Developers’ Sales Claims Cloud Canada’s Housing Market
In a recent column, veteran journalist Douglas Todd exposes how some real estate developers misrepresent the share of units sold in new housing projects. Ross McCredie, president of Sutton Realty, says many firms claim projects are “80 per cent sold,” but “half the time” that figure isn’t true. Market analyst Steve Saretsky notes that developers are increasingly blocking presale buyers from listing units on the Multiple Listing Service (MLS) to limit price discovery. These practices, along with carefully crafted marketing campaigns, create an illusion of scarcity and make it difficult for buyers to know how many units have actually been sold or what comparable prices are.
Todd argues that Canada’s housing market lacks transparency and regulatory oversight relative to financial markets. McCredie notes that Canada provides little public information on property ownership and transaction histories, making it hard to verify a home’s true market value. Housing analyst John Pasalis adds that, unlike stock exchanges, there is no authority to police misleading sales practices in real estate; sham transactions and price manipulation go largely unchecked. With limited data and weak enforcement, Canada’s housing market operates like the “Wild West,” leaving buyers to navigate an opaque system vulnerable to manipulation.
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