Reflecting on a Year of Change and Challenges: CREA Chair James Mabey Shares Insights

REM recently interviewed James Mabey, the CREA chair for 2024-25 in Edmonton. Here is an edited version of their conversation.

James Mabey, the chair of CREA, reflects on the changes and challenges faced by the association and Canadian Realtors in the past year. From the transformation of Realtor.ca to the integration of AI and navigating industry standards, Mabey shares insights into CREA’s initiatives and the path ahead.

A review of 2024 and Realtor.ca

REM: The market has been volatile this year. If you had to summarize 2024 for CREA in one word, what would it be?

Mabey: For CREA, it has been “challenging yet exciting.” Major rollouts, like the vote on Realtor.ca, kept us busy. On the market side, it has been a period of waiting to see how interest rates play out. I believe that with spring approaching, there will be more activity as buyers return to the market. Where there is inventory, there will be sales.

REM: Regarding Realtor.ca, is there a timeline for transitioning it to a taxable entity?

Mabey: Yes, we anticipate establishing the new entity by January. Currently, we are working on the legal framework to align with what members approved at the SGM. We will set up the interim board and then proceed with an RFP process to recruit permanent board members and a CEO. We have also begun piloting new programs, such as a mortgage pre-qualification tool, to improve the consumer experience while governance structures are finalized.

REM: What other changes can consumers expect on Realtor.ca?

Mabey: Consumers can anticipate an enhanced experience. One approved change is advertising on non-listing pages, providing curated, relevant content to aid consumers in their home-buying journey. These enhancements align with consumer expectations in other online environments. For Realtors, improvements like mortgage pre-qualification tools will enhance lead quality, enabling members to offer better service.

REM: Will dues allocated to Realtor.ca decrease?

Mabey: While dues may not decrease, they may be reallocated as Realtor.ca becomes self-sustaining. Currently, 43% of dues fund Realtor.ca, but we aim to reduce that reliance over time. This would free up resources for advocacy and reputation-building initiatives. Any changes to dues would require board approval and member input, as we strive to balance investments and plan for long-term financial sustainability.

On membership and industry standards

REM: Membership numbers have declined this year. What impact has this had?

Mabey: Overall, there has been a 0.9% decrease in membership, with Ontario accounting for 2.3%. This represents nearly 5,000 fewer members and a budget decrease of about $1 million. We have worked to balance this by cutting costs across departments. The decrease reflects both retiring longtime Realtors and fewer new entrants. We are closely monitoring trends and will address them in next year’s strategic planning.

REM: How is CREA addressing professional standards with the increase of part-time agents?

Mabey: Professionalism is not determined by whether someone works full-time or part-time, but by the quality of service provided by Realtors and adherence to the Realtor Code. Through continuing education, tools, and collaboration with provincial boards and regulators, we ensure that Realtors are equipped to meet high standards regardless of their time commitment to the business.

REM: What is CREA’s stance on stricter entry requirements for new Realtors?

Mabey: Licensing is determined by provincial regulators, but CREA plays a role in upholding higher standards through the Realtor Code and additional education. We collaborate closely with regulators and associations to ensure that members meet both regulatory and Realtor standards.

The Realtor Cooperation Policy and Competition Bureau investigation

REM: It has been almost a year since the implementation of the Realtor Cooperation Policy. What feedback has CREA received from member boards and associations?

Mabey: The Realtor Cooperation Policy is currently under review by the Competition Bureau, as is the compensation aspect of the MLS system. This is a significant topic of discussion among members and the industry. CREA is cooperating fully with the Bureau by providing all requested information for their investigation.

The policy remains in effect, and we believe it is beneficial for consumers and promotes cooperation. It reflects our commitment to transparency, an essential part of CREA’s ESG initiatives. Our goal is to ensure clarity and trust for consumers while fostering a collaborative environment for Realtors. Transparency is crucial, and this policy supports it in meaningful ways.

REM: What is CREA’s position on the Competition Bureau’s investigation…