Why Zillow will weather the NAR Storm: Analyst

03/22/2024 05:07
Why Zillow will weather the NAR Storm: Analyst

Recently, the National Association of Realtors (NAR) settled an antitrust lawsuit in which a federal jury found that the organization had conspired to artificially inflate agent commissions. The organization was fined $418 million dollars, with a possible added ripple effect on the housing market. Despite this news, analysts at Citi reiterated a Buy rating for Zillow (Z), with a price target of $68 per share. Citi Senior Internet Sector Analyst Ron Josey joins Yahoo Finance to explain why he thinks the NAR ruling won't be a problem for Zillow, Josey explains that buy-side agents are sheltered from the settlement's impact, and Zillow's array of offerings may also insulate the company: "Over the past several years, I'd say five plus years, Zillow has been culling their premiere agent base to focus only on those agents that actually return the leads that they're getting from Zillow. On top of that, they've been investing in new productivity tools, they bought Showing Time; they just recently acquired a company called Follow Up Boss. And so you have these newer tools that are helping agents become more effective." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Nicholas Jacobino

Recently, the National Association of Realtors (NAR) settled an antitrust lawsuit in which a federal jury found that the organization had conspired to artificially inflate agent commissions. The organization was fined $418 million dollars, with a possible added ripple effect on the housing market. Despite this news, analysts at Citi reiterated a Buy rating for Zillow (Z), with a price target of $68 per share.

Citi Senior Internet Sector Analyst Ron Josey joins Yahoo Finance to explain why he thinks the NAR ruling won't be a problem for Zillow,

Josey explains that buy-side agents are sheltered from the settlement's impact, and Zillow's array of offerings may also insulate the company: "Over the past several years, I'd say five plus years, Zillow has been culling their premiere agent base to focus only on those agents that actually return the leads that they're getting from Zillow. On top of that, they've been investing in new productivity tools, they bought Showing Time; they just recently acquired a company called Follow Up Boss. And so you have these newer tools that are helping agents become more effective."

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Nicholas Jacobino

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