How new real estate rules affect Dallas-Fort Worth

Why it matters: Real estate commissions nationally have fallen slightly since the announcement of the settlement in March.

• They could fall further after new rules regarding commissions take effect, though it could be several months before the full impact of the changes becomes known.

The big picture: Class action lawsuits usually affect a company or a cluster of companies. But this settlement affects over 60,000 businesses in North Texas, 150,000 in Texas and over a million across the country, per MetroTex Association of Realtors CEO Justin Landon.

• "It's a massive change that has to be replicated across a million and a half business owners," Landon says.

Driving the news: The rules for residential sales went into effect Saturday, but the MetroTex association's 27,000 members in North Texas started implementing them July 29.

How it works: Multiple Listing Service, known as MLS, is a comprehensive private database where brokers post their listings and other relevant information to try to sell real estate.

• The new rules also apply to the North Texas Real Estate Information Systems, an MLS database for listings in the region.

State of sales: Prospective home buyers now need to have a written agreement with their agent before touring homes together, per the new rules. Buyers can still visit open houses without an agreement.

• Sellers used to spell out the commission being offered on their MLS listings. The commissions were always negotiable but were rarely negotiated. Now, commissions are no longer noted on MLS and will be negotiated at the time of the offer.
• The National Association of Realtors has also agreed to a $418 million payout as part of the settlement and won't have to admit wrongdoing in the lawsuit.

Between the lines: The goal of the changes, on face value, was to create more transparency around the services offered and who pays how much and to whom, MetroTex President Ashley Gentry tells Axios.

• But with ongoing inflation, the election year and the evolving home insurance landscape, the new rules add another layer of friction for the real estate industry, she says.
• The changes could weed out mediocre agents, shrinking a field that veterans say has gotten too big, Axios' Sami Sparber reports.

Meanwhile: Dallas-Fort Worth remains a tight market, though the housing inventory is increasing and median prices have dropped slightly since last year.

• There were around 29,000 active listings on July 1, with 8,434 sales reported that month. The median sales price was $403,000, down slightly from July 2023, per MetroTex.

The bottom line: "Consumers are still in the driver's seat with being able to negotiate appropriate terms that fit their needs, and that is not changing," Gentry says.