Market Insights

News and insights on the Residential Real Estate market, valuations and mergers & acquisitions

March 20, 2024

Well, well, well…just a little bit has happened in our industry this month.  We’ve talked about industry headwinds, and for many it now feels like the winds are howling something fierce.  If you heed the media noise, the NAR settlement has seemingly cast a pall over brokers.  In speaking with several of our friends and clients, however, they see this as opportunity.  From an M&A perspective, we fully expect significant consolidation in the years to come, and the great leaders will lean in with even more vigor to capture market share. 

From a valuation perspective the uncertainty with the more immediate-term court approval and practice changes, and longer-term potential effects on how brokerage revenues may be affected, values will likely suffer somewhat.  Deal terms will also continue to heavily favor purchasers for these reasons.  Purchasers will, however, still pay a premium if there are strong synergies.

I wouldn’t expect a ton of M&A activity in the second quarter given the state of flux we’re in, but I suspect in the second half of the year things could pick up.

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