Zillow, other real estate stocks plunge after NAR settlement news

Agnt

15/03/2024 18:04

(Updates prices, adds details)
** Shares of Zillow Group  ZG.O  and other real estate companies
fell sharply on Fri after the National Association of Realtors
agreed to resolve antitrust litigation accusing brokerages of
inflating sales commissions
        ** The settlement is likely to bring major changes and
lower costs when people buy and sell homes
  
    ** Zillow's stock was down about 14% in afternoon trading
and hit its lowest price since Dec 2023. It was on track for its
biggest daily percentage decline since Nov 2021
    ** Shares of Redfin  RDFN.O  fell 5.8%, eXp World Holdings
 EXPI.O  was down 7.8% and Compass  COMP.N  was down about 12.4%
and hit its lowest since Dec 2023
    ** In a note Friday, Spruce Point Capital Management
reiterated its "strong sell" rating on Zillow and said it sees
"40%-60% downside risk" with the stock. Zillow's stock was last
at $45.90
    ** Among the issues facing the company, Spruce Point noted
that, "litigation involving the National Association of Realtors
(“NAR”) threatens to upend the decades-long tradition of broker
cooperation, whereby listing agents and buying agents share
commissions paid by home sellers."

 (Reporting by Caroline Valetkevitch)
 ((caroline.valetkevitch@thomsonreuters.com))