Realtor numbers drop at Canada’s largest real estate board

The Toronto Regional Real Estate Board (TRREB) has reported a decline in its membership, marking the first significant decrease in years. As of mid-2024, membership dropped by over 1,300 compared to the previous year, reflecting the challenging conditions in Toronto’s housing market. This shift underscores a cooling real estate sector, which has been affected by high borrowing costs and declining home affordability.

Several factors contributed to the decline in realtor numbers. One is the financial burden on part-time agents, who form a large portion of the membership. New industry regulations, including mandatory health insurance introduced in Ontario, have added to operating costs. Many realtors, already struggling with fewer transactions, found it unsustainable to stay in the profession.

In recent years, TRREB has seen a steady rise in membership as real estate boomed during the pandemic. However, market corrections, coupled with tighter lending policies, have significantly reduced housing activity. The average home price has fallen from its 2022 peak, and the volume of transactions remains far below the highs of recent years.

Steve Tabrizi, a broker and industry executive, notes that the real estate market is increasingly controlled by a smaller group of high-performing agents. More than 80% of agents complete fewer than five transactions annually, leaving less active members vulnerable in a turbulent market.

Despite this, TRREB remains optimistic about 2024, projecting a potential rebound due to anticipated decreases in mortgage rates and improved economic conditions. However, challenges persist, including an ongoing supply shortage and high regulatory hurdles for new and existing members.

The evolving real estate landscape in Toronto highlights the need for adaptability among professionals. As the industry undergoes transformation, driven by technology and shifting consumer behavior, the role of realtors will likely continue to change. This recent membership decline may signal the beginning of a larger structural adjustment.