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National Association of Realtors Faces Competition From New Group

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Mauricio Umansky, a celebrity agent, and Jason Haber, a vocal critic of N.A.R., say it’s time for an alternative to the longtime organization.

Two prominent real estate agents have started a new trade association in a direct swipe at the embattled National Association of Realtors.

Founded more than 100 years ago, the group known as N.A.R. has long held sway over the American real estate industry, collecting hundreds of millions of dollars in annual dues from its 1.5 million members. It owns the trademark to the word “Realtor.” But in recent years, the organization has been saddled with a barrage of antitrust lawsuits and sexual harassment allegations. Over the past several months, multiple top leaders have stepped down, stoking concerns in the industry that the organization is on the edge of implosion.

Jason Haber, a New York agent with Compass, and Mauricio Umansky, the Los Angeles-based celebrity agent and founder of the luxury brokerage the Agency, told The New York Times that their new group, the American Real Estate Association, could be an alternative.

They are expected to announce their plan for A.R.E.A. on Wednesday at Inman Connect New York, a real estate conference sponsored by Inman, the real estate news site. N.A.R. did not respond to a request for comment.

Mr. Haber, 46 and a native New Yorker, is a broker and entrepreneur who has also worked in local, state and federal government. He has been one of the most outspoken critics of N.A.R. since August, when The New York Times revealed widespread allegations of sexual harassment against its then-president, Kenny Parcell. He started the N.A.R. Accountability Project, a grass-roots organization that made several demands, including the immediate resignation of Mr. Parcell and its chief executive, Bob Goldberg. Both men have since stepped down.

Mr. Umansky, 53, is a reality TV regular and co-founder of the Hollywood brokerage the Agency. He is quickly recognizable to fans of “Buying Beverly Hills,” “Dancing With The Stars” and “The Real Housewives of Beverly Hills,” where his wife, Kyle Richards, is a series regular (the pair is currently separated). He has also been at loggerheads with N.A.R.; in 2020, he sued the organization over its policies on databases for real estate listings, arguing that they were anti-competitive and damaged a private database of off-market listings that he had created in Los Angeles. N.A.R., on appeal, asked the Supreme Court to throw that suit out and was denied; it was remanded to district court and is currently pending.

The two agents had planned to start their group at a later date, but moved up the clock as they looked at N.A.R.’s legal troubles and leadership drain. The group’s new president abruptly stepped down in early January over what was described as a blackmail threat.

Members were dismayed in October when home sellers in Missouri won a landmark commissions lawsuit against the group. Under a N.A.R. rule, a home seller is required to pay commissions to the agent representing the buyer. Home sellers have long claimed that the rule forced them to pay excessive fees to the agents, but in the case of Missouri, a group finally sued. More than a dozen similar suits have since been filed across the country.

Another N.A.R. rule under legal scrutiny restricts access to most of the private databases used to list homes, called Multiple Listing Services, to N.A.R. members only. Most databases are operated by the local real estate associations that serve as subsidiaries to N.A.R., and their information is confined to a small geographic area.

Mr. Umansky said that A.R.E.A. will offer its members a nationwide database of home listings as an alternative, built from the technology he acquired for his own private listings service. That platform, which they’re calling the National Listing Service, is currently live with limited listings at theNLS.com.

“A centralized database with access to the full scope of listings across the country is better for everyone in the industry, and someone just had to do it,” Mr. Umansky said.

In addition, A.R.E.A. will allow agents to set their own commission rates and will not require any cooperation between buyer and seller agents.

Organizationally, A.R.E.A. will not have a president and vice president, Mr. Haber said. He emphasized that rather than seeking to replace the 100-year-old association, his goal was to offer something new.

“N.A.R. was too big to fail, until it failed,” he said. “People want something different. We’re setting ourselves up for failure if we try to replicate the N.A.R. model.”

Both men acknowledged that many of the details of their new organization need to be ironed out. They are currently funding the organization with their own money but hope to raise between $50 million and $100 million from investors. They don’t plan to charge for membership for at least another six months, and when they do, they estimate dues will be between $400 and $500, which is about half of what agents pay to N.A.R. and their state and local Realtor organizations.

They don’t yet know where the organization will be headquartered, although they are looking at sites in Florida and Texas. What they do know, however, is their tagline: “Trade Up.”

 

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

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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.

The Canadian Press. All rights reserved.

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

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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.

The Canadian Press. All rights reserved.

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Here are some facts about British Columbia’s housing market

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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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