The Federal Reserve analysis found that rising home prices are likely why commission rates fell in the past two decades, but found no impact on rates after buyer contracts were required in 15 states.
Zillow CEO Jeremy Wacksman has recently highlighted several concerning trends in the U.S. housing market, signaling potential challenges ahead for both buyers and the real estate industry.
Key Concerns Raised by Zillow's CEO
Severe Housing Shortage: Wacksman identifies the limited supply of homes as the primary obstacle for prospective buyers, surpassing even the impact of volatile mortgage rates. This shortage has intensified competition and driven up home prices, making affordability a significant issues
Declining First-Time Buyer Demand: In 2024, Wacksman warned about a noticeable drop in first-time homebuyer participation. Factors such as mortgage rates exceeding 7% and persistently high home prices have led to monthly payments averaging over $2,800, deterring many potential buyers. This decline poses a risk to Zillow's Premier Agent program, which relies on active buyer engagement. Citizen Watch Report
Increased Competition and Market Saturation: Investment firm Spruce Point Capital Management has expressed concerns about Zillow's market position, citing saturation in key markets and emerging competition from platforms like Homes.com. These dynamics could pressure Zillow's growth and revenue streams. Newsweek
Zillow's Strategic Response
Despite these challenges, Zillow reported a robust first quarter in 2025, with revenues reaching $598 million—a 13% year-over-year increase—and achieving GAAP profitability. The company attributes this success to its diversified services, including a significant rise in rental revenues and mortgage services. The Market is Open+1Barron's+1
Wacksman emphasizes Zillow's commitment to evolving into a comprehensive "housing super app," integrating various services to streamline the home buying and renting process. This strategic pivot aims to mitigate risks associated with market fluctuations and declining buyer demand.
Outlook
While Zillow demonstrates resilience through diversification and innovation, the broader housing market faces persistent challenges. The combination of limited inventory, high mortgage rates, and affordability issues continues to strain buyer activity. Zillow's proactive approach may position it favorably, but the company remains vigilant in navigating the complex real estate landscape
Housing supply is skyrocketing across Southwest states like Arizona, Nevada, Utah, and Colorado, suggesting that the 2025 housing market is amid a correction in these states.
Written by Nikki Salgat, Esq., General Counsel For the past few years, the real estate investing strategy referred to as “wholesaling” has been on the rise and, as a result, complaints regarding wholesaling increased. What is wholesaling and why have complaints increased? Wholesaling is when an individual or entity enters into a sales contract with […]
View today's current mortgage rates with our national average index, calculated daily to bring you the most accurate data when purchasing or refinancing your home. Follow our daily market analysis with Mortgage Rate Watch and we'll tell you where and why rates are moving.
A luxury auction and Compass Private Exclusives (formerly known as Compass Private Network) both serve high-end sellers seeking discretion and targeted exposure—but they are fundamentally different in strategy, psychology, and outcome. Here’s a breakdown of why a luxury auction may be better than Compass Private Exclusives:
1. Creates Urgency vs. Passive Listing
Luxury Auction: Sets a definitive sale date, creating urgency and competition among buyers. This can accelerate decision-making and drive higher offers.
Compass Private: No deadline. The property sits quietly in an off-market pool, relying on buyer curiosity or agent networking, which often leads to longer days off-market.
2. Competitive Bidding vs. Silent Interest
Luxury Auction: Leverages competitive bidding psychology. Buyers fear missing out (FOMO), which can drive the price above market value in some cases.
Compass Private: A “quiet listing” format—there’s no competitive environment. Buyers often negotiate down, thinking the seller may be testing the market or is in no rush.
3. Price Discovery vs. Price Limitation
Luxury Auction: Often sells without a list price (or with a low starting bid), which removes price ceilings. This invites a broader pool of high-net-worth individuals.
Compass Private: Has a set price that may limit buyer interest if perceived as too high or inflexible, especially without public data points to justify it.
4. Global Reach vs. Internal Network
Luxury Auction: Typically marketed globally, targeting high-end buyer databases, publications, and exclusive channels—far beyond a local agent network.
Compass Private: Exposure is limited to Compass agents and their clients, which may restrict visibility and result in fewer showings or offers.
5. Certainty of Sale vs. Hope
Luxury Auction: Most auctions are designed to close within 30 days post-auction. There’s a clear timeline, and buyers are often pre-qualified with deposits ready.
Compass Private: No guarantee of when or if the home will sell. Sellers are hoping for a quiet match to surface, which may take months or never happen.
6. High-Profile Marketing vs. Discreet Listing
Luxury Auction: Tailored, elevated marketing strategy—luxury brochures, cinematic video, international syndication—designed to maximize property prestige and buyer attention.
Compass Private: Low-key presentation with limited assets, often with minimal staging or photography. The discretion is a plus for some, but it reduces impact.
7. Ideal for Trophy Properties
Luxury Auction: Especially suited for unique, high-value, or hard-to-price properties (e.g., waterfront estates, architectural landmarks).
Compass Private: Works best for homes with clear, local market comps—not exceptional one-of-a-kind homes.
A little over two years ago, the US/Mexico border was chaotic, with record numbers of migrants crossing it. So what's it like now? Join Yuma County, AZ, Sheriff Leon Wilmot, and me for a deep-dive update on what's happening now.
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