{"id":4196,"date":"2023-04-10T19:50:06","date_gmt":"2023-04-10T19:50:06","guid":{"rendered":"https:\/\/www.realtrends.com\/blog\/2023\/04\/10\/brokerpulse-q2-2023-threats-and-opportunity-in-the-housing-market\/"},"modified":"2025-03-13T02:50:24","modified_gmt":"2025-03-13T02:50:24","slug":"brokerpulse-q2-2023-threats-and-opportunity-in-the-housing-market","status":"publish","type":"post","link":"https:\/\/www.realtrends.com\/blog\/2023\/04\/10\/brokerpulse-q2-2023-threats-and-opportunity-in-the-housing-market\/","title":{"rendered":"BrokerPulse Q2 2023: Threats and opportunity in the housing market"},"content":{"rendered":"\n<p>The industry threat of the loss of cooperation and compensation is very real. And, brokers are starting to pay attention after hearing about a recent ruling by Judge Andrea R. Wood of the U.S. District Court for the Northern District of Illinois that the \u201cMoehrl&nbsp;case,\u201d named after its&nbsp;<a href=\"https:\/\/www.realtrends.com\/blog\/articles\/plaintiffs-in-anti-trust-suit-allege-nar-brokerages-are-making-untimely-document-requests\/\" target=\"_blank\" rel=\"noreferrer noopener\">lead plaintiff<\/a>, had achieved class certification, nearly a year after a similar federal lawsuit&nbsp;<a href=\"https:\/\/www.realtrends.com\/blog\/articles\/trial-for-nar-brokerage-class-action-commission-lawsuit-is-postponed\/\" target=\"_blank\" rel=\"noreferrer noopener\">known as Sitzer\/Burnett<\/a>&nbsp;received class certification.<\/p>\n\n\n\n<p>Plaintiffs in the Moehrl case, filed in 2019, allege that commission sharing inflates the costs for sellers, in violation of the Sherman Act. A ruling against&nbsp;<strong>National Association of Realtors (NAR)<\/strong>&nbsp;and various franchisors, including&nbsp;<strong>Anywhere<\/strong>,&nbsp;<strong>HomeServices of America<\/strong>,&nbsp;<strong>RE\/MAX<\/strong>&nbsp;and&nbsp;<strong>Keller Williams<\/strong>, could disrupt the brokerage commissions model across the country.<\/p>\n\n\n\n<p>But, the class action lawsuits aren&#8217;t the top threat that brokerage leaders have on their minds, according to the <strong><a href=\"https:\/\/www.realtrends.com\/blog\/category\/brokerpulse\/\" target=\"_blank\" rel=\"noreferrer noopener\">RealTrends Q2 2023 BrokerPulse <\/a><\/strong>survey. In fact, only 1.14% said that the outcome of commission and antitrust lawsuits are a top challenge.<\/p>\n\n\n\n<div class=\"infogram-embed\" data-id=\"5b5776a6-004d-42e7-a4dc-a5e488fe5854\" data-type=\"interactive\" data-title=\"Q2 2023 RT Broker Pulse\"><\/div><script>!function(e,i,n,s){var t=\"InfogramEmbeds\",d=e.getElementsByTagName(\"script\")[0];if(window[t]&&window[t].initialized)window[t].process&&window[t].process();else if(!e.getElementById(n)){var o=e.createElement(\"script\");o.async=1,o.id=n,o.src=\"https:\/\/e.infogram.com\/js\/dist\/embed-loader-min.js\",d.parentNode.insertBefore(o,d)}}(document,0,\"infogram-async\");<\/script>\n\n\n\n<p>Most are just as concerned about interest rates, regulation and a potential bank collapse. Carlos Barron of <strong>TNG Real Estate<\/strong> in California is just one of 100 respondents to name these issues. &#8220;Regulation by local, county and state agencies that prohibit building of new homes puts pressure on inventory,&#8221; he said. Another California broker agrees. &#8220;Overregulation by the Fed hurts consumer confidence nationally.&#8221;<\/p>\n\n\n\n<p>Also mentioned: margin compression due to 100% and low-fee business models, lack of agent training and low inventory. &#8220;The lack of inventory and the press spreading rumor that have no basis in truth is a challenge,&#8221; said one broker from Atlanta, Georgia. &#8220;I have no confidence that our Federal Government has the ability to make good decisions that will lead us to a better economy,&#8221; he added.<\/p>\n\n\n\n<p><strong>RealTrends BrokerPulse<\/strong>&nbsp;requests surveys from some 19,000+ real estate brokerage leaders around the nation on market trends and brokerage opportunities and challenges. Of the 182 completed surveys, 26% were from the Southeast, 29% from the Southwest, 18% from the Midwest, 20% from the Northeast and 8% from the Northwest. RealTrends BrokerPulse is a forward-looking, quarterly survey.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Housing market outlook<\/h2>\n\n\n\n<p><a href=\"https:\/\/www.realtrends.com\/blog\/articles\/lennox-scott-on-how-each-generation-of-leaders-innovates\/\" target=\"_blank\" rel=\"noreferrer noopener\">Real estate leaders<\/a> surveyed for the&nbsp;RealTrends Q2 2023 BrokerPulse&nbsp;were much less pessimistic about today&#8217;s housing market outlook in the second quarter. Only 19% said they were pessimistic, compared with 30% in the Q1 2023 survey. Some 41% were optimistic and 40% were neutral<\/p>\n\n\n\n<p>In addition, they only 30% <a href=\"https:\/\/www.realtrends.com\/blog\/articles\/altos-data-shows-homeowners-just-arent-selling\/\" target=\"_blank\" rel=\"noreferrer noopener\">predicted the market<\/a> would be down more than 5% this quarter, compared to a whopping 66% of those surveyed who felt the market would be down in the first quarter. Some 39% said the market would be flat, while 32% thought the market would be up more than 5% in the first quarter.<\/p>\n\n\n\n<p>When it comes to home prices, 55% thought home prices would flat in the second quarter, while 27% predicted home prices will be up more than 5% and 17% predicted they would be down more than 5%.<\/p>\n\n\n\n<p>Some 48% of respondents predict that interest rates will go up this quarter. Only 11% said they think they&#8217;ll go down.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-productivity-motivation-and-regulation-are-key\">Productivity, motivation and regulation are key<\/h2>\n\n\n\n<p>Brokers continue to prioritize increasing <a href=\"https:\/\/www.realtrends.com\/blog\/articles\/pinnacle-realty-advisors-ceo-on-brokerage-as-a-service-business-model\/\" target=\"_blank\" rel=\"noreferrer noopener\">agent productivity<\/a> and looking for ways to keep agents motivated as we move through this uncertain market. <\/p>\n\n\n\n<p>Other challenges rounding out the top five were keeping agents motivated, increased regulation, rising interest rates and inflation, pressure on margins and competing with new business models.<\/p>\n\n\n\n<p>Of course, as in all markets, recruiting and retaining agents are top mentions when asked about priorities.<\/p>\n\n\n\n<p><strong>RealTrends<\/strong>&nbsp;recently added an&nbsp;<a href=\"https:\/\/www.realtrends.com\/blog\/articles\/category\/agentpulse\/\">AgentPulse survey<\/a>&nbsp;which will help brokerage leaders gauge what agents understand about the services brokerage\u2019s offer and offer agents a temperature of the market.&nbsp;<\/p>\n\n\n\n<p><em>If you have questions about&nbsp;<strong>BrokerPulse<\/strong>, email&nbsp;<strong>RealTrends<\/strong>&nbsp;Editorial Director Tracey Velt at&nbsp;<a href=\"mailto:tracey@hwmedia.com\">tracey@hwmedia.com<\/a>. Also, be sure to&nbsp;<a href=\"https:\/\/www.realtrends.com\/blog\/newsletter\/\" target=\"_blank\" rel=\"noreferrer noopener\">sign up for the new RealTrends Daily, a roundup of news, tips and strategies for success<\/a>.<\/em>&nbsp;Each Tuesday, we release a brokerage-focused issue.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>While the threat of losing cooperation and compensation looms, most brokers are more concerned about day-to-day business.<\/p>\n","protected":false},"author":15802,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[19],"class_list":["post-4196","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.4 (Yoast SEO v26.8) - 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