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Show Notes
Today on Real Estate Backstage, the battle between Compass and the Northwest MLS hits a fever pitch … Zillow and Redin both announce bans on listings that don’t follow NAR rules from their sites … consumers begin to react to the new tariff policy … and financial markets have a relatively calm week, recovering from the volatility we saw earlier in the month.
NWMLS Temporarily Shuts Off IDX Listing Feed to Compass
According to RISMedia:
“Northwest MLS (NWMLS) reportedly shut off its internet data exchange (IDX) listing feed to Compass earlier this week. RISMedia confirmed the report with Compass. As of today, NWMLS has reinstated the feed after Compass agreed to comply with its rules.
The shut-off of NWMLS’ IDX feed to Compass.com meant that any non-Compass property listed by the MLS after the shut-down was not available on Compass.com.
Cris Nelson, regional vice president for Compass, told RISMedia that ‘despite following NWMLS’ published rules, Compass’ IDX feed was suspended without warning—impacting our clients and agents alike. NWMLS is a broker-owned MLS and is the only MLS in the country that prohibits agents from marketing a property on the internet—privately or publicly—unless it’s listed in the MLS.’
According to Nelson, this action from NWMLS was ‘a stark example of monopolistic control … that limits homeowner choice, stifles competition and sets a dangerous precedent for broker accountability and market fairness.’
NWMLS said in a statement to RISMedia that the shut-off was the ‘result of Compass’s failure to input numerous of its own listings and share those listings with other member real estate firms and their clients in accordance with Northwest MLS’s rules.’
… Northwest MLS worked with Compass on April 15th and 16th to facilitate Compass’ compliance with Northwest MLS’s rules.
NWMLS confirmed that the data license has been reinstated as of today, April 17, due to Compass’ ‘commitment that it would comply with Northwest MLS’ rules going forward.’”
(Source: RISMedia.com)
According to Compass’ website:
“Just like many companies test products with a smaller audience before launch, listing your home as a Compass Private Exclusive allows you to test price, gain critical insights, generate early demand, and extend your marketing runway – all before going public.
… Compass Private Exclusives are properties that are only accessible to Compass agents and their serious buyers. This means you can get a head start marketing your home, without accumulating any public days on market or price drops that could negatively impact its value.”
(Source: Compass.com)
According to RISMedia:
“This development follows the recent brewing of a potential lawsuit against NWMLS by a group called Washington Homeowner Rights, backed by Compass.
The website for the group—which Compass confirmed it created—solicits homesellers who experienced a public price drop, stayed on the market longer than expected and were unable to protect their privacy during the sale.
…Washington Homeowner Rights alleges that NWMLS’ ban of pre-marketing and off-MLS marketing leaves sellers ‘no choice but to fully expose their listing immediately—leading to longer days on market and price reductions that may hurt their bottom line.’
Compass CEO Robert Reffkin and NWMLS President and CEO Justin Haag have been outspoken about their opposing views on CCP, with Haag in support and Reffkin against the policy.”
(Source: RISMedia.com)
Zillow and Redfin ban listings that don’t follow CCP guidelines
According to Inman:
“This month, Zillow and Redfin rocked the industry by banning listings that aren’t added to the multiple listing service within 24 hours of public marketing.
The similar portal policies, which came two weeks after the National Association of Realtors announced a new Delayed Marketing Exempt Listings option for its Clear Cooperation Policy (CCP), have led to mounting questions from agents and brokers over the legality of and logistics behind the ban.
On April 10, Zillow Group announced its new listing access standard for Zillow and Trulia, which bans listings that aren’t added to the MLS within 24 hours of being publicly marketed. Zillow said public marketing includes yard signs, social media posts and brokerage private listing networks (PLN) where consumers must log into a site to see listings.
… On April 14, Redfin joined Zillow Group and created a policy that bans listings if they aren’t added to the multiple listing service (MLS) within 24 hours of being publicly marketed.
… Alongside the listing ban, Redfin CEO Glenn Kelman called on MLSs to create a new Coming Soon designation that bans portals from displaying how long a home has been for sale and at what prices.
Redfin hasn’t said when it would implement the new policy, and leaders are still working on the technical logistics of the ban.
Although some industry members have argued that Zillow doesn’t have the right to ban listings as an IDX-displaying broker, current NAR and MLS rules are on the portal’s side.
In a previous Inman article, California Regional MLS VP and General Counsel Ed Zorn said Zillow Group —and now Redfin — is within its rights to ban listings on Zillow and Trulia that don’t follow its listing access standard.
‘There seems to be a misunderstanding that if you take an [Internet Data Exchange] data feed, that you are required to display all the listings,’ he said. ‘And in fact, NAR’s [Handbook on Multiple Listing Policy] Statement 7.58 states the exact opposite principle.’
‘What it says is participants may select the IDX listings they choose to display based on only objective criteria, including but not limited to factors such as geography or location, list price, type of property, or type of listing,’ he added. ‘So type of listing is even included as one of the few types of objective examples that NAR provides.’
… Industry members on both sides of the spectrum have called on the Department of Justice (DOJ) to investigate the opposing side.
CoStar Group CEO Andy Florance urged agents to report Zillow Group to the DOJ’s Antitrust Division, while two consumer watchdogs said the department should be stopping the industry’s largest brokerages from creating expansive PLNs.
It’s unclear whether the DOJ will answer either side’s clarion call, as the law enforcement agency has signaled that it’s less interested in the CCP now that NAR has scrapped the Participation Rule, which previously mandated that listing brokers include an offer of compensation as small as $1 to buyer brokers participating in a transaction.”
(Source: Inman.com)
How are tariffs impacting consumer behavior?
According to Inman:
“President Trump’s tariff policy and developing trade war with China are pushing Americans to rethink major purchases, according to a Redfin-commissioned survey on Thursday.
The Ipsos survey of 1,004 U.S. adults revealed 24 percent of Americans are canceling plans to purchase a home or car due to fears about tariffs, and 32 percent said they’re pausing such purchases. When political affiliation is thrown into the mix, Democratic voters are more likely to cancel (36 percent) or delay (43 percent) purchase plans than Republican voters (15 percent and 21 percent, respectively).
… ‘Betting markets have the odds of a recession at higher than 50 percent, which is understandably making people wary of putting a big chunk of their money toward a house or a car,’ Redfin Economics Lead Chen Zhao said in a written statement. ‘Consumers are tightening their belts because they are rightly nervous about their job security and the prospect of paying more for everyday expenses.’
The Trump administration imposed 25 percent tariffs on steel and aluminum in March, a 25 percent tariff on autos on April 3, and a 10 percent blanket tariff on imports from most U.S. trading partners on April 5.
Some goods from Mexico and Canada, including lumber, are exempt from the 10 percent baseline tariff under the United States-Mexico-Canada Agreement (USMCA). A Biden-era 14.5 percent tariff on Canadian lumber remains in effect.
Country-specific ‘reciprocal’ tariffs of up to 50 percent against dozens of countries that the Trump administration announced on April 2 are on hold until July 9, with the president claiming leaders of 70 countries have reached out to negotiate trade deals.”
(Source: Inman.com)
Mortgage rates fall as markets calm down
According to Logan Mohtashami over at HousingWire:
“Over the weekend, fears rose that the 10-year yield would climb to 5%, leading to 8% mortgage rates. However, Monday morning arrived with a sense of calm. The 10-year yield is now nearing a more balanced position at 4.35%, reflecting what I believe it should have always been after the jobs report two Fridays ago. As I write this, the 10-year yield currently stands at 4.37%.
Remarkably, mortgage rates have dipped below 7% once more. Let’s not forget that the housing data has been positive with rates hovering around 6.75% this year, reminding us that opportunity is always present if mortgage rates keep falling.
So what happened to calm the markets?
To begin with, market fluctuations are generally unsustainable in the long term and the recent response to the imposition of tariffs has been notably pronounced, indicating a level of preparedness that may have been lacking among investors. This situation led to a significant influx of capital into the bond market. Subsequently, some investors needed to sell their bonds to meet margin calls while others sought to reallocate their portfolios.
Additionally, with Tax Day approaching, it is not uncommon for individuals to wait until the last moment to sell stocks or bonds in order to raise funds. There has also been an outflow of foreign investment in the markets, contributing to the current volatility. However, such periods of instability are typically temporary.
Furthermore, the recent actions taken by the government suggest that the White House is responding to the legitimate concerns of Americans regarding tariffs and job security. With speculation that trade deals will eventually be completed, the market has taken a breather for now after a historically crazy period of volatility.
During the middle of the day on Monday, Fed President Waller presented an argument in favor of cutting rates more quickly if the labor market shows signs of weakening. This perspective emphasizes the importance of prioritizing labor stability over inflation concerns. As a result of his statements, the 10-year yield experienced a further decline throughout the day.
From Waller’s remarks: If the tariff-induced slowdown is significant and threatens a recession, “I would expect to favor” cutting sooner and faster than previously thought.
When Federal Reserve presidents emphasize labor concerns over inflation and the markets respond calmly, it seems that if the worst happens to the economy, the Fed will step in and make sure one of its dual mandates is met by providing maximum employment. Their focus seems to be shifting from merely restoring the Fed Funds rate to a neutral position to adopting a more accommodative stance. This approach could potentially help us either prevent a recession or navigate our way out of one.”
(Source: HousingWire.com)
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