Get ready to unearth some startling insights about the ever-fluid real estate market. This week, we're diving deep into a wide array of housing market data. We'll explore the downturn in mortgage purchase applications and Google searches for homes for sale, the surprising uptick in median asking price, and the significant drop in active listings. Let's wrap our heads around the puzzling buyer freeze and what these shifts mean for the future of the market.
Hold on to your hats because this episode takes a dramatic turn as we scrutinize a ground-breaking lawsuit against real estate giants Douglas, iolman, Redfin, Compass, and EXP World Holdings. These powerhouses are in hot water over accusations of artificially inflated commissions from home sales, with potential damages threatening to exceed a staggering $5.3 billion. We'll offer up our predictions on how this lawsuit could transform not just the role of real estate agents, but also the integration of AI in the industry. Join us for a rollercoaster ride through the highs and lows of the real estate world.
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Well-known realtors found liable for $1.8 billion in real estate commission case. Find out more in this week's weekly real estate market update. But before that, here's this week's housing market data. Mortgage purchase applications are down 1% from a week earlier and 22% from a year earlier. Google searches for homes for sale is down 6% from a month earlier and down 12% from a year earlier. That's about the same from the previous week. From home sale price was 369,613, up 3.4% from a year earlier. The median asking price for newly listed homes was 383,200, up 5.4% from a year earlier, the biggest increase in a year. Which is really strange, as there's a buyer freeze out there. How the median asking price has ticked up 5.4% from a year earlier while mortgage rates are still high Really weird. But again, who can tell right what's happening in this market is just very hard to try to forecast here. The monthly mortgage payments on a median asking price was $2,757 at a 7.76% mortgage interest rates, which was the average for last week. Pending home sales were down 8.8% year over year. New listings of homes for sales are up 1.1% year over year. Second year over year increase since July 2022. The first was a week earlier. The increase is partly because new listings were falling at this time last year. So you remember last year we were in a freeze. I believe we're still in a freeze again this year, but data will tell us. What data will tell us. Active listings dropped 10.2% from a year earlier smallest decline since July. That means that new listings active new listings are down. 37.7% of homes that went under contract had an accepted offer within the first two weeks on the market. Homes that sold were on the market for a median of 33 days and 29.4% of homes sold above their final list price and reported by Yahoo Finance. Shares in Douglas, iolman, redfin, compass and EXP World Holdings fell on Wednesday after they were sued for allegedly conspiring to artificially inflate commissions from home sales. This is a big deal for realtors and the real estate industry as a whole. The proposed class action lawsuit was filed on Tuesday in Kansas City, missouri, just hours after the jury there found the National Association of Realtors and other brokerages, including Berkshire Hathaway's Home Service of America, liable for $1.78 billion in damages for similar commission practices. Damages in that first case could be tripled under federal antitrust laws to more than $5.3 billion. The verdict could upend decades old practices that have allowed real estate agents to boost commissions by forcing sellers to pay commissions to buyers. Real estate brokers Homesellers complained that this model suppressed competition. Shares of the new defendants fell between 3 and 7% on Wednesday. A spokesperson for EXP said the company was still studying the complaint, adding we're committed to upholding fair and transparent practices compliant with law and we already have mechanisms and a plan in place that enables buyers and sellers to negotiate commissions. Spokespeople for Compass and Douglas Ailman declined to comment. A Redfin spokesperson did not immediately respond to a request for comment. Btg analysts show him bozily, in an investor note, said the fact that Douglas Ailman, redfin, compass and EXP were being sued by the same lawyers was a negative for their stock. So interesting, let's see. This has been unfolding now for over a year. This has been news that I've been watching. My thought process is if the real estate industry is not careful more specifically, nars, the National Association of Realtors we can see a disappearance for real estate agents and realtors. As we know it today, with AI and artificial intelligence technology, websites where sellers can sell their homes, there could be some major major, something really major, happening here as it pertains to realtors and the real estate industry. We'll have to wait and see, but this is a big deal. This is something that I'm going to be following very closely and see how this unfolds in the future. And this has been your weekly Real Estate Market Update. I'll see you guys next week. Peace.