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Today's suburbs, tomorrow's slums?
'Peak oil' theorists say house prices outside cities will collapse as the cost of gas rises, forcing people to choose urban living.
According to some doomsday scenarios, spiking gas prices could turn the cul-de-sacs and two-car garages that surround North America's cities - built over the past 60 years and designed for the convenience of people with cars - into tomorrow's slums. The predictions for the most part come from subscribers to the theory of "peak oil," which holds that crude prices will shoot permanently upward as global demand outstrips dwindling supply, ruining the economy. But their predictions are getting a second look now, as suburbanites, especially in the United States, grumble at the rising price of a fill-up.
Could it happen in Canada? Many experts doubt that gas prices, while bound to rise, will shoot up so suddenly as to strangle the suburbs, which do not sprawl to the extent that many do in the U.S. But it is clear that a shift away from the traditional suburb is also under way in Canada. Suburban municipal governments are scrambling to retrofit sprawl with denser development and better public transit to keep people moving, responding to concerns not just about the rising price of gas, but also about carbon emissions and traffic congestion.
See article in the Globe and Mail »
June 30, 2008 in Canadian Market Forecast | Permalink | Comments (1) | TrackBack
Real Estate Market Summary
The Canadian housing market has ceased to be a sellers' market in both the residential and the recreational sectors, meaning the boom experienced over the past few years is over, analysts say. The long awaited end of the boom is reflected "in more moderate demand and increased supply of properties for sale,'' said TD economist Craig Alexander in an interview Thursday following the release of a housing report by the bank.
"I don't think it's surprising that we've seen that the housing market in Canada is really cooling down,'' he said.
Average annual price gains on a national basis were running on average at about 10 per cent between 2002 and 2007.
"If you look back historically, the historical average should be about 4.5 per cent. So the rate of price growth has been double what's probably sustainable,'' he said.
Alexander said the housing market boom was eventually going to come down to earth.
"And really it's been in the last four to five months that the economic numbers have very clearly shown us that the housing boom has come to an end,'' he said.
The year-over-year price growth for existing homes in Canada's major markets fell to only 1.1 per cent in May, down from 8.6 per cent just four months earlier, the TD report said.
At the same time, new residential listings rose 1.8 per cent on a seasonally adjusted month-over-month basis to 78,878 units in May, the Multiple Listing Service reported Thursday.
Royal LePage also said the recreational property market is returning to a more normal state, with price increases moderating.
"Mirroring the trend we are seeing in urban real estate markets, recreational property prices continue to rise, but at approximately half the rate of the increase in 2007,'' Phil Soper, president and CEO of Royal LePage Real Estate Services, said in an interview Thursday.
"Improving supply has helped temper price increases this year, which will have a disproportionately favourable impact on cottage seekers when compared to their city counterparts,'' he said.
The average price for a recreational property in Canada now ranges between $326,567 and $1,066,389, according to the 2008 Royal LePage Recreational Property Report.
"We're looking at an average five per cent increase in prices by the end of the year,'' Soper said.
Alexander said the trend across the country is "broadly based.''
"We're shifting across the country from a sellers' market conditions, particularly in the West. Now we're really into more balanced markets,'' he said.
Home prices in Calgary and Edmonton in April and May, for instance, fell to below year-earlier levels.
While the bank had expected the slowdown to occur much earlier, housing remained stronger for longer than anticipated, "largely due to increased affordability through new financing options, such as no money down or extended amortizations,'' said Alexander.
"But even those additional buyers have now been absorbed,'' he said.
However Alexander said Canada is not going to see the same boom-bust cycle seen in the United States.
What Canadians will see, he said, is that the boom will end with the growth in prices coming down to very low single digits.
"Our forecast is that price growth in 2008 will average two per cent and then it will be about 3.5 per cent next year. So we're going to be below the (4.5 per cent) trend for a few years,'' he said.
June 28, 2008 in Canadian Real Estate Market | Permalink | Comments (10) | TrackBack
The real estate boom is over
Canada's housing boom has come to an end and it is no more evident than in Alberta - with prices continuing to fall this year by eight to ten per cent from their peak, says a national real-estate report released today.
TD Economics says "the long-awaited end of the Canadian housing boom has occurred, reflecting more moderate demand and increased supply of properties for sale" and it is a trend that is broadly based "but it has been particularly sharp in some of the markets that had experienced the most dramatic price growth."
Highlights of the report are:
Most of Canada’s major housing markets have moved out of a seller’s market to a more balanced market.
TD Economics forecasts modest national average price growth of 2.0% this year and 3.5% next year, down substantially from the 10% annual pace of the last six years.
Sales are significantly lower than in the banner year that was 2007, but they are returning to 2004-06 levels, held up by solid economic and financial fundamentals
Past erosions in affordability are the main factor behind weaker sales, but affordability is now set to improve
Additional supply of homes for sale is booming out west and new listings must be absorbed at more conservative prices before demand can lift prices again. After a pullback over the next 12 months, Alberta’s major markets will stabilize and post mild prices gains thereafter
Home prices in the formerly red-hot markets in Calgary and Edmonton performed worse than the slowing national average, falling below levels reached one year ago in April and May.
"Resale activity in Vancouver is tracking significantly below last year's levels and we expect sales for 2008 as a whole to end up almost 20 per cent lower than 2007. Toronto is expected to experience 10-per-cent lower sales."
Ontario and Quebec homes, which have appreciated at a steady six to seven per cent rate over the last three years, will now only appreciate at half that pace through 2008 and 2009.
Even Saskatchewan won't remain unscathed, the report predicts. While price gains have mirrored those in Alberta as the province's potash, uranium and agriculture industries have thrived, the report forecasts only two to three per cent price growth in 2009, with the risk of a mild price correction.
See the full TD housing report »
June 26, 2008 in Canadian Market Forecast | Permalink | Comments (5) | TrackBack
Recreational Property Outlook
Young professionals likely to take advantage of stabilizing Canadian cottage market.
Echoing the trend observed in Canadian cities this year, the country's recreational property market is returning to a more normal state, with price increases moderating when compared to the frenetic pace experienced in 2007. In almost all of the nation's summer hotspots, prices have continued to rise in 2008, but at a considerably slower rate than in the previous year. This moderating trend bodes well for cottage seekers - particularly the young professionals who make up the single largest group of those planning or considering a cottage purchase (19%), according to the 2008 Royal LePage Recreational Property Report released today.
The 2008 Royal LePage Recreational Property Report comprises a nationwide research poll of Canadian cottage owner and buyer attitudes and actions, and an extensive 53-market analysis of recreational property prices, trends and activity in selected leisure markets across the country.
The survey showed that Canadians overwhelmingly see the benefit of owning real estate - be it a primary residence or a cottage; the survey found that nearly two-thirds (61%) of cottage owners and those who plan on buying a recreational property feel that buying a cottage is a better long-term investment than buying stocks, bonds or mutual funds. In fact, the survey revealed that 15 per cent of recreational property owners own more than one recreational property.
"Mirroring the trend we are seeing in urban real estate markets, recreational property prices continue to rise, albeit at a slower rate than in recent years," said Phil Soper, president and CEO, Royal LePage Real Estate Services. "Improving supply has helped temper price increases this year, which will have a disproportionately favourable impact on cottage seekers when compared to their city counterparts. The Canadian recreational property market has been notoriously short of supply for several years."
Added Soper: "The fact that an increasing number of young people are joining more mature adults in the quest for a recreational retreat comes as no surprise; today's young adults are increasingly savvy when it comes to investments. The average age of first-time homeowners continues to drop. It's only natural for this trend to spill over into the cottage market."
Despite moderating prices, huge disparities continue to book end the country's most expensive and most affordable properties. Recreational playgrounds that are frequented by Hollywood celebrities and Canada's elite, such as Kelowna's Okanagan Valley, The Muskokas, and Nova Scotia's South Shore, boast properties that command price tags upwards of $1.5 million. For the more modest shopper, affordable abodes in areas including Parry Sound and Sudbury can be acquired for approximately $300,000. Hidden gems for under $100,000 can be found in Kingston and Haliburtan Highlands in Ontario, and throughout much of Atlantic Canada - however, at this price point; it will be rare for these properties to have water access.
A little more than half (54%) of cottage-craving Canucks, who are likely to buy or are planning to buy a recreational property, have budgeted to spend between $50,000 and $300,000. Some very modest will-be buyers will have to do a lot of searching to find their wilderness retreat, as 33 per cent of these respondents said they were looking to spend less than $50,000.
Putting the brakes on heading to cottage country?
The lure of the great outdoors and promise of rest and relaxation continue to trump rising gas prices, increased traffic congestion, and a changing real estate climate, as the number of Canadian cottage owners has remained steady over the past three years, at nine per cent.
However, reason (and a need to mind the bank account) is likely to outweigh passion this summer, as 19 per cent of cottage owners stated they would consider selling their properties if gas prices continue to rise; an increase of seven per cent since last summer. The poll also revealed that 33 per cent of recreational property owners said that the rising gas prices would impact the number of trips they take to the cottage this summer. On the flip side, local cottage rentals could see a spike in activity this summer, as rising fuel prices keep some families from flying to their summer vacation destinations.
Summer lovin' replaced with summer siestas
It seems that the blazing weekend warrior has finally simmered down. Once known for their boundless levels of energy come Friday at 5 PM, a startling truth has now come to light: once at the cottage, their fire seems to flicker out. When it comes to activities at the cottage, a dramatic 45 per cent of cottage owners would rather catch up on sleep, than have a 'romantic liaison' with their partner.
Given most people's hectic social schedules in the city and busy work demands, it's little surprise that catching up on sleep at the cottage is placed at a premium; for some cottage-goers, R&R will be hard to come by, as 16 per cent of respondents won't be able to escape the rat race, claiming they will continue to work from the cottage.
Additional Findings:
When asked, "How do you plan to unplug yourself from the wired work world while enjoying your recreational property," the top two responses included: there won't be Internet access at the cottage (24%) and I won't take my Blackberry or cell to the cottage (17%).
Among cottage owners, and those who plan to buy a cottage, 11 per cent spent or will spend more on their vacation property, than on their primary residence; 35 per cent plan to spend between $50,000 and $150,000.
While there are an infinite number of elements that make a recreational property special, Canadians list the top three most important features to be a pristine waterfront, four-season capability, and low maintenance properties.
See recreational property market report »
June 26, 2008 in Canadian Market Forecast | Permalink | Comments (0) | TrackBack
U.S. Real Estate Prices at 2004 levels
"We've erased the last four years of gains."
The American real estate market has dropped to pre-boom 2004 levels, a closely watched housing index shows. The S&P/Case-Shiller Home Price Indices for April was 169.85, compared with 167.43 in August 2004, evaporating the appreciation homebuyers saw in the past four years.
"We've erased the last four years of gains," a vice president of index analysis at Standard & Poor's, Maureen Maitland, said. "Home prices are still falling, and the pace of the decline does not seem to be abating."
Nationwide, the 20 major American cities in the index, which tracks the sale of single-family homes monthly, declined a record 15.3%, with 13 cities reaching all-time lows. In New York, home prices dropped 1.3% in April from the month earlier period, and more than 8% year over year.
In a separate report released yesterday, the Office of Federal Housing Enterprise Oversight, which looks at lower-priced homes that have government-backed mortgages, said prices across the country fell 0.8% in April compared with March, and 4.6% year over year, reaching December 2005 levels. The two reports measure home prices differently, an economist at Global Insight, Patrick Newport, said. "The truth is somewhere in between the two," he said. Both are "telling a consistent story that prices are dropping nationally."
"Prices are probably going to drop quite a bit more because there's so much inventory out there," Mr. Newport added.
For the first time this year, every city measured in the S&P/Case-Shiller index saw a year-on-year drop. Charlotte, N.C., which had been the only city in the survey to post annual growth the other months this year, saw an annual price decline of 0.1%. In 10 of the cities in the index, annual declines were in the double digits, while seven cities posted drops of 20% or more.
The index does not measure condominium or co-op sales, so few Manhattan homes are reflected in the number, although it does include single-family homes in the other boroughs.
"We by our makeup are different from every other market in the country," the chief economist at the real estate firm Terra Holdings, Gregory Heym, said. "Prices in Manhattan have yet to significantly fall."
Mr. Heym said he does not expect any "dramatic changes" in the second-quarter data, to be released next week.
The cities with the largest decline in the index are Las Vegas, with an annual decline of 26.8%, and Miami, with a drop of 26.7%. Chicago, Cleveland, and Denver, while still posting declines, showed some improvement in annual figures from last month, indicating that price drops in those markets may be slowing.
June 25, 2008 in World View [of real estate] | Permalink | Comments (5) | TrackBack
Bank of Canada: market "favourable"
Canada's housing market still strong: central bank
Conditions in the Canadian housing market remain "favourable", with overall prices rising and few signs of excess supply, Sheryl Kennedy, deputy governor of the Bank of Canada, said in a speech on Monday. "The moderation in activity and price increases that we have seen in recent months is both expected and welcome," Kennedy told an investment industry conference in Banff, Alberta.
House prices play a big role in the nation's economy, she said: they can directly affect inflation, consumption, and decision-making in "the real economy" if a bubble inflates or pops.
Policy makers at the Bank of Canada consider those implications when setting interest rates, Kennedy said.
The central bank surprised financial market watchers earlier this month when it refrained from cutting interest rates, citing a higher risk of inflation from rising energy prices.
A major, widespread reversal in house prices is "unlikely" in the near term because the proportion of unoccupied, newly built dwellings in most Canadian cities is below historical average, Kennedy said.
The recent deceleration in house prices has been most noticeable in certain markets, such as the energy-rich province of Alberta, which had racked up "very steep" price increases in the past two years, she said.
Earlier this month, Statistics Canada said the annual rise in new housing prices slowed to 5.2 percent, its weakest pace since September 2005, as prices in the Western Canadian cities of Edmonton and Calgary slowed.
A declining trend in building permits also suggests that supply is adjusting to softening demand, while "the Canadian mortgage market is in reasonably good shape," Kennedy said.
June 24, 2008 in Canadian Real Estate Market | Permalink | Comments (17) | TrackBack
The road (or subway) to riches
Will your home one day be on a subway or major transit line?
The old real estate axiom about location, location, location has a well-known addendum: being near a subway or major transit route can instantly increase what your home is worth without you having to do anything at all.
But can you tell where they're going to build or if the place you're looking to buy will one day find itself on a subway or major transit line? The answer is yes, if you believe government plans about where officials hope to put the new routes.
Adding transit takes years of planning and a commitment of millions of dollars and all of it has to be done well in advance. That means the powers-that-be know where they'll be putting the new tracks and trains as much as a decade or more before a shovel actually hits the ground.
One of those locations could be along waterfront-adjacent Cherry Street, which would make the folks on Condo Row lick their collective chops at the thought of bulging resale values.
"Streetcar access is phenomenal in terms of adding to value and presence ... people want to be on a streetcar line," said David Jackson, a Toronto urban planner.
Plans for the new tracks could start as early as spring 2009, while the underground expansion of the Don Mills subway line all the way to Morningside could have homeowners on the north side of town dreaming of dollars, though there's no official date for that project to commence.
So just how much of a bottom line difference are we talking about here?
"Easily thirty to fifty thousand dollars," confirmed Toronto realtor Janice Mackie. "Thirty thousand dollars is a parking spot ... you don't have to purchase that."
What's more, given the constant rise in gas prices and the GTA's traffic volume, the Better Way may soon be looking even better still.
And while the two mentioned above are among the more central and immediate transit expansion schemes in the works, there are dozens of others being hatched around the GTA and Ontario as well.
June 24, 2008 in Location, location, location | Permalink | Comments (7) | TrackBack
Personal information now mandatory
Realtors required to confirm the buyer's ID.
Canadian realtors are bracing for a customer backlash starting today, as they become foot soldiers in the battle against money-laundering. Federal regulations that kick in today will force realtors to start asking property sellers and buyers personal information never before required.
In Ontario alone, 47,000 realtors will be expected to fall in line or face stiff penalties. "We know there is going to be consumer rejection on this and we are just following the law," said Gerry Weir, a London realtor and president of the Ontario Real Estate Association (OREA).
Realtors will be required to ask for the name, address, date of birth and occupation of property buyers and sellers, plus ID such as a driver's licence or passport.
Weir said Ottawa has made little effort to educate people about the changes, and realtors feel they're being forced into an uncomfortable enforcement role. He said realtors will have to keep the information for seven years and submit it on request to the Financial Transaction and Reports Analysis Centre of Canada (FINTRAC), a federal agency set up to track suspicious transactions that could be related to money-laundering or terrorism.
If the buyer is foreign or from another part of Canada, the real estate broker will be required to hire an agent in the buyer's community who can confirm the buyer's ID.
If a client refuses to disclose the information, Weir said, a realtor would have to walk away from the deal or report the person to FINTRAC.
"Even if I have known you for 30 years, I still have to ask for that information," he said.
Weir said it could get even worse.
He said Ottawa also wanted to require a receipt-of-funds record, with information on anyone who actually supplied money for sales, including relatives or friends.
Weir said the government backed down on that, but he expects it will only be temporary.
"That is the next step; that will happen," he said.
FINTRAC officials appear confused about the new rules.
Spokesperson Peter Lamey at first said one piece of ID was needed from buyers and sellers, and information such as date of birth and occupation wouldn't be required.
He later said the information wouldn't only be required from buyers and sellers, but also from anyone who contributed money to a deal as part of the receipt of funds record, contradicting Weir's belief that Ottawa had backed down on that provision.
Negotiations on the rules were handled by the federal Finance Department and not FINTRAC, Lamey said.
For years, realtors have been required to report any suspicious financial transactions to FINTRAC, especially those involving cash payments of more than $10,000. Weir said he's reported three transactions in recent years, and two involved someone trying to buying a house to set up a marijuana growing operation. Still, he said only a very small number of real estate transaction are suspicious.
Weir said the government will only do spot inspections during the next six months to ensure realtors and brokers are meeting the requirements.
After that, any realtor or broker who doesn't meet the requirements could face hefty fines or jail time. Weir said the OREA wants to educate people about the changes, but there've been long negotiations with the government and the rules weren't firmed up until last week.
June 23, 2008 in Real Estate Regulations | Permalink | Comments (8) | TrackBack
Boomers at home in Forest Hill
Older age group is growing fastest in luxury neighbourhood
For decades, analysts have been talking about the impact of Baby Boomers on everything from consumer preferences and health care needs, to labour markets and housing demand. The strength of the condominium market, in particular, has been a testament of this process as adult children of Baby Boomers have been leaving home as first-time condominium buyers or renters, and as the empty nester parents themselves have been trading in their large homes for a condominium lifestyle. However, the challenge for many empty nesters has been to find luxury condominium apartments in their current neighbourhoods where they have lived for decades.
A look at the Forest Hill and Chaplin Estates neighbourhoods in midtown Toronto, generally known as the area south of Eglinton, between Bathurst and Yonge Street, and north of Lonsdale Road (census tracts 129, 130 and 131), provides a good snapshot of an ageing population whose housing needs are changing.
According to the latest 2006 census data, there were 13,965 residents living in the Forest Hill and Chaplin Estates area -- only 0.7% higher than 2001 when there were 13,870 residents living in the area. The population is distributed relatively evenly by age group -- 29% are children and youth (under 24 years); 30% are young professionals (25 to 44 years); and 29% are older professionals (45 to 64 years), reflecting the predominance of families. Seniors over 65 years make up 12% of the population, which is slightly lower than the city of Toronto. However, compared with the 2001 census, the leading edge of Baby Boomers (55 to 64 years) were the fastest-growing age group increasing in numbers by 25.9%, followed by their younger children aged 15 to 24 years (17.5% increase). Not surprisingly, the largest decrease in population (-12.4%) occurred among the 25-to 34-year-olds who moved out of their parents' homes during this period.
The prevalence of families living in Forest Hill and Chaplin Estates is also evident in the marital status data (of individuals over 24 years), which showed a 10.9% decrease in the number of single residents, compared with a net increase in married and common-law couples. Even the number of separated and divorced residents fell by 4%, compared with a city of Toronto trend toward more "marriage casualties" (6.2% increase from 2001 to 2006). Similarly, the number of one-and two-person households fell, while the number of three-plus person family household increased -- again, contrary to the city of Toronto trend toward smaller household sizes.
Forest Hill and Chaplin Estates are also very stable neighbourhoods in terms of housing stock, with virtually no new residential homes constructed from 2001 to 2006, apart from some new homes built to replace older teardowns. More than 60% of current residents were also living in the area during the 2001 census, so it is not surprising that only 22% identified themselves as immigrants, compared to nearly 50% for the city of Toronto, and only 3% of residents immigrated most recently from 2001 to 2006. The majority of immigrants living in Forest Hill and Chaplin Estates originally emigrated from Europe (30%), United States (18%), South America (16%) and Southeast Asia (15%).
The latest census data also reports that Forest Hill and Chaplin Estates are relatively affluent neighbourhood with a lower-than-average unemployment rate, around 2.9% in 2006. Its residents are well educated -- 70% have a university degree (including 19% with a post-graduate degree), and most are working in higher-paying occupations such as: management (21%); business, finance and administration (20%); and law, education and government (17%). As such, more than 46% of households reported earning over $100,000 per annum in 2005 and the average annual household income was around $246,000 -- among the highest in Toronto.
June 22, 2008 in Toronto Real Estate Trends | Permalink | Comments (2) | TrackBack
The real estate 'Cartel' strikes again
MLS smacks down maverick website
It was an antidote to Toronto's sprawling housing market: a simple website created by two self-described "computer geeks" to ease their first home search, and then help a city of frazzled buyers. That is until this week, when the Multiple Listings Service - the reigning king of online real estate listings in Canada - unleashed its lawyer on housing123.com and banished the new kids on the block.
"It was always this overhanging axe that was ready to fall," said Travis Fielding, the 31-year-old co-founder of the website, which allowed users to search MLS listings plotted on a Google map of local neighbourhoods.
After all, MLS has crushed upstarts before. Two Toronto-based sites, Realtysellers Ltd. and Realestateplus.ca, were shut down in the past two years after run-ins with the Canadian Real Estate Association, which owns the MLS trademark. Housing123.com is accused of using its information without permission.
But some industry watchers say MLS may be losing this online turf war, as what's happening in the United States may soon happen here: Sites such as Redfin, Zillow and Yahoo Real Estate now carry the lion's share of new listings, while MLS is losing ground.
They say the MLS business model - giving people only a taste of a house and directing them to an agent for more - won't stand up against competitors that will give you every detail about a house and its surroundings, including local crime stats, school reviews and previous purchase prices, along with 360 tours and a break on the commission.
"They're basically saying, 'You know what? People want to search listings themselves,' " says John Pasalis, founder of Realosophy.com, a website that dishes details about Toronto and Greater Toronto Area neighbourhoods. "The problem in Canada is we can't do this because the real-estate boards don't allow us."
The idea for housing123.com bloomed a couple of years ago after Mr. Fielding's friend and fellow software developer, Kevin Lai, became frustrated with his own home search. Sick of navigating MLS, and frustrated by an agent who missed good houses, Mr. Lai thought he could design a better system.
On his laptop, he basically created what is known as a "Google-map mash-up," which allows people to plot customized data (in this case, MLS listings) on top of a Google map application.
It worked so well that, just for kicks, he enlisted Mr. Fielding to help him take it to the public. It took about three weeks to work out the kinks, and they developed a way for the program to automatically add new listings. "On a scale of 10, it's probably like six," Mr. Lai, 29, says of the difficulty level. For their day jobs, he and Mr. Fielding design software for financial companies.
Since the site was launched 10 months ago, it averaged about 400 to 500 unique users per day, Mr. Fielding says.
Users appreciated its simplicity. House listings appeared as dots on a map of Toronto, which users clicked on to take them to the MLS listing. Houses were colour-coded by price so users could see which areas were pricey or affordable.
By contrast, MLS has no way to narrow a search to a neighbourhood. If you're looking for a Victorian in Kensington Market, you have to search in zone C-01, which covers Yonge to Dufferin, and Bloor to the Lakefront. (That includes the Annex, the waterfront, Kensington, Little Italy, Trinity-Bellwoods, University, the downtown core, and others.)
The search engine spits out hundreds of listings, and users are stuck flipping between MLS and Mapquest.
Still, the housing123.com founders knew it would just be a matter of time before MLS came knocking, because they were using listings that were the property of MLS.ca.
Last week, Mr. Lai received a letter from a CREA lawyer saying they had violated copyright laws. Remove the site, it said, or we'll sue.
"They were scraping data from our website," says Calvin Lindberg, president of CREA, which represents more than 94,000 brokers and agents. "It's something that we deal with on a regular basis. ... Obviously whenever we see it happening, we send a letter asking them to turn it off."
Since the site folded on June 15, dozens of users have voiced their dismay on a blog, urging the duo to keep going or seek legal advice. One user wrote: "MLS is brutal and your site made finding the right place in the RIGHT location a breeze."
By the end of the summer, MLS.ca will have a map component, Mr. Lindberg says. Beyond that, he says, the site does not need to be improved. "We've created a very effective and efficient system that the consumers love."
Others disagree. One simply has to look south to see the potential for informative sites, Mr. Pasalis says. Those sites, however, have only been made possible through tough legal battles. In May, the U.S. National Association of Realtors settled its antitrust case with the Department of Justice, giving online realtors - which have been offering fees that are significantly lower than traditional realtor rates - full access to the MLS database.
Mr. Pasalis says the onus should be on Canada's Competition Bureau, not individual entrepreneurs, to fight to ensure fair competition is allowed in Canada too.
For now, Mr. Lai and Mr. Fielding say they are dreaming up new projects. "At least we helped a lot of people find their dream home," said Mr. Lai, who is now in the market for a downtown condo.
The pair say they may revive their site, but only to post properties from individual sellers or brokers - not MLS. "We can't afford the lawsuit, that's for sure," Mr. Fielding says.
Sadly, very few consumers appreciate that the MLS monopoly on publishing online real estate listings in Canada keeps listings fees double what they would be if open competition were permitted.
Source: Toronto Globe and Mail.
June 21, 2008 in Toronto Real Estate Board | Permalink | Comments (9) | TrackBack
