Check out the latest round up of real estate industry news bites in our new recurring feature!
Judge Grants Class-Action Terms For Commissions Lawsuit
Judge Andrea R. Wood of the U.S. District Court for the Northern District of Illinois has granted class certification in the larger of two federal commissions lawsuits, making way for millions of homesellers to ask to be reimbursed for billions in commissions they paid to buyer agents between 2015-2020.
The move stems from a 2019 suit that alleges that some National Association of Realtors policies—such as requiring listing brokers to offer buyer brokers a commission in order to list a property in a Realtor-affiliated multiple listing service—violate the Sherman Antitrust Act by inflating seller costs.
“The Court concludes that Plaintiffs have shown the existence of common questions concerning antitrust impact that can be answered with common evidence such as Elhauge and Economides’s expert opinions,” Wood wrote in her order.
The new ruling, as explained by Inman, certifies two classes in 20 MLS markets nationwide, the first of which seeks monetary damages and the second of which does not seek such damages but asks for an injunction barring the defendants from continuing to violate antitrust laws by maintaining and enforcing the challenged NAR rules.
In addition to NAR, defendants named in the original suit include real estate franchisors Anywhere (formerly Realogy), HomeServices of America, RE/MAX and Keller Williams.
Consumer Expectations Housing Survey: Mortgage Rates Will Surpass 8 Percent
Even with a four-week reprieve, it appears consumers don’t have great confidence that mortgages rates will remain under 8 percent in the coming months.
That’s the headline out from the Associated Press, which reported in the recent Consumer Expectations Housing Survey out from the Federal Reserve Bank of New York. The survey found that some 68 percent of respondents believe that buying property in their zip code was either a “very good” or “somewhat good” investment. However, potential buyers note that they expect mortgage rates to rise to 8.4 percent in a year and to 8.8 percent in three years.
Additionally, respondents have tempered their hopes for how much the value of their home will grow over the next year, dipping from 7 percent to 2.6 percent.