Every month, Kate Teves, HR consultant, recruiter and founder of The HR Pro, answers Realtors’ questions about anything and everything related to human resources. Have a question for Kate? Send us an email, or leave a comment below! 

Question: Dear Kate, what’s the secret to running a truly successful brokerage?

Kate: I often get asked a version of this question by both aspiring real estate professionals and broker-owners and although we know there is no singular trait/role that works for all, one trend has become crystal clear: brokerages and teams that invest in an agent success manager (ASM) consistently outperform those that don’t. 

Recruitment, retention, reputation, and true agent success—all see measurable improvements and in this industry, measurable improvements are as coveted as a prime waterfront listing.

 

How does this impact the broker of record role?

 

While it was widely accepted that the broker of record (BoR) must be an equal parts compliance officer, on-demand agent support, marketing manager, business development guru and mentor,  it is seldom possible for one person to be excellent at all things at once.  

The emergence of the ASM role allows a BoR to truly focus on traditional responsibilities of overseeing all transactions within a brokerage, ensuring adherence to legal standards and supervising agents to maintain ethical conduct—safeguarding both client interests and the brokerage’s integrity. 

With the advancement of technology and a focus on agent-centric models, the ASM role has been quickly gaining prominence from coast to coast. ASMs act as primary points of contact for agents, providing support, training, and resources to enhance agent performance and client satisfaction. 

Their responsibilities often include:

• Building relationships: Developing strong personal connections with agents to understand their needs and goals.
  • Curating a personalized plan for each agent based on their strengths and existing circle of influence.
• Providing real-time support: Offering immediate assistance to agents, ensuring they can effectively serve their clients by reviewing contracts and offers, supporting with clause writing, and assisting during negotiations.
• Leveraging technology: Helping agents utilize the latest tools and platforms to streamline transactions and marketing efforts. 
  • Training them on the benefits of using a CRM
• Mentorship:  conducting live and online training on ever-changing documents, regulations and best business practices.
• Accountability:  An ASM often acts as an accountability partner by having consistent meetings with the agent and keeping their finger on the pulse of their individual business.

 

Recruitment: First impressions matter (and last)

 

If you know me personally you would have heard me say this often, “Recruitment is like dating—it’s about making a great first impression but then also having the substance to maintain the relationship.” 

In brokerages with ASMs, candidates are wooed by the promise of ongoing mentorship, personalized support, and a clear path to achieving their goals. This isn’t just anecdotal. According to a 2023 survey by the Canadian Real Estate Association (CREA), brokerages offering structured mentorship programs—often led by ASMs—reported a 22 per cent increase in applications from top-tier agents compared to those that did not.

Without an ASM, recruitment often feels like speed dating: quick, chaotic, and with little follow-up. Agents might join, but without someone dedicated to onboarding and goal-setting, they’re more likely to look for other options within a year.

 

Retention: Keeping the band together

 

Retention is where the rubber meets the road. Real estate has one of the highest turnover rates of any industry, with the average agent switching brokerages every three to five years. However, brokerages with ASMs flip the script. By providing consistent coaching, recognizing achievements, and offering solutions to day-to-day challenges, these brokerages see turnover rates drop by up to 40 per cent.

Let’s face it: no one likes feeling like just another cog in the machine. An ASM ensures agents feel valued and supported, which translates to loyalty. Think of it like having a gym buddy—you’re far less likely to skip leg day (or, in this case, switch brokerages) when someone’s cheering you on.

 

Reputation: Word gets around

 

In business, reputation is everything. Brokerages with ASMs gain a reputation as places where agents thrive. CREA’s 2022 report noted that brokerages with dedicated agent support roles are 35 per cent more likely to be recommended by their agents to peers and isn’t that ultimately the best compliment and the easiest way to grow?

Contrast that with brokerages without ASMs. Agents in these environments often describe feeling adrift, which inevitably finds its way into conversations—and not the good kind. One agent’s frustration at a networking event can snowball into a reputation problem that’s harder to fix than a deal that’s fallen through.

 

True agent success: Beyond transactions

 

Finally, let’s talk about what really matters—agent success. Brokerages with ASMs don’t just focus on helping agents close deals; they focus on helping agents build careers. This holistic approach includes goal-setting, skill-building, and even work-life balance (yes, even real estate agents need balance).

The numbers speak for themselves: brokerages with ASMs see an average 15 per cent increase in agent earnings within the first year, according to a 2023 study by the Ontario Real Estate Association (OREA). Agents are more confident, productive, and satisfied—and it shows in their results.

So if you are an agent looking for your next brokerage, look for one that invested in a role to dedicate to your success.  If you are a brokerage or team leader pondering whether to invest in an ASM, the answer is clear. Your recruitment numbers will thank you. Your retention rates will applaud you. Your reputation will shine. And most importantly, your agents will thrive.

As 2024 wraps up, it’s clear that Canadian Realtors have seen some big changes—whether it’s new regulations, shifting market conditions, or key decisions from major players in the industry. This year has had its fair share of stories that have left a mark on the industry.

Real Estate Magazine is taking a look at the top five news stories that shaped the year. From government policy changes to shifts in market trends, these stories are bound to influence the direction of the industry in 2025 and beyond.

 

Competition Bureau investigates CREA

Canada’s Competition Bureau is investigating two of the Canadian Real Estate Association’s policies. It’s looking into whether CREA’s commission rules discourage buyers’ Realtors from offering lower commission rates or whether they affect competition in other ways. It’s also looking into whether CREA’s realtor cooperation policy makes it harder for alternative listing services to compete with the major listing services, or gives larger brokerages an unfair advantage over smaller ones.

 

CREA has previously told REM the organization is cooperating with the Bureau as part of this investigation phase, and that CREA believes its rules and policies are “both pro-competitive and pro-consumer, including by increasing transparency and helping realtors better serve Canadian property buyers and sellers.”

 

CREA votes to transition Realtor.ca into taxable entity 

 

CREA members approved the transition of Realtor.ca from a non-profit entity to a for-profit subsidiary. The change aims to modernize the platform and reduce CREA’s reliance on member dues. 

CREA anticipates establishing the new taxable entity for Realtor.ca by January 2025. Preparations are underway to finalize the legal framework, create an interim board and begin recruiting permanent board members and a CEO. At the same time, the organization is piloting programs like a mortgage pre-qualification tool to improve the platform’s consumer experience and operational readiness. 

CREA Chair James Mabey confirmed that Realtor.ca will feature advertising on non-listing pages, offering curated, relevant content for consumers while generating new revenue streams for the platform 

 

New mortgage rules to provide temporary relief to Canada’s housing market

Two new mortgage rules, effective Dec. 15, are expected to provide a short-term boost to Canada’s housing market. These include extended 30-year amortizations for first-time buyers and new builds and an increased insured mortgage limit (from $1-million to $1.5-million). 

While these measures may improve purchasing power, experts warn that their impact will be limited by rising home prices and affordability issues. Industry leaders stress that long-term housing recovery requires more focus on supply. 

We’re already seeing the impact of these new rules (coupled with lower interest rates), with some Realtors reporting a much busier than typical December. 

 

5 consecutive rate cuts from the Bank of Canada

Completing the new mortgage rules, the Bank of Canada made a fifth straight cut in December, reducing its benchmark rate by 50 bps, bringing the rate down to 3.25 per cent. The move is expected to provide relief to the housing market, easing borrowing costs and bringing buyers out of hibernation mode, with some forecasting a traditional spring surge for the housing market. 

 

OREA CEO Tim Hudak resigns after 7 years of leadership

 

Tim Hudak, CEO of the Ontario Real Estate Association, announced his resignation in August, following seven years at the helm. In an email to members, Hudak reflected on his tenure, highlighting milestones achieved during his leadership, including significant advocacy wins, new tools for realtors, and a focus on member wellness.

 

Hudak’s contributions include spearheading the passage of the Trust in Real Estate Services Act and establishing the Ontario Realtor Wellness Program.

 

OREA has enlisted KCI Talent in its search for a new CEO, while Sonia Richards, chief of staff and board strategy, continues to serve as interim CEO. 

The Ontario Real Estate Association has officially begun the search for its next CEO. Following Tim Hudak’s resignation in August 2024 after seven years at the helm, OREA has enlisted Ketchum Canada Inc. a consulting firm in the not-for-profit space, to lead the recruitment process.

The role is outlined in an executive brief on KCI’s website; OREA is looking for “an experienced leader with strong business acumen,” who is a “diplomatic and savvy communicator with excellent relationship and profile building skills.”

In an email to Real Estate Magazine, a spokesperson for OREA shares, “After engaging in an extensive Request for Proposals process, OREA selected KCI Talent and Executive Search Consultants. For over 40 years, KCI has worked in the not-for-profit sector and they have significant experience recruiting CEOs. We have no further comment beyond the details outlined in the posting.”

KCI’s Vice President of Search and Talent, Samantha David, is spearheading the recruitment process, with applications due by Jan. 15, 2025. OREA has emphasized its commitment to diversity, equity and inclusion in its hiring practices. The role offers a competitive compensation package and will be based at OREA’s offices in Toronto.

The Ontario Real Estate Association (OREA) is proposing reforms for the third and final phase of the Trust in Real Estate Services Act (TRESA), including additional education for new Realtors, expanded regulatory oversight and stricter disclosure rules.

In a white paper released Tuesday, OREA’s recommendations outline policy changes to address what the association describes as “remaining gaps” in the legislation. The proposed changes target areas including professionalism, consumer confidence and regulatory effectiveness.

 

Strengthening education

 

One notable recommendation is the introduction of a two-year articling and mentorship requirement for new Realtors. “The lack of practical knowledge is very evident in the industry, and ensuring Ontario’s newest registrants receive appropriate sales training is critical to ensuring consumer confidence in real estate,” the white paper states. 

OREA is also calling for the government to enact section 8 of TRESA, allowing Realtors to obtain specialty certifications. These certifications could include areas like commercial, agricultural, waterfront and condominium real estate.

Additionally, OREA is advocating for stricter disclosure requirements, especially for latent defects and guaranteed sales. This includes mandatory, detailed disclosures on hidden property defects, designed to help buyers make more informed decisions. For guaranteed sales, OREA recommends written disclosures outlining all specific terms and conditions, ensuring consumers understand the scope and limitations of these agreements.

 

Increased oversight and accountability for RECO

 

The white paper addresses expanded oversight measures for the Real Estate Council of Ontario (RECO), the provincial regulator. OREA recommends additional powers for RECO to monitor and address unethical practices, with increased fines and penalties for violations of TRESA and the Code of Ethics.

To reinforce RECO’s accountability, OREA is calling for the council to be placed under ombudsperson oversight, which would subject RECO to scrutiny, similar to other government organizations.

 

Stronger penalties for unethical behaviour 

 

To address unethical behaviour, OREA proposes granting RECO the authority to order disgorgement, allowing RECO to require registrants to repay profits earned through violations of TRESA. This would ensure any proceeds from breaches are returned to affected parties.

OREA also recommends expanding Administrative Monetary Penalties (AMPs) to address minor infractions, such as advertising violations, through direct fines rather than lengthy disciplinary hearings. Additionally, the white paper suggests lengthening the “cooling off” period for licensing revocations due to serious TRESA breaches to “two years less a day.” 

 

Closing the “auctioneer loophole”

 

OREA’s recommendations also address what it calls the “auctioneer loophole,” which allows auctioneers in Ontario to conduct real estate transactions without RECO registration. This creates a “two-tiered” system, according to OREA, where auctioneers operate outside the standard regulatory framework. The white paper recommends requiring all auctioneers involved in real estate transactions to register with RECO, aligning them with the standards Realtors must meet.

 

Building on TRESA’s 2023 reforms

 

TRESA’s initial rollout began in 2020, which replaced the 2002 Real Estate and Business Brokers Act, more commonly referred to as REBBA.

Phase 3 of TRESA builds on reforms implemented in December 2023, such as the transparent offer process, which allows sellers to share offer details with all bidders, and designated representation.

Another notable change in 2023 replaced the term “customer” with “self-represented party” (SRP), clarifying representation distinctions for consumers who choose not to work directly with a Realtor.

The Ontario government is expected to introduce Phase 3 regulations by late 2024 or early 2025.

Read OREA’s full white paper here.

After recently announcing that Tim Hudak decided not to continue in his role as CEO, the Ontario Real Estate Association (OREA) says it has started a comprehensive internal and external search to identify Hudak’s permanent successor in leading the association. Hudak’s term ended on August 2.

In the meantime, the board has appointed Sonia Richards, chief of staff & board strategy, as interim CEO, effective August 12.

 

Richards’ ‘substantial expertise in leading critical operational aspects of our organization will serve OREA well’

 

“On behalf of the OREA Board of Directors, and all of our employees, members, member boards and stakeholders, I want to thank Tim for his many contributions to OREA throughout his leadership over the past seven years,” says Rick Kedzior, president of the OREA Board of Directors.

“Tim’s leadership has been critical to the progress OREA has made in streamlining Ontario’s real estate sector and positioning the association for the next phase in its advancement. As the board progresses in its search for Tim’s successor, I am confident that Sonia’s experience as a seasoned industry leader, and her substantial expertise in leading critical operational aspects of our organization, will serve OREA well in her expanded role as interim CEO.”

Kedzior, who Richards will report to, goes on to mention they will work closely with support from their leadership team, and that he looks forward to working with the board during the candidate search process for Hudak’s successor.

OREA notes that beyond her extensive expertise, Richards is a respected leader, mentor and organizational champion.

 

Richards’ interim role going forward 

 

In her role as interim CEO, Richards will be responsible for managing the day-to-day functions of the association, in addition to her existing responsibilities as chief of staff & board strategy. 

These functions will include providing fiscal oversight, planning and analysis of OREA business activities as well as program management, member board strategy, member relations, corporate strategy and business planning functions.

 

Photo: LinkedIn.com

 

Editor’s note: REM asked if OREA has a new interim CEO, what the timeline is for a new permanent hire and if they’re looking inside or outside the industry. They said that at this time, they don’t have any details regarding next steps but will update REM as soon as they do.

 

Earlier today, in an email to members of the Ontario Real Estate Association (OREA), CEO Tim Hudak confirmed he is leaving the association. His last day will be August 2, 2024.

He shared his gratitude and the accomplishments he helped with over his seven years in the role:

“I have been tremendously honoured to have spent the last seven years as the CEO of the Ontario Real Estate Association (OREA). When I was recruited to the job, as I was leaving my time in public office, I believed I would be here for about five years with a goal of delivering high-impact advocacy, greater profile for the organization and refreshed, practical products to support realtors as they connect people with a great place to call home.

Over the last seven years, we have accomplished many things together:

• OREA became Ontario’s leading champion for homeowners and those who aspire to join their ranks;
• Our powerful advocacy helped convince government to pass legislation to get more affordable homes built faster;
• The Trust in Real Estate Services Act (TRESA) made Ontario the North American leader in professional standards and consumer protection with new business tools for realtors including Personal Real Estate Corporations;
• The Ontario Realtor Wellness Program provides a safety net of health and insurance benefits to be there when realtors need it most. The ORWP is a first among professional associations in North America; and
• We streamlined OREA, reducing middle management and becoming a leading organization doing fewer things better.

With these successes in mind, earlier this year I advised the board of directors of my intention to leave OREA this summer. My last day will be August 2, 2024.

I want to take this opportunity to thank the OREA staff who at all times act with integrity, creativity, and in the best interests of our members. To the boards I have served, I thank you for your leadership in guiding staff to accomplish all of our goals. To the members, I thank you for the critical role you play in our day-to-day lives and the economy.  I admire your work ethic and your unmatched dedication to building strong communities.

Finally, I want to thank the MPPs and leaders of all parties — including Premiers Ford and Wynne — for their leadership, openness and drive to create more homeowners.

I will be forever a champion of the Canadian dream of homeownership and the extraordinary work Ontario realtors do in helping people get the keys to a great home.

I look forward to spending August with my family and tackling new adventures in the fall.

Sincerely,

Tim Hudak
OREA CEO”

 

As president of the Ontario Real Estate Association (OREA), Rick Kedzior wants to concentrate on the organization’s member-focused strategic plan. His goal is to guide it to deliver its mission of supporting realtors in helping people find a home.

“I just want to leave organized real estate in a better place than I started four years ago (as a member of OREA’s board),” he states.

 

What OREA’s been up to

 

Kedzior says this has been working out, although the provincial association had “a bit of a rough year” in 2023 with the Ontario Realtor Wellness Program.

“Some of our members weren’t in favour or big supporters of it. That made it a bit of a tougher year. So this year, we’re out there mending some fences, improving our brand, providing guidance for our membership to continue to raise the bar on professional standards and advocating for home ownership policies,” he explains.

Kedzior notes the three pillars of the organization are advocacy, forms and clauses, and leadership training for all 29 real estate boards in the province.

 

Housing affordability: Ontario industry’s biggest challenge

 

As for the biggest challenge faced by the Ontario industry today, he says it’s the affordability issue.

“I’ve got a couple of kids in their early 30s. I look at them and what the real estate market in Ontario has done since 2021 when there was a big change in terms of pricing and craziness, and I wonder if my kids are ever going to be able to afford homeownership. That’s a real concern for me and I think for a lot of people,” says Kedzior. “This is definitely a concern for us at OREA.”

 

A 30-year career including giving back to the profession

 

Kedzior has been active in the real estate profession since 1994. He’s a Broker with Re/Max Aboutowne Realty Corp., Brokerage in Oakville, and a member of the Oakville, Milton and District Real Estate Board (OMDREB), where he was president in 2018 and 2000 and served as chair on various committees, including MLS, By-law and Professional Standards.

Kedzior also previously served as president of the Oakville Chamber of Commerce and director at the Ontario Chamber of Commerce. He recently served as director-at-large and president-elect at OREA. Then, he joined OREA’s board in 2020 and became president earlier this year.

“I’ve always been a volunteer. I’ve always thought that you need to give back to the profession that you’re in,” says Kedzior.

He believes real estate is all about meeting people and developing relationships. “The more people you know, the better off you’re going to be in terms of helping them. But that’s not the reason why I volunteer. I’m just a consummate volunteer. I think you’ve got to give back, try to make the profession better when you leave it.” adds Kedzior. 

He says some of the newer agents don’t have an interest in volunteering, which to him is “scary.” For example, OREA needs volunteers to keep the organization going. “It’s not always about making money. It’s about giving back. To me, it’s been a great career in real estate so I feel obligated to volunteer as well.”

 

‘Working with the public … something I enjoyed from banking days and I always had this fascination about real estate’

 

Kedzior was born and raised in Hamilton, where his parents immigrated in 1949. During World War II, his parents were each captured by the Germans and ended up working on a labour farm in Germany, where they met. His father was Polish and his mother was Ukrainian. They married in Germany and came to Canada after the war.

Kedzior’s background prior to real estate is in the financial field. He explains he managed a couple of community credit unions, one of which was in Oakville.

“When Re/Max opened up their branch or offices in Oakville, I established a relationship with the owner. He ended up banking with me so I had their trust and general accounts and handled all their banking needs,” he says.

Then, after five years of managing their accounts, the owner talked Kedzior into becoming a realtor. “I always enjoy working with the public. That was something I enjoyed from my banking days and I always had this fascination about real estate.

As a banker, I dealt with a lot of his agents financially as well, so I thought this looked really easy, real estate. Little did I know that looking from the outside in, it was easy to think that but it was not as easy as I thought it was. It wasn’t easy at all. I thought if I don’t take the plunge now I probably would never be able to.”

At that time, Kedzior was married with two young kids. He wondered what he should do. Ask his wife about changing careers knowing she was risk-averse and that she’d probably say no? Instead, one day he came home and told her this was what he was doing. In sharing this story, he jokes about the saying, “It’s better to seek forgiveness than seek permission.”

“She’s still my wife, that’s one good thing,” laughs Kedzior. “She wasn’t too happy about going from an every two weeks paycheque to commission, but it all worked out.”

 

Editor’s note:

On June 14, 2024, REM received the following information from Tehreem Kamal: “More than 10 per cent of MREB’s members have signed a petition for an SGM to be called to rescind the vote to amalgamate with WRAR, RAHB and SDREB. MREB is holding the SGM for its members on June 26.”

 

Over the past several months, members of the Mississauga Real Estate Board (MREB) have been expecting to amalgamate with several other Ontario boards on July 1, as the new Cornerstone Association of Realtors (Cornerstone).

What they likely weren’t expecting are some major concerns that have come up since January’s membership vote.

 

Background

 

In October 2023, the Realtors Association of Hamilton-Burlington (RAHB), the Waterloo Region Association of Realtors (WRAR), the Simcoe & District Real Estate Board (SDREB) and MREB announced that SDREB and MREB signed a letter of intent to join the amalgamation of the four organizations.

On January 31 of this year, MREB members voted to amalgamate with RAHB, WRAR and SDREB to become Cornerstone Association of Realtors on July 1, 2024.

Tehreem Kamal, broker with Royal LePage Real Estate Services Ltd., Brokerage, sat down with REM to explain the issues concerning many members and past presidents of MREB — with less than a month to go before the change takes place.

Kamal, a past president herself, has not served MREB or its committees (or any other board) since her term finished in 2019. She was alerted to the concerns in May at an event hosted by MREB, where conversation ensued about the landscape rapidly changing and what MREB is doing.

“I inquired further to find out the facts, what has changed, why there are concerns and who has them,” she explains. “A few questions were asked of the board of directors and president, and a meeting of past presidents was called on May 8 where (they) answered questions.” This included an inquiry about where the strategic plan could be found. Kamal says the group was told MREB is working under status quo and to “trust the process.”

 

Original vision for amalgamating

 

Initially, the two immediate past presidents of MREB were tasked to engage in conversations on behalf of MREB about an amalgamation, as per their leadership positions. They provided their consent for amalgamation, along with and based on the unanimous consent of MREB.

“All sides came together and started working on a plan and feasibility, and there was a lot of work done from all ends. MREB has spent a lot of money and staff resources,” Kamal notes.

The original vision of the proposed amalgamation was for MREB and other Ontario boards to be part of one board and one MLS system: Information Technology Systems Ontario (ITSO)’s Matrix. MREB, Oakville, Milton and District Real Estate Board (OMDREB), London and St.Thomas Association of Realtors (LSTAR), Niagara Association of Realtors (NAR) and WRAR all use this system.

Boards from Mississauga to London, Niagara and others in between were to become part of one amalgamated organization with better representation and collaboration among member boards. Members could access all they need to serve clients while not paying too many fees for it.

“The main thing is a member on the street is tired of paying too much for too many boards,” Kamal explains. “Agents are always struggling with the fact that to access one system or one MLS or a particular property, they must pay multiple fees throughout Ontario. With Matrix, a lot of boards were being served from one MLS system. It was very convenient and facilitating — agents can just go into that system and pull up the archives to serve their client better, to get all the information on hand.”

 

MLS system decision extension

 

The initial term of ITSO’s MLS services agreement was three years and ends on December 31, 2024. Any association/board that does not wish to renew the term is required to give ITSO six months’ notice, which would have made the deadline July 1, 2024.

However, ITSO confirmed that many of its member groups expressed a desire for more time to decide to continue with the services or switch to a different provider.

For this reason, in February, ITSO’s board of directors notified all its members that they would extend the deadline for giving notice of non-renewal until September 30, 2024.

Tom Lebour, broker at Royal LePage Real Estate Services Ltd., Brokerage, and past president of MREB and the Toronto Real Estate Board (now the Toronto Regional Real Estate Board), says this extension is a result of the changes taking place. “While MREB was given the amalgamation mandate four months ago by membership, since then the MLS landscape has changed quickly and several boards have switched systems.”

He believes that since ITSO has delayed the deadline for its MLS agreement renewal until September 30 — giving three additional months at status quo — this gives boards at least that much time to reassess, take a better look and decide later.

 

Missing pieces and a changed vision

 

While Kamal feels the vision was well intended and done in good faith, some key pieces seem to be missing. Early on, MREB’s two immediate past presidents sent concerns in a letter and email to MREB, asking things like what the organizational chart would look like, who would be CEO, what would happen to MREB’s membership money and if MREB was vetting all their contracts with a lawyer.

As a MREB member, Kamal has requested the board provide her with summaries or minutes of the meetings from October to date, so she can review them to see what’s changed and how.

The boards that were originally going to amalgamate have changed course, too. Since the start, she says that LSTAR and NAR joined another service provider. OMDREB is also possibly leaving Matrix for another system with 80,000 members in Ontario. “There’s power in numbers,” she notes. “If the strength of membership is with one MLS provider to the tune of 80,000 members, where we’d see most GTA listings, then how does it make sense to create a silo of possibly 8,000 members?”

Although this changing landscape alters the original vision, Kamal acknowledges these decisions were surely made with members’ best interests in mind. She knows the boards are autonomous non-profit organizations serving their membership, and she’s confident they’re listening to their membership and what’s best for them.

Nonetheless, with the original amalgamation plan being multiple boards and a few having since changed their MLS system plans, Cornerstone now comes down to four: MREB, RAHB, WRAR and SDREB.

 

Key concerns

 

Kamal and others wonder if MREB is truly listening to what’s going on in the industry as a whole and to what will be most beneficial for membership since the landscape and technology are changing so rapidly. There are a few key concerns about amalgamating.

For one, the original vision is fragmented because the new group of amalgamated boards is smaller and won’t have the same power and benefits as intended. Plus, some MREB members feel they will end up paying for multiple boards all over again instead of one where everyone would be under the same umbrella.  

“I have personally listed and sold properties in London, and so have colleagues in my office — we go all over the GTA, wherever the client takes us,” Kamal explains.

“Likewise, many in my office work and live in Niagara, and they work here (in Mississauga), Oakville and Milton, too. For them, it’s going to be the same problem. The solution that was created, unfortunately, is not relevant or realistic anymore.” Kamal stresses that this is why information and access to data and archives are extremely important.

She says another main concern is the premise being presented to Mississauga’s membership that with the amalgamation there will be a stronger voice in the industry at large, with the provincial and national assemblies.

“It’s actually the opposite. On their own right now, the boards left in the proposed amalgamation total (a certain number of) votes in the Ontario Real Estate Association (OREA) assembly. When they come together, the formula that allocates votes kicks in differently and cuts down the votes. How are we a stronger voice if we don’t have the same vote count? This was my question at that (May) president’s meeting with the board.”

The way it works with OREA is a member board’s vote allocation is calculated by a formula set out in the OREA bylaw and is based on the number of individual members of the member board.  A newly amalgamated member board’s vote allocation would be based on the total number of individual members of the newly amalgamated member board and calculated according to that formula.

As well, Kamal and others are wondering what happens to MREB’s money once July 1 comes. “More than $2 million of membership money will be folded over to (Cornerstone). How will accessing it be handled if we need to get something done in Mississauga in the coming months to, let’s say, do any advocacy work?”

Lebour echoes this sentiment and is concerned the funds will be much harder to access once they’re within the new organization. “The $2.5 million that will be thrown into the (Cornerstone) pot wasn’t hidden, but it wasn’t pointed out,” he notes.

These concerns were raised repeatedly and Kamal says there’s been no clear answer, “Which means that things are not clear. So why the rush to get into this amalgamation? All over the world, whether it’s real estate or a multinational company, organizations come together. However, they do years and years of feasibility reports, studies and what-if scenarios.

All of this is happening, to my knowledge, from October 2023. Within a span of less than 12 months, how can we fold an organization that has sustained itself for 70 years?”

 

Advocacy and MREB’s role

 

Right now, there’s a mayoral by-election in Mississauga. Kamal explains that during these times, MREB has historically reached out to city council and been engaged in government relations and advocacy efforts. But right now, she says MREB is nowhere to be seen.

“This is one of the most important key events in Mississauga. Everybody’s talking about housing and MREB is the pillar, the stakeholder that represents people directly connected with housing — yet, they’re hugely absent in this, which is a huge red flag.”

Lebour points out that in 2021, a rumour surfaced about implementing a land transfer tax and MREB worked with OREA to stop it. “It never materialized,” he recalls. “Now, I’m not sure Cornerstone will be effective at devoting time to local issues, which is very important.”

Wondering why MREB’s focus has shifted, Kamal emailed the board to ask how it’s positioning itself in terms of mayoral debate, reaching out to candidates — and a potential municipal land transfer tax being implemented, again.

Lebour notes one of the leading Mississauga mayoral candidates in the by-election hinted about revisiting the tax and that MREB has a strong government relations committee for local advocacy work. “Mississauga has historically defended imposing a municipal land transfer tax over the years, and I have been part of that,” Kamal affirms.

The response she received to her email was that the board is too busy hosting events like a golf tournament and receptions. Kamal acknowledges the importance of running well-intended charity events like these but stresses that MREB’s job, first and foremost, is “to protect the interest of the consumer on the street pertaining to housing.”

“We cannot take our eyes off the ball,” she stresses. “If this amalgamation or anything else is detracting from what MREB has actually stood for in the past and should still be standing for, there is something seriously wrong.”

 

Transparency needed with partner boards

 

Kamal points out that other amalgamating boards should know about what’s happening. “Do they understand that MREB’s membership is not on the same page as they were in January and that they’re probably moving towards an amalgamation with potential turbulence? They have a duty of care to their membership, so who’s keeping them in the loop?”

Kamal feels that MREB should be very transparent with their partners and not just the people representing the amalgamation task force. They shouldn’t be led into something that MREB isn’t 100 per cent ready for. “Even if a director is not on the task force, they should know they need to go back to their brokerages and say, ‘We’re heading into an amalgamation where one of the key partners coming in with possibly 2,200 members and resources of more than $2.5 million is probably having second thoughts.’”

 

The SGM request

 

“Every member that I’ve spoken to, every past president that has discussed, exchanged ideas and brainstormed — we are all for collaboration, but not for creating silos of the Mississauga board and others. This is the challenge and why membership has requested MREB to call an SGM,” Kamal states.

In May, past MREB presidents and industry members collected signatures that would go on a letter petitioning MREB for a special general meeting (SGM). An email (obtained by REM), signed by past presidents John Cassan and Michael Mills, reiterates concerns regarding the proposed amalgamation, mentions the petition being signed with the SGM request, asks MREB to “pause the amalgamation and call for a meeting of the membership” and states, “It is foolhardy, risky and downright reckless to proceed with the amalgamation.”

The pair recount a past error when MREB’s MLS system was sold to the Toronto board in the 1980s, despite membership concerns: “This short-sighted decision cost us dearly. It took us almost four decades to recover from this mistake, making our board a successful enterprise and here we are again.” They warn MREB it’s about to make a “terrible mistake which will cost us dearly.”

Following this, on May 28, 10 past presidents of MREB, including Cassan and Mills, signed a letter to MREB that requested it call a members-only SGM within the next 10 days. The letter advised the board to “not be hasty in signing any contracts without satisfying members’ concerns at the proposed SGM.”

While Kamal acknowledges that MREB’s repeated response, “the membership voted yes in January to amalgamate,” is indeed true, at the same time she points out, “The information the membership was provided in January is not completely relevant anymore. It has changed drastically.

The membership, in view of today’s reality, would like to rescind the vote from January 31, have the board put a hard stop on anything (relating) to this proposed amalgamation and genuinely take stock of what’s happening in the real estate industry at large that will benefit our members.”

From there, she points out there’s always time to look into future options.

 

MREB’s response

 

As of the time of writing, MREB had not accepted the SGM request, nor had it responded to the email from Cassan and Mills. However, REM received the following statement from Rita Asadorian, chair of MREB:

“We have respected the clear and decisive mandate from our members. Despite this, a small group of individuals has attempted to disrupt the process. While a petition for a special general meeting was submitted on May 28, 2024, signed by 10 past presidents, it did not meet the 10 per cent member threshold required by the Ontario Not-for-Profit Corporations Act.

Nevertheless, we have been proactive in addressing concerns. The MREB board of directors hosted delegates from our partner boards at a board meeting to discuss and resolve any issues. This session was productive and satisfying for all attendees. 

Similarly, we held a session with our past presidents, providing comprehensive information and addressing their questions. Both meetings concluded with a positive consensus supporting the amalgamation.”

Asadorian points out that MREB understands significant decisions can generate some discontent but that, “We have consistently addressed the same concerns and must now proceed with the mandate provided by our members’ unanimous vote. We remain open to all questions and concerns, which can be directed to me at any time.”

She says that all four associations are “eager to demonstrate the benefits of our united efforts,” confirming that the amalgamation documents have been formally filed with the Ontario government and the process will move forward.

 

The Greater Toronto Area (GTA) housing market experienced a period of stability on a month-over-month basis in May, with home sales remaining at a low 7,013 transactions, the Toronto Regional Real Estate Board (TRREB) reports.

That being said, “stability” is not really what you want on a monthly basis in the middle of what ought to be a spring market. In a typical year, transactions rise pretty consistently from January until May. When looking at an annualized context, it’s a significant 21.7 per cent decline from the 8,960 sales in May 2023, so it’s no surprise that Ontario Real Estate Association (OREA) CEO, Tim Hudak, has publicly called for rate cuts.

 

Unaffordable markets see very little transaction volume — a problem for the industry

 

Hudak’s comments bring attention to something that is painfully apparent in advanced economies with lower homeownership than Canada: unaffordable markets see very little transaction volume.

While this is not necessarily a bad thing for consumers of housing, it’s certainly a bad thing for an industry that depends on transaction volume to make a living. This is why countries like Canada and the United States have large numbers of realtors per capita, whereas countries like Switzerland and the United Kingdom have very little.

Much of the transaction volume that professionals do see in these markets is in leasing, which has become a growing share of income for real estate professionals in the GTA during this record-low period of sales volume.

It has not been hard to find acknowledgment of Canada’s crippling housing affordability issue from economists at Canada’s biggest banks, for example, with RBC’s analysis:

 

 

People will start buying houses when they can afford to

 

From my perspective, in order to see meaningful growth in transaction volume, we need housing to be affordable again. It’s so simple that people call me stupid when I say it, yet it appears to be so easily ignored.

Bloomberg broke down what it would take for Canada to see a retreat from this affordability crisis:

1. A 33 per cent decrease in house prices, and/or
2. A 55 per cent increase in incomes, and/or
3. A 350 basis point decrease in mortgage rates

 

 

The average selling price for homes in the GTA in May was $1,165,691, marking a 2.5 per cent decrease from May 2023’s average price of $1,195,409. Similarly, the MLS Home Price Index composite benchmark saw a year-over-year decline of 3.5 per cent.

Despite prevailing high interest rates, there was a modest month-over-month uptick in the average selling price on a seasonally adjusted basis from April 2024, indicating slight strength in the bid of buyers in today’s spring market. 

 

“Inflation could be higher … if house prices in Canada rise faster than expected, or if wage growth remains high relative to productivity”

 

With this updated annual decrease in house prices, we have arrived at a juncture where prices continue to do the bulk of the work in restoring affordability. Measured from the peak of the market, house prices are down 20-30 per cent, depending on which metric and market you use. 

Mortgage rates have only just begun to move down 25 basis points this week, and incomes have risen a nominal 2.5 per cent since 2022. Without further material changes in incomes or interest rates, it would not be unreasonable to expect house prices to continue bearing the burden of increased affordability, as fewer and fewer Canadians can afford to buy homes.

The Bank of Canada acknowledged this in their press conference opening statement for the June rate cut — by stating that “Inflation could be higher … if house prices in Canada rise faster than expected, or if wage growth remains high relative to productivity.”

As such, the Bank of Canada is a little bit stuck here when it comes to restoring housing affordability, as that growth in wages or house prices would decrease their likelihood of further cuts. 

 

Reasonable to expect a buyer’s market this summer

 

Despite the annualized decrease in demand. new listings showed a contrasting trend, increasing by 21.1 per cent year-over-year to reach 18,612. The combination of the increased supply (listings) and decreased demand (sales) is sending us on an expedited path toward a buyer’s market, which is typically coupled with downward price discovery.

This influx of new listings provided prospective buyers with a larger range of choices and greater negotiating power, leading to a less competitive market environment compared to the previous year. The supply/demand imbalance led to a relatively low sales-to-new-listings ratio. Given supply growth alongside a typical summer decline in buying activity, it would be reasonable to expect a buyer’s market this summer. 

While many are optimistic that interest rate cuts will be the beginning of the end for unaffordability and low-volume challenges in Canada’s real estate market, this reality comes at a cost. Much of the listing volume increase we see after rate cuts take place could come as a result of financial stress on borrowers, despite their slight relief. 

 

Mortgage rate delinquencies rise after rate cuts

 

There are two reasons why mortgage delinquency rates typically rise after rate cuts take place: 

1. The lagging impact of rate hikes being felt on borrowers
2. The reality that central banks cut rates in response to bad economic data, which leads to more bad data such as rising unemployment, which constricts household ability to service debt

This was well visualized by Ben Rabidoux of Edge Realty Analytics: 

 

Caution, dangerous curves ahead

 

Currently, the housing market is characterized by cautious behavior among buyers, largely driven by high mortgage rates. According to Ipsos’ recent polling, a significant number of prospective homebuyers are holding off until they see concrete evidence of mortgage rates dropping. Even the Bank of Canada’s rate cuts may not accomplish that goal, given that the Canada five-year bond yield, the primary pricing mechanism for five-year fixed mortgage rates, just went up in response to June 7 data from the U.S.

It’s expected that as borrowing costs decrease over the next 18 months, a substantial number of buyers, including many first-time buyers, will be drawn into the market. This surge in demand is expected to ease some strain on the tight rental market, as these new homeowners transition from rental properties.

Jason Mercer, TRREB’s chief market analyst, pointed out that although high interest rates have tempered home prices, affordability will likely improve as borrowing costs decrease. However, this improvement may be short-lived as increasing demand is expected to exert upward pressure on home prices again.

 

Source: TRREB

 

On Monday, the Ontario government announced the Homeowner Protection Act 2024, which contains new measures to enhance consumer protections for homeowners and buyers, aiming to prevent harmful business practices and support informed decision-making.

The new measures include:

1. Banning consumer NOSI registrations. Businesses use Notices of Security Interest (NOSI) registrations to claim interest on rented or leased equipment installed on properties, and their misuse has been rising, leading to pressures on consumers to pay high buyout costs when selling homes or securing financing.

2. 10-day cooling-off period. A proposed 10-day cooling-off period for new freehold home purchases will allow buyers to reconsider their commitments, aligning protections with those for condominium buyers.

3. Cancellation disclosures. Builders’ histories of cancelling purchase agreements for new freehold homes will be publicly disclosed, boosting buyer confidence.

4. Combating illegal building and selling. The province will consult on measures to protect consumers from illegal builders, who often bypass licensing and fail to enroll homes with Ontario’s new home warranty and protection program, Tarion, resulting in more defects, increased risks and higher payouts.

5. Condominium owner protections. The Condominium Authority Tribunal’s jurisdiction will be expanded, and consultations will focus on improving condominium operations, management and transparency with more protections for owners and buyers.

6. Heritage conservation. Amendments to the Ontario Heritage Act will give municipalities until January 2027 to evaluate properties on their heritage registers, easing administrative pressures and supporting heritage conservation.

7. Transit-oriented housing. To expedite mixed-use housing near transit, Ontario proposes exempting designated transit-oriented community lands from certain Planning Act provisions, ensuring building partner certainty and efficient use of transit investments.

 

NOSI ban and 10-day cooling off period: Where OREA and TRREB stand

 

The Ontario Real Estate Association (OREA) says the Act is “a significant step towards protecting homeowners from bad actors during the largest financial transaction most Ontarians will make in their lives, and towards building much-needed housing supply across the province.” Similarly, the Toronto Regional Real Estate Board (TRREB) applauds the government’s introduction of the Act.

OREA says it commends Minister McCarthy and the Ford Government for the legislation and their efforts to protect vulnerable homeowners from bad actors who unfairly exploit the use of NOSIs.

“Too many Ontarians, when selling their home, have been surprised by one or more NOSIs — fine print in contracts for water coolers, furnaces or security systems that include exorbitant buyout charges to be paid before the home can be sold. Banning NOSI registrations will help reduce additional and unnecessary fees being tacked onto the price tag of a home,” says Tim Hudak, CEO of OREA.

He goes on to say that OREA is pleased with the 10-day cooling-off period for purchasers of newly built freehold homes, a protection that is already in place for pre-construction condominium sales in Ontario. “Extending this protection to newly constructed homes will enhance consumer protection by allowing buyers a 10-day period to review and cancel an agreement without penalty, levelling the playing field between Ontario’s hardworking families and well-resourced corporate developers with a team of lawyers.”

TRREB aligns with this, stating the proposal to apply a 10-day cooling-off period to purchasers of new freehold homes, is essential for protecting consumers and fostering trust in the real estate market. “It allows buyers to take a step back and get professional advice on the review of contracts and other aspects of a new home purchase,” notes Jennifer Pearce, TRREB president.

The regional board also agrees with the decision not to apply the cooling-off period to resale homes. “The dynamics of resale transactions are significantly different from new builds, and imposing a cooling-off period could introduce unnecessary complications and delays. While there are merits to cooling-off periods for new freehold homes that could establish protections for consumers against any pressure tactics when purchasing a new build, both sellers and buyers are consumers in the resale market which is different.

Most resale home transactions are intertwined and could have a negative domino effect on other transactions in a supply-constrained market. The resale home market operates under different conditions, and applying the cooling-off period to these transactions is neither practical nor necessary,” Pearce explains.

Hudak echoes similar sentiments, noting that Ontario’s realtors commend the province for not extending this policy to resale homes, “Which OREA has long emphasized would negatively impact both buyers and sellers as it would undermine certainty in resale transactions, which are typically between private citizens and do not involve corporate developers, and could lead to speculation.”

 

‘Easier and faster to add ‘missing-middle’ homes and increase overall density in areas that can best support high population levels’

 

In addition, OREA notes that mandating public disclosure of a builder’s history of cancelled purchase agreements for newly built freehold homes is a welcome policy that will provide consumers with transparency and peace of mind.

Finally, OREA commends the Ministry for acting on one of the key recommendations outlined in its most recent policy report, Analysis of Ontario’s Efforts to Boost Housing Supply: modernizing zoning to support greater density along transit corridors. “By exempting specific transit-oriented community lands from immunity provisions in the Planning Act, it will be easier and faster for the province to add ‘missing-middle’ homes to Ontario’s housing stock and increase overall density in areas that can best support high population levels.”

Pearce sums up TRREB’s support for the measures in the new Act: “We are committed to working with the government, industry stakeholders and our members to implement these changes effectively. We believe these measures will enhance the integrity of the real estate market and provide greater peace of mind for all Ontario homeowners.”