In the last couple of weeks, I’ve had a few clients ask me about a recent Supreme Court case involving the Toronto Real Estate Board (TREB). They’ve noticed that the court’s ruling has been in the news, and they want to know how it might impact them.
The case centred on access to home sales data, and many questions emerged before it was settled. Should a buyer be able to go online and find out how much their neighbour’s home sold for? Does that constitute an invasion of privacy? And who has the right to make this information available to the public?
I thought I’d use this post to provide some context—and give you my two cents as a Realtor. If you’re a homebuyer or seller, here’s what the biggest recent development in Toronto’s real estate world means for you.
The Ruling
It’s the case everyone’s talking about: the Commissioner of Competition V the Toronto Real Estate Board. Legal battles are rarely simple, but here’s what this one boiled down to.
Historically, Torontonians haven’t had easy access to the sales histories for individual houses and condos. These histories include information like how long homes have been listed, and how much they’ve sold for. This data is stored in a TREB database known as the Multiple Listing Service (MLS), which we Realtors have access to. Before the recent ruling, we could provide it to clients we worked with—but we couldn’t publish it online.
The Competition Bureau took TREB to court, arguing against restricting access to data in the MLS. In response, the real estate board argued that allowing this information to be widely published would violate the privacy of the buyers and sellers involved.
On August 23, the court sided with the Competition Bureau. Realtors now have the right to publish home sales data. While there are two sides to every argument, many commentators are calling this a victory for homebuyers and sellers. Here’s why.
What does it mean for buyers?
I hear a lot of questions from condo buyers about what the units they’re viewing are actually worth. During the home hunt, how much stock should you put in asking prices? Do they always reflect the value of the condos you’re looking at—and the prices they’re likely to wind up selling for?
While I’m always happy to share my expertise, I also know that many buyers want to do research on their own. In many cases, people who are in the very early stages of buying are just browsing. They may not even be ready to find an agent. If you fall into this camp, you should be excited about the recent ruling.
It’s early days yet, and just how much home sales data will make its way online remains to be seen. But the rule shift means that when you’re looking at a condo, you should (theoretically) be able to hop onto your computer and see how long its been sitting on the market. You should also be able to find out how much similar units in the same area have sold for.
Put simply, this data will make you a more empowered homebuyer. You’ll be better able to gauge the true value of properties before you even contact an agent. You’ll also be able to spot units that may not be selling due to major flaws, which will allow you to investigate further before moving forward.
What does it mean for sellers?
For sellers, accurate pricing is crucial to a successful sale. Price your unit too high, and you might not receive any good offers.
Right now you’re probably thinking, haven’t condo prices been on a hot streak in Toronto? They have. But as demand returns to more typical levels, setting a realistic price will be one of the keys to a quick, convenient sale. That’s where home sales data comes in.
If you know how much units like yours are selling for in your neighbourhood, you’re in a better position to price appropriately. Of course, an experienced real estate agent will have all the required knowledge to help you set a price that’s fair, yet competitive. They’ll look at all relevant factors—including the prices of similar nearby condos. Still, there’s a good chance you’ll benefit from having direct access to this data.
Perhaps you want to get an idea of what your condo could sell for before you contact an agent. Maybe you want to validate what your Realtor is telling you, for your own peace of mind. Either way, it all comes down to staying informed.
At the end of the day…
The recent ruling on home sales data has opened many doors for buyers and sellers. In addition to providing straightforward value, this information could lead to some major innovation. Tech developers have the option of using it to create apps the will further improve the buying and selling process.
The biggest takeaway might be that Realtors are no longer the gatekeepers of home sales data—and that’s a good thing. Our profession is about so much more than providing access to numbers and figures. We offer guidance at every step of a real estate transaction, and nothing can replace that.
Preparing to buy or sell a condo? Learn more about recent market developments that will impact your transaction. Send me a message and we can book a no-pressure information meeting.
