Q: In the US last week, there was a landmark agreement with the National Realtors Association that should change the way commissions are determined across the board. There should be more competition with lower commissions. Can you comment on how the decision and the new direction might impact the housing market here in Canada and what impact it may have on companies in the real estate buy/sell market? What companies might be affected? How big might the impact be? Who could be winners and losers?
5i Research Answer:
It should, at a minimum, put pressure on commissions in Canada and this should give some support to housing by lowering overall acquisition costs. There are not a lot of public companies in the Canadian space, however, as most are private or are REITs. MRD, a developer, could see some minor positive impact. BRE, providing real estate brokerage services, could see more impact negatively.