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Sacks support ×2 ▼ on 📈 Mortgage rate lock-in freezes housing turnover E174 · 2024-04-12 ▶ 21:35

That makes it harder to buy a house. Mortgage payments are higher... if there's fewer home sale transactions, that means the price of housing could come down. So there could be a correction in that market

Jason support ×2 ▼ on 📈 NAR verdict breaks the 6% residential commission cartel E171 · 2024-03-22 ▶ 43:14

It should be that you get a flat rate, $10,000 at a million, and then you get 10% over a million or something.

Jason oppose ×2 ▼ on 📈 Mortgage rate lock-in freezes housing turnover E171 · 2024-03-22 ▶ 42:19

a lot of people will not list their home or sell it because that 6% might put them underwater.

Sacks support ×3 ▼ on 📈 NAR verdict breaks the 6% residential commission cartel E171 · 2024-03-22 ▶ 39:58

No buyer would ever voluntarily agree to pay this massive commission. It's not worth it. So it's game over for the realtors if buyers are forced to pay their own brokers commission.

Chamath support ×1 ▼ on 📈 NAR verdict breaks the 6% residential commission cartel E171 · 2024-03-22 ▶ 37:30

Is it going to change the profitability of a realtor? Pretty meaningfully, right?

Friedberg support ×3 ▼ on 📈 NAR verdict breaks the 6% residential commission cartel E171 · 2024-03-22 ▶ 34:05

I do project and I do expect that much of what is charged on a commission basis, on a percent of home value today, will change to being a fixed fee and a flat fee basis.

Jason support ×2 ▼ on 📈 NAR verdict breaks the 6% residential commission cartel E158 · 2023-12-23 ▶ 1:31:14

The settlement is likely to be that when you hire a broker, they will give you a form and you'll pick what percentage you want to pay. ... keep an eye on this one folks, because it's going to have a massive impact.

Sacks support ×2 ▼ on 📈 NAR verdict breaks the 6% residential commission cartel E158 · 2023-12-23 ▶ 1:25:51

Here's how you'll know that the monopoly has ended, is when the buy side commission goes away.

Friedberg support ×3 ▼ on 📈 NAR verdict breaks the 6% residential commission cartel E158 · 2023-12-23 ▶ 1:30:38

if the monopoly breaks on the marketplace, then the business model will get competed away, and there will start to be a change here. And I think that this lawsuit and the settlement ultimately leads to a shift in the industry that could certainly benefit consumers, but could have a negative economic impact because of the number of people that depend on brokerage fees as their job.

Sacks support ×2 ▼ on 📈 Mortgage rate lock-in freezes housing turnover E151 · 2023-10-27 ▶ 1:05:07

if you sell your house, you lose your 3% mortgage. Now you have to get a new one at 8%. So everyone stopped trying to sell their house. The number of real estate transactions has gone down a lot

Sacks support ×2 ▼ on 📈 Mortgage rate lock-in freezes housing turnover E146 · 2023-09-22 ▶ 31:04

Mortgages, the rate now is approaching 8%. So no one can afford to sell their house, which has a 3% mortgage, and then buy a new one at 8%. So real estate transactions have cratered.

Chamath support ×2 ▼ on 📈 Mortgage rate lock-in freezes housing turnover E142 · 2023-08-18 ▶ 1:04:59

my only thought around housing was that very much just supporting what Sacks just said. We're in an incredibly untenable situation, mostly because as rates go up, mortgage applications go down and so what you're seeing is just the number of people trying to transact is very small and so the inventory is very small

Sacks support ×3 ▼ on 📈 Mortgage rate lock-in freezes housing turnover E142 · 2023-08-18 ▶ 1:00:24

if it's going to cost you 8% to buy a new house and it used to be 3% a couple of years ago... you can't afford to sell your current house and buy a new one because your current house is financed at 3%... So we're already seeing a huge reduction in the number of transactions in residential real estate... I think that as this washes through the system, you could see a big correction in the values of residential real estate, which is most people's main asset.

Sacks support ×2 ▼ on 📈 Mortgage rate lock-in freezes housing turnover E129 · 2023-05-19 ▶ 1:08:18

And then for the new one, you're going to lose your 3% mortgage and have to get a new one at 7%. So you're not going to buy anything like the house you currently have. So it freezes the market. It freezes mobility. I think over the last few years during COVID, you saw tremendous movement between states. I think that's going to slow down a lot now because people just can't afford to trade houses.