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Hack of critical real estate tool upends Bay Area house showings

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A cyberattack on a software service used by real estate agents to track property listing data is in its second week, upending open house tours in San Francisco.

“It is wreaking havoc everywhere,” said David Bellings, an agent for 37 years. “It is disrupting and frustrating. Clients are asking for information and we just have to tell them we don’t have access.”

That access is normally provided by Rapattoni Corporation, a Southern California company that contains property listing information and distributes data to local multiple listing services provided by realtor associations.

Agents are able to add listings and make price changes and transmit this information through automated, up-to-the-minute listing information on their phones. After the attack last week, the industry was paralyzed and there is no prediction for when it will end.

A statement posted Tuesday by the San Francisco Association of Realtors stated that the system would be down at least until Thursday. “At this time, we still do not have a clear timeline on when services will be fully restored,” it said.

Damon Knox, president of the association, said Tuesday that agents were still able to function at a minimum of disruption and that the natural ebbs and flows of the Northern California real estate market were helping.

“This is literally the slowest two weeks of the year for us,” he said. “At this point, it is just an inconvenience. I’m not going to speculate on financial repercussions for anybody.”

A tweet issued by Rapattoni last week said the company was “continuing to investigate the cyberattack that has caused a system outage and are working diligently to get systems restored as soon as possible. All technical resources at our disposal are continuing to work through the weekend. We still do not have an ETA at this time.”

A representative of Bay Area Real Estate Investment Service in Santa Rosa did not respond to email and voice mail requests for comment. A representative of the National Association of Realtors referred questions to Rapattoni or local agencies that use their services.

According to Bellings, the longest previous crash of the price-list system had been for a few hours, “and that created angst for everybody,” he said. “This is unheard of. Clients aren’t blaming us, but anytime something like this happens there are repercussions.”

Bellings said the San Francisco Association of Realtors managed to put together a house tour by having brokers input their listing information manually. A spreadsheet of more than 160 listings was then created, but in order to tour the listings, agents had to write them down or print out the spreadsheet.

“Being resourceful agents, we cobbled together a brokers’ tour that was done organically, not automated,” he said. “It was a workaround that was weird but very successful.”

But David Papale, president of Laurel Village Realtors next to Presidio Heights, said there were only a fraction of the listings on the spreadsheet that would normally be part of the normal Tuesday tour if the automated list had been generated through the multiple listing service software provided by Rapattoni.

“Everyone is very frustrated. It has been almost a week since Rapattoni got hacked,” he said. “Relevant information is current information, and there is no current information because the MLS is shut down.”

Reach Sam Whiting: swhiting@sfchronicle.com. Reach Megan Fan Munce: Megan.Munce@sfchronicle.com.

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Mortgage rule changes will help spark demand, but supply is ‘core’ issue: economist

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TORONTO – One expert predicts Ottawa‘s changes to mortgage rules will help spur demand among potential homebuyers but says policies aimed at driving new supply are needed to address the “core issues” facing the market.

The federal government’s changes, set to come into force mid-December, include a higher price cap for insured mortgages to allow more people to qualify for a mortgage with less than a 20 per cent down payment.

The government will also expand its 30-year mortgage amortization to include first-time homebuyers buying any type of home, as well as anybody buying a newly built home.

CIBC Capital Markets deputy chief economist Benjamin Tal calls it a “significant” move likely to accelerate the recovery of the housing market, a process already underway as interest rates have begun to fall.

However, he says in a note that policymakers should aim to “prevent that from becoming too much of a good thing” through policies geared toward the supply side.

Tal says the main issue is the lack of supply available to respond to Canada’s rapidly increasing population, particularly in major cities.

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

The Canadian Press. All rights reserved.

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National housing market in ‘holding pattern’ as buyers patient for lower rates: CREA

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OTTAWA – The Canadian Real Estate Association says the number of homes sold in August fell compared with a year ago as the market remained largely stuck in a holding pattern despite borrowing costs beginning to come down.

The association says the number of homes sold in August fell 2.1 per cent compared with the same month last year.

On a seasonally adjusted month-over-month basis, national home sales edged up 1.3 per cent from July.

CREA senior economist Shaun Cathcart says that with forecasts of lower interest rates throughout the rest of this year and into 2025, “it makes sense that prospective buyers might continue to hold off for improved affordability, especially since prices are still well behaved in most of the country.”

The national average sale price for August amounted to $649,100, a 0.1 per cent increase compared with a year earlier.

The number of newly listed properties was up 1.1 per cent month-over-month.

This report by The Canadian Press was first published Sept. 16, 2024.

The Canadian Press. All rights reserved.

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Two Quebec real estate brokers suspended for using fake bids to drive up prices

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MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.

Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.

Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.

She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.

The two brokers were suspended in May 2023 after La Presse published an article about their practices.

One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.

This report by The Canadian Press was first published Sept. 11, 2024.

The Canadian Press. All rights reserved.

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