U.S. realtor commission ruling sets 'blueprint' for Canadian case: lawyer | Canada News Media
Connect with us

Real eState

U.S. realtor commission ruling sets ‘blueprint’ for Canadian case: lawyer

Published

 on

A court ruling in the U.S. that found realtors colluded to receive higher high commission rates could change the way Canadian real estate agents do business, according to an industry analyst, as a similar case works its way through Canadian court.

This month, a jury in Missouri found the National Association of Realtors in the United States and others guilty of inflating real estate agent commissions.

While the verdict has been appealed, more lawsuits that examine real estate agent commissions have been brought forward in the U.S. and their impact could usher in change for Canadian realtor practices, according to Walter Melanson, co-founder and market analyst at PropertyGuys.com, given similarities in industry policies in the U.S. and Canada.

“The idea is that if there’s a lot changes as a result of these cases in the United States, we will start to see change here in Canada also,” Melanson told BNN Bloomberg in a Wednesday interview.

CANADIAN CLASS ACTION

A class-action lawsuit examining similar practices was also launched in Canada, and the lawyer handling the plaintiff’s case told BNN Bloomberg that he is hoping for a result similar to the one recently reached in Missouri.

“It provides a blueprint for establishing liability in Canada, one which we hope to follow to a similar result here. In terms of next steps, both sides are appealing the order from Chief Justice Crampton’s decision on the defendants’ motion to strike,” Garth Myers, partner at Kalloghlian Myers LLP, told BNN Bloomberg in an email.

Those appeals will be heard by the Federal Court of Appeal in the new year. After that, the plaintiff will move for certification of the case as a class action, he added.

The Canadian Real Estate Association was named in the proposed class-action lawsuit.

“We consider the claims to be without merit and will continue to vigorously defend against them,” a spokesperson for CREA told BNN Bloomberg in an email.

REAL ESTATE COMMISSIONS

Melanson said people may not be aware of how real estate commissions work.

“A lot of folks in the U.S. and Canada don’t know that real estate commissions are negotiable and at play here is how negotiable are they,” Melanson said.

The U.S. lawsuit argued that home selling agents are negotiating the commission of the buyer’s real estate agent before a sale has been made, Melanson explained, resulting in inflated rates.

“A lot of folks don’t think that that’s fair. They think a better system would be a system where the listing agent does what he does, and then the buyer agent comes in negotiates his or her commission during the offer process,” he said.

Melanson added that Canadian realtors have very similar policies to their counterparts of south of the border, and he expects this ruling to change the way real estate agents and brokers operate.

“A lot of (U.S.) brokerages are already starting to change how they do,” he said.

Source link

Continue Reading

Real eState

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

Published

 on

 

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.

Source link

Continue Reading

Real eState

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

Published

 on

 

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.

Source link

Continue Reading

Real eState

Here are some facts about British Columbia’s housing market

Published

 on

 

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.

The Canadian Press. All rights reserved.

Source link

Continue Reading

Trending

Exit mobile version