Real eState

Forcing real estate brokers onto MLS probably a good thing for both buyers and sellers

Published

2 years ago

October 31, 2022

For real estate marketing, the Multiple Listing Service is the largest network in Canada. Photo by Gerry Kahrmann /Vancouver Sun

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A policy change by the Canadian Real Estate Association (CREA) will soon require participating brokerages to list almost all residential resale properties on the Multiple Listing Service (MLS), thereby preventing some realtors from marketing properties privately.

CREA believes the policy, which will come into effect on Jan. 1, 2023, is in the best interests of buyers and sellers, but its decision has raised some concerns that it is restricting realtors from providing customized services to their clients and that it also limits choices for realtors and consumers.

Economic theory and empirical evidence suggest open markets and exchanges, where buyers and sellers have access to all information, serve the interests of all due to transparency and market efficiencies.

Consumers’ interest is often compromised when listings are only circulated in closed circles, thereby denying prospective buyers the opportunity to bid. But it’s easy to imagine circumstances where a seller may prefer to not have a publicly available listing.

For example, celebrities and others with legitimate privacy concerns may choose to market a property in closed circles. The new policy accommodates such sellers as it recognizes two distinct marketing approaches.

An “office exclusive” listing is one that “is not publicly marketed at the written request of the seller.” Instead, realtors may use their private networks to market the property to those “directly affiliated with the listing brokerage/office in a business capacity” as per the “written instructions of the seller.”

The public-marketing approach is the business-as-usual model, where a listing is promoted to the public or realtors “not directly affiliated with the listing brokerage/office in a business capacity.”

If a realtor uses traditional means to promote an office exclusive listing, such as yard signs, flyers or digital marketing, the listing “will lose its exemption” and must be placed on the MLS system within three days of public marketing just like any other residential property. The policy exempts commercial properties, under-construction dwellings with multiple dwellings and rental listings.

But buyers and sellers have distinct preferences that might conflict at times. For example, blind bidding might be preferred by sellers, but not by buyers. How does the new policy serve the unique interests of both buyers and sellers?

Buyers are probably frustrated by those “coming soon to MLS” yard signs for properties that never end up on the MLS. As buyers diligently watch the MLS portals for the property, the for-sale sign is unceremoniously removed, leaving them guessing about whether the dwelling was sold or removed from consideration.

The selective marketing of a dwelling to distinct cohorts denies most potential buyers the opportunity to consider it, but may also discriminate against racial or other minorities. For instance, closed marketing of dwellings could be used to preserve the homogeneity of a neighbourhood, which constitutes a blatant violation of Canadian laws and norms.

Exclusive marketing is also unlikely to be in the interest of sellers. As an exchange, MLS affords the biggest exposure for any listing. Once available on MLS, buyers from across Canada, or even around the world, can find the listing, compare it against other offerings and decide whether to probe further. Economics 101 suggests that the higher the exposure, the greater the competition, which is likely to result in a quicker sale at a desirable price.

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Real eState

Greater Toronto home sales jump in October after Bank of Canada rate cuts: board

Published

4 days ago

November 6, 2024

Anne Joseph

TORONTO – The Toronto Regional Real Estate Board says home sales in October surged as buyers continued moving off the sidelines amid lower interest rates.

The board said 6,658 homes changed hands last month in the Greater Toronto Area, up 44.4 per cent compared with 4,611 in the same month last year. Sales were up 14 per cent from September on a seasonally adjusted basis.

The average selling price was up 1.1 per cent compared with a year earlier at $1,135,215. The composite benchmark price, meant to represent the typical home, was down 3.3 per cent year-over-year.

“While we are still early in the Bank of Canada’s rate cutting cycle, it definitely does appear that an increasing number of buyers moved off the sidelines and back into the marketplace in October,” said TRREB president Jennifer Pearce in a news release.

“The positive affordability picture brought about by lower borrowing costs and relatively flat home prices prompted this improvement in market activity.”

The Bank of Canada has slashed its key interest rate four times since June, including a half-percentage point cut on Oct. 23. The rate now stands at 3.75 per cent, down from the high of five per cent that deterred many would-be buyers from the housing market.

New listings last month totalled 15,328, up 4.3 per cent from a year earlier.

In the City of Toronto, there were 2,509 sales last month, a 37.6 per cent jump from October 2023. Throughout the rest of the GTA, home sales rose 48.9 per cent to 4,149.

The sales uptick is encouraging, said Cameron Forbes, general manager and broker for Re/Max Realtron Realty Inc., who added the figures for October were stronger than he anticipated.

“I thought they’d be up for sure, but not necessarily that much,” said Forbes.

“Obviously, the 50 basis points was certainly a great move in the right direction. I just thought it would take more to get things going.”

He said it shows confidence in the market is returning faster than expected, especially among existing homeowners looking for a new property.

“The average consumer who’s employed and may have been able to get some increases in their wages over the last little bit to make up some ground with inflation, I think they’re confident, so they’re looking in the market.

“The conditions are nice because you’ve got a little more time, you’ve got more choice, you’ve got fewer other buyers to compete against.”

All property types saw more sales in October compared with a year ago throughout the GTA.

Townhouses led the surge with 56.8 per cent more sales, followed by detached homes at 46.6 per cent and semi-detached homes at 44 per cent. There were 33.4 per cent more condos that changed hands year-over-year.

“Market conditions did tighten in October, but there is still a lot of inventory and therefore choice for homebuyers,” said TRREB chief market analyst Jason Mercer.

“This choice will keep home price growth moderate over the next few months. However, as inventory is absorbed and home construction continues to lag population growth, selling price growth will accelerate, likely as we move through the spring of 2025.”

This report by The Canadian Press was first published Nov. 6, 2024.

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Real eState

Homelessness: Tiny home village to open next week in Halifax suburb

Published

2 weeks ago

October 24, 2024

Anne Joseph

HALIFAX – A village of tiny homes is set to open next month in a Halifax suburb, the latest project by the provincial government to address homelessness.

Located in Lower Sackville, N.S., the tiny home community will house up to 34 people when the first 26 units open Nov. 4.

Another 35 people are scheduled to move in when construction on another 29 units should be complete in December, under a partnership between the province, the Halifax Regional Municipality, United Way Halifax, The Shaw Group and Dexter Construction.

The province invested $9.4 million to build the village and will contribute $935,000 annually for operating costs.

Residents have been chosen from a list of people experiencing homelessness maintained by the Affordable Housing Association of Nova Scotia.

They will pay rent that is tied to their income for a unit that is fully furnished with a private bathroom, shower and a kitchen equipped with a cooktop, small fridge and microwave.

The Atlantic Community Shelters Society will also provide support to residents, ranging from counselling and mental health supports to employment and educational services.

This report by The Canadian Press was first published Oct. 24, 2024.

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Real eState

Here are some facts about British Columbia’s housing market

Published

3 weeks ago

October 17, 2024

Anne Joseph

Housing affordability is a key issue in the provincial election campaign in British Columbia, particularly in major centres.

Here are some statistics about housing in B.C. from the Canada Mortgage and Housing Corporation’s 2024 Rental Market Report, issued in January, and the B.C. Real Estate Association’s August 2024 report.

Average residential home price in B.C.: $938,500

Average price in greater Vancouver (2024 year to date): $1,304,438

Average price in greater Victoria (2024 year to date): $979,103

Average price in the Okanagan (2024 year to date): $748,015

Average two-bedroom purpose-built rental in Vancouver: $2,181

Average two-bedroom purpose-built rental in Victoria: $1,839

Average two-bedroom purpose-built rental in Canada: $1,359

Rental vacancy rate in Vancouver: 0.9 per cent

How much more do new renters in Vancouver pay compared with renters who have occupied their home for at least a year: 27 per cent

This report by The Canadian Press was first published Oct. 17, 2024.

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