The Toronto Real Estate Board has developed a new website policy for agents in a bid to satisfy Canada's Competition Commissioner, giving agents the power to create personalized listings sites so clients can browse for houses from their living rooms.
While some of Canada’s 101 real estate boards already allow agents to set up password-protected sites for their clients, the largest board in the country does not. Agents can't rush to open sites today, though - there is a 60-day consultation period planned.
What happens next could set a national precedent for the way in which home buyers research the biggest purchase of their lives, because other boards are expected to adopt the same policy once it’s instituted.
Competition Commissioner Melanie Aitken launched a lawsuit against TREB in May, saying it prevents brokers from sharing information online with their customers . It’s the latest move in the protracted fight between the bureau and real estate agents, who have come under increasing scrutiny as commission-based payments have grown along with the price of Canadian homes.
While the Toronto board allows real estate agents to provide information – such as the number of days a house has been on the market and previous selling prices – by hand, telephone or e-mail, they are not allowed to create websites where customers can look up the information on their own.
The new policy would allow the sites to exist as long as they meet certain requirements - the site's must be password protected, only clients can use them, TREB can monitor activity, sellers can opt out of having their home appear on the sites, and the name and contact information for the sellers must never appear on the listings.
The policy is based on one adopted by the National Association of Realtors in the United States to satisfy the Department of Justice several years ago.
TREB said it has been working on the policy since last August, however, the Competition Bureau has maintained the real estate association hasn't been willing to go far enough to satisfy its concerns. Both sides met several times prior to the charges being filed.
“Consistent with the bureau's practice, we shared our concerns with TREB as well as what would be necessary to address them,” a spokesperson said. “Ultimately, it was necessary for us to seek a legally binding order from the Tribunal to ensure greater competition and increased innovation.”
Incoming TREB president Richard Silver said the policy “confirms TREB's strong belief in open competition and in its members competitive spirit, quite independent of the Competition Commissioner's claims and approach.”
The Bureau said it would rather settle the complaint prior to an appearance at the Competition Tribunal, which can issue fines and binding rulings.
Source: Globe and Mail by STEVE LADURANTAYE
Friday, June 24, 2011
Friday, June 17, 2011
May home prices rise 8.6%
A hot real estate market in Vancouver helped drive home sales in Canada higher in May and push the average price was up 8.6 per cent, according to the Canadian Real Estate Association.
The average price in Vancouver, far and away Canada's most expensive market, was up 25.7 per cent to $831,555, while the number of home sales in that area was up 7.2 per cent from a year ago.
BMO deputy chief economist Doug Porter noted the Canadian housing market appears to have enjoyed a healthy spring selling season, while Vancouver marched to its own drummer.
"Quite simply, no other city in the country is seeing anything remotely close to what's unfolding in Vancouver," Porter wrote.
"In fact, many large cities have posted price declines over the past year, notably Calgary, Edmonton and Halifax."
Porter said Vancouver's average price was driven by sales of high-end homes but even so, the price of a typical home was up 6.2 per cent from a year ago at $627,000 and still the highest in the country, according to the Vancouver Real Estate Board.
The number of homes sold in Canada last month was up 2.3 per cent from a year ago, when home sales dropped off after months of heated activity. The national average price in May gained 8.6 per cent to $376,817, driven by strong gains in Vancouver and Toronto.
Excluding Vancouver, the average national price was up 5.6 per cent, while excluding Vancouver and Toronto, the national average was up 3.7 per cent.
Sales down over one month
"The Canadian housing market has seen some big ups and downs in recent years, making national sales activity so far this year look like something of a Goldilocks story by comparison — not too hot, not too cold," said Gary Morse, president of the Canadian Real Estate Association.
While sales compared with a year ago were higher, they were down slightly from the previous month. The number of homes sold in May was down 0.6 per cent from April, while the average price was down 0.1 per cent.
Housing prices have been supported by interest rates which have remained near historic lows and expectations that the Bank of Canada would raise to its key rate — which affects variable rate mortgages — later this year.
Canada's big banks have cut their residential mortgage rates in recent weeks as the weak U.S. economic recovery has put downward pressure on general borrowing costs.
The lower mortgage rates reflect the lower cost of borrowing in the bond market, where banks finance their home loan lending.
TD Bank economist Diana Petramala said Canada's home real estate market will likely remain well supported through most of 2011 by low interest rates.
"As interest rates begin to climb through 2012, a further deterioration in housing affordability will weigh on demand, and home prices are expected to fall," she wrote in a note to clients.
"That being said, continued improvements in the Canadian labour market, and only gradual increases in interest rates will help the resale housing market avoid a 'hard landing."'
Source: The Canadian Press, June 15, 2001
The average price in Vancouver, far and away Canada's most expensive market, was up 25.7 per cent to $831,555, while the number of home sales in that area was up 7.2 per cent from a year ago.
BMO deputy chief economist Doug Porter noted the Canadian housing market appears to have enjoyed a healthy spring selling season, while Vancouver marched to its own drummer.
"Quite simply, no other city in the country is seeing anything remotely close to what's unfolding in Vancouver," Porter wrote.
"In fact, many large cities have posted price declines over the past year, notably Calgary, Edmonton and Halifax."
Porter said Vancouver's average price was driven by sales of high-end homes but even so, the price of a typical home was up 6.2 per cent from a year ago at $627,000 and still the highest in the country, according to the Vancouver Real Estate Board.
The number of homes sold in Canada last month was up 2.3 per cent from a year ago, when home sales dropped off after months of heated activity. The national average price in May gained 8.6 per cent to $376,817, driven by strong gains in Vancouver and Toronto.
Excluding Vancouver, the average national price was up 5.6 per cent, while excluding Vancouver and Toronto, the national average was up 3.7 per cent.
Sales down over one month
"The Canadian housing market has seen some big ups and downs in recent years, making national sales activity so far this year look like something of a Goldilocks story by comparison — not too hot, not too cold," said Gary Morse, president of the Canadian Real Estate Association.
While sales compared with a year ago were higher, they were down slightly from the previous month. The number of homes sold in May was down 0.6 per cent from April, while the average price was down 0.1 per cent.
Housing prices have been supported by interest rates which have remained near historic lows and expectations that the Bank of Canada would raise to its key rate — which affects variable rate mortgages — later this year.
Canada's big banks have cut their residential mortgage rates in recent weeks as the weak U.S. economic recovery has put downward pressure on general borrowing costs.
The lower mortgage rates reflect the lower cost of borrowing in the bond market, where banks finance their home loan lending.
TD Bank economist Diana Petramala said Canada's home real estate market will likely remain well supported through most of 2011 by low interest rates.
"As interest rates begin to climb through 2012, a further deterioration in housing affordability will weigh on demand, and home prices are expected to fall," she wrote in a note to clients.
"That being said, continued improvements in the Canadian labour market, and only gradual increases in interest rates will help the resale housing market avoid a 'hard landing."'
Source: The Canadian Press, June 15, 2001
Monday, June 13, 2011
City can’t afford land transfer tax cut, budget chief says
Toronto’s budget chief says the city cannot afford to cut the land transfer tax in the upcoming budget.
Abolishing the despised tax, which tacks on thousands of dollars to the purchase of a home, was a central promise of Rob Ford’s winning mayoral campaign last year. He pledged to wipe it out by 2012 at the latest. But, faced with a $774-million funding gap, budget chief Mike Del Grande said he does not think the administration should scrap this year a tax that brought in $274-million in 2010
“This is not the year to be looking at the land transfer tax,” he told reporters following the monthly meeting of the budget committee. “You really don’t know what the books will look like until you get in. Although a promise may be made in good faith, it’s a challenge to keep it.”
Adrienne Batra, the Mayor’s press secretary, reiterated that Mayor Ford remains committed to eliminating the land transfer tax during his term, but noted that “the fact that there is a $774-million structural deficit obviously raises some significant challenges.”
One councillor claims that the city’s money woes are not as bad as the Ford administration suggests. “I think we’re in a financial position where with a modest tax increase, and a TTC fare increase, we could make it,” said Councillor Gord Perks (Parkdale-High Park), who accused Mayor Ford of “crying wolf” and scaring residents into cutting services they count on. Mr. Del Grande (Scarborough-Agincourt) lamented that some councillors “don’t get it”.
“We are spending more than we are bringing in. That’s why we are looking at everything under the sun, including the ABCs. It’s not business as usual. We are looking at monetizing assets, labour contracts, user fees. I am doing my best to ensure that the pain is spread evenly,” said Mr. Del Grande.
Source: National Post (Natalie Alcoba With files from Peter Kuitenbrouwer)
Abolishing the despised tax, which tacks on thousands of dollars to the purchase of a home, was a central promise of Rob Ford’s winning mayoral campaign last year. He pledged to wipe it out by 2012 at the latest. But, faced with a $774-million funding gap, budget chief Mike Del Grande said he does not think the administration should scrap this year a tax that brought in $274-million in 2010
“This is not the year to be looking at the land transfer tax,” he told reporters following the monthly meeting of the budget committee. “You really don’t know what the books will look like until you get in. Although a promise may be made in good faith, it’s a challenge to keep it.”
Adrienne Batra, the Mayor’s press secretary, reiterated that Mayor Ford remains committed to eliminating the land transfer tax during his term, but noted that “the fact that there is a $774-million structural deficit obviously raises some significant challenges.”
One councillor claims that the city’s money woes are not as bad as the Ford administration suggests. “I think we’re in a financial position where with a modest tax increase, and a TTC fare increase, we could make it,” said Councillor Gord Perks (Parkdale-High Park), who accused Mayor Ford of “crying wolf” and scaring residents into cutting services they count on. Mr. Del Grande (Scarborough-Agincourt) lamented that some councillors “don’t get it”.
“We are spending more than we are bringing in. That’s why we are looking at everything under the sun, including the ABCs. It’s not business as usual. We are looking at monetizing assets, labour contracts, user fees. I am doing my best to ensure that the pain is spread evenly,” said Mr. Del Grande.
Source: National Post (Natalie Alcoba With files from Peter Kuitenbrouwer)
Subscribe to:
Posts (Atom)