Three HOT topics you’re likely to face.

It’s time to mask up again – although this virus didn’t come from a bird or pig. I’m talking about Donald-25, the newest virus to infiltrate the global economy. We’ve also got to talk about inventory and how it’s impacting buyer behavior. Be sure to stick around until the end because I’m going to round things out with the Zillow controversy. 

Someone’s in Trouble…. 

I’m not talking about Gary Shapley, the fourth IRS commissioner to be fired so far this year – after serving in the position for just three days. Fed Chair Powell might actually be next on the chopping block. The legality of firing a Federal Reserve Chair without cause is unclear, but as we are becoming increasingly familiar with – the legality of anything doesn’t really matter. Powell chose sides this week. Not political sides as the President accused him of. He chose sides between the Fed’s dual mandate of supporting the labor market while controlling inflation. He said inflation is more important. He said the new tariffs could lead to higher inflation and slower economic growth. gasp   

The economic uncertainty Powell discussed is being referred to as Donald-25. The last time we saw tourism tank like this, price increases and this level of lay-offs, we were dealing with a pandemic. It’s not Covid this time though, it’s Trump’s tariffs. You know what they say about disasters? They are all in some sense, man-made. Some come from a lab in China – others come from Palm Beach, Florida.  

When the R word comes up this weekend, it’s important to understand its impact on the real estate market.  

Buyer Behavior 

The free fall of interest rates was short lived. We’ve stabilized in the 6’s and while truly no one knows what will happen, the market seems to have finally made its peace with higher borrowing costs. Buyers are playing a longer game by focusing on return on investment (especially when comparing real estate to other asset classes right now) as well as the stability homeownership provides.  

Sellers are also freeing themselves from the golden handcuffs and listing their properties. March data won’t be released until next week, but February inventory was up 17% from last year. Unsold inventory was also up to 3.5 months from just a 3-month supply. This definitely supports a more balanced market. One I would want to shop in. 

Clear Cooperation 

This is where the story starts. The Clear Cooperation Policy was introduced by the National Association of Realtors in 2020 to combat pocket listings. A pocket listing is when an agent has a home for sale but doesn’t put it on the MLS – they spread the word on their own and try to sell it “off market.” A rule was made that within one business day of marketing a listing in any way or form, it must be submitted to the MLS, so all buyers have a level playing field.  

Some brokerages didn’t like this for their business model. The Agency and Compass threatened to go full independent, withdrawing from the MLS. These brokerages want to create exclusivity that they could market, where there will be a sort of “inner circle” of these fancy off market listings. It would attract agents who want access, and maybe sellers too who want to sell their home quietly. 

Enter Zillow from stage left. 

Then Zillow came in and took a very, very bold stance. They said that pocket listings would never be allowed to appear on their site. In a clear effort to build support and gain trust from the marketplace – meaning consumers – they now require listings be fully accessible to all users. No more “exclusives.” 

In my opinion… 

As a buyer you need to be working with a highly active agent. This new move means proactive buyers won’t see “pre-MLS” listings, meaning they don’t have a head start on listings in an already competitive market. More transparency for you means more transparency for your competition too. If your realtor is highly engaged in the market, boots on the ground every day, actively searching on your behalf…you’re fine. 

As a seller, I think the only loss here is privacy. It’s a real loss if you wanted to sell quietly but other than that – the exclusivity was just a marketing play that may or may not land well. 

As a realtor, I would be feeling more pressure to provide value. You won’t have that marketing took of a “pre-MLS” listing to create buzz or offer access to your VIP clients and colleagues. You can’t promise sellers or buyers that you are able to facilitate insider deals. Or at least you can’t use Zillow to do it. 

Which is the bottom line: Zillow wants to solidify its power as the real estate gatekeeper. Now that you have my opinion, I’d love to hear how you think this impacts the market. Drop a comment below or slide into my DMs because I truly am interested in this conversation.