A sold sign is shown in front of west-end Toronto homes Sunday, April 9, 2017. Private listings and other alternative sales models are still outliers in Canada’s real estate market, despite the Competition Bureau’s success after seven years of litigation to force the Toronto board to share data on sale prices and listing history online. THE CANADIAN PRESS/Graeme Roy

A sold sign is shown in front of west-end Toronto homes Sunday, April 9, 2017. Private listings and other alternative sales models are still outliers in Canada’s real estate market, despite the Competition Bureau’s success after seven years of litigation to force the Toronto board to share data on sale prices and listing history online. THE CANADIAN PRESS/Graeme Roy

Signs of real estate innovation after Supreme Court decision opens housing data

Supreme Court ruling has prompted real estate boards in cities including Vancouver, Calgary and Ottawa to open up

When Chris Pollard wanted to list his Toronto condo, he decided to try a private sale in his neighbourhood first.

And thanks to a Supreme Court decision last year against the Toronto Real Estate Board, he and his wife were able to look up how much similar units had sold for in the area to better price the home themselves.

Private listings and other alternative sales models are still outliers in Canada’s real estate market, despite an opening up of data on sale prices and listing history.

Still, last year’s ruling has ushered more information for consumers into the market and spurred innovation opportunities, said Anthony Durocher, deputy commissioner for the Competition Promotion Branch of the bureau.

“For the average consumer, they’re able to benefit from greater choice of online tools to enable them to make an informed decision,” he said of the change, which came after seven years of “hard-fought” litigation.

“That’s really a great outcome for competition and innovation.”

The additions to the online real estate landscape have taken a variety of forms, including international companies like Redfin that promise low commissions.

Meanwhile, Canadian players like Zoocasa and HouseSigma are expanding their data-driven models, regional startups like Fisherly are emerging as other boards change rules and realtors are setting up their own data sites.

Stephen Glaysher, who’s worked as a downtown Toronto realtor for 18 years, set up a site called MLS Sold Data as a resource for current and potential clients to boost transparency and trust.

He said he’s long been an advocate of more disclosure on sale prices, in part to keep his own industry in check.

“I see a lot of unethical business practices with real estate agents,” said Glaysher.

He said it’s been too easy in the past for realtors to fudge numbers when determining bid and sale prices, where they could manipulate comparables up or down by as much as $200,000 to make sure they win a bidding war.

“You can doctor it to make it look how you want it to look.”

He said clients can double-check data themselves now that sale prices can be made available online, though he worries some people could make wrong decisions by not analyzing the data properly.

TREB, which fought the release of data largely over privacy concerns, said the ruling has started to dilute the MLS system, because some consumers aren’t providing information or not even listing on the system over privacy concerns.

John DiMichele, president of TREB, said in a statement that he’s concerned how people both in and outside of the industry are using the data. He said the board, which has restrictions including no scraping, mining, or monetizing of the data, is looking to protect its intellectual property and defend personal information.

“We are currently in the process of auditing and protecting confidential information in TREB’s database, which is what our members and consumers expect and what the law demands.”

Aware of privacy concerns, real estate site Zoocasa has taken down some price history information on request, generally a couple a month, said CEO Lauren Haw.

Overall though, the data has allowed the company to provide more information and will play into a range of better tools and valuation features it plans to unveil in the coming months to help people better predict price changes.

“This does allow us to better innovate, in terms of the data interpretation that we’re providing,” she said.

And despite privacy concerns, the Supreme Court ruling has prompted real estate boards in other major cities including Vancouver, Calgary and Ottawa to open up their data online, while Quebec’s amalgamated board is considering the issue.

The competition bureau said it has been generally pleased with how other boards have reacted, and that “most” have implemented new rules, but did not provide specific numbers.

But even as the openness of information increases and new companies enter the market, the overall market does not look to have changed all that much, said Queen’s University real estate professor John Andrew.

“Most people aren’t accessing the data that is available, so I don’t see really that it’s had a very profound impact on the market,” he said.

“I kind of made the prediction that this might be kind of the next step of several in the general trend towards the liberalization of data, and that really hasn’t happened, to my surprise.”

He had expected more Canadians would follow the growth in the U.S. of flat-rate listings and other ways to reduce commissions, where the cost savings are “simply staggering,” but the vast majority are sticking with the standard model.

“I think it’s just about the consumers’ confidence level. They’re dealing with their home, and by far their largest investment.”

Pollard, who had listed his condo privately, decided after a quick test of the option to go with a realtor. He said one of the big trade-offs in paying a commission was the greater potential for multiple bidders.

“There’s definitely benefits of having a realtor, and I’m seeing that right now actually, the fact they know how to price it, they have the network. It’s a marketing campaign.”

ALSO READ: Vancouver to hike empty homes tax by 25% for each of next three years

Ian Bickis, The Canadian Press


Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Masks are now officially mandatory in all City of Campbell River facilities. (Black Press File Photo)
Interior Health reports 49 new COVID-19 cases overnight

302 cases remain active; two in hospital

Jenn and Josh McLafferty, Owners of Monashee Spirits, which distills a variety of vodka, gin, brandy, whiskey and liqueurs. (Liam Harrap/Revelstoke Review)
UPDATE: Three more Revelstoke businesses close due to COVID-19 exposure

Ray’s Butcher shop, Monashee Distillery and La Baguette each had a staff member test positive

The angel tree is now up at CIBC. Pick up a tag and buy a gift for a child this holiday season. (Photo via Facebook/Amanda Cole)
Give a gift to someone in need in Revelstoke

CIBC and Community Connections angel tree is now up

Letter to the editor.
LETTER: New signs not a good use of RMI money

There are other more pressing things we need in Revelstoke

BC Transit is replacing older diesel buses in Revelstoke and the Shuswap with new light-duty gasoline buses. (Submitted/BC Transit)
BC Transit replacing buses in Revelstoke and Shuswap

The new light-duty buses will run on gasoline, replacing older diesel buses

Provincial health officer Dr. Bonnie Henry updates B.C.’s COVID-19 situation at the B.C. legislature, Nov. 23, 2020. (B.C. government)
B.C. daily COVID-19 cases hits record 941 on Tuesday

Further restrictions on indoor exercise take effect

(Pixabay.com)
Man, 28, warned by Kootenay police to stop asking people to marry him

A woman initially reported the incident to police before they discovered others had been popped the question

Winston Blackmore (left) and James Oler (right) were sentenced on separate charges of polygamy this week in Cranbrook Supreme Court.
No more charges expected in Bountiful investigation, special prosecutor says

Special prosecutor says mandate has ended following review of evidence from Bountiful investigations

(Phil McLachlan - Capital News)
Garage in Kelowna burns to the ground, blaze deemed suspicious

Fire crews responded to the scene just after 4:30 p.m.

(Ashley Wadhwani/Black Press Media)
Refuse to follow B.C.’s mask mandate? Face a $230 fine

Masks are now required to be worn by all British Columbians, 12 years and older

(Ty Hainsworth / Facebook)
No injuries after fire rips through South Okanagan fruit stand

A fruit stand caught fire Tuesday afternoon, closing Highway 97 for two hours

Damien Smith, with father Thomas Smith, is “frozen” with joy as he watches a special message Deadpool star Ryan Reynolds recorded for Damien’s 9th birthday on Tuesday, Nov. 24, 2020. (Contributed)
Shuswap boy celebrates 9th birthday with family, community and Ryan Reynolds

People from around the world send birthday cards showing young Canoe resident he’s not alone

A major reconstruction project on 32nd Avenue is nearing completion and the road is now re-opened to traffic between 33rd Street and 35th Street. (City of Vernon photo)
ROAD REPORT: More roundabouts coming to North Okanagan

New intersection lights up Dec. 13, 30th Street paving delayed, PV Road completed in Vernon

In this handout photo provided by the Philippine Red Cross, families stay at a temporary evacuation center at Catanduanes province, eastern Philippines, Sunday, Nov. 1, 2020, as Typhoon Goni hits the country. Families living near coastal towns have moved to evacuation centers as the strong typhoon makes landfall. (Philippine Red Cross via AP)
Okanagan community group organizes fundraiser for typhoon-hit Philippines

Over two million people have been affected by flooding, with about 500,000 forced to leave homes

Most Read