Today, the National Association of Realtors^® provides a final reminder to members, real estate professionals, and consumers that on August 17, 2024, the practice changes following NAR’s Proposed Settlement Agreement that would resolve claims brought on behalf of home sellers related to broker commissions will be implemented across the country.
REALTOR^® MLSs (those owned exclusively by one or more REALTOR^® Associations) must implement the changes by August 17, 2024, to remain in compliance with NAR policy.
As a reminder, under the settlement, the following practice changes will take effect:

• Offers of compensation will be prohibited on Multiple Listing Services (MLSs). Offers of compensation will continue to be an option consumers can pursue off-MLS through negotiation and consultation with real estate professionals.
• Agents working with a buyer must enter into a written buyer agreement before the buyer can tour a home. The practice changes do not require an agency agreement or dictate any type of relationship.

Please visit facts.realtor for the latest updates on the settlement and practice changes and for additional resources to assist with implementation of the settlement terms.
Additionally, August 17, 2024, is the first date members of the “Settlement Class”— home sellers who sold a home on an MLS anywhere in the U.S. during the eligible date ranges and paid a commission to a real estate brokerage in connection with the sale of the home—can be informed about NAR’s proposed settlement of the Sitzer-Burnett case, through a process called class notice. Notice will be distributed by mail and electronically. Class notice informs class members of their rights, options, and deadlines to exercise those rights and options under the proposed settlement.
For more information on what class notice means for REALTORSÒ, please reference NAR’s video here. Consumers with questions about the class notice or eligibility processes should reference the settlement website or call the settlement administrator at 888-995-0207 for additional guidance.

Understanding the Generational War

As Baby Boomers delay retirement and Gen Zers enter the workforce, many offices have become a veritable battleground of generational values, differing perspectives, and, in some cases, anxiety.

This “Generational War,” as it has come to be called, is reshaping the traditional notion of work culture and collaboration, with each party bringing its own expectations regarding work-life balance, communication methods, and technology to the table.

The Impact of Digital Disruption

When you factor in the level of digital disruption and technological advancements that are changing the work landscape on a daily basis, we are getting more divided than ever on so many aspects of work life.

But aside from a disconnect between team members, this divide hinders collaboration and innovation at your organization. To overcome this, it is crucial to create mechanisms and strategies that foster a culture of innovation, transparency, and collaboration among employees.

Understanding the distinction between Hard Trends, which are ‘future certainties,’ and Soft Trends, which represent ‘future possibilities,’ can significantly impact strategic decision-making for businesses.

We have got to bring unity to this multifaceted and diverse workforce of today. But how do you get employees divided by years of life and work experience to work together? How do you go about bridging the gap between these different generational mindsets?

Breaking Down Generational Stereotypes at Work

It all begins by fostering a culture of Anticipatory thinking that transcends generational boundaries, creating a common, proactive mindset that is not tied to age. We want each group, in its own way, to look towards the future, understand Hard Trends and Soft Trends, and embrace innovation.

But the way that I see it is simple: This generational war in the workplace stems from a lack of communication and understanding among the different age groups.

Organizations today have four different generations working at the same time, and members of each generation have their own life experiences and skill sets that can color how they interact with one another. As mentioned earlier, the importance of communication and understanding among different age groups cannot be overstated.

The reality today is that many individuals come to work with preconceived notions about those outside of their own generation, and these stereotypes hurt morale, obstruct collaboration, and, ultimately, hinder innovation.

For example, Baby Boomers are seen members of some other generations as technologically incompetent and unwilling to learn; Millennials are portrayed as entitled and difficult to manage; Gen Z workers are considered to be unprofessional and unmotivated; and so forth.

Leveraging the Unique Strengths of Each Generation in the Workplace

A recent study conducted by The Adaptavist Group in a report titled “Digital Etiquette: Mind the Generational Gap” found the following statistics:

• 50% of both Baby Boomers and Gen Xers are frustrated by their younger counterparts’ failure to use traditional tools (like pens)
• 47% of Gen Zers believe that the dated techniques of older workers slow productivity
• 65% of Gen Z employees say that their older counterparts struggle with technology

What is interesting is that the same report also states that 53% of Gen Z workers actually envy their older coworkers’ confidence and ability on phone calls. This is a very telling statistic!

The truth is not that older generations are not technologically savvy; it is that they have a different set of technological skills, particularly ones that may have been more relevant in the past. They also have the work experience to adeptly navigate phone calls and other organizational tasks with efficiency.

Similarly, Gen Zers may not have the experience to navigate work operations yet, but they do have the technological advantage, which is an essential element for success when faced with digital disruptions.

Members of each current working generation — Baby Boomers, Gen Xers, Millennials, and Gen Zers — have their own abilities that they bring to the workforce. Likewise, they experience their own pitfalls, as well. Ultimately, it is your job as a business leader to make sure these differences do not divide your employees but instead unite them in dynamic, productive ways!

What one generation lacks, another has the skills and perspectives to complement.

Navigating Digital Disruption in Work and Finding Your Place

Thirty years ago, I coined the term Futureview® to refer to the vivid mental picture we each hold of our future existence. It is not a goal or a plan, but what we actually see when we picture our future.

Everyone has a Futureview® — there is no question there. The key to generational unity in the workforce is to first focus on uniting the Futureview of everyone in it. Each generation needs to be part of an aligned Futureview that helps them double down on their role within the organization.

Recognizing ‘future facts’ is crucial in this process. Future facts represent future events that are almost certain to occur, such as the sun rising tomorrow. Understanding these facts helps in navigating emerging trends effectively.

Yes, each generation has its own values and perspectives, and each employee of that generation has his or her own skills and abilities. But when you align their Futureview, all the puzzle pieces fall into place. You focus all of that talent on working towards a common future, uniting employees of different generations where their differences might otherwise threaten to separate them.

For example, change is an inevitability of life and of work, and it is important to remember that many changes happen in cycles. Cyclical changes are those predictable events that recur over and over, such as the changing of the seasons, or a new generation entering the workforce to age out in 50 years.

Conversely, linear change exists, too. This is change that moves only in one direction — forward.  In today’s work landscape, we are currently in the midst of revolutionary digital change, marked by the advance of all types of AI, datafication, and processing power. This is linear change that will never reverse.

Your Strength Is in Intergenerational Collaboration

The older generation has decades of experience and institutional knowledge. Its members have lived through many cyclical and linear changes, providing them with the knowledge they need to navigate change in general. This knowledge is highly beneficial, as it enables such employees to identify and pre-solve future disruptions before they happen. By analyzing historical data and observed patterns, they can expect certain outcomes and adapt accordingly.

On the opposite end of the generational spectrum, Gen Z has the technological prowess to navigate the exponentially changing digital landscape.

When you align the Futureview of these two specific generations, though they are polar opposites in many ways, you encourage their members to leverage their individual skill sets together, creating an Anticipatory culture that focuses on the same goal.

Baby Boomers have experience and institutional knowledge; Gen Xers are known for their independent thinking and adaptability; Millennials bring a fresh perspective on innovation and technology; and Gen Zers have the digital fluency and entrepreneurial spirit to offer a glimpse into the future of work and consumer trends. These varying skills sound like the makings of a dream team to me!

As an Anticipatory Organization, it is crucial to recognize and leverage the diverse strengths of all your employees. Make it a priority to encourage intergenerational collaboration and mentorship that allows each generation to learn from the others under a united Futureview.

Only by harnessing the collective strength of every generation can organizations position themselves as disruptors in the digital future.

This weekend will marked the biggest change in the history of real estate and yet, many are either unaware or unprepared. The NAR settlement is here, and this past weekend the contracts entered into will be the first to fall under the new agreement. My issue remains the lack information and structure around how the contracts will be written and the potential issues around specific verbiage that may or may not be used.

For many, the new agreement will have virtually no impact regardless how the contracts are written; but for those who will be making minimum downpayments and/or requiring a seller’s contribution toward closing costs, the specific language can be the difference between success and failure of the transaction.

The mortgage industry has led the way regarding the NAR Settlement in quickly responding across the board by letting the markets know that they will accept language that states the seller is allowed to pay the buyer’s agent commission without holding that payment against the standard allowable seller’s contribution toward closing costs. However, the burden of the language is upon the preparer to navigate. To be clear, a seller’s contribution is NOT the same as the seller agreeing to pay the buyer’s agent fees. The preparer must be certain to define the difference. Another critical point is that IF the buyer must pay all or part of their agents’ commission, that money may NOT count toward their required buyer’s contribution towards the transaction. With no specific direction from NAR or the real estate boards and given that with some markets that use attorneys while others have the agent prepare the offers and contracts, it is imperative that we remind our clients and referral partners to know that contract language matters!

In other news this week, both CPI & PPI were pretty much as expected and the rate market trend is toward lower rates; SLOWLY! Today we have weekly initial and continuing claims. If the numbers are as expected, there should be much of an impact in bond prices and for rates to continue to slowly improve as the markets eye a FED rate cut in September. However, a surprise is always possible.

As always, questions or comments: This email address is being protected from spambots. You need JavaScript enabled to view it.

Freddie Mac (OTCQB: FMCC) today released the results of its Primary Mortgage Market Survey^® (PMMS^®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.49 percent.

“While rates increased slightly this week, they remain more than half a percent lower than the same time last year,” said Sam Khater, Freddie Mac’s Chief Economist. “In 2023, the 30-year fixed-rate mortgage nearly hit 8 percent, slamming the brakes on the housing market. Now, the 30-year fixed-rate hovers around 6.5 percent and will likely trend down in the coming months as inflation continues to slow. Lower rates are good news for potential buyers and sellers alike.”

News Facts

• The 30-year FRM averaged 6.49 percent as of August 15, 2024, up from last week when it averaged 6.47 percent. A year ago at this time, the 30-year FRM averaged 7.09 percent.
• The 15-year FRM averaged 5.66 percent, up from last week when it averaged 5.63 percent. A year ago at this time, the 15-year FRM averaged 6.46 percent.

The PMMS^® is focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20 percent down and have excellent credit. For more information, view our Frequently Asked Questions.

Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website

The nationwide median asking rent was $1,647 in July, down $53 from the all-time high in 2022

The median asking rent fell across all bedroom counts in July year over year, the first time that’s occurred since June 2020. That’s according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

Median asking rents for 0-1 bedroom apartments fell 0.1% (to $1,498 a month), 2 bedroom apartments fell 0.3% (to $1,730) and 3+ bedroom apartments fell 2.4% (to $2,010). All three categories are down at least $50 from all-time highs posted in the last two years.

Prices remained steady for 0-1 bedroom and 2 bedroom apartments due to higher demand in those categories, even with increased supply coming onto the market. The increased supply of 3+ bedroom apartments, however, led to prices falling faster in July due to lower demand for larger, more expensive units which also compete against single-family home rentals.

The overall rental vacancy rate has remained at 6.6% for four consecutive quarters, the highest level since 2021, while the vacancy rate for buildings with 5+ apartments—the subject of Redfin’s report—was at 7.8% in the second quarter, up from 7.4% a year earlier.

“Rents have recently steadied—or even dropped slightly—because of the sheer number of apartments built over the past two years,” said Redfin Senior Economist Sheharyar Bokhari. “Construction is slowing down and prices will eventually start rising again, but now is still a good time for renters to find a deal, especially families looking for an apartment with at least three bedrooms.”

Nationwide median asking rent rises slightly, but still down $53 from all-time high

The median asking rent for all bedroom counts combined actually rose 0.4% year over year in July to $1,647. This discrepancy between the combined result (showing a gain) and the three different bedroom types (which all fell) is the result of a statistical phenomenon known as Simpson’s paradox.

The national median asking rent was down 0.2% month over month from June and $53 less than the all-time high of $1,700 recorded in August 2022. Despite the slight dip, affordability is still a serious issue for renter households, which earn roughly $11,000 less than is needed to afford a typical apartment.

Rents drop across Sun Belt, as East Coast and Midwest cities record big increases

Metro areas in Texas and Florida, two states which have built a high number of new apartments since the pandemic, continue to see large falls in price.

The median asking rent in Austin, TX dropped the most of any metro we analyzed in July, falling 16.9% year over year. Jacksonville, FL, was not far behind, with the median asking rent falling 14.3%.

San Diego (down 12.7%), San Francisco (down 7.6%) and Tampa, FL (down 5.9%) rounded out the five metros with the biggest drops in asking rents.

The median asking rent in Virginia Beach, VA rose 13.7% year over year in July, the biggest jump among the metros Redfin analyzed. Baltimore, MD (up 12.5%), Washington, D.C. (up 11.6%), Chicago (up 10.3%) and Cincinnati, OH (up 9.9%) posted the next highest gains.

To view the full report, including charts, metro-level data and methodology, please visit: https://www.redfin.com/news/rental-tracker-july-2024