During the recent federal election campaign, the Liberal Party of Canada promised to include a Home Buyers’ Bill of Rights that would ban blind bidding, potentially under the federal Criminal Code, arguing it drives up home prices.
We heard from members who vehemently oppose this proposed ban on blind bidding and understand it would greatly impact how Canadians choose to sell their home, and how our REALTOR® members aid in the journey to homeownership.
Our immediate response included a statement on CREA.ca and across social media in opposition of the proposed ban and encouraging all parties to instead focus on the primary issue: relieving the bottlenecks preventing an adequate supply of housing across the housing continuum.
Knowing the possibility of this proposed ban, we commissioned a study from an independent think tank, Smart Prosperity Institute, to explore how a ban on blind bidding would impact real estate prices.
The report finds that although it’s possible the blind bidding process can cause higher prices, the evidence to support that claim is limited and, in fact, increased bid transparency leads to higher prices in a hot real estate market – not lower.
In addition to the study, we’re working with provincial associations and regulators (under whose jurisdiction real estate practices fall) in the review of real estate activities to ensure the interests of buyers and sellers are balanced and protected.
We’ll use the data from this report to continue to focus on the issue of housing supply and further our advocacy efforts as Parliament resumes.