NAR, NAR, Lennar

Just when you thought NAR (looks like this is a NAR heavy newsletter) had settled down after its commission drama, it’s back in the headlines, this time debating whether to kill the Clear Cooperation Policy, aka the “no more secret listings” rule.

The rule forces agents to list homes on the MLS within one business day of marketing them, aiming to shut down pocket listings. For those that need a refresher, pocket listings are those hush-hush, VIP-style deals that made up just 1.8% of sales in mid-2024 (down from 2.8% in 2021).

Supporters say it’s about fairness and transparency; critics say it’s a buzzkill for sellers who want to play the exclusivity game.

Residential real estate brokerage, Compass, claims its pre-marketed listings sold for 2.9% more, while Zillow says pocket listings went for 1.5% less. Big brokerages are split like a 90’s middle part haircutt: Redfin and Zillow want the rule to stay, Compass wants it gone.

Fair housing advocates argue that these secretive sales exclude certain buyers and risk deepening inequality in housing access. With lawsuits in the rearview and more legal threats ahead, NAR’s decision could seriously shake up how homes are bought, sold, and whispered about behind closed doors.

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Lennar Stock Watch

Lennar, one of the biggest homebuilders in the U.S., (also it sounds like NAR again!) beat earnings expectations this quarter but still saw its stock drop 7% on Friday because the company warned the housing market is getting tougher.

Despite delivering 17,834 homes and receiving 18,355 new orders, Lennar’s leadership says high interest rates, inflation, and low consumer confidence are making it harder for people to afford homes. Even though people still want to buy, the cost of borrowing money (aka mortgage rates) and the lack of affordable listings are cooling the market.

As a result, Lennar’s average sales price dipped 1% year-over-year to $408,000, and they’re projecting it could fall further, between $390,000 and $400,000, next quarter. That could be good news for buyers hoping for a price break but only if rates don’t keep affordability out of reach.

For investors, Lennar’s stock has dropped 30% in the past year, showing how cautious Wall Street is about the future of homebuilding. In short: even though demand is there, Lennar is waving a yellow flag. For both buyers and sellers, it means we may be heading into a more uncertain (but maybe more negotiable) market.

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