NAR vows to take its DOJ beef all the way to the top: The Download

by Drew Thompson | Sep 7, 2024 | Industry, News Feed

Industry leader and brokerage founder Clark Halstead dies at 83

by Josh Ries | Sep 6, 2024 | Industry, News Feed

Clark Halstead, a two-time brokerage founder, died on Aug. 22 at the age of 83.

The industry veteran co-founded the Manhattan division of Sotheby’s International Realty with Edward Lee Cave in 1976. Eight years later, he co-founded Halstead Property with Diane Ramirez, who was president, CEO and chairman of the brokerage.

“Clark was the ultimate real estate professional — someone I idolized, and I know a number of other people saw in the same light,” Chris Halstead, executive sales director for Brown Harris Stevens Connecticut and Clark’s nephew, told Inman in an email. “He was incredibly knowledgeable and always willing to share in that. Community was everything to him, and he created a business that people loved to work for. He’s left a wonderful legacy, and the business is better to have had him.”

According to BHS controller Al Hughes, Halstead sketched out the idea for Halstead Property on the back of a napkin and then pitched it to an investment group over lunch, the controller elaborated in a BHS blog post.

After Halstead’s passing, the firm, which acquired Halstead in 2020, compiled tributes from BHS agents and leaders, as well as former leaders at Halstead, to honor his legacy.

Around 2004, Halstead and Ramirez sold Halstead Property to Terra Holdings, BHS’ parent company. At that point, Halstead stepped down from daily operations at the firm, but remained chairman emeritus and served in an advisory role. Ramirez continued to head the firm until BHS absorbed the company in 2020.

Halstead was also heavily involved in the Real Estate Board of New York (REBNY), where he helped launch its residential division and served as governor on the board of governors.

Ramirez called him a “legend and trailblazer” for the residential real estate industry.

“His illustrious career was renowned and he helped to bring us into the 21st century through his sales and marketing acumen,” she continued in BHS’ blog post. “His gentlemanly charm was felt by all. He will forever remain in my heart with true affection and gratitude.”

Halstead hosted a weekly radio show, Halstead’s Real Estate Review, on WQXR for 11 years. He also made television appearances on shows like Lifestyles of the Rich and Famous and Good Day New York.

One of Halstead’s more flashy marketing techniques that people still ask about today, according to his nephew, was a fleet of tricked out, branded London taxis, which featured TVs, wet bars, and later on, computers, in which he would drive clients around the city.

“There are still people to this day who ask me if we have the taxis,” Chris Halstead told The Real Deal. “I think there is actually one in a barn somewhere in the Hamptons, or so I’m told.”

BHS CEO Bess Freedman called Halstead “remarkable” with a career “marked by excellence, innovation and a genuine passion” for real estate.

“Many at our company had the privilege of working with him and were deeply impacted by his leadership and vision,” Freedman continued in the firm’s blog post. “Even for those who didn’t work with him directly, his contributions and the respect he garnered speak volumes. His legacy will continue to inspire us, and our thoughts are with his family and all who knew him.”

Halstead’s longtime partners both succumbed to cancer before his own passing — his wife, Carol, died in 2002 and his 20-year partner Mindy Papp passed away earlier this year.

He is survived by daughters Heather Gustafson and Hilary O’Keefe, son-in-laws Marc Gustafson and John O’Keefe, and grandchildren William, Winston, Oakley and Olivia.

Get Inman’s Luxury Lens Newsletter delivered right to your inbox. A weekly deep dive into the biggest news in the world of high-end real estate delivered every Friday. Click here to subscribe.

Email Lillian Dickerson

Inman Power Wheels: Sweet 16 showdown for the best agent auto

by Inman | Sep 6, 2024 | Industry, News Feed

Welcome to the Inman Power Wheels bracket, where your votes decide which car reigns supreme for real estate agents on the go. In weekly rounds, we’ll pit top vehicles against each other in a head-to-head battle, with the winners zooming forward until we crown the ultimate ride for real estate pros in September. From luxe to value models, SUVs to Sunbelt-market convertibles, vote for your favorites.

Whether driving buyers to showings or aiming to make a big impression at a seller consultation, your vehicle is bound to make a statement — for better or worse. As 2025 models roll out in September and October, this is the time to take advantage of used car shoppers, favorable trade-in options and promotional events at the local dealership — from Toyotathons to Happy Honda Days.

The contest kicks off today with the entire roster of 16 vehicles, chosen for their overall appeal. Read on for each cars’ attributes and choose the eight you want to advance to the next round. Each Friday, as models are eliminated, we’ll return with more info about last week’s winners until we crown a Power Wheels champ in September. Details come from Edmunds reviews and dealer descriptions.

Bracket 1: Luxury sedans

Lexus ES

Features an all-wheel-drive system for agents traveling in cold or wet climates, smooth acceleration even in city traffic, low seat cushions/supportive seats that allow for easy entry and exit for both short and long stretches.

Genesis G80

A fast yet convenient choice for agents, featuring a turbocharged V6 engine for quick acceleration, elevated height and door sills for easy entry and exit, ample storage bins throughout and an all-wheel-drive system for reliable control in any weather.

Bracket 2: Japanese efficiency

Honda Accord

A fuel-efficient vehicle ideal for agents on the go, equipped with 19-inch wheels for a smooth ride, 16.7 cubic feet of trunk space for materials and supplies, wireless connectivity, and durable build quality designed to last.

Toyota Camry

A hybrid, fuel-efficient choice with optional all-wheel drive for stable driving, supportive seats for comfort on long trips, a quiet cabin for peaceful highway drives as agents prepare for the day, and a driving aid system that adjusts speed when other vehicles weave in and out of lanes.

Bracket 3: German engineering

Mercedes-Benz C-Class

Ideal for agents who prioritize peace and quiet on the road, this option also offers a 360-degree camera system for easy navigation in tight spaces and a turbocharged mild hybrid engine that delivers excellent fuel economy without compromising performance.

BMW 5 Series

Suitable for agents who prioritize both speed and fuel efficiency, this option features a turbocharged hybrid system available on select trims. It also boasts enhanced interior space for added comfort and storage, along with a Highway Assistant feature that enables hands-free driving.

Bracket 4: Made in the USA

Cadillac CT5

Satisfying the need for speed with its V6 engine, it also provides well-tuned suspension and accurate steering for a smooth, safe ride, adaptive cruise control to help maintain speed, item storage inside the cabin and next-level safety innovation.

Tesla Model S

Delivering remarkable speed and easy operation for any commute, it provides tire road grip for safety and stability, front and rear trunks for storage, plus autopilot and standard adaptive air suspension for comfortable cruising.

Bracket 5: Value investments

Kia Forte

A fuel-efficient choice packed with features for agents, its forward collision mitigation warns of obstacles ahead with a blind-spot warning system for detecting vehicles in the car’s blind spot (available on select trims). It also includes a native voice system that allows for hands-free operations while driving.

Hyundai Elantra

Providing agents with excellent fuel efficiency, it offers smooth handling for rough roads, and a voice-activated system that responds to web searches, addresses, and climate control commands.

Bracket 6: Sporty sedans

Mercedes-AMG E 63 S

This one delivers speed with its V8 biturbo engine, while AMG Dynamic Select driving modes let agents customize their driving experience. The 4MATIC all-wheel drive ensures safety in any road conditions.

Audi S4

Here you’ll find both power and speed, with adaptive suspension tailored for rough surfaces and a separate mode designed for more spirited driving.

Bracket 7: Durable SUVs

Toyota 4 Runner

Ideal for agents seeking off-road capability, it boasts high ground clearance and Toyota Racing Development (TRD) features that enhance control and safety in rugged terrains.

Volkswagen Tiguan

This SUV helps agents manage driving in different settings from parking lots to twisty roads and maintain control with minimal noise on highways at elevated speeds.

Bracket 8: Sunbelt convertibles

Mazda MX-5 Miata

This iconic convertible provides agents adaptable cruise control for comfort, Alexa voice control to complete agent commands during vehicle operation and a folding hardtop roof. There’s a post-crash braking system, which applies braking pressure when a collision is detected, for added safety.

Ford Mustang GT Premium Convertible

Ideal for agents who value safety and connectivity, it features a Personal Safety System that helps agents avoid injury by offering frontal crash protection, an SOS Post-Crash Alert System, which activates hazard lights and sounds an alert if airbags are deployed, and FordPass Connect services, including a 4G LTE Wi-Fi hotspot for deals on the go.

Email Richelle Hammiel

SCOTUS, Sitzer, stress: Inman’s Top 5 stories of the week

by Rainy Hake Austin | Sep 6, 2024 | Industry, News Feed

Inman Connect is moving from Las Vegas to San Diego in 2025 and it’ll be bigger, better, and bolder than ever before. Join us for Inman Connect San Diego on July 30-Aug. 1, 2025 with the brightest minds in real estate to shape the future of the industry. Reserve your spot today for an exclusive discount.

Looking for a quick catch-up on the buzziest stories of the week? Here’s Inman Top 5, the most essential stories, according to Inman readers.

And don’t miss The Download, our weekly column that breaks down one of the top stories of the week and equips you with what you’ll need to meet next Monday head-on.

U.S. Supreme Court. Credit: Canva

The case dates back to a 2020 settlement between NAR and the DOJ, and to the DOJ’s 2021 attempt to withdraw from that settlement — something NAR is trying to block.

Landian, a flat-fee and à la carte platform, offers $49 tours and $199 for written offers to sellers, but the real bombshell may be Sitzer’s involvement so soon after the $5 billion Sitzer | Burnett verdict.

Buyers are more stressed out than ever. Jimmy Burgess shares a plan to help you help your buyer clients and earn their trust.

Massachusetts broker Nadine Hiser outlines the differences between NAR-affiliated brokers and independents like her — and why her company, Key Realty Group, made the choice to leave NAR.

Navigating economic turbulence to elevate your real estate career

by Marian McPherson | Sep 6, 2024 | Industry, News Feed

Is good news finally on the horizon for the real estate industry?

by Jason Waugh | Sep 6, 2024 | Industry, News Feed

Whether it’s refining your business model, mastering new technologies, or discovering strategies to capitalize on the next market surge, Inman Connect New York will prepare you to take bold steps forward. The Next Chapter is about to begin. Be part of it. Join us and thousands of real estate leaders Jan. 22-24, 2025.

As the real estate industry continues to struggle with the fallout from the commission lawsuits, increased mortgage rates, and a significant decline in the number of transactions, Patrick Stone, chairman and founder of Williston Financial, is optimistic about what’s ahead as we wrap up 2024 and move forward into 2025 and 2026.

For almost two decades at Inman Connect, I’ve enjoyed hearing Stone’s take on what’s ahead for the real estate industry — because he’s usually right. I recently interviewed him to discuss what’s ahead in terms of mortgage interest rate reductions, where he sees the industry heading as we move into 2024, plus his current concerns about the industry. 

Mortgage rates are coming down, but are still inflated

Stone explained that while some people are speculating that there will be a meaningful drop in rates, his prediction is that we will see a rate reduction of 25 basis points in September and another 25 basis point drop in December. That would bring the rate down to a bit under 6 percent by the beginning of 2025. 

Nevertheless, Stone argues that mortgage rates are inflated. 

“The 30-year mortgage is still inflated over the historic norm, 1.5 to 2 points above the 10-year T bill. If it was running that right now, we’d have mortgage rates at 5.3-5.8 percent. What happens when you have inflation is that that range goes north. When you have a significant reduction in inflation, that comes back into the norm of 1.5 to 2 percent,” Stone said. 

“So, the Fed bringing down the Fed rate will reduce inflationary expectations. It will remove some of the excess between the 10-year T bill and the 30-year fixed-rate mortgage. And again, I think the 30-year fixed rate mortgage will go under 6 percent in early 2025.”  

What to expect from the upcoming presidential elections in November

Stone has been tracking the impact of presidential elections for many years.  

“If you look at it historically, presidential elections normally have no impact on the number of residential real estate sales. Instead, residential real estate is really a function of need, desire and affordability,” Stone said. 

“The presidential election creates lots of background noise. It has pertinence in the sense that it can and will impact interest rates, but historically the presidential election itself has no correlation.” 

When I asked Stone about possible differences between a Harris vs. Trump administration, he said, “I just don’t see a meaningful impact on the residential real estate market right away.” 

When I queried him further about both candidates talking about getting more new homes built, his response was, “You know that’s talked about in every election, isn’t it?” 

Builders are optimistic about the need and the demand for new housing

Stone noted that most of the major national builders he has been talking with are optimistic about the need and demand for homes.

“They’re still concerned about interest rates and inflation, so that is abating. I think they’re gearing up or planning to gear up.” Stone said. “I’m hearing a lot of people talking about meaningfully increasing the amount of new home production, so I hope that’s going to be the case.” 

Prices are tied to local markets — not to national averages

Stone pointed out that a major problem with the national media is they apply what is happening or what they think is happening on a national basis. 

“We have had a meaningful slowdown in price appreciation overall, with some markets going negative and some markets positive.” Stone said. “A lot of places had an extraordinary influx of people, so prices went up dramatically and now they’re readjusting. I don’t think we’re going to have a crash at all — we’ll have readjustments.” 

In terms of price appreciation, he said, “I think this year we’ll run somewhere in the 4 percent range overall nationally, and then we’ll get back to our historical average of about 3.6 percent. I think we run between that and 5 percent for the next 20 years unless we have something like the pandemic again.”

Concerns about the ‘NAR dynamic’

Stone shared his concerns about the NAR settlement, what he called the “NAR dynamic,” and its impact. 

“I’m not advocating for this, but it does appear to me that the NAR dynamic could result in a lessening of commissions for Realtors and a significant reduction in the number of Realtors.” Stone said. 

“If, in fact, that happens and you see a meaningful reduction in the number of Realtors, there will be a corollary reduction in some of the entities that service the process, such as title companies, mortgage companies and so forth. If there are fewer Realtors, they will use fewer vendors, regardless of the amount of business.” 

In terms of how this impacts mortgage and title services in particular, Stone said, “The title industry is very used to adjusting personnel costs based on volume. So, I think most of the companies are positioned or ready to do so if they need to. The mortgage industry may be a little bit less, but the large mortgage players have also seen this movie before.” 

When I asked about how far the number of Realtors might drop by 2026, he replied, “This is just a guess, but maybe down to a million.” 

Stone is concerned about the GSEs using automated appraisals (AVMs)

When I asked Stone about whether the 2024 drop in sales volume to about 3.91 million would impact the number of appraisers, he explained why he felt there would be no change.  

“Appraisers got so stretched out during the pandemic that it could take up to 10 times longer to get an appraisal. The appraisal requires a commitment to learning a skill set and developing relationships. It’s not easy to get in or out of being an appraiser, so the number of appraisers won’t change,” Stone said. 

“But you are seeing some of the GSEs and some of the regulatory agencies encouraging automated valuations. I’m going to be straight up with you: I worry about that. Just for fun, run an AVM for your home on Redfin and run an AVM on Zillow. You’ll be stunned at the difference. So, there’s a lot of variation in AVMs, and I worry a little bit about relying too heavily on them at this point.”

What’s ahead in 2025 and 2026? 

Provided the Fed cuts interest rates, Stone believes things will improve dramatically in 2025 and 2026. 

“Assuming the two Fed rate cuts that I predicted earlier, I see volume next year going north of 5 million, and then in 2026, if nothing changes negatively, I think of it reaching the high 5 million range,” Stone said.

“The all-time record for sales was in 2005 when the sales volume reached 7.2 million. I think the average mortgage rate that year was 5.6 percent. We now have an affordability issue because the price of homes has gone up so much. So, it isn’t a direct correlation, but I do see the volume getting up north of 5 million next year, and then maybe the high fives in 2026.”

Stone’s final takeaway was, “I encourage everybody to pay attention to everything going on. Ask questions, talk to people, be prepared to do whatever you need to do.”

Let’s hope that Stone’s prognostications are correct. If so, the inventory shortage and high interest rates will soon be relegated to the rearview mirror in 2025 and 2026, and the market will be better for everyone. 

Bernice Ross, president and CEO of BrokerageUP and RealEstateCoach.com, and the founder of RealEstateWealthForWomen.com is a national speaker, author and trainer with over 1,500 published articles.