What do you predict for real estate in 2020? Leave your comments below.
Booming housing market
Low interest rates, a growing economy and expanding housing inventory will supercharge an already robust housing market.
Skyrocketing homeowners insurance
The cost of homeowners insurance will become the number one real estate issue in many markets as insurance companies react to an increasing number of natural disasters. NAR will turn on its lobbying engines to curb premium inflation, because the trend will begin to hurt home sales.
A big IPO
On the back of a successful Airbnb IPO, Compass will file its S-1 to go public. It will be later in the year and not be without difficulty. Management changes will precede its filing with the SEC, and a former Zillow executive will join the Compass team.
Realogy’s iBuyer expands
Realogy will expand its RealSure ibuying platform by partnering with either Zillow or Opendoor, or by acquiring W&R Studios which offers an integrated iBuying solution on its Cloud CMA product.
At the end of 2020, California Association of Realtors CEO Joel Singer and Houston Association of Realtors CEO Bob Hale will announce their retirement. They will be widely recognized for their enlightened, innovative and lasting contributions to the industry. I hope they don’t.
IBuyer marketshare surge
Some version of iBuying — Zillow’s Instant Offer, Realogy’s ReaSure, et. al. — will represent 50 percent of all sales in major US real estate markets by the end of the year. Every successful agent and broker will offer an instant offer solution on their own or in partnership with iBuyers.
A software shakeup
MoxiWorks will acquire Boomtown or REW, gaining substantial software market share. Berkshire Hathaway will invest money in this enterprise, growing its stake in the company.
A pulitzer prize for fearless real estate reporting
A team of Newsday journalists will be nominated for a Pulitzer Prize for their reporting on housing discrimination by real estate agents.
A squeeze on commission rates
Realtors will not be disintermediated, but the squeeze on commission rates will accelerate as too many digital middle-men continue to get their hands in the pie.
And, finally, an historic name change
NAR will change its name to TRA, “The Realtor Association.”