Obviously, posting has been very light — nonexistent, one might say. Part of the reason was that I was at the Council of MLS (CMLS) conference right here in Las Vegas last week. Well, the truthful way of saying that is to say that I was hanging out in the lobby bar of the Bellagio … Read more
Back in July, I wrote about the Department of Justice (“DOJ”) unexpectedly pulling out of the settlement agreement it had reached with NAR and said: The withdrawal, then, combined with the above (voluntary dismissal plus broader investigations) clearly signals that the DOJ will be pursuing other antitrust claims relating to NAR’s rules. Under a stipulation … Read more
One of the lawsuits going on right now, which I’ve discussed in podcasts and such, is REX v. Zillow. I didn’t really write on it before for a variety of reasons, the biggest of which is that I regarded the lawsuit as an unfortunate waste of time for everybody involved. Another reason is that I … Read more
In a few years, we’ll look back on 2Q/2021 and think that it was an important turning point for Zillow and the industry. Or it might be yet another step forward in the slow march towards the transformation of housing into e-commerce. But either way, looking at 2Q/2021 performance and the investor’s reaction to it, … Read more
In Part 1, I speculated on the obvious first-order regulations headed our way as an industry, as well as the need for further regulation and enforcement mechanisms that those top-level regulations will create. In particular, I thought that the government (whether FTC or someone else) will need to figure out how to get information and data from the industry and provide oversight:
However I think these things through, I can’t escape the fact that any government regulation of these rules and policies requires if not regulation of the MLS, at least direct oversight of the MLS. At a minimum, it requires data collection and/or reporting from the MLS to whatever enforcement agency to make sure that the rules and regulations are being followed appropriately.
Just like mortgage banks and health insurance companies are required to submit information and reports to regulators, the MLS will have to be required to submit information and reports to regulators. And that’s at a minimum. At the maximum is total government control, a government-operated listings exchange.
The reality, I thought, was somewhere in between minimal reporting requirements and government-operated listing exchanges.
Turns out, there is a model already existing, already successful, and already operating that fits rather perfectly: FINRA, or the Financial Industry Regulatory Authority. A RINRA, or the Realty Industry Regulatory Authority, would accomplish almost everything the government wants to accomplish, win support from huge segments of the industry, as well as garner support from the think tanks, media, influencers and the various nonprofits that want to see the real estate industry change.
Longtime readers know that I am constantly wondering about, worried about, and in some cases, excited about future regulation of residential real estate. This is already a heavily regulated industry, but until there is some kind of an unexpected libertarian moment in American politics, there could always be more and different regulation. The immediate aftermath … Read more
I promised a Part 2 where I would treat the subject of regulation, which I think is the real Big Guns of the upcoming war between the United States and NAR. If you missed Part 1, where I dig into why the US DOJ pulled out of a settlement with NAR (which it has never … Read more
[UPDATE: To celebrate Independence Day, I’ve decided to make this one open to everyone. My VIP subscribers have mostly already read it over the weekend anyhow, and the issue is important enough to the industry as a whole that I thought it an appropriate July Fourth gift of sorts. Yay, ‘Murica!] I was traveling most … Read more
I’m super busy with a couple of important projects, and I’ve been up in the mountains celebrating the Sunny Freedom Tour ’21, so time is a bit short. But I did want to share something that I thought was interesting. As you know, I’m of the opinion that real inflation is way higher than the … Read more