Falling U.S. real estate commissions could impact Canada’s market: analyst

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Real estate commission fees in the U.S. are likely to fall next month as the result of class action lawsuits, according to one expert who says the development could have downstream effects on Canada’s real estate market.

Walter Melanson, co-founder and market analyst at PropertyGuys.com, joins BNN Bloomberg to discuss the changing realtor behaviour amid real estate commission la

“On Aug. 17, the big changes that real estate agents when you hire one, they will no longer be listing the amount of commission payable to the buyer agent, which is generally half of the real estate commission,” he said, adding that the new changes will give buyers the upper hand to negotiate commissions with agents.the change could drive commission costs down in the country by between 20-30 per cent in price-competitive markets.

Given the similarities between the U.S. and Canadian real estate markets, Melanson is predicting commission to also fall in Canada but says certain things need to happen first.

 

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