Toronto Real Estate | Ken Finch

Melanie Aitken, the Commissioner of Competition has alleged that CREA keeps prices artificially high for real estate services by tightly controlling who can post homes for sale on the Multiple Listing Service ( www.mls.ca aka www.realtor.ca )

Georges Pahud, the Canadian Real Estate Associaiton’s (CREA) president who is reprenting the MLS, where currently only Realtors can post properties for sale, has already made a number of changes to respond to the criticisms and doesn’t intend to make more.

CREA passed rules at its annual general meeting Monday March 22^nd 2010 that make it possible for someone to pay a realtor to place the house on the listing service for a flat-fee, and then handle the rest of the sale without the agent’s help. The competition Bureau does not accept this change and claims the amendments do not remove the existing roadblocks making it impossible for consumers to choose “a la carte” services from real estate agents, leading to reduced competition and higher fees.

When selling your home without the representation of a Realtor you will have to do the advertising, install a lawn sign, show your property to potential buyers, review offers and conditions submitted by buyers who will most likely be represented by a Realtor and negotiate a counter offer with adjusted conditions. It all boils down to this; you get what you pay for.

It’s been widely reported that Toronto and possibly Canada is on the cusp of a Real Estate Bubble burst. However the simple construct of a Bubble isn’t available in the first place to create a Bubble which could in turn burst.

1) You would need an upward trend in the home buying market ahead of the typical curve and there would need to be a sudden drop off in this trend.

2) You would need an over supply of available housing.

In both scenarios the construct is not available to substantiate the concern. Given the present economic climate Real Estate along with certain precious metals and other traditional investments continue to be a sound, safe choice for your family and money.

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