Today, the Canadian Real Estate Association (CREA) held a special general meeting (SGM) in Ottawa where members voted in favour of transitioning Realtor.ca into a wholly-owned taxable subsidiary of CREA.

The platform has been operating on a not-for-profit basis to this point.

“This decision represents a forward-thinking approach that reflects the evolving needs of both Realtors and consumers. By transitioning Realtor.ca into a wholly owned subsidiary, 100 per cent owned by CREA, we’re unlocking new opportunities for innovation and growth while ensuring Realtors remain at the heart of the platform,” says Janice Myers, CREA CEO.

The case for the structure change

For the past 18 months, CREA has been engaging the Realtor association community to discuss what the future of Realtor.ca looks like and the potential to make this change, as it deems it a “financial necessity and strategic move to secure Realtors at the centre of Canadian home buying, selling and renting journeys.”

CREA points out that Realtor.ca has largely created how real estate is marketed and consumed in Canada but says the status quo isn’t sustainable because competition in tech grows each year, consumers expect more and operational costs increase.

Specifically, the organization notes that Realtor.ca can’t pursue new revenue streams or engage in some business-related activities. A for-profit model would offer the ability to change this and better position CREA to succeed in a competitive market.

PricewaterhouseCoopers (PwC) conducted an analysis and presented opportunities the transition could offer in a draft business case.

It found that as a taxable entity, Realtor.ca could generate significant estimated revenues to help reduce dependence on CREA funding from member dues. Specifically, over a 10-year period, member dues funding Realtor.ca would drop from 43 per cent to 25 per cent, allowing CREA to focus on advocacy and professionalism.

Dues wouldn’t necessarily decrease, but these funds could go toward priorities other than Realtor.ca.

Proposed focus

In a previous interview with REM, Myers emphasized the focus is on maintaining control while enhancing the platform’s capabilities and ensuring it continues to meet the evolving needs of both consumers and Realtors. She highlighted three main points solidified by a special task force and endorsed at an SGM:

1. Ownership. Realtor.ca will remain wholly owned by CREA, ensuring that Realtors retain ownership through their membership.

2. Governance. The platform will be managed with an independent board and as a taxable entity, allowing for greater operational flexibility.

3. Revenue reinvestment. Any profit generated will be reinvested back into the platform for the benefit of Realtors and consumers alike.

“Today’s vote is about securing the future of Realtor.ca. Every day, Realtors proudly serve clients in every corner of the country. This decision will help ensure Realtor.ca continues to meet the needs and expectations of today’s property owners, buyers, sellers and renters,” says James Mabey, CREA chair.

“We’re excited about the future of Realtor.ca and grateful for the trust and support of our members as we take this important step,” Myers adds.

Photo: CREA

This morning, the Bank of Canada (BoC) surprised the market by announcing a 50 basis point (bps) cut in its benchmark interest rate, bringing it down from 4.25 per cent to 3.75 per cent. As homeowners and potential buyers digest this news, the primary question on many minds is how this will impact mortgages, real estate, inflation and the broader economy.

Here’s a breakdown of what the rate cut could mean, with a focus on the housing market, mortgage renewals and the wider financial landscape.

Why a rate cut might not be all good news

At first glance, the BoC’s 50 bps rate cut might seem like positive news for borrowers. Lower interest rates generally translate to cheaper borrowing costs, which could help prospective homeowners and businesses. However, such a rate cut may not be a sign of economic health.

Often, when central banks cut rates significantly, it’s because they anticipate economic challenges ahead. In this case, the rate cut could signal concerns about a looming slowdown or potential recession in Canada. A recession could lead to deflationary risks for some parts of Canada’s economy, and when consumers feel prices are falling, they stop spending and wait for better prices. This fear is especially real outside of the housing market.

Within the housing market, we see that shelter inflation is a primary contributor to inflation in Canada, according to the BoC’s recent Monetary Policy Report, released with today’s interest rate cut. This inflationary pressure from rent and mortgage interest costs can be observed below in the CPI component breakdown. Especially worth noting is that “House price related services” have been ice-cold for the better part of two years now. Realtor commissions remain at historic lows, and the BoC could be gaining confidence that the market will not overheat in response to rate cuts.

Though the lower rate will reduce the cost of borrowing, it also suggests that the BoC is attempting to stimulate a flagging economy. While homeowners may see some relief in their monthly payments, this could be overshadowed by rising unemployment or weaker economic activity if a downturn materializes. RBC noted this reality very directly in a recent brief that characterized retail spending as “abysmal”: 

Effect on inflation due to mortgage renewals

While the BoC has cut its interest rate, inflation continues to be a concern, partly due to mortgage renewals at higher rates. Tiff Macklem, the BoC’s governor, mentioned they’re equally concerned about the risk of deflation and inflation. If we don’t see further reduction, mortgage rates could keep upward pressure on inflation into 2025 and 2026.

From mid-2020 to early 2022, Canadian mortgage rates were exceptionally low, prompting a surge in both new mortgages and refinances. As a result, a large proportion of these mortgages — about 60 per cent — are set to renew in 2025 and 2026. With today’s overnight rate now standing at 3.75 per cent, homeowners renewing their mortgages will face significantly higher payments than they did during the era of 0.25 per cent overnight rates. 

This situation has indirect implications for inflation. Higher monthly mortgage payments reduce disposable income for other goods and services, potentially slowing consumer spending and easing some inflationary pressure. However, the “base effect” comes into play, as the shift from historically low interest rates to the current elevated levels still poses a financial strain for many households. Even with the recent cut, the elevated rates for renewed mortgages will continue contributing to inflationary pressure in the Canadian economy — particularly through rising housing costs.

Bond yields control fixed-rate mortgages, not the BoC

A common misconception is that the BoC directly controls all mortgage rates. While it does influence variable mortgage rates, the majority of Canadians who opt for fixed-rate mortgages are affected more by bond yields than by the BoC’s overnight rate. Fixed-rate mortgages are very popular and closely tied to the performance of government bonds, especially the five-year one, which has been on a declining trend since April 2024.

As it stands, the bond market seems to be pricing in fewer cuts in the future, though there’s likely a bit of myopia toward the market as a result of the United States election. The market likely doesn’t anticipate any significant actions from the Federal Reserve prior to the election, as it could become too politicized. (In fact, it already seems to be.)

This means that we’ll likely need to wait until the U.S. election is over for a real idea of what will happen with bond yields and interest rates in 2025. To get an understanding of this, it’s very important to think about how the BoC monitors Federal Reserve activity. 

The importance of U.S. Federal Reserve decisions

In light of the BoC’s 50 bps cut, the interplay between Canadian and U.S. monetary policy becomes even more significant. The U.S. Federal Reserve plays a crucial role in shaping the broader North American economic landscape. Since the Canadian and U.S. economies are closely linked, the BoC must carefully consider Federal Reserve actions to avoid a widening policy gap. If the BoC continues cutting rates aggressively while the Federal Reserve holds rates steady or raises them, it risks devaluing the Canadian dollar against the U.S. dollar, because the Canadian currency would have a lower “return” — as measured by its interest rate.

Since we purchase most of our imports in USD, a weaker CAD makes imports from the U.S. more expensive, which could drive up inflation in Canada — a risk that the BoC is keen to avoid. This is why, despite today’s cut, the BoC will remain cautious and closely watch the Federal Reserve’s decisions moving forward. The bank’s goal is to maintain a balance, ensuring that the Canadian economy stays competitive without letting inflation rise uncontrollably due to a depreciating currency.

One key byproduct in this regard is that the BoC observed exports becoming an increasing contributor to Canadian GDP. A weaker GDP could support that notion, but we don’t have a significant export-based economy to capitalize on that reality as we have in past recessions, where Canada was a larger exporter. 

A recession could help reduce inflation

Though it may seem counterintuitive, a mild recession could keep inflation at more manageable levels. Economic slowdowns typically reduce demand for goods and services, which can ease price pressures. According to economists like CIBC’s Benjamin Tal, recessions are often an inevitable part of the economic cycle and can play a role in controlling inflation. This is why Tal often states that when given the choice between inflation and a recession, the BoC will choose a recession every time. 

The BoC may be willing to allow a controlled recession if it helps bring inflation closer to its target range. While Macklem did mention in his press release question period that he felt he could stick the landing, time will tell if it’s possible. A recession would result in short-term economic hardship but has historically proven as necessary to restore balance in the economy and ensure long-term stability. This is especially true in economic setups where a risk of rising inflation might be present — and Macklem made it clear that he’s just as worried about a return of inflation as he is about deflation/recession. 

How mortgage holders and market activity will be affected

For those with variable-rate mortgages, the 50 bps rate cut will bring some immediate relief. Variable-rate mortgage holders have seen their payments increase significantly over the past year due to previous rate hikes. With the overnight rate down 50 bps, these borrowers can expect their monthly payments to decrease slightly, offering some breathing room in their budgets. Static-payment variable rate holders will see more principal paid each month. 

In this regard, the BoC can really only play to the supply side of the market by easing pressure on existing mortgage holders, reducing the likelihood that they sell their property. Because variable rates are priced higher than fixed rates in today’s market, a reduction in variable rates doesn’t “add” any buying power to the market. If buyers needed a lower rate to get more buying power, they’d have used the fixed rate. Therefore, the bond market is more in control of the demand curve in Canada through fixed-rate mortgage pricing. 

Lower interest rates typically boost housing market activity by making borrowing cheaper. However, with housing prices already elevated in many parts of Canada, today’s rate cut may not be enough to spur significant increases in homeownership, especially with the stress test still in place and most buyers opting for two-, three- or five-year fixed-rate mortgages.

Additionally, the overall economic uncertainty caused by the rate cut may cause potential buyers to remain cautious. While borrowing costs will drop, concerns about a slowing economy or job losses could temper enthusiasm for new home purchases in the short term. Many market participants seem to be adopting a “wait and see” approach, to wait even if rates continue falling, and to better understand if there are risks under the surface. 

The BoC’s decision to cut interest rates by 50 bps, bringing the overnight rate to 3.75 per cent, offers both opportunities and challenges for Canadians. While variable-rate mortgage holders will see some immediate relief, those buying with fixed-rate mortgages might not benefit as much, this early.

The broader economic implications, including potential recession risks and inflation concerns, mean that this rate cut is not all good news. Realtors, homeowners and prospective buyers should carefully consider the broader economic context as they plan their financial futures.

Canada’s luxury housing market stabilized in this year’s third quarter, with moderating growth in Toronto and Vancouver as the effects of population growth and declining mortgage rates offset a slowing economy and wavering consumer confidence.

According to Sotheby’s International Realty Canada’s Top-Tier Real Estate: Fall 2024 State of Luxury Report, these conditions have shifted luxury condominium markets in both major cities into buyers’ territory, with supply outpacing demand and prices stabilizing.

Toronto: Modest gains in luxury single-family homes

In the Greater Toronto Area (GTA), luxury real estate sales over $4 million remained steady, with a 3.0 per cent year-over-year increase between July and August 2024. Single-family homes priced over $4 million saw a 4.0 per cent rise in sales, while the luxury condominium market softened, with a 25 per cent decline in $4 million-plus condominium sales compared to last year.

September data showed a continued trend, with GTA residential sales over $4 million increasing 9.0 per cent year-over-year. However, condominium sales remained flat, with just one luxury sale, mirroring last year’s figures.

Vancouver: Market cools amid election uncertainty

Vancouver’s luxury real estate market faced softer sales in Q3 2024. Sales of homes priced over $4 million fell 13 per cent compared to summer 2023 levels, while single-family home sales dropped 16 per cent. Consumer uncertainty surrounding the upcoming provincial election contributed to the decline.

In September, Vancouver’s luxury market saw a significant 52 per cent drop in $4 million-plus home sales, with no luxury condominium sales recorded. Overall residential sales over $1 million were down 31 per cent year-over-year.

Montreal: Luxury market strengthens

Montreal’s top-tier real estate market saw notable growth, with $1 million-plus sales increasing 15 per cent in Q3 2024 compared to the same period last year. Though sales of homes over $4 million were down from last year, the market remains strong heading into the fall, with September $1 million-plus residential sales surging 83 per cent year-over-year.

Calgary: Leading the luxury market surge

Calgary continues to outperform other major Canadian cities, driven by population growth and strong demand. Luxury sales over $1 million rose 31 per cent year-over-year in Q3 2024, with the market poised for further growth as sales climbed 15 per cent in September, including two properties sold over $4 million.

Favourable conditions for buyers

Sotheby’s president and CEO, Don Kottick, notes that buyers are encountering some of the most favourable conditions in years as top-tier property listings increase and housing prices stabilize. While the market is expected to remain stable in the short term, Kottick warns that population growth and rising building costs will continue to fuel competition for luxury properties in the future.

“This trend is especially evident in the once fiercely competitive markets of Vancouver and Toronto, as well as across the luxury condominium sector,” Kottick highlights. “Over the longer term, there’s no doubt that population growth will intensify competition for housing … There’s an opportunity to take advantage of the favourable homebuying conditions we’re seeing today.”

Kottick also highlights that the cumulative effect of interest rate cuts has permeated market sentiment, boosting confidence and spurring transactions. Should additional rate cuts occur before year-end, luxury home sales could see a substantial boost.

Review the full report, including detailed findings, here.

Are agents ready for the new kind of homeowner joining the market? A new report released by Century 21 took a deep dive into the stats behind the newest cohort of potential clients — young Millennials and Gen Z. But before you go looking up new slang, know that these buyers are serious about finding a home that not only has the right amount of space but also puts them in a neighbourhood and larger community that they can become a part of.

The right agents are involved in their communities and show potential buyers how to do the same

“The right agent doesn’t just know the nearest parks and schools, but they know and are involved in their community,” explains Todd Shyiak, executive vice president of CENTURY 21 Canada. “A lot of our C21 Canada brokerages support their local sports teams and hold events to get people out into the community, and it’s a big source of pride for our brand.”An agent who can paint the picture of how a couple of new neighbours can join the fabric of a community could see themselves become the go-to agent for young buyers and get referrals as more of their friends get into the market. All it takes is a solid understanding of what feelings and goals are driving their home needs.

Be a source of reassurance & prove your community connection to attract new clients

As younger buyers are coming into the age range where they’re looking to put down roots and purchase their first home, the Century 21 survey shows that 50 per cent of Gen Z homebuyers reported feeling joy around their move, though only 36 per cent felt hope. “An agent who wants to attract new clients needs to be a source of reassurance,” says Shyiak. “If they can prove their community connection, they’ll find buyers who respond to that local expertise.”

The report shows just how much community is increasingly becoming a higher priority on the list of considerations. The Gen Z cohort is grappling with the rise of loneliness and factoring mental wellness into their homebuying decisions.

Being closer to family & friends: Outrank traditional considerations for moving

According to the Century 21 study, “being closer to family” is the third most given reason for a move, with “being close to friends” ranking as fourth. These reasons outrank traditional considerations such as lower cost of living and job opportunities, demonstrating a shift in thinking in this new class of homebuyer. They don’t just want to find a community — they want to impact it, with one in four young buyers planning to get involved through local politics, school committees and other entrepreneurship.

With these goals in mind, they’re going to be searching for an agent who doesn’t just know the ins and outs of the neighbourhood market, but who can also act as a guide to a community through authentic lived experience.

Authentic community ties for agents

But what do authentic community ties look like for a real estate agent? It could mean participating in local activities or sitting on the boards of local charitable events. 65 per cent of intending homebuyers rate “getting involved in the local community after they move” as “very important,” and an agent who can make suggestions to their clients on how they can do that is demonstrating their value and building a foundation for a referral relationship that’s sure to last years.

Shyiak explains that agents have to be known to their community: “To be trusted, you need to get out, get involved and meet people. That effort gives agents the credibility to guide newcomers and make sure they’re matching the place to the person.”

With the strong sense of community connection that younger buyers are prioritizing, it stands to reason that their ties to the people who helped them find that community would be long-lasting. If an agent takes the time to demonstrate their love and knowledge of their local community, and their hand in shaping it, they’re sure to make a lasting impression on a buyer.

As the needs of Millennial and Gen Z homebuyers evolve over time, forward-thinking agents can set themselves up to reap the rewards of these first impressions and segue them into client relationships that will stand the test of time. But remember — authenticity is key, so don’t just talk the talk, get out into your community and walk in the shoes of the people who call it home.

As a realtor, you juggle everything from client relationships, crafting and implementing marketing strategies, handling endless paperwork and trying to balance both work and life — often all at once. Cue the overwhelm!

What if there was a way to work smarter, not harder? The secret to tackling overwhelm is outsourcing.

Embracing outsourcing means you can streamline operations, save valuable time and focus on what you do best: selling properties. Let’s explore how outsourcing can transform your real estate business.

Common real estate challenges

Outsourcing alleviates these common challenges in real estate, empowering you to grow your business while focusing on what truly matters.

1. Time constraints: Long hours managing multiple clients, listings, open houses and more.

2. Administrative overload: Paperwork and scheduling consume your energy.

3. Market competition: Standing out requires maximizing your productivity.

Why outsourcing will transform your business

Here’s why your business can be transformed through outsourcing.

1. Time is money: Focus on what matters. Your time is invaluable. Prioritize activities that drive your sales, such as client engagement and closing deals. By outsourcing tasks like scheduling, marketing and paperwork, you can shift your focus to high-value actions that enhance your business performance.

With the global outsourcing market growing to over $700 billion (according to a report from Deloitte), now is the ideal time to leverage this resource for your business growth.

2. Access to specialized skills. You may not always have expertise in areas like marketing or paperwork management. The good news is that outsourcing gives you access to specialized skills without the overhead of full-time staff.

Many businesses that outsource their marketing experience enhanced engagement and lead generation.

3. Scalability without stress. Outsourcing offers flexibility as your business expands, allowing you to adapt to increased demand without long-term commitments.

During peak seasons, businesses can often manage significantly more clients while maintaining high-quality service by outsourcing tasks.

4. Elevating your client experience. Reclaim valuable time to focus on delivering exceptional service to your clients. With a tech-savvy virtual assistant (VA) managing your administrative tasks, your CRM and automation systems will operate seamlessly, leading to enhanced client satisfaction.

This personalized approach can generate better reviews and increase referrals. HubSpot found that a 5.0 per cent improvement in customer retention can boost profits by as much as 25 per cent, highlighting the significant impact of excellent customer care.

5. Cost-efficient and productive. Full-time staff can be costly, but outsourcing provides similar productivity at a fraction of the cost. According to a GlobalStrategic.com analysis, approximately 37 per cent of small businesses outsource at least one business process, showcasing a growing trend toward efficiency.

The same source notes that in the real estate sector, 44 per cent of firms choose to outsource document or back-office-related tasks, allowing them to effectively manage repetitive work without staffing concerns.

Outsourcing solutions

The following tasks and tools will be key outsourcing solutions for your business.

1. Administrative tasks: Appointment scheduling, email management, paperwork filing

2. Marketing: Social media management, email campaigns, property listings

3. Lead generation: Researching and following up with potential clients

4. Customer support: Handling inquiries and providing updates

5. Data entry: Maintaining databases and client records

6. Managing your CRM: Managing client relationship systems

Navigating regulatory challenges

Stay up-to-date on market statistics and regulations, such as the British Columbia Real Estate Development Marketing Act or similar acts for your region. Outsourcing compliance research helps you maintain credibility while focusing on client relationships.

Real-life success story: Sarah, a realtor from Toronto

Sarah, a Toronto-based realtor client of ours, transformed her business through outsourcing. Before she began the process, Sarah found herself overwhelmed, working long hours just to keep up with her responsibilities. Once she integrated VAs and online business managers into her operations, her business transformed:

• Enhanced client satisfaction. Quicker response times and better task management led to positive feedback, strengthening Sarah’s reputation in the market.
• Streamlined operations. Delegating tasks allowed Sarah to optimize her workflow, focusing more on high-priority tasks and strategic growth.
• Stronger networking opportunities. Increased referrals created new connections and potential collaborations with other professionals in the industry.
• Sustainable growth. The efficiency gained through delegation positioned Sarah for long-term success, enabling her to scale her business effectively.
• Focused marketing efforts. The time saved allowed Sarah to invest in targeted marketing strategies, reaching a wider audience and attracting more qualified leads.

Sarah’s success story, based on her detailed measurements and tracking, highlights the potential benefits you could achieve through outsourcing.

Imagine what you could accomplish with the right support! Here’s how to get started.

How to start outsourcing

1. Identify time-consuming tasks. Track your activities for a week to pinpoint areas ripe for outsourcing.

2. Set clear goals. Define what you want to achieve through outsourcing, such as 20 per cent more client interactions.

3. Start small. Begin with one or two tasks to get comfortable with the process.

4. Choose the right partner. Research and interview potential service providers or VAs.

5. Establish clear processes. Create detailed guidelines for outsourced tasks to ensure consistency.

6. Monitor and adjust. Regularly review the effectiveness of your outsourcing strategy and make adjustments as needed.

Overcoming common concerns

Be aware of the following common concerns and ways to overcome them:

• Quality control. Establish clear expectations and regular check-ins to maintain high standards.
• Data security. Use secure platforms and ensure your outsourcing partners follow data protection protocols.
• Cost concerns. Start with a small investment and scale up as you see returns.

Outsourcing goes beyond saving time; it’s about maximizing your efficiency and focusing on what truly matters — selling homes and building client relationships. By delegating non-sales activities, you regain time and energy to elevate your real estate success.

Take a moment to assess your daily tasks. Consider how outsourcing can help you scale your business and thrive in today’s competitive market. Remember, successful realtors like Sarah have transformed their businesses through strategic outsourcing. You can too.

Start small, focus on high-impact areas and watch your productivity soar. With the right outsourcing strategy, you’ll not only work smarter but also achieve the growth and success you’ve been aiming for in your real estate career.

The Canadian Real Estate Association (CREA) released its quarterly forecast on October 15 and, as it turns out, it’s a mixed bag. There’s cautious optimism as national home sales are expected to see a modest recovery, and interest rates are forecasted to drop further.

However, don’t pop the champagne just yet.

The market’s recovering, but not at a sprinting pace to the finish line

The reality of affordability challenges continues to loom over the Canadian housing market, despite interest rate optimism felt by the real estate industry. According to Bloomberg, Canadian interest rates would need to fall 350 bps to restore pre-covid affordability:

Source: Bloomberg

CREA’s forecast highlights a steady uptick in home sales — largely thanks to recent interest rate cuts by the Bank of Canada. A 5.2 per cent bump in sales for 2024 is being touted as a sign of recovery.

Although this is what we’ve all been waiting for, some regions are still dragging their feet. And price increases, while present, are lukewarm at best. In other words, the market’s recovering, but it’s not exactly sprinting to the finish line.

The (not so) immediate impact of interest rate cuts

Three interest rate cuts in 2024, and what do we have to show for it? Well, according to CREA’s report, national home sales recorded over Canadian MLS systems inched up 1.9 per cent in September compared to August. It’s the highest level since July 2023.

With each rate cut, sales have bumped up slightly, but the market is not all sunshine yet as consumer sentiment has remained low. 

CREA’s senior economist, Shaun Cathcart, is already warning that buyers might hit the pause button, waiting for the next round of rate cuts next year — the market could stall again before the rebound we’re all supposed to get excited about in 2025. This is one of the primary reasons that interest rate cuts take such a long time to move through the market. If buyers see more rate cuts ahead, they may wait for lower rates, especially if they don’t see prices rebounding anytime soon. 

Experts seem to think they could be wrong, though. TD Bank recently projected that recent CMHC insurance changes will front-load any house price increases into the first half of 2025, leading to slower growth at the end of next year:

6.9 per cent increase in September home sales but prices still down year-over-year

September saw a 6.9 per cent increase in home sales compared to the same time last year. This sounds great, but the reality is that the market is stabilizing after the roller coaster ride of relatively higher interest rates and the economic turmoil we’ve seen in the last couple of years.

Interestingly, the number of newly listed properties shot up 4.9 per cent, suggesting that sellers are feeling brave enough to test the waters. This is a welcome change compared to the “wait and see” approach we’d seen from sellers earlier in the year when they seemed to hope rate cuts would help them achieve a better price or faster sale. With prices down 3.3 per cent year-over-year, it appears interest rates are not supporting price growth the way they’d hoped.

CREA is quick to point out that month-to-month, things are trending upwards. In short, we’re on the mend, but it’s hardly over yet. 

Housing prices rising slow and steady 

According to CREA’s forecast, the national average home price saw a year-over-year increase of 0.9 per cent, bringing the average to $683,200. Looking ahead, prices are projected to rise another 4.4 per cent in 2025, crossing the $700,000 mark ($713,375 to be precise), which suggests solid market fundamentals. As mentioned before, this growth could be aided by recent changes to Canadian mortgage rules, increasing the CMHC limit to $1.5 million.

For now, prices are mostly flat with only minor month-over-month fluctuations. This could be considered good news for those considering selling their home in the near future, where the absence of volatility makes the market much safer to buy and sell simultaneously. This is a welcome change from the high-stress buyer’s markets we’ve seen across Canada over the last few years.   

More listings, more options — but not necessarily more sales

September had a significant rise in new listings — up 4.9 per cent from August. On the surface, this sounds like a great thing for buyers who’ve been struggling to find a decent property. But the surge in listings hasn’t exactly translated into a flood of sales. In fact, sales are climbing at a slower rate than new listings, and this could tip the balance toward buyers — eventually.

The increase in supply should give buyers more leverage, but for now, the market is still holding steady in what CREA calls “balanced” territory. In other words, neither buyers or sellers are fully in control, but this could change if listings keep rising and sales don’t pick up pace. 

Months of inventory has stabilized just above four months, though the sales-to-new listings ratio continues to slow down, meaning buyers aren’t absorbing new listings as quickly as they were. 

185,000+ properties listed in September, below historical average — power could soon shift to buyers 

As of September, there were 185,427 properties listed for sale on MLS systems nationwide, up 16.8 per cent from the previous year. Keep in mind that we’re still below the historical average of around 200,000 listings.

The national sales-to-new-listings ratio dropped to 51.3 per cent in September from 52.8 per cent in August. While this is consistent with a balanced market, it’s worth noting that if listings keep rising and sales don’t, the power could soon shift to buyers. 

Will the real estate market rebound in 2025? It’s never as smooth as it sounds

According to CREA, home sales are forecast to climb by 6.6 per cent in 2025, with 499,800 units expected to change hands. This optimism hinges on expectations of even more interest rate cuts and a friendlier economic environment.

The narrative here is clear — 2025 is the year when everything is supposed to come together. Demand will surge, inventory will remain low and prices will rise steadily. But as always, there are still plenty of variables at play, and it’s never as smooth as it sounds.

CREA’s latest forecast paints a cautiously optimistic picture for the Canadian housing market. While 2024 is showing some incremental improvements, real action is expected in 2025 when interest rates drop further.

Until then, we can expect more of the same: a slow, steady recovery that’s more about survival than celebration. Buyers and sellers alike should keep their expectations in check as we move through the final months of 2024.

In the rush to spin out the Canadian Real Estate Association (CREA)’s Realtor.ca as a taxable entity capable of generating revenues, I can’t help but wonder if we’re eliminating the very reason for its continued success.

Why have Canadians made Realtor.ca the leading real estate advertising platform in the country?

Spoiler alert, it’s not the technology. According to CREA, the three primary reasons Realtor.ca has held strong as the leading real estate platform for consumers across the country are trust, transparency, and complete lack of bias in how information on the platform is presented.

There is trust that Realtor.ca presents a complete picture, or as complete a picture as possible, of the real estate market across the country.

There is a belief that the information provided is done so in a transparent manner with more information, such as sold data, coming online as consumers demand it — without the requirement to set up an account or to provide any user information.

There is a belief that the information is unbiased and represents the source of truth for Canadian real estate markets.

I believe that the nature of Realtor.ca — owned by CREA and part of a not-for-profit, advertising-free and account requirement-free entity — is the very thing that has created a bond of trust with Canadian consumers. Realtor.ca is not revenue-driven or revenue-motivated. I believe this is what makes it very different from every other platform out there, and ultimately what makes it important to Canadians.

Revenue generation: Comes at a cost to the existing strong consumer relationship

Changing the nature of Realtor.ca to mirror that of every other for-profit, revenue-driven platform out there could be a fatal mistake. It’s all well and good that members might save a few bucks if it can be spun out and made to generate its own revenue, but at what cost to the relationship Realtor.ca has built with the consumer over the last many years?

The introduction of advertising, both direct and indirect for the purpose of generating ancillary referral revenue and selling user data, will fundamentally change the user experience that Canadians seek from Realtor.ca. Consumers will not only see but feel this change, and the touchstones of market differentiation that Realtor.ca currently owes for its success could dissipate.

There are other issues with spinning out Realtor.ca. These will be debated, hopefully, at the upcoming CREA SGM, but they are largely mechanical and logistical in nature. My concern is more existential. 

Just to be clear — what’s created a bond of trust with our consumers, and the literal foundation of our success, is that Realtor.ca is not revenue-driven and that there’s no motivation to create revenue from the consumer.

In spinning out Realtor.ca as a taxable entity, are we risking transforming our iconic site into just another platform driven by self-interest?

Aahil Matcheswala and Tracey Choy built their property management and investment business, Dongle Capital, from their home base in Kitchener-Waterloo. They started by renting out their basement’s single room on Airbnb to overseeing about 60 properties across the country.

The pair call themselves “the Airbnb experts,” with their bread and butter being helping residential owners manage their properties on a short-term rental basis. 

The service

“That basically includes everything,” says Choy. “Someone just has a home. They want to put it up for short-term rentals. They don’t know how. They don’t want to take care of it. They hire us and we’re going to help them, give advice on how to furnish it, make sure that it’s visually and operationally ready for a short-term rental.

Then we create the listing for them. We onboard it completely so we take care of all the guest communication, prepare them for check-in, check in with them during their stay and after they check out, assess for any damages and basically reset the whole property (for the next rental).”

The journey: ‘We didn’t have the real estate investment or business mindset whatsoever … it changed quickly’

The duo’s concept began at the end of 2020 when they bought their first home for $600,000 outside of Toronto after renting and working corporate jobs downtown in the city. They started by renting out a room in their new home on Airbnb. Despite having no prior experience, their first Airbnb brought in $5,000 a month, with expenses of just $2,900. This sparked an interest in property management, and soon friends and family were asking them to manage their properties.

“We didn’t have the real estate investment mindset or business mindset whatsoever, but when we saw that type of cash flow come in, it changed really quickly and we bought a second property and did the same thing basically,” recalls Choy. “One thing led to another and we were able to create a business out of it.”

Future growth on the horizon

Today, they own two properties and manage about 55 units with 75 per cent of them in Ontario and the rest in Nova Scotia and New Brunswick. The business is now generating about $500,000 annually in revenue.

Matcheswala and Choy see future growth on the horizon for the business, which is averaging about two units per month, between 20 and 25 for the year, Matcheswala notes.

Here’s what it takes

“You need really good people that you work with, our teammates. People that we hire, our team that helps us carry out all the property management tasks, and also other subcontractors like cleaners and property managers,” he points out.

Matcheswala explains their value-add and how they’ve kept a lean team is the fact they only have two virtual assistants and leverage technology in every business aspect.

“The first piece is your property management software. Hospitable plays a key role. It’s all reactive stuff because you can’t really control everything and people are going to ask you questions,” he explains. On top of the scheduled messages that go out, he says the program allows them to create property manuals and “basically do a brain dump of all the information you have about the property. It will help you answer questions, create drafts all on its own using AI.”

Tech software is also used in several other areas — including the process of cleaning the properties when people check out to get units ready for the next rental. It also helps with pricing, providing market data for different times of the year.

The business charges a commission anywhere from 15 to 20 per cent of the nightly rental rate. Most clients are more like mom-and-pop operations or small real estate investors with a handful of properties.

Client considerations: What makes a suitable property?

Choy notes that many things must be looked at when they onboard a property or consider if it’s suitable for Airbnb rentals. 

“We have to analyze the design of the property — not that it needs to be super modern, high tech or anything — but it has to appeal to the masses, even if it’s not the owner’s style. (So) there’s a lot of convincing and discussion with the owner about this.”

This means stripping away the personal attachment they have to the property, as it’s now becoming a business. Choy notes this is especially true these days with people being pushed to putting it up for cash flow because of rising interest rates.

“There’s a lot of discussion around security on the property, where our outdoor camera is going to be placed, what type of security locks we need, which is actually one of the big aspects for us,” she explains. “We can never take on a property where an owner is not willing to change the front locking mechanism there from a key to a specific smart lock because that smart lock needs to do a couple of things, (including) hold a lot of different codes.” 

Key elements of successful property management companies

When asked about what makes a property management company successful, Matcheswala mentions the industry has been a very unprofessional one. That makes communication key, which means responding to clients on a timely basis.

Choy agrees that communication is important, also noting resiliency, or “thick skin” being a key element of a successful property management company.

Although Dongle Capital is in the hospitality industry, it serves many real estate investors. “That’s kind of where the lines get blurred,” she points out. “But at the end of the day, it’s customer service. And the customer’s always right, even if it’s not your fault.” Having that thick skin has allowed the pair to be really creative and quick on their feet, Choy says.

This week, as part of its Political Action Committee (PAC) Days, the Canadian Real Estate Association (CREA) is hosting realtors from across Canada to meet with their local Members of Parliament to advocate for critical housing policies encouraging access to housing for all Canadians.

CREA notes that as realtors are experts on market conditions and consumer interests, they’re well-positioned to contribute to discussions around housing policy.

Much work still to be done

Though CREA has been working to encourage federal initiatives that address the ongoing housing supply crisis, the organization notes there’s still much work to be done with all levels of government and key stakeholders.

“It’s essential we strive together to advance effective policies that foster increased housing supply while ensuring affordability and accessibility for Canadians across the entire housing continuum,” says Janice Myers, CREA CEO.

This year’s housing policy & solution ideas

With housing demand increasing along with the country’s population, yet inventory and new construction not keeping pace, realtors are advocating for innovative solutions and policies to increase housing supply, such as emergency shelter and community housing, rental accommodation, homeownership and more.

This year, specific ideas include:

• Stimulating supply across the housing continuum by embracing innovation through offsite construction technologies
• Establishing a permanent mechanism to collaborate and coordinate housing policy and development, such as a national housing secretariat
• Extending HST/GST relief for non-profit-built affordable ownership housing

When Raven Woods, a master-planned development located in the Roche Point neighbourhood of Metro Vancouver’s North Shore, was originally built, it was one of the first businesses in North Vancouver to sell residential units on leasehold land.

Leasehold land, according to the government of British Columbia, is: 

A long-term residential leasehold is a form of homeownership where a person (the lessee or leaseholder) purchases from the owner of a building (the lessor or leasehold landlord) the right to occupy a premise for a long-term, fixed period (more than 20 years, and usually for 99 years, on first sale). This is sometimes referred to as “prepaying the lease.”

In the case of Raven Woods, the land belongs to the Tsleil-Waututh First Nation, who traditionally held the territory.

A rocky road to the shift in sentiment toward leasehold

Cal Pye, a realtor now with Babych Group Realty, was part of the original sales and marketing team for the project. Having worked in the area for over three decades, Pye has seen a shift in sentiment toward leasehold properties over the years.

But it hasn’t been a straightforward line getting there.

“The leasehold aspect has always been a contentious issue with those that don’t educate themselves about the details,” he points out. “But the confidence of the investment and the huge community spirit of Raven Woods has overcome the fears associated with the lease (from) when we started in 1994.

The buyers and their realtors who do some due diligence on the value and the community soon realize what a wonderful place (it is) to live while being comfortable with the ownership details.”

Leasehold land: A previous stigma preventing people from understanding nuances & benefits — but much of what’s left

Sarah-Jane Copeland, lands manager with Cheam First Nation, also contributes her thoughts on how people think about and work with leasehold land:

“People’s perceptions and understanding of leasehold land has changed a lot over the past decade,” she notes. Before, “(They) just wanted to kind of hide it, not really have it at the forefront.”

But Copeland believes that this previous stigma prevented people from truly understanding the nuances at hand.

“There are actually quite a lot of benefits to leasehold land as well,” she adds. “Usually there’s no property transfer tax, tax rates could be lower, it’s all different. But I think currently the reality of the situation is that First Nations land (includes) some of the only large land masses that we have left, especially since Metro Vancouver is very geographically constrained.”

‘Everyone has to start somewhere’ but education and partnership are keys to success

Copeland advocates for accessing and developing these large parcels of land to help address growing housing pressure needs, but to do so in a way that truly understands the needs of the Indigenous bands she works with.

The key word, according to Copeland? Partnership.

“I think the main thing is making sure that all parties involved have an understanding of the main goal you’re working toward and being respectful of the laws and policies that these First Nations already have,” she shares.

Aiden Mauti is a Toronto-based consultant with Creative Fire, a 100 per cent Indigenous-owned consulting and communications firm.

Like Copeland and Pye, he believes in the significance of both education and partnership when it comes to real estate sales and marketing practices for leasehold properties on Indigenous land.

For realtors who are interested in learning more but aren’t sure how, Mauti’s advice would be to just get started.

“It’s such a journey that there’s always going to be a critique, there’s always going to be a different opinion of what ‘good’ looks like,” Mauti says. “Everyone has to start somewhere.”

A journey that’s just starting

And while land acknowledgements and showing support on Truth and Reconciliation Day are major steps in progress toward national attention and recognition of Indigenous issues, Mauti believes that the journey for Canadians is just getting started.

“I think there’s just a lot more learning to happen on what reconciliation really means, beyond an orange shirt or even what we see in the industry of wanting to just hire more Indigenous people for the sake of it,” he adds.

The real estate development space has seen a rise of Indigenous-led projects, such as kʷasən Village and Sen̓áḵw in Metro Vancouver, and YZD in Toronto. The land’s history has been incorporated and welcomed, rather than avoided, in their ongoing sales and marketing efforts, with the Squamish nation calling the Sen̓áḵw project “reconciliation in action.”

Resurgence over reconciliation

Mauti reflects on the words of Kahnawà:ke Mohawk writer, researcher, policy analyst and political strategist Taiaiake Alfred:

“Taiaiake talks a lot more about resurgence over reconciliation,” he notices. “A resurgence of cultures — how could we enable the next generation of Indigenous people to support their own self-determination, for whatever that might look like.”

Something to consider both within the real estate industry and beyond.

Photo credit: aquilinidevelopment.com