Sales for both SFHs and condos recorded a month-over-month increase while average and median prices were a mixed bag.
Metro-Calgary Single Family Homes
A total of 958 homes changed hands, an increase of 10.5% over August which saw 867 transactions. Year-over-year, this is down almost 24% from last September which had 1257 sales.
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The average price was $460,278 - an increase of just over 3% from the previous month and up 0.26% from September 2009.
The median price was $390,000 – down about 1% ($5000) month-over-month, and down almost 2.5% from September 2009 which had a median of $399,900.
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With almost 400 listings expiring on the last day of the month, the month-end inventory dropped to 4880.
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Metro-Calgary Condos
Condos managed to record a month-over-month increase in sales: 2 higher than the previous month for a total of 366. Last September there were 580 sales.
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The average price was $284,028, down slightly from the $286,384 in August. This is down just over 2% from the $290,253 average price of September 2009.
The median price was up $5000 from the previous month to $265,000, which was the median price in September 2009 as well.
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Month-end inventory dropped slightly: from 2255 in August to 2204 in September.
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Competition Bureau Vs. CREA
A tentative agreement has been reached between the two parties with CREA members to vote on it later this month. After the agreement is ratified, a copy of the legally binding consent agreement will be posted on the Competition Tribunal Web site. The agreement will remain in force for 10 years.
MSM has called this deal “drastic” and a “landmark” transformation to the way Canadians sell real estate. Seriously?
The legally binding deal will allow for home sellers to pay for only those services they want from their real estate agents. This really wasn`t any different from how agents operated in the past. There were discount brokerages such as Seller Direct that allowed clients to pick and choose what services they wanted. You could always negotiate with agents the commission to be earned and the services to accompany it. ”A la carte” services were always an option. WeList has already been registered as a real estate brokerage in Alberta and has listings on MLS®. Nothing was preventing them from choosing to do so years earlier.
I certainly wasn`t the pioneer of this model, but I launched my List for Less on MLS® program last November before CREA made any written changes to the rules. There was nothing restricting any agent then or now.
A Toronto-based real estate lawyer who sued CREA told the media the industry association buckled in signing the consent agreement.
“It’s a complete capitulation and acknowledgment that what was being done in the past was improper and that they’ve now agreed in a legally binding document that they won’t do it again,” he said. “This is precisely what I’ve been fighting for for the last decade.”
He can think whatever he wants if it makes him sleep better at night. He took his feud with the Toronto Real Estate Board (TREB) and turned it into a Canada-wide (non)issue.
CREB has already proactively made the changes to their rules clarifying that these a la carte models are (still) acceptable, regardless of what the vote is at the end of October. Unless any major points are brought up that are currently unknown at this time, there is no reason for members to reject this if it means the Competition Bureau will finally move onto more important things.
When this agreement is in place there still will be no “opening up of the MLS®”. Sellers will still need to go through a real estate agent to post on MLS®. All that has changed is that sellers can control the amount of involvement after the home is listed and pay accordingly. Which for the most part, has always been the case.
re: Competition Bureau Vs. CREA
Mike – I’d have to agree with your take on the proposed agreement CREA & the Competition Bureau have reached *details of which have not yet been released to or voted on by Canadian REALTORs who are members of CREA*.
I’ve spoken with REALTORs from various parts of the country as well as a number of different US markets and the consensus is unanimous. In fact one of my colleagues from USA put it this way: “There were a few companies here that specialized in doing just that, limited service, they are now bankrupt and in liquidation. It sounds like a good idea at first, but what happens is when most people actually try to do it ….. they see how much of a pain in the a$$ it is and don’t bother with it. I wouldn’t worry about it too much as it will go away shortly.
Make it a great day!
They combated this in Utah by passing legislation for minumum fiduciary responsiblity for any real estate agent. ie: presenting all offers, etc. It was a huge problem because the buyers agent ended up doing everything for both sides of the transaction. The RPAC (realtor political action committee) group in Utah is one of the strongest lobbyist groups in the state. I do believe it will fail here as well.
Good point Jill. I’ve had buyers who purchased FSBO’s and I ended up doing most of the work for the FSBO seller as well, or at least holding their hand. I’ll do anything to help a buyer get the home they want, but there has to be a limit.
Bob Truman “I’ll do anything to help a buyer get the home they want, but there has to be a limit.”
–How do you feel about your buyers leaving you and purchasing a For Sale By Owner property they found on their own and thus missing out on a commision? What would those limits be there bob?
“With almost 400 listings expiring on the last day of the month, the month-end inventory dropped to 4880.”
—This is the type of stuff the CREB does at the end of most months to make stats appear better than they are. Then it all comes back listed again in a week and top at the end of the month before getting another 300-500 cut again.
“Competition Bureau Vs. CREA”
– As a RE investor I have to say I agree with MSM (MSM has called this deal “drastic” and a “landmark” transformation to the way Canadians sell real estate). Many realtors who tried to sell “list on MLS for a flat fee” or “no commission packages” were black balled by the CREA or CREB. Now, the CREA or CREB can’t do this. This will open up the flood gates to FSBO’s to list on the MLS using these smart discount new-generation types of “realtors” who for say, $500, will allow a property to be listed on the MLS. Welist will offer it and Welist will gobble up market share like you wouldn’t believe. The “List on MLS for cheap” flood gates have been opened and the smart realtors will follow Welists’ lead.
In the end, WeList ended up putting 30-40 properties up on MLS, MLS made money. Those who listed with WeList saved. Again, smart realtors will do the same thing, old realtors won’t and be phased out.
Not Mike F, I have no problem with you calling for a huge market correction as that’s your viewpoint and all opinions are welcomed here. What I won’t tolerate is outright lies or misinformation. Most listings expire at the end of the month because that’s when individual sellers that have signed listing contracts have chosen for their contract to expire. It has nothing to do with CREB, nor does CREB have any control over it.
And I’ll repeat it one last time, the rules have never stopped any agents from offering “MLS® on the cheap”. The reason there haven’t been many offering this model is because it’s cost prohibitive. By the way, do you know how much WeList charges currently for listing on MLS®? I suggest you look into it before advocating it. Considering you pegged it at around $500, I’m guessing you’ll be surprised.