Several of the country’s largest real estate brokerages, including Coldwell Banker, Century 21 Real Estate, Sotheby’s International Realty and Re/Max, are severing their allegiance to the National Association of Realtors, a powerful trade organization whose grip on the real estate industry appears to be loosening.
The Chicago-based N.A.R. is the largest professional organization in the United States. It has 1.5 million members, more than $1 billion in assets and owns the trademark to the word “Realtor,” making a real estate agent’s ability to call themselves a Realtor and to buy and sell homes contingent upon the payment of membership dues in much of the country.
But in recent months, a combination of sexual harassment allegations against its top leadership and a duo of class-action antitrust lawsuits have battered its image and influence. Re/Max and Anywhere Real Estate — the world’s largest real estate brokerage franchiser, with brands including Century 21 Real Estate, Coldwell Banker, the Corcoran Group and Sotheby’s International Real Estate falling under its umbrella — settled those lawsuits last month. Anywhere will pay $83.5 million; Re/Max, $55 million. Both have now revealed that they will also be abandoning a requirement for N.A.R. membership as part of their settlement agreements.
“Brokerages are independent, legal entities that make their own business decisions,” said Mantill Williams, a spokesman for N.A.R., in an emailed statement. “It is incumbent on every Realtor association — local, state and national — to continue to communicate and provide true value to our members. If these brokers continue to find value in belonging to the association, then they will choose to belong.”
“The proposed settlement does not change how our case is presented in court,” he added.
A coalition of home sellers sued N.A.R. and several brokerages in 2019, challenging N.A.R.’s policy that requires a listing agent to pay a fee to a buyers’ agent in a home sale transaction — a fee that is nearly always passed on to the home seller.
Agents who are members of N.A.R. must follow the organization’s policies when buying, selling and listing homes, including the one that led to what home sellers in the lawsuits described as a violation of the Sherman Antitrust Act by inflating seller costs.
Also on Friday, N.A.R.’s chief legal officer, Katie Johnson, sent an internal message to staff that clarified the group’s own interpretation of the rules for agent commissions. In that message, which was obtained by The New York Times, she said that while N.A.R.’s policy does require listing agents to offer compensation to a buyer’s broker, that offer can be $0.
An attorney for plaintiffs in the antitrust case told Inman, the real estate news site, which first reported the shift, that the change amounted to “a stunning admission of guilt.”Anywhere and Re/Max are named as defendants alongside N.A.R. and signed a joint settlement for both suits last month. On Friday, Anywhere revealed the terms, and announced that as part of the agreement, they will no longer require their nearly 200,000 real estate agents to hold membership in N.A.R. Re/Max, which has more than 140,000 agents, will also abandon N.A.R., under the same stipulation in its agreement.
N.A.R. has said it has no intention of joining Anywhere and Re/Max in a settlement, and instead will head to federal court on Oct. 16 in Kansas City (the plaintiffs are based in Western Missouri). Keller Williams and HomeServices of America are also named as defendants.
The departures from N.A.R. come just a few days after Redfin, the Seattle-based online real estate broker, announced it would require many of its own agents to sever their ties with the organization. Glenn Kelman, the chief executive of Redfin, said that N.A.R.’s looming antitrust battles played a key role in his decision, but he was also troubled by allegations of pervasive sexual harassment within the organization that The New York Times revealed in August. N.A.R. former president Kenny Parcell, who was the subject of many of those allegations, stepped down from his post two days after The Times’s report came to light.
Jason Haber, a real estate agent with Compass who has been at the forefront of calls for reform at N.A.R. since The Times published its report, said N.A.R. is at an inflection point.
“The trial and the sexual harassment are inextricably linked because they expose flaws within N.A.R. Anyone in real estate knows, a house is only as strong as its foundation. The house of N.A.R., after years of neglect, had too many cracks and now those cracks have been exposed,” he said in an interview. “The only way to save it is to rebuild it from the ground up.”
On Friday, leaders within N.A.R. also said they were seeing those cracks.
“We’re in a perfect storm,” said Leigh Brown, a North Carolina broker who serves on N.A.R.’s national board of directors, of the issues now surrounding the organization. “N.A.R. is bloated, and its staff is arrogant. And at the same time, its membership is trying to figure out if they can function without N.A.R., and we’re defending whether or not our business model works for the average consumer.”
Ms. Brown said she believes the class-action suits to be shortsighted, however, because if home sellers are not required to compensate their buyers’ agents, many buyers will navigate the home market solo, leaving them vulnerable to exploitation. “It’s structured this way to make sure the consumer has protection,” she said.
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.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
