T3 Insight

MLS collaborations, 2022 organized real estate data + breaking down the MLS/association Almanac release

Articles in this Edition

In this edition of T3 Insight, T3 Sixty's latest monthly analysis of the residential real estate brokerage industry includes articles on MLS collaborations, 2022 organized real estate data + breaking down the MLS/association Almanac release. Take a deep dive below.

Released February 18, 2022

VIDEO: Breaking down the 2022 Organized Real Estate release

by: T3 Sixty

With deepening collaborations, MLSs embark on new era

by: Paul Hagey

Behind the 2022 Organized Real Estate Data

by: Clint Skutchan

What We're Reading

In addition to the articles, here are a few items we are reading from across the internet.

Dual agency case becomes class-action

A case against Houlihan Lawrence has been granted class-action status by a New York state court. The lawsuit alleges that the brokerage incentivized agents who facilitated deals in which the brokerage served on both the listing and sales side. The brokerage says it plans to appeal the ruling. Dual agency has faced a test in the courts in several cases throughout the years. As this one appears to get traction, it may renew the conversation, and debate, about the merits of dual agency in the industry.

Inman

Buyer’s agent commissions drop to 2.63%

Redfin reports that the average buyer agent commission rate dropped to 2.63 percent in November 2021, down from 2.69 percent in 2020 and 2.75 percent in 2017. In a strong sellers’ market, as has existed over the last couple of years, it makes sense for buyers’ agent commissions to drop as homes are easier to sell with many more buyers than available homes. However, as the industry begins making buyer agent commission information more widely available, this could mark a trend that holds even when the market shifts.

Redfin

REX Real Estate becomes MLS member

REX Real Estate, a real estate platform that aimed to build a marketplace outside the MLS with operations in 19 states, has joined six MLSs. The company sued NAR and Zillow in March 2021, alleging antitrust violations because of NAR requirements that MLS participants segment listings from MLS sources and non-MLS sources. The implications for this move are not clear now, but is a development to watch as REX has garnered attention inside and outside the industry with its take on the MLS and NAR.

Inman

KW snags exec from eXp Realty, who looks to return the favor

Keller Williams Realty has hired eXp Realty president Stacey Onnen as its head of new business operations, while eXp is looking to hire former KW CEO Mark Willis in an executive role. KW has filed a restraining order to prevent Willis from joining a competitor, alleging a potential sharing of trade secrets. KW continues an aggressive development of its business model to become more attractive to teams and agents in the wake of the rise of eXp Realty, fueled by a compelling, low-cost model. The hiring of Onnen away from eXp by KW, marks another step in increasing competition between the long-time leader, where eXp Realty founder Glenn Sanford got his real estate start, and the now formidable up-and-comer.

HousingWire

Zillow expects 16.4% home value increase in 2022

Zillow expects that home values will increase 16.4 percent between December 2021 and December 2022. The company identified a sustained imbalance between supply and demand as one of the reasons for the increase. This provides another data point to consider when evaluating the long-term trend of the nation’s homeownership rate.

Zillow

Rents jumped 14% year-over-year in December

The average monthly rent jumped 14.1 percent to $1,877 in December from a year ago, while median monthly mortgage payments rose 21.6 percent, according to Redfin data. As homebuyers face lower inventory and higher priced, more potential homeowners are forced to rent, which increases demand, and rental prices. The balance between homeownership and rentals will be an important one to monitor as investors play a larger role in the single-family home market. Without a big uplift in homebuilding, homeownership rates could begin to drop.

Redfin

Startups raised $330B in 2021, nearly double the amount from 2020

Outsized investment has reshaped the real estate industry, and 2021 data reveals that investment money, overall, is still flowing. Startups across all industries raised $330 billion in 2021, nearly double what startups raised in 2020, as investors look to take advantage of the pandemic-enhanced shift to digital. Real estate, of course, has seen this impact, especially in regard to the great amount of funding poured into AltFin companies.

New York Times

Median existing home price increases set record in 2021

In 2021, the median existing home price was $346,900, which represents a 17.0 percent jump from 2020, and an all-time record in price appreciation. Record low inventory, fueled in part by demand inspired by low mortgage rates, has helped push home prices to these highs. Economists expect this trend to dampen slowly in 2022 as mortgage rates rise.

@properties adds Christie’s brand to company name

Following the acquisition of Christie’s International Real Estate by At World in December, @properties announced it is adding the Christie’s brand to company-owned offices in Chicago, Indiana, Michigan and Wisconsin to become @properties Christie’s International Real Estate. Following its acquisition by private equity firm Quad-C in 2018, @properties has made big moves to expand and grow its new At World holding company, including the acquisition of brokerage and franchise brand Nest Realty and the announcement of the franchising of the @properties brand.

Chicago Agent Magazine

Fewer Black Americans can afford homeownership compared to other races

Compared to White, Hispanic and Asian Americans, Black Americans have the least ability to afford a home, according to an analysis by NAR. The discrepancy in homeownership and the barriers to it by race, particularly for Black Americans, cause the family net wealth differences to persist. The industry talked a lot about supporting diversity in the wake of America’s racial reckoning in 2020 and early 2021, but the activity has died down. These statistics reveal a sustained effort is still required to make change.