2021 STR, pandemic + hriing, strategic planning guide
In addition to the articles, here are a few items we are reading from across the internet.
The move to Nasdaq trading brings yet another public company to the real estate fold. It also will now allow more transparency into the iBuyer business model, providing an accurate, real-time look at the model’s evolution and its financial challenges and successes.
HousingWire, already a respected media name in housing, construction, and mortgage news, now expands its news, rankings and events capabilities into residential real estate brokerage. Inman, the residential real estate brokerage industry’s leading media company, has a strong, new formidable competitor.
The residential real estate brokerage ancillary business space remains a huge opportunity as these services represent a critical component to the end-to-end home transaction. Many large brokerage companies are pursuing the incorporation of ancillary services and, if you haven’t yet done so, take the first step in 2021.
The real estate market continues to be blazing hot, which gives real estate brokers and agents ample opportunity to invest, innovate and grow their businesses into 2021. While uncertainty looms, the bold have immense opportunities.
Founders Greg Robertson and Dan Woolley believe merging with a larger tech company is a good move given real estate’s increasingly higher financial and tech stakes. Since company founder Lorne Wallace sold his interest in the company in 2015, Lone Wolf acquired zipLogix in 2019 while its institutional investor Stone Point Capital bought out fellow investor Vista Equity Partners just last month. The residential real estate technology space is undergoing significant consolidation – Constellation has already acquired some 20 brands, MoxiWorks acquired Imprev last year and now there are even talks about giant CoreLogic fending of acquisition interest from credible players.
While mortgage rates remain at all-time lows, house prices have continued to rise as inventory across the U.S. is low. Rates likely will not drop much lower if at all, so buyers remain active and refinances common. A more balanced market will likely emerge when Covid-19 uncertainty settles.
Yet another industry support service company (See W + R studios and Real Trends above) has sold this month. Homesnap is picked up by by CoStar, a $35 billion commercial data accompany. CoStar has deep experience in operating a real estate portal and, while the company says it will operate differently, it could charge marketing fees to agents and brokers to list on the site as it does in the commercial space with LoopNet. In this instance Zillow most certainly has not only a serious competitor, but the largest competitor it has ever had.
In requiring buyers' agent commissions be made widely available to buyers, the settlement opens the door to increased negotiation and discussion between buyers’ agents and their clients around compensation. The full repercussions might not be realized for some time, as, of course, the industry still faces two large class-action lawsuits related to the industry's commission structure. We may see brokerage models emerge that focus more on providing discounts to buyers.
This bold, clear message by NAR helps provide an opportunity to heal past divisions and foster a more inclusive future.
Enabling Intelligent Change.
