If you have been listening to NPR as super Tuesday approaches, you have heard mention of housing needing to be discussed by the candidates. Why you might ask?
Well as the closing of 2019, senior economist George Ratiu says:
Real estate fundamentals remain entangled in a lattice of continuing demand, tight supply & disciplined financial underwriting. Accordingly, 2020 will prove to be the most challenging year for buyers, not because of what they can afford, but rather what they can find."
In 2019 numerous class action lawsuits were filed again NAR (National Association of Realtors), who control the MLS.
The lawsuit alleges NAR & the named real estate brokers & franchisors have violated the Sherman Antitrust Act by “agreeing, combining and conspiring to impose, implement and enforce anticompetitive restraints that cause home sellers to pay inflated commissions on the sale of their homes.”
This lawsuit effectively claims the MLS is pricing fixing commission rates & weakening the bargaining power of sellers. The seller & the the agents are the ones feeling the brunt of this current system. The median gross income of realtors has been falling, down from $55,000 in 2012 to $39,800 in 2017, according to the national association.
Internet-age companies that aren’t part of the MLS, are small in numbers, but some like Opendoor & REX are slowly chipping away at the status quo from a variety of angles, albeit for the high-end market only.
The residential real estate industry might not be a tear-down, but it’s definitely overdue for a complete renovation.
Watching all the outcry makes me appreciate the difference between a realtor and real estate agent, and being the later.
Hi, I am Summer, real estate agent in NE Iowa. This blog is about life, of which Real Estate is a part of. Happy reading!