April 2024 Market News & More

Spring season is definitely upon us, especially for single-family homes. We're seeing multiple offers (thirty in the case of one Outer Richmond listing!?) and sellers getting into contract for up to 15% over asking. Of course this varies by product and area, but it's an easy snapshot that reflects the return of a robust market. Interest rates haven't changed dramatically but buyers are tired of waiting, inventory is low, and optimism and energy to compete have been restored.

It's worth mentioning in the context of this emerging and competitive market that logistically speaking, the process of purchase hasn't changed. You've probably heard about the Burnett vs. NAR antitrust lawsuit and subsequent settlement regarding the purported fixing of commissions. In theory, the resolution aims to empower homeowners by removing the ostensible pressure on a seller to offer cooperating commission to the other side's agent in addition to their own. The reality is that this case is built on misconceptions regarding transparency and what's "required," and the standard of practice here in the Bay is unlikely to change much given the level of business savvy and sophistication we see in our clients: no one wants a discount broker, sellers actively look to maximize appeal and buyer reach through incentive, and our industry partners haven't even caught up to the complications that are almost certainly forthcoming (to name just one: how are lenders going to characterize commission fees masquerading as closing costs?).

That's not to say it's all bad—one of the immediate outcomes is that essentially overnight, Buyer Broker Agreements have gone from a nice-but-rarely-used option to a necessity, and the utilization of a listing-agreement equivalent on the buy side does improve our standard of practice as fiduciaries.

In any case (no pun intended), the settlement won't even be approved until July so no doubt we'll see a lot evolve over the next few months. As you might be able tell, we love talking about this but will refrain from subjecting you to an essay here, so if this is something you're interested in learning more about, let's chat! Please reach out with questions, concerns, opinions, and more.