Welcome to your weekly source of real estate news, where we break down 3 big stories from this week’s real estate news.
Properties are still getting snatched up at the drop of a hat, even though the market seems to be cooling. According to a report from Redfin, pending sales were up 6% compared to last year as of September 5th.
Big changes are coming, so let’s take a look at what we’re discussing this week:
- CRMLS Changes
- NAR and Zillow vs. Rex continues
- Redfin CEO: Homebuyers aren’t taking climate change seriously
EXTRA! EXTRA! Listing Changes are Coming!
California Regional MLS has released a slew of new rules for all 108,000 of its subscribers. One that got the most attention is the rule dedicated to how agents appear on IDX (Internet Data Exchange) listings. IDXs take all the listings from an MLS’s subscriber base and distribute them to the websites that the IDX is installed on. The new rule will make listing agents appear on listings syndicated by an IDX. You can watch a video on the changes here: https://www.youtube.com/watch?v=6_Lgieqznms&t=1s
CRMLS has also updated rules regarding “Coming Soon” listings. They have now replaced the term “business days” with calendar days in the rules. The only exception is in the Clear Cooperation Policy instituted by NAR last year. In this rule change, they have taken away the ability to get a warning before the citation. If you are found in violation, you will now get a citation and receive a $750 fine.
The IDX rule will help make sure listing agents get the calls that are directed at them and are not hidden from the work that they are doing to market their listings. The new “Coming Soon” rules mean that brokers are going to have to ensure that agents are getting their paperwork in on time. Running on calendar days means that you may have to get your paperwork submitted over the weekend instead of waiting until the next Monday.
The Battle of Monopoly (or Not) Continues
A Seattle-based federal judge ruled that the case of Rex suing Zillow and NAR for their anti-competitive practices will move forward. The lawsuit emerged as Zillow started getting its listings directly from IDX and MLS systems. When that happened, Zillow was required to separate out the NAR-based listings and the Rexd-based listings due to NAR’s “no-commingling” rules. Zillow then moved all Rex listings into a tab named “other.” Rex claims their sales crashed, and that Zillow is indirectly stating that Rex is not using licensed agents to sell listings. he two sides will now either settle or go to court and prove their arguments.
Rex is taking on the 800-pound gorilla in real estate. It’s unknown what will happen, but NAR is attempting to protect its rules that they claim are helping protect consumers and make sure that agents are ethical. It’ll be interesting to see how this plays out — and if Rex wins, what Zillow and other IDXs will look like afterward.
Your Buyers Need to Know About Climate Change
Climate change is providing a brutal beating to the U.S. this year. With huge wildfires in the West and hurricanes flooding cities in the South and Northeast, knowing where to move to avoid high insurance costs and ensure the safety of your new home will become critical in the coming years.
Redfin’s CEO, Glenn Kelman, believes that buyers are not paying enough attention to the changing climate. He believes most homebuyers are motivated by affordability — but that comes at the cost of climate change. Buyers are buying homes in areas that according to studies are going to get progressively worse with time. He picked out a couple of places in particular: Utah, Florida, and Arizona, all of which are expecting more extreme climate in the next 15 years. Kelman’s tip to buyers is to start taking into account how climate change will impact where you plan to move.
Climate change is making a real impact on where people can live. In the coming years, it’s just going to get worse. As an agent, you can be a resource to your buyers and educate them on how the changing climate might affect their new properties. Knowing where people are moving to avoid climate change instead of affordability will also make you a great resource, as buyers start to be more conscious about the climate aspect of buying a property.
A lot is going on in the real estate industry. We will continue to provide you updates on the biggest news every week. Follow along to learn more about real estate news!