I don’t see the analogy. When you pay for a real-estate agent, the real value is getting your home on MLS but to do so you are required to take on an agent who (as far as I am aware) is required to work on commission. Some might disagree but I think it stands to reason: if the real value was in the real-estate agent, then the CREA would have no problem un-bundling listing and agent services, because the consumer would recognize the value in the agent and hire one.

In other words, competition is limited due to a monopoly on the database as well as agent restrcitions (i.e. prohibitions on flat-fee billing). In contrast, law societies aren’t limiting access to legal knowledge nor are they regulating how lawyers bill their clients.

However, affordability and rents suggest that today we are not clearly in a bubble:
http://www.planbeconomics.com/2010/02/15/canadian-housing-bubble/

One thing to point out though….your state throughout the post that realtors can’t “do” flat fee on mls….that is false. realtors CAN list a home on mls for a flat fee. The Competition Bureau is not cracking down on realtor fees, they are looking for clarity in the services realtors provide.
There are many discount brokerages across canada now that can list your house (on mls) for $2500 and provide you with “limited” services.

The united states mls system still lives on despite the changes for public access. Stats still show that majority of homes listed and sold still go through a realtor (in the US).
Like you said in the end of your post, you get what you pay for. when the mls goes public I think people will see that this is blown way our of whack.
giving people a choice is good. change is good.

Thanks for the great post and the mention!