Recent class-action suits against the Canadian Real Estate Association (CREA) highlight the
competition and commission practices in the industry. These legal developments will have a
significant impact on how real estate transactions will be conducted across Canada.
This class action suit names CREA and nearly all real estate boards across Canada, and
alleges anti-competitive practices. These claims suggest that ‘rules requiring home sellers to
offer a cooperating commission to prospective buyer brokerages when listing a property on the
MLS are anti-competitive and harmed home sellers in the form of higher commissions…” In 2010, the Federal Government Canadian Competition Bureau (Competition Bureau) was successful in forcing the Canadian Real Estate Association (CREA) to change its rules governing real estate “agency” in Canada. The Canadian government has long believed that
the MLS® System holds a monopoly on resale homes in Canada and with these rule changes,
was to provide Canadian homeowners the ability to sell their home on the MLS® System
without being represented by an agent.
The outcome that resulted from the rule changes is that realtors are now able to post a property
on the MLS without entering into an agency relationship with the home seller. A brokerage can
simply enter your listing into the MLS and have no more involvement with the sale of the
property. Such a listing within the MLS is called a “mere posting”.
Although this ruling occurred in 2010, the availability of Mere Posting services is not well
supported by many industry members, and not widely known by the public. This class action
suit against the Canadian Real Estate industry brings back into question whether licensed real
estate professionals are negating the rules set out by the Competition Bureau.
At ComFree, we see the demand for seller commissions or cooperating commissions unfair to
consumers who simply want the exposure to sell their home and are willing and prepared to do
it without a realtor. They may be willing to do it on their own for many reasons, but most notably
the outrageously high commissions charged by full-service brokerages. As ComFree expands
in the Alberta market, we are committed to eliminating commissions for our customers, while still
providing the exposure of the MLS and the tools and support they need to sell their own home.
Whether you’re buying, selling, or renting, we’re here to provide the support and information you
need.
For a more detailed analysis and expert guidance, reach out to us at ComFree Realty or visit the full link to the article here
Courtesy of Whatever Else Marketing
As Canada’s housing market enters a phase of ‘great adjustment,’ homeowners and prospective buyers face a mix of challenges and opportunities. With the Bank of Canada holding interest rates at five percent and predictions of rising home prices, understanding these market dynamics is important.
ComFree is here to guide you through these changes and what they mean for the real estate landscape.
The decision to maintain the key policy rate at five percent marks a period of stability for mortgage holders, especially those with loans tied to prime interest rates. This steady rate, the highest in 22 years, brings some relief amidst the high cost of borrowing.
According to a recent Royal LePage report, Canadia home prices in Canada are expected to rise by 5.5% by the end of 2024, reaching an aggregate price of $843,684. This increase suggests a return to pandemic peak prices and indicates a potential rebound in the housing market.
The ‘great adjustment’ means adapting to mid-single-digit borrowing costs, a significant shift from the ultra-low interest rates experienced over the past decade. For many Canadians, this adjustment will require careful financial planning and strategy, particularly in high-demand markets like Toronto and Vancouver.
The impact will vary regionally. Calgary, for instance, is forecasted to see an 8% increase in home prices by the end of 2024, outperforming other major cities due to its relative affordability. In contrast, Vancouver‘s price growth is expected to be more modest.
If you’re considering refinancing or selling, now is the time to evaluate your options. Understanding how these market changes affect your property’s value and mortgage renewal is key.
First-time buyers should prepare for a new normal in mortgage rates. With predictions of a gradual easing of interest rates in late 2024, it’s important to stay informed and flexible in your home-buying plans.
ComFree Realty offers expert advice tailored to these evolving market conditions. Whether you’re buying, selling, or just exploring your options, we’re here to help you navigate the market confidently.
Explore your real estate opportunities with ComFree Realty. Visit our Property Listings or Contact Us for personalized advice.
Courtesy of Whatever Else Marketing
The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA.
* Only when the buyer comes direct, otherwise the seller may choose to negotiate a commission with the buyer’s agent.
