T3 Insight
Executive brief: articles and latest news
T3 Sixty’s monthly executive brief providing analysis on the most important trends and developments as well as a quick digest of the most notable news in the industry.
The industry has so many stories, blogs, press releases and announcements each month that we all struggle to digest the information and distinguish between truly meaningful developments and hype or advertisement.
With T3 Insight, T3 Sixty analyzes developing trends, provides new brokerage industry best practices, and creates new perspectives on recent developments in technology, leadership, and organized real estate, in a monthly executive brief. It helps executives understand how the industry is changing in real time.
Each monthly executive brief also includes a composite of latest news and current articles under the title “What We’re Reading.”
November 2022
October 2022
September 2022
August 2022
July 2022
June 2022
May 2022
April 2022
March 2022
February 2022
January 2022
December 2021
Have a question? Connect with our executive editor, Paul Hagey.
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Articles
Individual deep dive topics that T3 Sixty explores as part of the monthly executive brief
The articles listed here are an alternative view of the composite monthly brief. This offers an easy way to view recent, chronological, articles.
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November 2022
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Multiple listing services have been critical components of the American real estate system for nearly a century. They are, however, facing some significant changes and challenges as the industry matures into an increasingly scaled, well-capitalized enterprise, with advanced technology and new data capabilities and practices.
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November 2022
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The long-established compensation structure that undergirds the American real estate brokerage industry is facing unprecedented scrutiny from DOJ and FTC investigations and challenges from several high-profile, class-action antitrust lawsuits
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November 2022
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Bright MLS, the nation’s second largest multiple listing service, which serves over 100,000 subscribers in the Mid-Atlantic region, has been among a vanguard of MLSs innovating to create an expansive future for itself and other MLSs. In this video conversation, Bright MLS President and CEO Brian Donnellan discusses the evolution he sees in the MLS space and how he’s looking to navigate it.
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October 2022
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Hundreds of smaller MLSs remain active across the U.S., and many organizations wonder how they will compete or remain valuable in an ever-changing and consolidating landscape. In this video, T3 Sixty senior vice president of organized real estate Clint Skutchan hosts a conversation with several MLS leaders.
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October 2022
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To accurately and effectively evaluate their technology strategy and approach, brokerages need to understand how technology fits their goals, vision, branding and more. This is why T3 Sixty developed the T3 Brokerage Technology Profile, outlined in this article.
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October 2022
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Homeownership is a key pillar of American life, and of the residential real estate brokerage industry. This article provides an overview of some of the latest data related to US homeownership and how rates vary by certain demographic characteristics.
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September 2022
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With new legislation impacting targeted online marketing, brokerages and agents will need to develop new strategies to bring in business. Fortunately, many real estate practitioners will need to leverage something they already have — contacts.
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September 2022
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Talented employees are the bedrock of strong, nimble, growing real estate companies. This chapter provides a detailed overview of where the real estate brokerage talent market is now, where it’s headed and how to best navigate it.
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September 2022
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Watch Stefan Swanepoel and Jack Miller discuss some of the biggest trends shaping the industry and provide a preview of the 2023 Swanepoel Trends Report.
What We’re Reading
Notable industry articles curated with T3 Sixty’s perspective
Every month T3 gathers most important news across all companies, brands and regions and created an executive summary for quick and easy review.
- Article available on The Real Deal
Christie’s International Real Estate, the luxury real estate brand owned by At World that became an official franchisor this year, has added a new affiliate in Southern California, Aaron Kirman Group (AKG). AKG had become a mega team with Compass before becoming a brokerage and signing with Christie’s. The move shows reveals how the newer luxury franchisor is looking to spread its wings and expand within the US.
- Article available on Real Estate News
Opendoor reported a net loss of $928 million in the third quarter, which presents some serious questions for one of the last iBuyers standing at scale. The company still has cash reserves on hand, and responded quickly to the changing market, but net losses approaching a $1 billion in a quarter while Redfin shuts its iBuying operation down, leaves questions about the sustainability of its core model. The company will cut 550 staff, an 18 percent reduction, as it looks to weather the storm and keeps up the hunt for the scale its model requires to succeed. All eyes will be on its next several quarters.
- Article available on Real Estate News
Redfin reported a $90.2 million third quarter loss, a significant increase from the $18.9 million loss one year earlier. In addition citing elevated risk, the company also announced the closure of RedfinNow, its iBuying operation, resulting in staff cuts of 862. Since April, the number of Redfin employees has been reduced by 27 percent. The company is facing significant scrutiny after an Oppenheimer analyst downgraded its stock, saying the company’s model of employee agents was fundamentally flawed. Its stock is currently trading near an all-time low. Regardless, the company has a strong national brand and leading tech, so after adjusting with the market, it could rebound.
- Article available on Real Estate News
With a third quarter loss of $154.1 million, Compass faces a continued profit challenge. It has lost $443.5 million in 2022 through September. Like many other real estate firms looking to weather a slowing market, the company has reduced its workforce and is restructuring to adjust to a changing market and to pursue profitability. Compass cut 10 percent of its staff earlier this year and announced a second round of cuts in September that were heavily focused on the tech area. The company is still standing but staggered. CEO Robert Reffkin says he’s focused on trimming costs and focused on profitability, as the fastest-growing real estate firm in real estate history looks to stabilize its operations.
- Article available on Real Estate News
EXp World Holdings, parent company of eXp Realty, reported a 12 percent increase in revenue, to $1.2 billion, in the third quarter. Net income of $4.4 million was down from $23.8 million a year earlier, as the company adjusted to a cooler market. Agent count rose to just under 85,000 in the third quarter of 2022. EXp’s innovative model has remained profitable as the market shifts. The next few quarters will reveal just how resilient it may be.
- Article available on Real Estate News
Anywhere reported third quarter revenue of $1.8 billion, down 17 percent from one year earlier. Net income, at $55 million, represents a drop of 51.7 percent from the third quarter of 2021. The company attributed the drop in revenue and net income to lower home sales and forecast that sales will decline by 25 percent in the fourth quarter compared with the year-earlier level. The company indicated that it will reduce costs by $140 million by year-end, as it looks to adapt to the changing market.
- Article available on Inman
Park City, Utah’s City Council approved a measure that would restrict where Pacaso, a fractional ownership company that buys luxury homes in popular vacation markets, can purchase homes. While the company is not prevented from operating in the city, the restrictions block the company from buying homes in the most desirable areas. The council left open the possibility of expanding restrictions to other areas. Pacaso is being challenged in other communities as well. The battles in Park City and elsewhere are part of a larger confrontation with opponents of short-term rental and fractional ownership companies who want to prevent or sharply restrict where these companies can operate in their communities.
- Article available on S&P Case-Shiller
The S&P CoreLogic Case-Shiller home price index rose 13 percent in August compared with one year earlier. The increase was slower than the previous month’s 15.6 percent rise. Each of the 20 cities tracked reported lower home price gains in August compared with July. The deceleration is consistent with other home prices indices that show prices have softened as the housing market adjusts to a higher interest rate environment and lower demand from homebuyers.
- Article available on New York Times
First-time home buyers, who have struggled to purchase homes as prices rose during the past two years, are now faced with the additional hurdle of higher mortgage rates which has priced some would-be buyers out of the market. Data from NAR’s annual survey of homebuyers shows that share of first-time buyers, usually around 40 percent, was just 26 percent, lower than at any time since at least 1981.
- Article available on Real Estate News
CoStar Group, the commercial real estate giant who’s the relatively new owner of Homes.com and Homesnap, reported $557 million in third quarter revenue, up 12 percent from the same period in 2021. The industry is anticipating announcements from CoStar about how it is developing and plans to deploy Homes.com and Homesnap. Recently, Homesnap and the Broker Public Portal parted ways from the joint venture they had formed in which the tech company powered the initiatives national public-facing real estate portal.