October, 2023

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Missouri jury finds NAR, brokerages guilty of conspiring to inflate commissions

Housing Wire

A Kansas City jury has found the National Association of Realtors , HomeServices of America and Keller Williams guilty of colluding to inflate or maintain high commission rates through NAR’s Clear Cooperation Rule, in the Sitzer/Burnett buyer broker commission lawsuit. The defendants have been ordered to pay damages of $1.78 billion. The jury reached its verdict after a little over two weeks of testimony from the plaintiffs and defendants.

Brokerage 545
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Jury sides with home sellers in commissions trial

Real Estate News

After less than three hours of deliberation, the jury ruled for the plaintiffs in the landmark Sitzer/Burnett trial, awarding nearly $1.8 billion.

Sellers 363
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Sitzer | Burnett: Live updates from the buyer-agent commission trial

Inman

The long-awaited Sitzer | Burnett commission trial is underway in Kansas City, Missouri, and Inman is covering it all live as it unfolds. Check back early and often for news, views, schedules and more.

Buyers 217
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Property Taxes by State – 2022

Eyes on Housing

NAHB analysis of the 2022 American Community Survey data shows that New Jersey leads the nation with the highest average annual real estate tax (RET) bill ($9,285)—$8,425 more than yearly property taxes paid by Alabama’s homeowners ($860). The size of this disparity grew 1.1% in 2022 and has increased 9.3% since 2017. Vermont was the only state for which the.

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10 Things Most Homebuyers Get Wrong About Getting a Mortgage Today

Realtor

Getty Images While buying a home has always been a challenging milestone, today’s high interest rates have made this dream even harder to achieve. Over the past two years, interest rates on home loans have nearly doubled from the 3% range to around 7% today. This tacks many hundreds extra onto the monthly expense of housing, stretching some homebuyers’ budgets to the breaking point.

Mortgage 190
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The Landlord’s Guide to Security Deposits

BiggerPockets

Renting properties to tenants is a great way to earn passive income, but you must follow many laws and rules, including collecting security deposits. Before you begin renting to tenants, it’s important to understand the answer to what is a security deposit and all the factors that go into it.

Tenants 85

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Anywhere, RE/MAX drop buyer commission and NAR requirements

Real Estate News

The brokerage giants have agreed to significant policy changes as part of their settlement agreements in the Sitzer/Burnett and Moehrl commissions cases.

Buyers 325
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Why high-net-worth individuals are purchasing secondary homes

Inman

Owning multiple properties is relatively common with ultra-high-net-worth individuals. Agents should be well-versed in helping them identify and acquire secondary homes that fulfill their needs and goals.

Agents 209
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Existing Home Sales Plunge to 13-Year Low as Mortgage Rates Surge

Eyes on Housing

Existing home sales in September fell to lowest level since October 2010 as limited inventory and higher mortgage rates continued to weigh on homebuyers, according to the National Association of Realtors (NAR). Low resale inventory and strong demand continued to drive up existing home prices, marking the third consecutive month of year-over-year median sales price increase.

Inventory 191
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Could the Bank of Canada raise interest rates again in 2023?

Mortgagebroker News

The central bank will aim for a delicate balance in its coming policy announcements, DLC's chief economist says

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The Complete Guide to Eminent Domain

BiggerPockets

As a real estate investor, eminent domain is something you should know about. If you own property in an area that the government needs for a road expansion, fire station, railway, or something else that benefits the public, it may be legally taken from you, whether you want to sell or not.

Legal 83
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New listings data unfazed by 8% mortgage rates

Housing Wire

The haunted house ride with the bond market and mortgage rates continued this week, but one housing data line hasn’t been spooked. New listing data appears unafraid of the mortgage rate ghost story over the last few months. Unlike last year, when new listings data had a noticeable move lower once mortgage rates reached 6%, 8% mortgage rates haven’t had any noticeable impact on the latest new listings data.

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New commissions lawsuit filed on the heels of Sitzer/Burnett verdict

Real Estate News

After the jury unanimously found for the plaintiffs in the Missouri case, the lead attorney announced he was filing a nationwide suit naming NAR, 7 brokerages.

Brokerage 309
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RE/MAX becomes 3rd major firm to distance itself from NAR

Inman

In announcing the details of its settlement in the bombshell commission suits, the franchisor said that agents and brokerages would "have the freedom to set and/or negotiate commissions as they see fit.

Brokerage 206
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Remodeling Market Sentiment Declines in Third Quarter of 2023

Eyes on Housing

The NAHB/Westlake Royal Remodeling Market Index (RMI) for the third quarter of 2023 posted a reading of 65, edging down 3 points from the previous quarter. While there is still demand for remodeling, some customers are pulling back on potential projects due to higher prices and increased interest rates. Even though remodeling spending has experienced some slow down over the.

Marketing 189
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Are things looking up for the Canada office market?

Mortgagebroker News

Hybrid work arrangements will continue – but a doomsday scenario for the office space is unlikely, says analyst

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Rent Control Does Not Work—So Why Does the Government Insist on Making Landlords Follow It?

BiggerPockets

Rent control has been around for a long time, and it still doesn't work. Why are governments around the country so insistent on it, and why don't we learn our lessons?

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DataDigest: Nearly 100,000 LOs have washed out

Housing Wire

For years broker channel evangelists told me that a down market would give them an edge on their retail brethren. Well, it’s certainly been a down market. How has the broker channel fared in the wake of the Fed rate hikes ? I asked the good folks at mortgage data technology firm InGenius to run the numbers. Take a look. “From the first six months of 2022 to first six months of 2023, brokers have increased their percentage from 23% to 28% while retail has decreased by that same percen

Retail 510
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'Conspiracy' front and center as commissions trial kicks off

Real Estate News

On day two of the Sitzer/Burnett trial, the plaintiffs presented opening arguments, while the defense said conspiracy claims are "conjecture.

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Anywhere unveils the details of its bombshell commission settlement

Inman

Among the proposed changes, Anywhere said its company-owned brokerages, franchisees and affiliated agents will no longer be required to belong to the National Association of Realtors.

Brokerage 206
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All-Cash Share of New Home Sales Climbs in Q3

Eyes on Housing

NAHB analysis of the most recent Quarterly Sales by Price and Financing report reveals that the all-cash share of new home sales climbed substantially in the third quarter of 2023 while VA-backed sales share fell by nearly half. Additionally, the median purchase price of homes bought with cash surged by one-third over the quarter.

Finance 183
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What does the latest Bank of Canada decision mean for homeowners?

Mortgagebroker News

CEO on the 'good news, bad news' scenario presented by the Bank's October announcement

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Are Rental Properties a Good Investment?

BiggerPockets

For many years, rental properties have been one of the best (and most popular) ways to generate passive income. However, before you go down this path, it’s important to understand the finer details of investing. The knowledge you collect upfront will improve the likelihood of a positive experience.

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The upside of 8% mortgage rates? More inventory

Housing Wire

If I had told you on Dec. 31, 2022, that mortgage rates would hit 8% in 2023, you would reasonably assume housing inventory would sky rocket higher, home prices would fall noticeably, and the number of price cuts would be higher year over year. Instead, the opposite has happened: home prices nationally hit an all-time high, inventory is still down year over year and the percentage of price cuts is 4% below last year’s level.

Inventory 502
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NAR might have more paths to victory in commissions cases

Real Estate News

Defendants presented opening arguments during week one of the Sitzer/Burnett trial. An industry lawyer sees two additional ways they might prevail in court.

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Redfin leaves NAR — and calls on its brokers and agents to follow suit

Inman

In a message to employees on Monday, Redfin CEO Glenn Kelman cited NAR's harassment scandal and other grievances as reasons for calling on 1,800 Realtors to cancel memberships.

Agents 203
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Strong Job Gains in September

Eyes on Housing

Job growth remained solid in September as the Fed fights against inflation. In fact, the recent jobs data has been stronger than most economists expected and is a reminder that GDP growth for the third quarter will be very strong and inflation risks persist. Total nonfarm payroll employment increased by 336,000 and the unemployment rate remained at 3.8% in September.

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BoC rate hold signals confidence in current policy, analysts say

Mortgagebroker News

The central bank's current strategy gives it sufficient room to manoeuvre should a recession materialize

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12 Benefits of Real Estate Investing

BiggerPockets

The benefits of real estate investing are mind-blowing. Besides its tax advantages, returns, and opportunities for passive income, real estate investing offers several other benefits that any real estate investor can take advantage of.

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Consumers point to mortgage rates, not home prices, as key barrier to affordability 

Housing Wire

Elevated mortgage rates continue to dampen already-pessimistic consumer housing sentiment and create affordability woes for both homebuyers and sellers. That feeling is underscored in Fannie Mae ’s latest Home Price Sentiment Index (HPSI), which decreased by 2.4 points in September to 64.5. The index tracks the housing market and consumer confidence to sell or buy a home.

Mortgage 506
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Bucking seasonal trends, home inventory is rising

Real Estate News

Inventory could keep increasing as potential homebuyers ‘hit the brakes’ while mortgage rates remain elevated. Price cuts are also higher than usual.

Inventory 310
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Jury awards $5B to homesellers in landmark Sitzer | Burnett verdict

Inman

Jurors on Tuesday shocked the real estate industry, awarding damages adding up to $5.36 billion to homesellers after deliberating for 2 hours and 28 minutes.

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Mortgage Activity Increases Despite Rise in Interest Rates

Eyes on Housing

Per the Mortgage Bankers Association’s (MBA) survey through the week ending October 6th, total mortgage activity increased 0.6% from the previous week and the average 30-year fixed-rate mortgage (FRM) rate rose 14 basis points to 7.67%. The FRM rate has increased 40 basis points over the past month to its highest level since 2000. The Market Composite Index, a measure.

Mortgage 178
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Bank of Canada likely to begin cutting rates in mid-2024: CIBC's Tal

Mortgagebroker News

The overnight rate could settle around 3%, according to leading economist

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