NAR's Settlement Approved: What Comes Next?

The proposed commission settlement by the National Association of REALTORS (NAR) was approved on Tuesday; however, the U.S. Department of Justice (DOJ) has expressed concerns about certain provisions, particularly the mandatory buyer representation agreements. The DOJ warns that these agreements could limit competition among brokers, indicating that further scrutiny and potential adjustments may occur. As the real estate industry adapts to these changes, both buyers and sellers should stay informed of the evolving landscape.

Ralph’s Take

Expect more changes ahead. While buyer representation agreements are intended to serve the best interests of everyone involved, I completely understand the public's hesitation to sign a broker agreement before even touring a home. Instead of making these agreements an immediate requirement, brokers should have the opportunity to educate their clients on their value without creating pressure to sign upfront. This approach would not only respect consumers’ right to make informed decisions but also foster stronger, more transparent relationships between brokers and buyers — ultimately benefiting everyone involved.

In the coming weeks, I’ll delve deeper into the changes from the settlement and share my thoughts on how the industry as a whole has misinterpreted its outcome.

Westchester Market Tracker 📈

This week’s stats:

• ‘Coming Soon’ Listings: 8 ↑

• New Listings: 67 ↓

• Price Reductions: 39 ↓

• Pending Sales: 144 ↓

• Closed Sales: 116 ↓

Highest Sale: 10 Taylor Lane in Harrison closed for $4,995,000.💰

_{Property Type: Single-Family. OneKey Multiple Listing Service, Inc. 11/22/24 - 11/29/24.}

First Comes Homeownership… Then Comes Marriage

A growing number of couples are prioritizing homeownership over marriage, seeing it as a greater commitment and a foundation for financial stability, according to Realtor.com. The trend reflects shifting societal norms and rising housing costs, with unmarried couples making up more than 11% of U.S. home sales in 2023, a significant increase from previous decades. Factors like rising ages for marriage and homeownership, along with financial benefits of owning a home, are driving this change.

Ralph’s Take

The growing trend of prioritizing homeownership over marriage reflects a shift toward financial stability and investment over traditional milestones. Homeownership offers stability and wealth-building potential but carries risks, such as property disputes and inheritance issues without marriage's legal safeguards. Unmarried homeowners should consider legal agreements to protect their interests.

October's 3.4% Growth Breaks Three-Year Sales Slump

In October, existing-home sales in the U.S. increased by 3.4% from the previous month, reaching a seasonally adjusted annual rate of 3.96 million. This marks a 2.9% rise compared to October 2023 — the first annual gain since July 2021. The National Association of Realtors (NAR) attributes this uptick to growing inventory and sustained economic growth, suggesting a potential end to the downturn in home sales. Additionally:

• Regional Growth: All U.S. regions saw sales increases.

• Inventory Levels: Higher sales are linked to increased housing inventory.

• Economic Factors: Job growth and economic stability drive housing demand.

• Mortgage Rates: High rates challenge buyers but may stabilize soon.

Ralph’s Take

Optimism is growing that the housing market downturn may be easing, but challenges like high mortgage rates and limited inventory still affect affordability and buyer activity. While recent data is promising, recovery depends on economic growth and improved affordability. It's important to note that Westchester County's home inventory grew at a slower pace than the national average this year.

Visual of the Week

Today’s mortgage debt doesn’t mean a housing bubble is brewing.

Homeowners have built up record equity, and it’s nearly triple the amount of mortgage debt. This extra cushion gives homeowners more security, making the market much more stable than it was in 2008.

Mortgage Watch 📉

Today’s average 30-year fixed rate drops from 7.03% last week to 6.88%.

Three-year snapshot of today’s rate: 7.13% in 2023, 6.65% in 2022, and 3.21% in 2021.

> The rate you may be eligible for can vary greatly from the daily average published via Mortgage News Daily. I use this figure as a proxy for how the mortgage market is shifting.

This Week’s Westchester Events

Friday, November 29th

• 11/29 - 12/1:  Holiday Kick Off

• 11/29-12/24: Holiday Pop-Up

• 11/29 - 12/22: 4th Annual Holiday Market

Saturday, November 30th - Sunday, December 1st:

• 11/29 - 12/1:  Holiday Kick Off

• 11/30: Holiday Market at Muscoot Farm

• 11/30: Small Business Saturday Boutique

• 11/30: Turkey Run & Paws Walk

• 11/30 - 12/1: Burn Off the Bird

• 11/30 - 12/1: Lyndhurst Holiday Market

• 11/30 - 12/1: Makers Markets

• 12/1: Frosty Day

• 12/1: St. Luke’s Tree and Menorah Lighting

• 12/1: Village Green Christmas Tree Lighting

Continuing Events

• Thru 12/22: 4th Annual Holiday Market

• Thru 12/22: Holiday Lane at American Christmas

• Thru 1/5: Holiday on the Hudson

• Thru 1/5:  Holiday on the Hill Train Show

• Thru 12/24: Holiday Pop-Up

• Thru 12/30:  Lumina Magical Lights

• Thru 12/17: New Rochelle Holiday Market

• Thru 12/8: Holiday Train Show

• Thru 1/7: The Great Holiday Train Show

• Thru 12/31: Westchester’s Winter Wonderland

Farmer’s Markets:

• Saturday: Chappaqua (thru 12/21), Hartsdale, Hastings-on-Hudson, Larchmont, Ossining, Pleasantville

• Sunday: Irvington (last of 2024), Mount Kisco, Rye (last of 2024)

Real Estate Guides - Fall 2024 🍂

This holiday season was especially memorable as my Godson, born on October 9th, met the entire family and experienced his first Thanksgiving — mostly spent napping.

With gratitude, Ralph 🫡

This market is not perfect. I'm here to help.

Schedule a consultation to develop your end-of-year or 2025 game plan.

Email, call, or text message me at (914) 202-1101.