A Landmark Verdict Could Change How Much You Pay For Your Next House
Portfolio Pulse from Natan Ponieman
A federal jury in Missouri ruled that the National Association of Realtors and major real estate companies, including HomeServices of America and Keller Williams, were guilty of conspiring to keep commission rates high. The verdict could lead to a shift in the way home buyers and sellers interact, potentially lowering commission costs. The decision has already impacted the market for real estate services, with stocks such as Zillow, Compass Inc, and Redfin Corp experiencing drops.
November 02, 2023 | 8:57 pm
News sentiment analysis
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NEGATIVE IMPACT
Berkshire Hathaway's subsidiary, HomeServices of America, was charged with $1.78 billion in damages. This could negatively impact BRK's financials.
The verdict directly implicates HomeServices of America, a subsidiary of Berkshire Hathaway, which could lead to significant financial damages and potential reputational harm.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Compass Inc's stock is down 7.6% since the jury's decision. The verdict could lead to changes in the real estate market that may affect Compass's business model.
The verdict could lead to changes in the real estate market that may affect Compass's business model, which is reflected in the drop in its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Anywhere Real Estate paid $83.5 million in settlement before the trial. This could negatively impact HOUS's financials.
The settlement directly implicates Anywhere Real Estate, which could lead to significant financial damages and potential reputational harm.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Redfin Corp's stock initially lost as much as 12% following the jury's decision, but has since corrected its losses. The verdict could lead to changes in the real estate market that may affect Redfin's business model.
The verdict could lead to changes in the real estate market that may affect Redfin's business model, which is reflected in the initial drop in its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Re/Max Holdings's stock is down 1.16% since the jury's decision. The verdict could lead to changes in the real estate market that may affect Re/Max's business model.
The verdict could lead to changes in the real estate market that may affect Re/Max's business model, which is reflected in the drop in its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
NEGATIVE IMPACT
Zillow's stock is down 9.7% since the jury's decision. The verdict could lead to changes in the real estate market that may affect Zillow's business model.
The verdict could lead to changes in the real estate market that may affect Zillow's business model, which is reflected in the drop in its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Charles Schwab US REIT ETF was not significantly impacted by the news, with the fund up roughly 6% since the market close on Monday.
Despite the verdict, the Charles Schwab US REIT ETF was not significantly impacted, suggesting that the broader real estate market remains resilient.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Vanguard Real Estate Index Fund ETF was not significantly impacted by the news, with the fund up almost 6% since the market close on Monday.
Despite the verdict, the Vanguard Real Estate Index Fund ETF was not significantly impacted, suggesting that the broader real estate market remains resilient.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Real Estate Select Sector SPDR Fund was not significantly impacted by the news, with the fund up roughly 6% since the market close on Monday.
Despite the verdict, the Real Estate Select Sector SPDR Fund was not significantly impacted, suggesting that the broader real estate market remains resilient.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50