was a title that outside of his business dealings, he never used.
Election day (May 2nd) is fast approaching and like many I remain unsure as to how I will vote. I must confess I have never aligned myself with any particular party instead, choosing to vote for the individual I feel is best suited for the position. Different times require different measures so in my opinion there is no one party that offers a fix-all solution for everything. Last evening was helpful in ruling out some choices but came no closer to answering the question where have all the great leaders gone?
Social Networking and Unmarketing
Whether you like them, participate on one or think they are just a fad, social networking sites are here to stay. As with other aspects of the Internet, social networking is having a profound impact on not just the personal aspect of our lives, but also on business as well. Go to many commercial or corporate websites and icons for Facebook, Twitter and other social networking sites are popping up all over and for good reason as many of these sites have hundreds of millions of participants.
Last week I participated in a webinar with a chap named Scott Stratten who has authored a book titled "Unmarketing." Scott speaks with authority about how to market to today's consumer and has 86,000 followers on Twitter. As with other studies I have read, marketing is no longer about screaming a message to the world about your product(s) and or service(s). It's about engaging and developing a relationship with consumers, sharing your expertise in a subtle way, providing them with information that is beneficial to them and without obligation, thus creating an image, brand or reputation for yourself long before you ever meet your readers or followers should that day ever come.
According to Mr. Stratten, one of the fastest growing demographics on social networking sites are those individuals that are 50 plus. In contrast to this, a study conducted by The American Affluence Research Center found that more than half of the U.S. affluent say they do not participate in any type of social media. You would perhaps think that the affluent would be those in the 50 plus age range but not necessarily so. Many of today's wealthy are younger, having made their money in a technology, financial or other field(s). The U.S. ranks third in terms of smartphone usage with 91% or in excess of 284 million Americans owning an iPhone, Blackberry or similar device thus enabling them to access the Internet and or share information and data on-the-fly. A phone is no longer a phone in the traditional sense.
In terms of real estate, many of us engaged in the profession are turning more and more to "unmarketing." According to Mr. Stratten the only person that cares about our picture on a business card, For Sale sign, bus bench or elsewhere is ourselves and I couldn't agree more. If you are in business for yourself as am I, the only thing to think about is your client(s) or potential client(s). If it is not going to be of benefit or value to them, don't do it! Too many marketing initiatives today are all about self gratification with REALTORS® and other commissioned salespersons perhaps being the guiltiest of all. In the new age of marketing and PR "Unmarketing" will win you more points with consumers but that in itself will be a hard sell with many that are mired in the old way of doing things
Last week I participated in a webinar with a chap named Scott Stratten who has authored a book titled "Unmarketing." Scott speaks with authority about how to market to today's consumer and has 86,000 followers on Twitter. As with other studies I have read, marketing is no longer about screaming a message to the world about your product(s) and or service(s). It's about engaging and developing a relationship with consumers, sharing your expertise in a subtle way, providing them with information that is beneficial to them and without obligation, thus creating an image, brand or reputation for yourself long before you ever meet your readers or followers should that day ever come.
According to Mr. Stratten, one of the fastest growing demographics on social networking sites are those individuals that are 50 plus. In contrast to this, a study conducted by The American Affluence Research Center found that more than half of the U.S. affluent say they do not participate in any type of social media. You would perhaps think that the affluent would be those in the 50 plus age range but not necessarily so. Many of today's wealthy are younger, having made their money in a technology, financial or other field(s). The U.S. ranks third in terms of smartphone usage with 91% or in excess of 284 million Americans owning an iPhone, Blackberry or similar device thus enabling them to access the Internet and or share information and data on-the-fly. A phone is no longer a phone in the traditional sense.
In terms of real estate, many of us engaged in the profession are turning more and more to "unmarketing." According to Mr. Stratten the only person that cares about our picture on a business card, For Sale sign, bus bench or elsewhere is ourselves and I couldn't agree more. If you are in business for yourself as am I, the only thing to think about is your client(s) or potential client(s). If it is not going to be of benefit or value to them, don't do it! Too many marketing initiatives today are all about self gratification with REALTORS® and other commissioned salespersons perhaps being the guiltiest of all. In the new age of marketing and PR "Unmarketing" will win you more points with consumers but that in itself will be a hard sell with many that are mired in the old way of doing things
Smartphone&Real Estate Applications to Search MLS Listings
As mentioned in my last posting titled Social Networking and Unmarketing more and more consumers are using their smartphone to access the Internet on a regular basis thus allowing them instant access to their social networking and other sites on demand regardless of where they are.
In response to the increased demand for immediate and efficient Internet access for MLS® real estate listings, the Canadian Real Estate Association (CREA) has released several applications for smartphones that allows ready and convenient access to http://www.realtor.ca/. The most recent release was for Blackberry® devices. I have just downloaded this "app" to my own phone and it works well. Listed below are the various smartphone "apps" that are currently available to access http://www.realtor.ca/
Blackberry®
Apple iPhone
Windows® Phone 7
Coming soon is the smartphone app for "Android" based smartphones.
http://www.realtor.ca/ is by far the most popular consumer reasl estate website in Canada with over 3 million visitors monthly. On this site you will find virtually every MLS® listed residential property in Canada that are currently listed for sale. Worth pointing out is the fact that it takes 24 to 48 hours for new listings to be uploaded from the MLS® systems of the various real estate Boards across Canada to this site. For those that wish to access current listings live and up to the minute, you can do so on many REALTOR® websites including my own. Just click on Search MLS® Listings. This will give you instant access to listings that are current right to the moment without the 24 to 48 hour delay associated with http://www.realtor.ca/ .
In response to the increased demand for immediate and efficient Internet access for MLS® real estate listings, the Canadian Real Estate Association (CREA) has released several applications for smartphones that allows ready and convenient access to http://www.realtor.ca/. The most recent release was for Blackberry® devices. I have just downloaded this "app" to my own phone and it works well. Listed below are the various smartphone "apps" that are currently available to access http://www.realtor.ca/
Blackberry®
Apple iPhone
Windows® Phone 7
Coming soon is the smartphone app for "Android" based smartphones.
http://www.realtor.ca/ is by far the most popular consumer reasl estate website in Canada with over 3 million visitors monthly. On this site you will find virtually every MLS® listed residential property in Canada that are currently listed for sale. Worth pointing out is the fact that it takes 24 to 48 hours for new listings to be uploaded from the MLS® systems of the various real estate Boards across Canada to this site. For those that wish to access current listings live and up to the minute, you can do so on many REALTOR® websites including my own. Just click on Search MLS® Listings. This will give you instant access to listings that are current right to the moment without the 24 to 48 hour delay associated with http://www.realtor.ca/ .
Area Real Estate Sales - Looking Like 2009
After posting gains in overall market activity in January and February, real estate sales in both March and April have weakened at a time when traditionally the market picks up with the arrival of spring. Unit sales in April were down 19% from April of last year while dollar revenue dropped 17%. Year-to-date unit sales to the end of April are now 13% behind 2010 with 517 properties having sold this year as compared to 595 last year. Sales revenue for the first four months has held up much better down just 13% driven by increased activity at the upper end of the market. Year-to-date we have had 12 sales over $1 million reported through the MLS® system of the Georgian Triangle Real Estate Board (GTREB) versus 5 sales over $1 million in the first four months of 2010.
Following the recessionary slowdown of 2008 and 2009, sales bounced back very strongly in the first half of 2010 then fell off later in the year. As a result, we are comparing monthly sales in the early part of 2011 to some very healthy sales activity in the first half of last year. Two addtional factors that have invariably affected sales of late is the weather and the federal election. Weather during the month of April was unseasonably cool, wet and just plain dull and did little to inspire the home buying public. A more significant factor perhaps in dampening sales was the recent federal election. The uncertainty leading into either a federal or provincial election the results of which could bring about change in economic policy and or taxation etc. is bound to halt many from making large purchasing decisions.
The Canadian Real Estate Association (CREA) has forecasted a drop in residential unit sales for 2011 of 1.3%. Sales activity across the country is expected to gain momentum in the latter half of 2011 as the economic recovery continues and employment strengthens. If this is the case, market activity in 2011 will mirror that of 2009 when sales returned with a vengence in the latter half of the year, particularly during the 4th quarter. This far, 2011 is shaping up very much like 2009 and only time will tell if this is indeed the case.
Is It Time for Gas Price Regulation?
I receive an online summary of the top stories in the Globe and Mail newspaper via email each morning and today's lead story is titled "The Central Canada gas price puzzle." Those of us living in Ontario and Quebec have been hammered in recent days with inexplicably high gas prices while the rest of Canada remains relatively unchanged.
Is it long overdue for the federal government to step in and exercise some control over the pricing practices of the oil companies? I for one think perhaps it is. The recent spike in gas prices comes at a time when the price for a barrel of oil is well below some of the highs we have seen in the past. The recent surge in pricing is being blamed on speculation. Speculation? Whose? Name one other consumer product whose price fluctuates not only day-to-day but often several times within one day? And since when should Canadian consumers living in a country blessed with large surpluses of oil be gouged based on speculation? Our federal consumer watchdogs have turned a blind eye to this for years. With the summer holiday season soon upon, unjustifiable high gas prices can and will have a profound impact on portions of the economy especially tourism and that is bound to hit us here in the Georgian Triangle.
Regulating not necessarily gas prices but the timing and implementation of price increases is perhaps an alternative. For those that might feel this is unreasonable or tantamount to government interference think again. Let's face it, government a different levels exercises control over the pricing of pharmaceuticals, hydro, alcohol, tobacco as well as some other goods and services. Some of these items are less of a necessity to consumers than gasoline yet price increases must be applied for and phased in so-to-speak so as to not unduly harm consumers.
It has become a matter of common practice for oil companies to defiantly and flagrantly disregard any thought of fair consumer practices yet quarter after quarter they report huge profits. There is something dreadfully wrong with a system where the nightly news tells us how much we will be paying at the pump the following day when there are no mitigating circumstances to warrant such change. Huge reserves of oil and gas sit in storage tanks waiting to be distributed to consumers. This inventory was typically produced months ago when the cost per barrel may have been much different than today and as such the cost of that inventory is not directly impacted by "speculation," I recently saw a cartoon where a fictitious oil company had a wheel in their boardroom similar to Wheel of Fortune. The caption in the cartoon read: "It's time to jack up our prices to add to our record profits. Give the wheel a spin to see what excuse we can give to the public." Although just a comic, to some degree you wonder if there isn't some element of truth to it!
To see how much we are over-paying visit Tomorrows Gas Price Today and click on their Rip-Off Chart. The time is long overdue for some form of government intervention and that is the subject of my current online poll. Tell us what you think.
Is it long overdue for the federal government to step in and exercise some control over the pricing practices of the oil companies? I for one think perhaps it is. The recent spike in gas prices comes at a time when the price for a barrel of oil is well below some of the highs we have seen in the past. The recent surge in pricing is being blamed on speculation. Speculation? Whose? Name one other consumer product whose price fluctuates not only day-to-day but often several times within one day? And since when should Canadian consumers living in a country blessed with large surpluses of oil be gouged based on speculation? Our federal consumer watchdogs have turned a blind eye to this for years. With the summer holiday season soon upon, unjustifiable high gas prices can and will have a profound impact on portions of the economy especially tourism and that is bound to hit us here in the Georgian Triangle.
Regulating not necessarily gas prices but the timing and implementation of price increases is perhaps an alternative. For those that might feel this is unreasonable or tantamount to government interference think again. Let's face it, government a different levels exercises control over the pricing of pharmaceuticals, hydro, alcohol, tobacco as well as some other goods and services. Some of these items are less of a necessity to consumers than gasoline yet price increases must be applied for and phased in so-to-speak so as to not unduly harm consumers.
It has become a matter of common practice for oil companies to defiantly and flagrantly disregard any thought of fair consumer practices yet quarter after quarter they report huge profits. There is something dreadfully wrong with a system where the nightly news tells us how much we will be paying at the pump the following day when there are no mitigating circumstances to warrant such change. Huge reserves of oil and gas sit in storage tanks waiting to be distributed to consumers. This inventory was typically produced months ago when the cost per barrel may have been much different than today and as such the cost of that inventory is not directly impacted by "speculation," I recently saw a cartoon where a fictitious oil company had a wheel in their boardroom similar to Wheel of Fortune. The caption in the cartoon read: "It's time to jack up our prices to add to our record profits. Give the wheel a spin to see what excuse we can give to the public." Although just a comic, to some degree you wonder if there isn't some element of truth to it!
To see how much we are over-paying visit Tomorrows Gas Price Today and click on their Rip-Off Chart. The time is long overdue for some form of government intervention and that is the subject of my current online poll. Tell us what you think.
Royal LePage Garage Sale A Huge Success
The benefactor of this event locally is My Friend's House and I am very pleased to report that we raised almost $3,000 for this worthy cause. Shoppers enjoyed a good selection of merchandise including furniture, kitchenwares, books, toys, clothing and more. Special thanks also goes to the owners of the Cranberry Mews shopping plaza for allowing us to use one of the empty units inwhich to hold the sale.
Putting this one-day event together takes a lot of work from picking up donated items, sorting, pricing and lastly the final clean-up. It is very gratifying to achieve the results we obtained knowing that the monies earned goes to such a worthy cause. Again a special thanks to those that donated items for the sale, to my fellow REALTORS® at Royal LePage Collingwood and especially to those of you that came out and made a purchase.
Economic Resets
I am just finishing reading a new book available from Collingwood's library titled The Great Reset written by Richard Florida, a leading author, economist and recognized intellectual. The book summarizes the numerous economic downturns that have taken place during the past 100+ years and the economic "resets" that take place after each one. Florida regards recessions a periods of "creative destruction" which in turn serve to create periods of innovation, invention and economic risk taking that propels economies into new periods of growth and prosperity. Amongst his many assertions, Florida claims that America's love affair with the automobile are over, with an increasing number of people choosing to live closer to where they work thus enabling them to walk, bike or take public transit to their place of employment. Further, technology and an increased number of people seeking self employment etc. will no doubt have people working increasingly fropm home. Florida asserts that charging people to use roads is the only way die hard car advocates with give up their vehicle in favour or alternate forms of transportation. This sounds familiar with the City of Toronto recently talking about toll roads an idea that Mayor Rob Ford calls "nonsense."
The Great Reset is a good read for anyone interested in obtaining insight into the causes of our past economic downturns while examining the trends that will come about as the result of our most recent recession. The U.S. economy continues to struggle and will for some time. It was an economy built on over-leveraged real estate and as Florida points out, after the depression of the 1920's and 30's, it took almost 25 years for the U.S. real estate market to return to a pre-depression level of activity. Anyone thinking about buying U.S. real estate on the pretence that it about to go up in value better think again. With a lagging economy and tens of thousands of foreclosed properties on the market, except for a few select markets, value appreciation in U.S. real estate isn't likely to happen anytime soon.
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