Image Source: Inman
Caption: The top 21 Inman stories of 2021
In a year that felt like a continuation of the challenges faced in 2020, 2021 managed to deliver its fair share of anxiety and surprises. From predictions of a housing market slowdown to the rise of tiny homes and the ongoing battle between Zillow and real estate agents, the stories that captivated us in 2021 revealed our deepest fears and desires. Let's take a stroll down memory lane as we revisit the most-read Inman stories of the year.
Housing Market Outlook: A Slowdown on the Horizon
Fannie Mae and Freddie Mac predict a slowdown in the housing market.
Caption: Housing market is headed for a slowdown, says Fannie
As the economy improved and COVID-era restrictions eased, mortgage giants Fannie Mae and Freddie Mac both predicted a slowdown in the housing market. With a decrease in mortgage originations expected, the housing market's future appeared uncertain. Fannie Mae revised its forecast, signaling a drop in mortgage originations from $4.5 trillion in 2020 to just under $4 trillion in 2021 and further decreasing to under $3 trillion in 2022.
Ikea Enters the Real Estate Market with Tiny Homes
Ikea partners with Escape to offer affordable, pre-built homes.
Caption: Ikea is selling tiny homes now — and, phew, no assembly required
Known for its affordable furniture, Ikea surprised us all by venturing into the real estate market. Teaming up with tiny home and RV builder Escape, Ikea introduced a 187-square-foot pre-built structure. This new offering provided an appealing option for those looking for affordable housing without the hassle of building from scratch.
Brace for Impact: The Homeseller Market Crash
Inventory shortages and rising prices create a homeseller market crash.
Caption: Bubble Trouble: The housing crash will be even worse than I predicted
The real estate market proved to be a challenging space for sellers due to historic lows in inventory, eroding affordability, and climbing interest rates. The so-called "homeseller market crash" left potential homebuyers facing difficulties in finding suitable properties. With no quick fixes or impending increase in inventory, the situation continued to worsen throughout the year.
Leadership Shakeup: Josh Team Departs Keller Williams
Keller Williams President Josh Team announces his departure.
Caption: Josh Team is leaving Keller Williams
In a surprising move, Keller Williams President Josh Team announced his departure from the company. Team had been serving in this role since January 2019 and played a key part in the company's leadership transition. His departure marked another significant change in the executive landscape of Keller Williams.
Zillow's Acquisition: ShowingTime for $500M
Zillow expands its reach by acquiring real estate showing management platform ShowingTime.
Caption: Zillow to acquire ShowingTime for $500M
Zillow made headlines in February when it announced its agreement to acquire ShowingTime for $500 million. This acquisition allowed Zillow to enhance its real estate showing management capabilities and market analytics. The company expressed its commitment to maintaining ShowingTime as an open platform, benefitting the entire real estate industry.
Feud Alert: Ramsey vs. eXp Realty
Dave Ramsey's coaching company takes a stance against eXp Realty.
Caption: Ramsey vs. eXp: The coaching company takes aim at the brokerage
Well-known business coach Dave Ramsey and his company engaged in a heated dispute with eXp Realty. The coaching company informed eXp Realty agents that they would no longer work with them unless they switched to another brokerage. This clash between industry giants highlighted the competitive nature of the real estate market.
Zillow's iBuying Program Comes to an End
Zillow announces the discontinuation of its iBuying operations.
Caption: Zillow to shut down iBuying program Zillow Offers
In a surprising move, Zillow revealed its decision to shut down its iBuying operations entirely. After a brief pause in new iBuying, the company announced its plans to wind down Zillow Offers, resulting in a 25% reduction in its workforce. This unexpected turn of events raised questions about the future of iBuying in the real estate market.
Zillow Cancels Zillow Offers Contracts
Zillow cancels a significant number of contracts amid operational changes.
Caption: Zillow cancels 400 Zillow Offers contracts due to closing restraints
Following its decision to shut down its iBuying program, Zillow faced further challenges when it had to cancel approximately 400 Zillow Offers contracts. These cancellations left many homesellers disappointed and added to the ongoing narrative surrounding iBuying and its implications for the real estate industry.
Compass Faces Lawsuit Over Contract Discrepancy
A former Compass agent files a class-action lawsuit against the brokerage.
Caption: Former Compass agent sues firm over contract 'bait-and-switch'
A former Compass agent in California filed a class-action complaint against the brokerage, accusing it of fraud, breach of contract, and labor law violations. This lawsuit highlighted concerns about the company's practices and sought to champion the rights of current and former Compass agents in California.
Zillow's Transition to IDX Integration
Zillow undergoes a transition to an IDX feed, impacting data flow.
Caption: Zillow's shift to IDX is live. Here's what agents need to know
Zillow made significant changes to its website by officially integrating an IDX feed. This shift affected how data flowed to Zillow.com and introduced several aesthetic changes to the platform. Despite some initial challenges, Zillow remained committed to resolving any issues and ensuring a smooth transition for agents and users.
DOJ Investigates the National Association of Realtors
The Department of Justice broadens its investigation into NAR's rules.
Caption: Justice Department withdraws from settlement with the National Association of Realtors
In a surprising move, the U.S. Department of Justice withdrew from a proposed settlement with the National Association of Realtors (NAR). This withdrawal signaled a broader investigation into NAR's rules, including allegations of illegal restraints on Realtor competition. The ongoing scrutiny has the potential to reshape the real estate industry landscape.
Realogy Faces Countersuit from Compass
Compass countersues Realogy, alleging unfair competition.
Caption: Compass files countersuit against Realogy
After Realogy initially sued Compass, alleging unfair competition, Compass fought back with a countersuit. In their counter lawsuit, Compass claimed that Realogy was unable to compete in the changing real estate industry. Both companies engaged in a legal battle that highlighted the transformative nature of the real estate market.
The Enigma of Low Inventory: The State of the Housing Market
Low housing inventory creates challenges for buyers.
Caption: Inventory insanity: Why are there no homes for sale in America?
The low inventory situation in the housing market left potential buyers frustrated and struggling to find suitable homes. The story of Brian Evans' clients, who offered significantly above the asking price but still faced rejection, exemplified the challenges faced by buyers in this competitive market.
Keller Williams Fights Back Against Zillow
Keller Williams reveals its strategy to counter Zillow's influence.
Caption: Here's KW's plan to hit back at Zillow after ShowingTime buy
Following Zillow's acquisition of ShowingTime, Gary Keller, the founder of Keller Williams, announced his company's plan to fight back against Zillow's market dominance. The strategy involved controlling lead generation for Keller Williams' agents and local advocacy efforts aimed at influencing how Zillow displays listings. This move demonstrated Keller Williams' determination to protect its position in the industry.
Compass Pursues Public Offering
Compass announces its plan to go public.
Caption: Compass officially files paperwork to go public
In a significant announcement, Compass confirmed its intention to go public. The company filed confidential paperwork with the U.S. Securities and Exchange Commission (SEC), indicating its pursuit of an initial public offering (IPO) rather than merging with an already publicly traded special purpose acquisition company (SPAC). This move showcased Compass's confidence in its market position.
Reevaluating Agent Commissions in a Changing Landscape
Potential shifts in industry rules prompt a reevaluation of agent commissions.
Caption: Agent commissions are headed for a reckoning: 3 things to consider
Amid the Department of Justice's withdrawal from the proposed settlement with NAR, concerns arose about potential changes in industry rules and policies. Brokers and agents grappled with the uncertainty surrounding agent commissions and the potential impact on their businesses. The looming changes left many in the industry on edge.
Mortgage Lenders Brawl at Atlantic City Casino
A physical altercation between mortgage banks goes viral.
Caption: When lenders go wild: Mortgage broker brawl goes viral
In a surprising turn of events, a video capturing a brawl between two mortgage banks at an Atlantic City casino gained attention on social media. The incident showcased a rare display of aggression within the typically reserved mortgage lending industry. The viral video highlighted the heated competition among industry players.
Buyer Broker Commissions on Display
NAR requires the display of buyer broker commissions.
Caption: NAR approves display of buyer broker commissions
The National Association of Realtors' board of directors approved a policy requiring multiple listing services (MLS) to display buyer broker commissions on their listing sites and data feeds. This move aimed to increase transparency in buyer agent compensation. The policy change generated discussions about the role of commissions in real estate transactions.
Nationwide Eviction Ban Lifted
A federal judge lifts the nationwide eviction ban.
Caption: Federal judge lifts nationwide eviction ban
A federal judge lifted the nationwide eviction ban, which had been in place for months. The decision came following a legal battle and emphasized the ongoing debate about the balance between protecting tenants and ensuring landlords' rights. This ruling had significant implications for both renters and property owners.
Memorable Closing Gift Ideas
Tips for choosing closing gifts that leave a lasting impression.
Caption: 10 smart closing gift ideas that clients will never forget
After closing a successful real estate deal, it's essential to find a closing gift that leaves a lasting impression on clients. This article provided 10 creative and thoughtful gift ideas to help agents show gratitude and foster long-term relationships with their clients. The closing gift is seen as a powerful tool for building lasting connections.
Generating Listings in a Low-Inventory Market
Strategies for persuading potential sellers in a low-inventory market.
Caption: 12 ways to generate listings in a low-inventory market
The low-inventory market posed challenges for agents looking to secure listings. To overcome this obstacle, industry experts discussed 12 effective strategies for persuading potential sellers to put their properties on the market. These strategies aimed to proactively address the unique demands of a low-inventory market.
As we bid farewell to 2021, these top 21 Inman stories remind us of the ups and downs, the challenges and triumphs that defined the real estate industry throughout the year. With each story, we gained valuable insights and a deeper understanding of the ever-evolving landscape in which we operate. Here's to another year of growth, adaptation, and unforeseen surprises in the world of real estate.
