Shifting Tides in Canadian Real Estate: Unveiling Open Bidding and the Call for a Comprehensive Housing Strategy
Acknowledging the progression in Ontario’s real estate landscape, the introduction of open bidding in early December marked a significant milestone. Embedded within the latest amendment to Ontario’s realtor legislation, the Trust in Real Estate Services Act, this move allows sellers the choice to disclose bid prices to potential buyers. Christopher Alexander, CEO of RE/MAX Canada, underscores the significance of this option, emphasizing its role in fostering fairness for both buyers and sellers within the market.
The discourse surrounding this initiative gained momentum in the spring of 2022 when the Liberals proposed the formulation of a national legislation known as the Home Buyer’s Bill of Rights. The primary objective was to reshape the home buying process, striving for increased openness, transparency, and fairness. Central to this bill was the national plan to eliminate “blind bidding,” a practice often criticized for inflating home prices nationwide and causing frustration among buyers.
Mixed Sentiments and Insights from Past Experiences
The implementation of open bidding in Ontario received a positive reception from various governmental bodies and real estate professionals. Advocates believed this step could potentially mitigate artificially inflated selling prices, thereby addressing the longstanding housing affordability challenges prevailing across Canada.
Nevertheless, it’s imperative to recognize that the issue of Canada’s housing affordability crisis isn’t solely attributable to blind bidding and its subsequent elimination. RE/MAX has persistently advocated for enhanced transparency in the home-buying process. While acknowledging the merit of this recent advancement, it’s crucial to acknowledge that the core of Canada’s housing affordability crisis stems from an acute shortage of housing in every corner of the nation, spanning communities, cities, and neighbourhoods.
Drawing insights from countries like Australia, Sweden, and New Zealand that have implemented analogous policies targeting blind bidding, it becomes evident that despite these measures, price inflation within the housing market has continued its upward trajectory.
The Quest for a Viable Solution
The imperative lies in formulating a cohesive and viable national housing strategy capable of addressing the dearth of housing supply and enhancing affordability for a broader spectrum of Canadians. The linchpin to achieving this lies in collaborative efforts between federal, provincial, and municipal governments.
However, the solution isn’t confined to merely erecting more residential structures. It necessitates the development of diverse housing options, filling the critical “missing middle.” Accommodating municipal zoning laws must align with this objective, facilitating the construction of various housing types.
Expanding capacities for innovative housing models like laneway developments becomes pivotal in this quest. Strategic utilization of existing lands and real estate resources is indispensable to fortify the housing supply chain. Yet, it’s vital to tread cautiously; compromising natural reserves such as wetlands and grasslands can render new developments and existing communities susceptible to severe weather events, consequently elevating insurance costs for homeowners.
The strategic blueprint must ensure expedited approval and construction of new housing projects, facilitated by streamlined bureaucratic processes and immigration policies that address Canada’s labor shortage, particularly in skilled trades.
The urgency of mitigating the impending housing shortage necessitates exploring all viable options—a sentiment widely echoed among Canadians. According to a recent Leger survey commissioned by RE/MAX, a significant 72 per cent of Canadians advocate that plans to bolster housing supply at municipal, provincial, and federal levels must concurrently consider the diversity in the development of new housing.
Transparency: A Step Forward Amidst the Need for Holistic Solutions
Transparency in the real estate market remains an invaluable asset. However, it’s crucial to discern between constructive measures aimed at enhancing market equity and superficial remedies that circumvent the fundamental issue—Canada’s housing supply deficit.
The cessation of blind bidding signifies a stride towards a more transparent home buying and selling process, yet it shouldn’t be misconstrued as a panacea to cool the market. Safeguarding the long-term health of the real estate market entails addressing the core challenges now and for the years ahead.
Looking to get involved in Canadian Real Estate whether buying, investing or selling? Connect with Shannon Murree and the MovingSimcoe.com team by scheduling your confidential appointment movingsimcoe.com/schedule
Share your thoughts. What do you think of the new transparency and change in Canadian Real Estate?
Who is Christopher Alexander? He oversees operations for the company-owned Re/Max Canada region, which includes Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island and Saskatchewan. Additionally, he works closely with the leaders of the independent RE/MAX Quebec region to build a cohesive brand strategy across the country. He is the original writer and posted in REM
