Compass's potential shift to in-house listings could lead to a ripple effect in the real estate market, encouraging other major brokerages to adopt similar strategies. This change may lead to unprecedented fragmentation in the market. Meanwhile, Lawrence Yun from NAR points out that despite improvements in the economy and housing affordability, home sales are facing challenges from strict credit conditions and increased contract cancellations due to appraisal issues, indicating a complex housing landscape ahead.
Should Compass succeed in bringing the majority of its listings in-house, every other major brokerage would follow suit, resulting in "the most fragmented market you've seen in our lifetime."
Housing affordability conditions have been at record levels and the economy has been improving, but home sales are being constrained by the twin problems of unnecessarily tight credit, and a measurable level of contract cancellations from some appraisals not supporting prices negotiated between buyers and sellers.
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