Prior to today, Realtor.ca, Canada's largest multiple listings service platform, was a not-for-profit entity owned by the Canadian Real Estate Association (CREA). But at today's 2024 Special General Meeting, CREA members voted to transition Realtor.ca into a wholly owned taxable subsidiary of CREA.
A press release shared by CREA outlines that the decision to transition Realtor.ca into a for-profit entity, and says that the move will ensure the site's positioning for "long-term growth and sustainability" in order to "continue delivering value to REALTORS® and consumers alike."
"This decision represents a forward-thinking approach that reflects the evolving needs of both REALTORS® and consumers. By transitioning REALTOR.ca into a wholly owned subsidiary, 100% owned by CREA, we’re unlocking new opportunities for innovation and growth while ensuring REALTORS® remain at the heart of the platform,” said Janice Myers, CEO of CREA. “We’re excited about the future of REALTOR.ca and grateful for the trust and support of our members as we take this important step."
Currently, Realtor.ca commands around 50% of the country's market share. As a taxable subsidiary, the site will remain 100% owned by REALTORS® through their membership with CREA. Under the new for-profit structure, the site will be able to pursue new revenue streams not currently possible under the current not-for-profit structure.
It is unclear at this point what those revenue streams might be, but the releases states that "consumers won’t see any immediate changes to their experience." STOREYS contacted CREA for details on the types of revenue streams that may be pursued and how they could one day impact user experience, but media representative for CREA, Pierre Leduc, highlighted that those details have not been hashed out at this point. "This is just the first step among many," he says.
Victoria, BC, Realtor David Langlois, says he's slightly weary of the change. "I hope it works out, I really do. My concern is that right now Realtor.ca is one of one in its category – entirely consumer focused and not revenue motivated," Langois says. "Realtor.ca’s success in the larger proptech space, I believe, is because of its unique nature. Spinning it into a taxable entity that it now revenue driven, by definition, makes it not one of one anymore, but one of many. It puts it into direct competition with other players that have very deep pockets and a technological head start."
James Mabey, Chair of CREA, says in the press release that the transition is a positive move forward for the site. "Today’s vote is about securing the future of REALTOR.ca. Every day, REALTORS® proudly serve clients in every corner of the country. This decision will help ensure REALTOR.ca continues to meet the needs and expectations of today’s property owners, buyers, sellers, and renters."
