The Evolving Landscape of Canadian Real Estate: Insights from CREA’s Leadership

The Canadian real estate market, a cornerstone of the nation’s economy, has undergone unprecedented shifts in recent years. From navigating a global pandemic to grappling with persistent housing supply issues and complex policy debates, the industry has demonstrated remarkable resilience and adaptability. In a recent exclusive conversation, Jim Adair, editor of REM, sat down with Cliff Stevenson, Chair of the Canadian Real Estate Association (CREA), and Michael Bourque, CREA’s CEO, to discuss these pivotal challenges and the strategic direction of the organization. This article delves into their insights, offering a comprehensive look at CREA’s operational adjustments, advocacy efforts, and the foundational principles guiding its leadership.

Adapting to a New Normal: CREA’s Strategic Response to the Pandemic

The arrival of the COVID-19 pandemic in March 2020 forced organizations worldwide to re-evaluate their operational frameworks, and CREA was no exception. Michael Bourque recounted how CREA seamlessly transitioned to a fully remote work environment, a testament to extensive prior business continuity planning. “On March 13, 2020, like everybody else, we had to make the decision to work remotely,” Bourque explained. This swift pivot was made possible by proactive measures such as equipping all staff with laptops and migrating all systems to the cloud, a move essential for redundancy and the critical operations of platforms like Realtor.ca.

While the immediate operational shift was successful, Bourque highlighted the long-term challenges posed by prolonged remote work, particularly concerning organizational culture and innovation. The inability to foster organic collaboration and integrate new hires into CREA’s ethos became apparent. “We’ve hired 15 or more people since the beginning of the pandemic… and they don’t know what it means to work at CREA beyond the policies and the communication that we’ve had remotely,” he noted. Innovation, too, suffered from the lack of spontaneous in-person interactions, impacting not just technology but also crucial areas like advocacy and professionalism. To address these concerns, CREA has strategically reopened its offices on a voluntary basis, implementing advanced ventilation systems and reconfiguring layouts to ensure social distancing. The aim is to gradually rebuild a vibrant workplace culture, allowing individuals to experience a safe and collaborative environment.

Echoing the sentiment on adapting to new modes of operation, Cliff Stevenson underscored the dual nature of virtual engagement. While acknowledging that in-person interaction remains ideal, he highlighted the unprecedented reach achieved through virtual communication. “We’ve been able to reach more members with our communication virtually than we ever could in person,” Stevenson stated, citing an instance of participating in three different AGMs across the country in a single day. This newfound efficiency has led CREA to embrace a hybrid model for future engagements, including board meetings and member interactions. Recognizing ongoing member sensitivities to travel and crowds, Stevenson affirmed that the hybrid approach is not a temporary fix but a permanent fixture in the evolving real estate landscape.

The shift to hybrid models also extends to industry conferences. Stevenson shared his experience at NAR’s first-ever commercial conference in New York, describing the unnerving feeling of navigating crowded spaces like Times Square. While larger conventions, such as NAR’s annual event in San Diego, are proceeding, they signal a significant return to in-person engagement for many boards and associations. This return, however, comes with evolving expectations, as the demand for proof of double vaccination becomes increasingly common for event participation, signaling a new era of event planning and attendance.

Navigating Industry Dynamics: CREA’s Role in Provincial Matters

The discussion then turned to CREA’s involvement in provincial real estate matters, specifically addressing a petition from Ontario Realtors advocating for mandatory property listings on geographically relevant MLS systems. Stevenson clarified CREA’s often misunderstood position, explaining the organizational limitations. “It’s not that we don’t have empathetic members… but ultimately we’re handcuffed in a lot of this. These are provincial issues,” he explained. Provincial associations and local boards maintain distinct rules and regulations, dictating the operational parameters within their respective jurisdictions. CREA’s current bylaws define it as a member-driven organization with specific limitations on intervening in provincial disputes.

Despite these jurisdictional boundaries, CREA actively promotes collaboration among local boards and provincial associations. Bourque emphasized that many perceived “issues” often stem from a fundamental lack of understanding regarding listing processes or data sharing. CREA is committed to developing educational resources to bridge these knowledge gaps and enhance cooperation. “We’re very focused on co-operation as a foundational piece of this whole industry,” Bourque affirmed. He stressed that while CREA can foster an environment of cooperation and remind Realtors of its importance, it cannot dictate business operations or financial decisions to individual businesses, underscoring the delicate balance between support and overreach. However, in instances where CREA has the legal capacity to act, such as filing for intervener status in a court case, it stands ready to support its partners across the country, reinforcing its role as an advocate for the broader industry.

Championing Homeownership: CREA’s Advocacy Priorities

Advocacy remains a core function of CREA, particularly in the run-up to and aftermath of federal elections. A significant point of contention raised during the recent election was the Liberal Party’s proposal to ban blind bidding. Both Stevenson and Bourque articulated CREA’s strong opposition to this measure, framing it as a misdirected attempt to address the housing crisis.

Stevenson argued that blind bidding is fundamentally disconnected from the root cause of the housing affordability crisis: an acute lack of housing supply. He pointed to CREA’s research indicating that Canada possesses the lowest number of housing units per thousand residents among G7 countries. “Open bidding is still bidding,” Stevenson asserted, citing Australia’s long history of open bidding, which has not significantly altered housing supply or prices in one of the world’s most expensive real estate markets. For CREA, the core issue is not the bidding process itself, but the frenzied competition fueled by insufficient housing options, driving up prices and making homeownership an elusive dream for many.

Bourque further elaborated on the flawed premise of banning blind bidding. He highlighted that Realtors represent both buyers and sellers, and many buyers are equally frustrated by the current market conditions. The notion that blind bidding alone prevents homeownership is a fallacy. He emphasized consumer choice: homeowners currently have the right to sell their property as they see fit, whether privately or through a Realtor, and can choose to disclose prices. Federally mandated bans on competitive bidding would infringe upon these choices, an ironic stance given that the federal government itself engages in competitive bidding for its own acquisitions. Bourque firmly positioned competitive bidding as a provincial jurisdiction matter, arguing that federal efforts should instead focus on collaborative solutions to address the supply crisis, working with municipal and provincial governments rather than engaging in contentious debates over bidding processes.

Another election promise that drew CREA’s attention was the proposal for mandatory energy audits when a home is listed for sale. Stevenson expressed concerns about the lack of a national standard for such audits, which could lead to inconsistent application and enforcement. He highlighted potential challenges, including the imposition of additional costs on home sellers and the risk of stigmatizing properties based on audit results without clear pathways for resolution. Bourque added that improperly implemented mandatory audits could exacerbate the supply situation. He illustrated this with a scenario where an elderly homeowner, facing unexpected repair costs revealed by an audit, might be deterred from selling their home, thereby reducing available housing stock. While supportive of policies that address climate change and energy efficiency, CREA advocates for thoughtful, well-designed policies that do not inadvertently create barriers to homeownership or market activity. The organization plans to leverage the deep expertise of its Realtors in energy efficiency to contribute to sound policy development in this crucial area.

Beyond these specific proposals, CREA’s broader advocacy goals for the new government remain firmly centered on increasing housing supply. Bourque proudly noted that CREA’s sustained efforts over the past two and a half years have successfully elevated housing supply to a significant national issue, a topic previously met with “blank stares.” CREA pioneered the idea of linking federal infrastructure dollars with new housing development, a concept now gaining traction. The organization is committed to holding the Liberal government accountable for its promises on the supply side, knowing that Canadians strongly believe governments should support homeownership. CREA’s advocacy continues to focus on collaborative leadership from the federal government, bringing together all levels of government to dismantle impediments to new housing construction.

The Spirit of Service: Leadership and Volunteerism in Real Estate

Leading an organization like CREA demands significant personal commitment, often taking individuals away from their core real estate businesses. Cliff Stevenson reflected on his motivation for taking on the Chair role. His journey began with a simple yet powerful realization: complaining from the sidelines was unproductive. “Enough people were around me saying, hey listen, put up or shut up,” he recalled. This challenge spurred him to become actively involved, driven by the belief that one person can make a difference. The ongoing inspiration comes from hearing impassioned pleas from members, underscoring the critical need for industry change and improvement. For Stevenson, serving as Chair is a profound opportunity to give back to an industry that has been instrumental in his life and career.

Stevenson passionately emphasized the indispensable role of volunteerism within the real estate sector. He views it as the “lifeblood” of the industry, urging anyone with a desire to contribute to step forward. The experience, he noted, offers immense professional development, fosters collaboration with diverse teams, and builds invaluable relationships within organized real estate. It’s a journey that reveals “unbelievable people” and provides a deeply rewarding sense of purpose and impact.

Concluding his remarks, Stevenson conveyed a message of profound pride to CREA’s members. He lauded the leadership demonstrated by organized real estate during the global pandemic and celebrated the extraordinary resilience of members across the country. Through fluctuating market conditions, provincial health orders, and unprecedented challenges, Canadian Realtors facilitated countless transactions, enabling home buyers and sellers to navigate trying times. Their dedication and ability to adapt, Stevenson asserted, were nothing short of “unbelievable,” showcasing the strength and essential service provided by the Canadian real estate community.