Time for your cheat sheet on this week’s top stories.
Canadian Real Estate
Canada’s Organized Real Estate System Dealt A Blow In Class Action Settlement
A large regional brokerage dealt a blow to Canada’s organized real estate system this week. RE/MAX Ontario-Atlantic Canada (OAC) agreed to settle a class action challenging mandatory board membership and commission structures. The firm is the first major brokerage to break ranks with other brokerages and real estate boards. By agreeing to drop mandatory board membership for its agents and brokers, it’s directly challenging the country’s tightly controlled real estate industry.
Canadian Home Sales To Stay Weak Until Prices Drop—Voluntary Or Forced: BMO
Canadian real estate sales will improve, but are expected to remain weak until prices drop. That was the take from BMO Capital Markets, where economists argue affordability remains very much detached from local budgets. Cheaper mortgage credit to increase household leverage is often presented as the solution by policymakers, but it’s not an option this time. The bank’s economists estimate rates would need to fall at least 100 basis points to provide buyer stimulus. That’s not realistic with inflation climbing, leaving price declines as the only viable path to improved sales.
Will Canadians Lose Their Homes? BC Rules First Nations Owns 6% of Richmond
Canadian real estate faces a new headwind—a challenge to the land title system. The BC Supreme Court ruled that the Cowichan Tribes’ Aboriginal title covering 6% of Richmond, BC remains intact. The claim is based on precedent showing the First Nations group has continually occupied the land, which lacks treaty coverage—not a problem for most of Canada, but an issue that impacts 95% of BC. The group wasn’t seeking to invalidate private titles, but the decision leaves questions about the precedent set—especially for similar claims across the country.
Canadian Real Estate Prices Fall Faster As Sales Rise With Listings
Canadian real estate sales improved as inventory rose further and price drops grew larger. The price of a typical home fell 0.7% (–$4,700) to $693,300 in July, marking the largest monthly decline since October 2024. Home sales climbed 6.6% year-over-year and set a 4-year high for July, but only due to sellers making concessions. As new listings hit a record for the month, rising inventory is motivating sellers to make a deal at lower prices or risk sitting unsold on the market.
Canadian Real Estate Faces Immigration Shift From Tailwind To Headwind: RBC
RBC is the latest financial institution to cool its expectations of a near-term recovery. The bank sees prices ending 2025 slightly higher and sales improving, but warns it “won’t be enough” to prevent prices from falling back to 2024 levels next year. Immigration was providing a tailwind to boost market activity, but it has turned into a headwind suppressing it. Compounding market headwinds is affordability, which is among the worst on record.
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