The Toronto Regional Real Estate Board (TRREB) saw its first year-over-year membership decline since at least 2016, with 1,363 fewer members in July 2024.
Scott Ingram, a TRREB member and chartered accountant, told Storeys that there two primary factors contributing to this decline.
First, the current market conditions are significantly less favorable than in recent years. Home sales in Toronto and the Greater Toronto Area have slowed considerably since the pandemic highs, with July 2024 recording only 5,391 sales compared to the peak of 15,652 in March 2021. The average home price has also decreased from its record high of $1.3M in February 2022 to $1.1M in July 2024.
The second factor is the introduction of mandatory health insurance for Ontario Real Estate Association members. The Ontario REALTOR® Wellness Program, implemented in January 2024, adds $660 to the existing industry fees, making it less appealing for part-time or occasional realtors to maintain their memberships.
Steve Tabrizi, a Toronto broker and COO of RE/MAX Hallmark Group of Companies, notes that over 80% of realtors conduct fewer than five transactions annually. The increasingly volatile market conditions have made it even more challenging for these agents to close deals, leading many to leave the industry due to economic pressures.
Additionally, the real estate industry is undergoing significant changes in technology, regulations, and consumer behavior. The rise of digital platforms has altered how transactions are conducted, making it difficult for some realtors to compete. The introduction of the Trust in Real Estate Services Act in Ontario has also increased regulatory complexities, pushing some agents out of the field.
Tabrizi predicts that this downward trend in realtor numbers will continue, with a reduction of approximately 4.5% in active realtors in Ontario. He anticipates that the top 20% of agents will likely maintain control over the majority of the market share as the industry evolves.
Information for this story was found via Storeys, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
