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The REAL Trends Story
I
n the fall of 1979, Laurie MooreMoore was the head of marketing and relocation for Long and Foster. Steve Murray became executive vice president of InterCommunity Relocation (ICR), a broker-to-broker network of which Long and Foster was a key member. Over the next few years, Moore-Moore moved back to Texas and entered the luxury real estate brokerage business while Murray led ICR through a sale to Equitable Relocation and a move to Orlando, Florida. Throughout this time, both stayed in touch and discussed working together someday.
When Murray decided to leave his position as president of Equitable Realty Network in the fall of 1986, the talks took on more urgency. In the early days of 1987, they decided to publish the first purely trends newsletter in the residential brokerage business. Moore-Moore had an extensive marketing and advertising background, while Murray had knowledge of brokerage firms across the country. Both maintained their consulting practices while launching REAL Trends in May 1987. Moore-Moore is credited with creating the name and the logo. Murray built the first mailing list. Both wrote for REAL Trends, and MooreMoore was the editor of all publications.
REAL Trends launched its first CEO Group, the Vision Group, in 1987, which is now in its 30th year. Along the way, REAL Trends partners would launch and manage seven different CEO groups.
4
30TH Year REAL Trends
STEVE MURRAY
President & Founder
The first year was tough, as many beginnings of start-up firms are. About 200 brokers subscribed—well short of what Murray and Moore-Moore had budgeted. In 1988, REAL Trends launched the first rankings of brokerage firms with standards that had never been attempted. The first year only the top 25 were ranked. It is notable that today only seven of those firms remain with the same ownership and the same names. In 1992, REAL Trends launched the Gathering of Eagles and attracted 110 CEOs to Houston for the first meeting. During this time, the first employee, Cathy Crane, was hired to work with Moore-Moore in Dallas. REAL Trends also launched Who’s Who in Residential in 1993.
In 1993, Doniece Welch came aboard, joining the REAL Trends team in the Denver office. Until 1999, REAL Trends offices were run out of Moore-Moore and Murray’s homes. Neither space was ideal, but the company was still a start-up. Subscribers crossed the 1,500 mark in 1994 and continued to grow. The Gathering of Eagles crossed the 250 mark in 1994 as the conference traveled to the Ritz-Carlton in Amelia Island, The Grove Park Inn in Asheville, NC, and other high-quality locations.
In 1996, the REAL Trends Marketing and Tech conference was launched and attracted over 150 people to the first meeting in Chicago. The REAL Trends 500 was published the same year, as the numbers of large brokerage firms continued to climb. In 1999, REAL Trends moved into office space in Littleton, Colorado, as the company grew to four employees. As technology evolved, REAL Trends offered an online publication and added the REAL Trends Email Update report. Readership grew to over 12,000 leaders in the industry.
In 2002, Murray purchased Moore-Moore’s interest in REAL Trends and became the sole owner. At the same time, the REAL Trends Leadership Institute was launched, which was a small, tightly focused effort to train future leaders. In 2004, a new magazine, LORE—the Lives of Real Estate—was launched. Through 2008, it received over 13 national awards for its quality in design and editorial coverage. New special reports, the Brokerage Compensation Study and the Brokerage Performance Report were also launched. The Gathering of Eagles continued to grow, averaging over 300 CEOs per year. In 2008, REAL Trends began ranking agent and team performance, and by 2016
5
30TH Year REAL Trends
it had grown to recognize over 12,000 of the top performing agents and teams in the country.
While both Murray and Moore-Moore always had their individual consulting practices, it was after Murray became the sole owner of REAL Trends that REAL Trends Consulting was launched as its own entity. The consulting grew out of a need of readers and clients to not just hear about trends, but also develop strategies to deal with them.
Today, on the eve of our 30th anniversary, we have 18 full-time employees who publish four separate online publications, six annual special reports and facilitate seven separate leadership-brainstorming groups. Consulting has become over 65 percent of the revenues of the company. Every part of the business continues to grow. In consulting, the company has served over 2,600 different clients in valuations, merger and acquisitions, technology and digital marketing and strategic planning.
When Moore-Moore and Murray founded the company 30 years ago, the most important attribute was that REAL Trends would focus, not on being the largest or most widely read, but to always be “The Trusted Source.” Through the years, the new competitors, and the ups and downs of the housing market, this critical philosophy continues to be the most important attribute of the Company. REAL Trends—The Trusted Source.
YEARONE | 1987 EXISTING HOME SALES
3,526,000
NEW HOME SALES
671,000
After 5 years of talking about doing something together, Laurie and I formed our company and launched the first brokerage trends newsletter. We missed our first year estimate of subscribers by only about 80 percent. Some might say it was the fall stock market crash that caused that but
simply we were too ambitious. In brokerages, Keller Williams began franchising as did Prudential, one with great fanfare the other not so much. Merrill Lynch began its exit from the business. Around the world the first warning shots of conflict between the U.S. and Iraq are fired while Prozac is introduced.
Prozac released for use in U.S.
Biggest stock market crash in history hits U.S. 6
30TH Year REAL Trends
First skirmishes between Iraq and U.S. as Iraq missiles hit U.S. warship U.S. reacts by destroying two Iraqi oil platforms
Industry • REAL Trends is founded May 1, 1987 • Amerinet formed first new brokerage network in 20 years • Keller Williams founded • Assist2 Sell founded • Prudential enters franchising business in residential brokerage • Merrill Lynch Realty spun off to publicly held Fine Homes International • AL Williams enters the brokerage market • Equitable relocation sold to Travelers unit • The Vision Group (large brokerage CEO group) is founded
Margaret Thatcher elected to historic third term
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30TH Year REAL Trends
YEARTWO | 1988 EXISTING HOME SALES
3,600,000
NEW HOME SALES
676,000
REAL Trends launched the ranking of brokerage firms leading to the REAL Trends 500. A large Savings and Loan acquired Edina Realty, continuing the wave of banks in real estate. Television home shows launch. George H. W. Bush is elected president. A Pan Am flight is blown out of the sky over Scotland (later determined to be by Libyan terrorists.) Ted Turner acquired the film library of MGM studios and launched new movie cable system, Turner Network Television (TNT), beginning the march towards 500+ channels.
Terrorist bomb brings down Pan Am jet
Turner buys MGM library, launches TNT network
8
30TH Year REAL Trends
George H.W. Bush Elected U.S. President
Industry • Referral fee programs and rebates become a large industry issue • RE/MAX becomes the largest franchiser in Canada • Leading commercial brokerage firms forms new network—The Commercial Network • REAL Trends issues first rankings of brokerage firms • TV homes shows enter the market • Edina Realty acquired by Metropolitan Financial among a wave of brokerage firms acquired by savings and loans • Large brokerage offices with more than 100 agents became more common • The Vision Group CEO group is founded
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30TH Year REAL Trends
YEARTHREE | 1989 EXISTING HOME SALES
3,300,000
NEW HOME SALES
650,000
Sears begins its slow exit from brokerage, signaling what is to come. Prudential acquires Merrill Lynch’s real estate and relocation management business and becomes gigantic. The Resolution Trust Company (RTC) is formed to help financial institutions get rid of bad assets.
Berlin Wall falls
10
30TH Year REAL Trends
The Berlin Wall comes down and the world exults. The United States invades Panama to depose Noriega, and one of the worst earthquakes in years hits San Francisco.
Exxon Valdez spills 10.8 million gallons of oil into Gulf of Alaska
National Geographic
Industry • Chandler Barton succeeds Joe Hanuaer as chairman of Coldwell Banker • Sears sells Coldwell Banker Commercial brokerage • REAL Trends issues rankings of top 50 brokerage firms— only independent firms allowed • Travelers acquires Amerinet • Financial services firm acquires Gallery of Homes nation’s oldest residential franchise • Prudential acquires Fine Homes International ending Merrill Lynch entry into residential real estate • Resolution Trust Corp formed to manage sale of failed savings and loans—over 300 failed institutions with over $465 billion in assets • First FSBO national firm launched
United States invades Panama DoD Photo PH1 Elliot
San Francisco earthquake measures 7.1 on the Richter Scale. Over 100,000 buildings destroyed and 64 are killed 11 30TH Year REAL Trends AP
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30TH Year REAL Trends
WHAT IS YOUR BROKERAGE FIRM WORTH? What’s your brokerage firm worth? How can you make it more valuable? If these thoughts have ever crossed your mind, contact REAL Trends today to find out about our valuation services! There are a myriad of reasons why real estate brokerages and teams need valuations, such as for mergers and acquisitions, the sale of partial shareholder interest, insurance, gifting and transferring of shares, legal or partnership issues, business planning and more. Regardless of the reason, REAL Trends has been The Trusted Source in providing valuation services to the residential real estate industry for 30 years. During this time, we’ve performed in excess of 2,500 valuations for firms of all sizes, across the United States and Canada. Each assignment starts with a free initial confidential consultation to determine your needs and each valuation comes with: • A three-year financial analysis. • A benchmark report. • A full narrative report that describes our findings. • Up to four hours of consulting time. • Peace of mind!
Our promise to you is that you will understand how value is created, which will help you make better decisions on how to run your business. Our highly sought after Benchmark Report provides invaluable insight into how your company compares to peers operating in your region. How does your company dollar measure up? Is your return on revenue and gross margin up to par? How are you managing your operating expenses? How are your offices and sales associates performing relative to your peers? Find out these benchmarking answers and more as part of your valuation!
For more information, please call Scott Wright or Steve Murray at 303-741-1000 or email Scott at swright@realtrends.com
303.741.1000 | swright@realtrends.com | realtrends.com 7501 Village Square Drive Ste 200 Castle Rock, CO 80108
YEARFOUR | 1990 EXISTING HOME SALES
3,200,000
NEW HOME SALES
534,000
The biggest story of the year is the dissolution of the Soviet Union. Iraq then invades Kuwait. Mankind moves forward with the launch of the Hubble Telescope. CENTURY 21 hits nearly 11 percent market share of U.S. market. Both Prudential and Coldwell Banker begin selling company-owned brokerages. Long and Foster begins to offer its own 100 percent plan, signaling new commission plan competition.
USSR is dissolved
Iraq invades Kuwait
Hubble Telescope is launched
Industry • Travelers Relocation put up for sale • WHY USA offers $990 listing fee on MLS • REAL Trends rankings now cover top 100 firms in market • CENTURY 21 tops all franchisers with 10.9 percent of the nation’s market • Coldwell Banker begins selling off several company-owned offices to become franchises • Prudential begins selling off company-owned brokerages acquired with Merrill Lynch deal • Long and Foster begins offering 100 percent commission plan • Coldwell Banker franchise in Colorado tries employee-only agents • Great Western S & L closes its 1,500-agent brokerage firm formerly Walker and Lee
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30TH Year REAL Trends
YEARFIVE | 1991 EXISTING HOME SALES
3,100,000
NEW HOME SALES
509,000
With housing in a recession and foreclosures swamping some markets, residential brokerage swoons. The big news is overseas where U.S.-led coalition defeats Iraqi forces to liberate Kuwait. After the most contentious hearings
Clarence Thomas confirmed to Supreme Court after contentious hearings
16
30TH Year REAL Trends
ever, Clarence Thomas is confirmed to the Supreme Court.
Gopher, the first user-friendly internet interface, is introduced at University of Minnesota
Industry • Coldwell Banker acquires Schlott Realtors—once No. 2 in the country among independents • Realty World franchise sold to Canadian investment firm • REAL Trends releases broker rankings, now the top 200. Included franchised firms for the first time • Brokers buy back the Genesis network
Coalition forces defeat Iraqi forces, liberating Kuwait
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30TH Year REAL Trends
YEARSIX | 1992 EXISTING HOME SALES
3,400,000
NEW HOME SALES
610,000
Bill Clinton is elected President. The North American Free Trade Act is passed and the United States, and Russian Presidents declare formally that the Cold War is over.
services. REAL Trends launched the Gathering of Eagles, the first conference to invite all brands and models to be together in one place. Sears says enough to residential brokerage.
A Federal Court forced the MLS to open to non-RealtorsÂŽ while RESPA opened the door to cross selling of housing-related financial
Russian president and U.S. president proclaim formal end to cold war
Bill Clinton elected U.S. President
18
30TH Year REAL Trends
Industry • 11th Circuit Court forces Realtor-owned MLSs to allow non-Realtors to join. • Gathering of Eagles launches in the summer of 1992 • Prudential enters Canadian market with franchising • Sears announces its intent to sell Coldwell Banker • RESPA regulations clear the way for cross-selling mortgages and title insurance • Trendsetters CEO Group—composed of medium- to large-sized independent brokerage firm—is formed
Police officers acquitted in Rodney King incident
19
30TH Year REAL Trends
YEARSEVEN | 1993 EXISTING HOME SALES
3,700,000
NEW HOME SALES
666,000
The European Union is created. Israel and the Palestinians announce a new treaty. Arrests are made in the first bombing of the World Trade Towers in New York City, signaling that U.S. buildings are targets. PRC and Tribune announce joint venture as real estate information companies and
media firms begin to pick sides. The National Association of Realtors® CEO Bill Chee says that “lions are coming over the hill” in a moment remembered nostalgically. The first wave of new, privately-owned MLSs is launched in Connecticut. And in a surprise move, Coldwell Banker is sold to a private equity firm and the senior management.
Israel and Palestinian accord reached
Arrests made in bombing of NYC World Trade Towers
20
30TH Year REAL Trends
Industry • Masterminds CEO group forms MasterTrust International • PRC and Chicago Tribune form joint venture • NAR’s Chee announces “lions coming over the hill” • CENTURY 21 enters into agreement to provide real estate services to AFL/CIO • Weichert acquires Shannon and Luchs • Edina spins off from Metropolitan, becomes publicly held entity • Private, not-for-profit MLS formed by brokers in Connecticut • John L. Scott begins to franchise • Coldwell Banker sold to Fremont Group and senior managers • NAR announces launch of Board of Choice, opening up Realtor associations to competition • Dallas MLS grants public access to MLS • Regional MLS in Central Florida formed • Long and Foster/Norwest Mortgage form joint venture
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30TH Year REAL Trends
YEAREIGHT | 1994 EXISTING HOME SALES
3,800,000
NEW HOME SALES
670,000
What a year—in South Africa, the first ever interracial elections are held with Nelson Mandela winning the presidency. The Irish Republican Army enters into a cease fire with the British government, ending decades old guerrilla war. O.J. Simpson is arrested for the murder of his wife after a chilling car pursuit. The first tech firm, INPHO, offers automated house valuation services. First Satellite TV network for real estate firms is also launched. A Realtor-owned MLS is sold to a group of brokerage firms in Buffalo, New York.
South Africa holds first interracial elections, Mandela elected president
Satellite TV network launches
O.J. Simpson arrested in death of his wife
Industry • Franchise networks achieve new market penetration levels at 24 percent of firms and 42 percent of sales agents • HUD enforces Fair Housing Language Standards on MLS • INPHO offers consumers access to sold home information in eight states • Buffalo MLS sold to brokerage group, leading to a wave of MLS reorganizations • Satellite TV network launches • NAR appoints first CEO of Realtor Information Network (RIN)
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30TH Year REAL Trends
YEARNINE | 1995 EXISTING HOME SALES
3,800,000
NEW HOME SALES
667,000
The Rock and Roll Museum is opened in Cleveland, Ohio. Russian and U.S. astronauts meet up in space in a precursor to the International Space Station. The United States extends $20 billion bail out to Mexico. HFS acquires CENTURY 21 and ERA—the first multi-brand franchiser in the residential
brokerage industry on a national scale. The Enterprise offers free listings on the internet, and NAR launches campaign to stop banks from entering brokerage. Meanwhile, four large newspaper organizations acquire largest MLS system supplier
Car bomb kills hundreds in Oklahoma City
Rock and Roll Museum opens in Cleveland 24
30TH Year REAL Trends
Industry • Advanced Publications, Tribune, Cox Newspapers and Knight Ridder form News Holding Corp. and acquire industry’s largest MLS systems company, PRC • Windermere becomes among the first of the large brokerage firms to market listings on the internet • Five MLSs and 11 Boards of Realtors® in the Philadelphia area merge to create one regional MLS • NAR launches campaign to stop banks from entering into real estate brokerage • Christie’s auction house acquires Great Estates publication and enters real estate field • HFS acquires CENTURY 21 • HFS acquires ERA • Edina becomes private company again after First Bank System sale • Milwaukee-based Enterprise Network offers free listings on the internet
Russians and Americans hook up at space station
25
30TH Year REAL Trends
YEARTEN | 1996 EXISTING HOME SALES
4,200,000
NEW HOME SALES
757,000
The Taliban seizes control of the capital of Afghanistan. Flight TWA 747 crashes off the coast of New York while Congress passes a major welfare reform bill. Bill Clinton is re-elected U.S. President. HFS continues its acquisition binge and buys Coldwell Banker. RELO rejects merger
747 crashes off the coast of New York
with Genesis Relocation, then merges with AllPoints. CENTURY 21 signs deal with AOL to launch national online listing marketplace. NAR throws in the towel on RIN, releases CEO and announces losses of over $16 million on the deal.
Industry • RealtyVision tests members-only approach to granting consumer access to listing information through mall and bank kiosks • CENTURY 21 teams with AOL to give consumers access to listing data and link their offices • Brokerage margins fall from an average of 12 percent of Gross Margin to less than 8 percent from 1988 to 1994 • Five large brokerage firms acquire Central New Jersey MLS • RELO rejects merger with Genesis Relocation • Prudential launches Value Range Marketing • AllPoints and RELO merge • HFS buys Coldwell Banker • NAR releases Ed Evans from RIN and announces financial loss exceeding $16 million. • NAR buys Real Estate Buyers Agent Council • National legislators announce plan to broaden capital gains tax exclusion for housing • Realty Alliance formed from merger of two CEO groups, the Masterminds and the Dozen • HFS begins buying brokerage firms through National Realty Trust (NRT) • RIN reinvented with help of venture capital firms and relaunches as RealSelect. Wolff becomes CEO. • Comptroller of Currency announces new regulations permitting banks into real estate brokerage • HFS announces it is buying PHH, the largest relocation management firm in world
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30TH Year REAL Trends
YEARELEVEN | 1997 EXISTING HOME SALES
4,400,000
NEW HOME SALES
804,000
The world’s first gene-engineered animal, a sheep named Dolly, is revealed. The movie Titanic becomes a worldwide sensation. After nearly 100 years of British rule, Hong Kong is returned to Chinese rule.
web. RE/MAX prevails in major litigation with CENTURY 21. HFS and CUC announce merger in a move that will come back to haunt the company. Fox Roach Realtors® is formed from merger of two dominant Philadelphia firms.
Realtor.com is launched, putting NAR in the fight for control over members’ listings on the
Hong Kong returns to Chinese rule The movie Titanic is released; becomes largest grossing movie in history
28
30TH Year REAL Trends
Industry • First double-brand broker in HFS system licenses from both Coldwell Banker and CENTURY 21 • Realtor.com launched for consumer access • Amerus now owns Iowa Realty, Carol Jones and Edina • Reliance Relocation formed, replacing Genesis • RE/MAX prevails in lawsuit with CENTURY 21 • Insignia acquires Realty One in Cleveland • HFS and CUC announce merger • NRT buys Cornish and Carey and Jon Douglas • Fox Roach formed from merger of Roach Brothers and Fox and Lazo • The Leadership Group, a brokerage CEO group for medium-sized independent
First gene-engineered animal, a sheep named Dolly, is announced.
29
30TH Year REAL Trends
YEARTWELVE | 1998 EXISTING HOME SALES
4,900,000
NEW HOME SALES
886,000
President Bill Clinton is impeached by the U.S. House of Representatives. Europe announces a common currency, the Euro. Two U.S. embassies in Africa are bombed. Frank Sinatra passes away at age 82. Microsoft launches HomeAdvisor to compete with Realtor.com in online listings space. Reliance (formerly Genesis) announces merger with RELO. GMAC Finance enters brokerage business with acquisition of Better Homes and Gardens network.
Europe agrees on common currency—the Euro
Frank Sinatra dies at age 82
U.S. Embassies in Kenya and Tanzania bombed
President Clinton is accused of scandal in White House and impeached by U.S. House of Representatives
Industry • Norwest launches affinity program financed by referral fees from brokerage firms. • NRT acquires Burnet Realty Group in Minneapolis and Chicago • Microsoft announces launch of HomeAdvisor • Reliance and RELO merge • GMAC enters real estate brokerage field with acquisition of Better Homes and Gardens franchise system • Cendant discovers financial irregularities with CUC deal
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30TH Year REAL Trends
YEARTHIRTEEN | 1999 EXISTING HOME SALES
5,200,000
NEW HOME SALES
880,000
The big news story is the potential for a massive worldwide Y2K computer glitch. John F. Kennedy Jr. and his wife Carolyn BessetteKennedy perish in a plane crash off the coast of New England. Meanwhile, the internet passes 150 million users, with most still in United States.
E-Realty firms launch into brokerage business for first time on many fronts. Supra launches mobile access through a deal with Palm Pilot. HomeServices becomes a publicly held company. Home-Link, a brokerage platform for homeowner services, launches.
John F. Kennedy Jr., his wife and sisterin-law killed in plane crash
World awaits outcome of potential Y2K software glitch
32
30TH Year REAL Trends
Industry • RE/MAX prevails in an anti-trust suit in Cleveland against two large brokerage firms. • E-Realty firms HomeSpace, E-Realty, HomeBid and ZipRealty, move into the brokerage space • Supra launches Palm for searching for listings • Berkshire Hathaway signs deal to acquire Mid-American Energy Holdings. HomeServices, a subsidiary of MidAmerican, is part of the deal. • HomeServices goes public • Home-Link concierge service launched
33
Two students kill 12 students and a teacher at Columbine High School in Colorado
30TH Year REAL Trends
YEARFOURTEEN | 2000 EXISTING HOME SALES
5,200,000
NEW HOME SALES
886,000
Supersonic jet Concorde crashes in Paris, beginning the end of supersonic jet travel. U.S. equity market begins plunge that will shave over 50 percent from values at start of 2000. U.S. Supreme Court rulings finally bring end to closest presidential election in U.S. history, electing George W. Bush as President. NAR approves reciprocity in listing sharing online. Austin RealtorsÂŽ sue E-Realty over use of Virtual Office Web Site (VOW). Homestore acquires Top Producer. Coldwell Banker announces test of discount brokerage Blue Edge. Lending Tree acquires HomeSpace and enters brokerage market.
U.S. stock market plunges
Concorde jet crash in Paris ends era of supersonic consumer flights
Closest election in history brings President George W. Bush into office
Industry • Pru California, HomeBid and Yahoo Real Estate team up • GMAC acquires Pacific Union in San Francisco • Austin Realtors sue E-Realty over VOW portal • NAR continues fight against banks in real estate after passage of Gramm Leach Bliley act • NAR approves listing reciprocity • HomeStore acquires Top Producer • Dr. Phil Evans, author of “Blown to Bits,” outlines future impact of web at REAL Trends Gathering of Eagles • SOMA Living Centers receive $20 million cash infusion from GMAC • Coldwell Banker announces test of discount brokerage model • RE/MAX acquires Equity Group in Portland, Oregon—first entry into ownership of brokerage firms • Lending Tree acquires HomeSpace • The Brokerage Council, CEO group of medium- to large-sized brokerage firms with mixed business models, is founded
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30TH Year REAL Trends
YEARFIFTEEN | 2001 EXISTING HOME SALES
5,300,000
NEW HOME SALES
908,000
Terrorists crash planes into World Trade Towers, the Pentagon and a field in Pennsylvania, killing over 3,200 Americans and others. American forces defeat Taliban in under 90 days, freeing Afghanistan from Taliban control. Artificial heart transplanted into human for the first time in Louisville, Kentucky.
Terrorist strikes kill over 3,200 Americans on September 11
36
30TH Year REAL Trends
NRT acquires Corcoran and notably leaves it under its own brand name. Weichert begins franchising in United States. Homestore acquires Cendant’s (successor to HFS) Move.com website business for $761 million in shares. REAL Trends issues first national Brokerage Compensation Study.
Industry • NRT acquires Corcoran in New York City and Gundaker in St. Louis • Your Home Direct operates in New York metro area • HomeStore acquires Cendant’s Move.com for $761 million in shares • REAL Trends issues first Brokerage Compensation Study • HUD begins to challenge brokerage transaction fees • Weichert begins franchise operations • NRT acquires three largest firms in Salt Lake City • Home sales decline sharply in fourth quarter after 9/11
Taliban regime collapses under weight of American-supported tribes
Artificial heart implanted in man in Louisville, Kentucky. It’s the first of its kind.
YEARSIXTEEN | 2002 EXISTING HOME SALES
5,600,000
NEW HOME SALES
976,000
It is a fateful year as the United Nations tells Iraq to disarm or suffer severe consequences. U.S. and Russian arms control experts reach historic treaty to reduce nuclear warheads. The Department of Homeland Security is formed under the Patriot Act. Cendant acquires control of NRT from Apollo, acquires DeWolfe, Northside Realty and Arvida—each ranked in the top 20 of the country. Murray acquires Moore-Moore’s interest in REAL Trends.
Department of Homeland Security created
United States and Russia reach historic arms control treaty reducing nuclear weapons
Sierra Leone Civil War finally declared over.
Industry • Cendant acquires NRT from joint venture from Apollo • NRT acquires Arvida Realty Sales and The DeWolfe Companies • NRT acquires Atlanta giant Northside Realty • HomeServices acquires Realty South • Murray acquires Moore-Moore’s ownership in REAL Trends
39
30TH Year REAL Trends
YEARSEVENTEEN | 2003 EXISTING HOME SALES
6,200,000
NEW HOME SALES
1,100,000
The top story of the year is the invasion of Iraq by the United States and coalition forces, which results in the ousting of Saddam Hussein. The space shuttle Columbia explodes during reentry, with all lives lost. The Hubble telescope discovers oldest known planet.
HomeStore entered into an agreement with AOL to expand its reach online. National Do-Not-Call regulations hit real estate. HomeServices acquires Miami-based EslingerWooten-Maxwell (ESM). Help-U-Sell and Assist2Sell announce record-setting franchise expansion.
U.S. Supreme Court upholds affirmative action in education
United States invades Iraq and, within days, takes control of country 40
30TH Year REAL Trends
Industry • Realty Alliance opens membership to non-independent brokerage firms • HomeStore enters into agreement with AOL • First American consolidates real estate technology arena and announces Steve Roney to head up effort • REAL Trends announces Leadership Institute • VOW/IDX policy issues create battle between incumbents and new eRealty firms • Assist2Sell and HelpUSell announce record growth of franchising • National Do-Not-Call regulations hit residential brokerage industry • HomeServices acquires Miami-based Eslinger-Wooten-Maxwell • Relocation industry hit with wave of declining volumes and discounted service charges
Space shuttle Columbia explodes during re-entry of atmosphere 41
30TH Year REAL Trends
YEAREIGHTEEN | 2004 EXISTING HOME SALES
6,800,000
NEW HOME SALES
1,200,000
George W. Bush is re-elected as U.S. President. Two hurricanes hit Florida in a short period of time. Gay marriage is approved in Massachusetts. Israel announces plan to depart the Gaza. Cendant acquires right to franchise the name Sotheby’s. Homes.com acquired by Traders Publishing. HomeServices acquires Prudential California Realty. Pru inks deal to market homes through Yahoo while Homestore does same with MSN.
George W. Bush re-elected U.S. President
Two hurricanes hit Florida
Industry • Larry Flick and other partners acquire the interests of the Fox and Roach families in Prudential Fox Roach Realtors® and The Trident Group • Prudential acquires E-Realty • HomeStore announces exclusive deal with MSN network • Cendant acquires rights to franchise Sotheby’s name • Signs of housing market froth abundant in first quarter • HomeServices acquires Prudential Carolina • ENeighborhoods and Prudential ink exclusive deal • Corcoran/NRT acquires CitiHabitats • Prudential inks deal to market homes through Yahoo • Interactive Corp. purchases ServiceMagic • Homes.com acquired by Trader publishing • REAL Trends launches LORE Magazine • Gary Keller releases Millionaire Real Estate Agent
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30TH Year REAL Trends
YEARNINETEEN | 2005 EXISTING HOME SALES
7,000,000
NEW HOME SALES
1,300,000
A massive tsunami strikes Asia, killing as many as 250,000. Hurricane Katrina strikes New Orleans and gulf coast, causing widespread destruction. Central American Free Trade Pact signed, mirroring NAFTA. The U.S. Department of Justice launch investigation into web policies by RealtorÂŽ
organization. NRT acquires two of its largest affiliates, CB Success and CB Pacific Partners. Two industry giants, Weston Edwards and Charles McKee, pass away. Edwards was founder of Merrill Lynch Realty and McKee was first CEO of Realty Alliance. Classified Ventures acquires HomeGain.
Asian countries devastated by tsunami U.S. Supreme Court upholds affirmative action in education
Chief Justice William Rehnquist dies after serving on Supreme Court for 33 years
Industry • eBay acquires Rent.com • Bob Becker steps down from NRT. Bruce Zipf assumes CEO role. • Harmon Homes division of Traders to publish electronic versions of home books • DOJ and Government Accounting Office investigating industry practices concerning rebates and referral fees • NRT acquires Coldwell Banker Associates in San Diego • Congress and NAR spar over allowing banks into brokerage • Classified Ventures acquires HomeGain • REMAX.com launches national IDX site • NAR and DOJ spar on the implications of the new NAR IDX/VOW policies. DOJ files lawsuit. • NRT acquires Coldwell Banker Pacific Properties in Hawaii and Coldwell Banker Success in Arizona • Two of industry’s giants, Weston Edwards and Charles McKee, pass away • REAL Trends publishes statistics that sales are falling for first time since 2001
Hurricane Katrina devastates New Orleans and the gulf coast of United States
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30TH Year REAL Trends
YEARTWENTY | 2006 EXISTING HOME SALES
6,500,000
NEW HOME SALES
1,000,000
Federal study says that having a low-fat diet has no impact on strokes and heart attacks in humans, overturning decades of thinking otherwise. President Bush bans use of embryonic stem cells in research. Iran announces that it has enriched uranium. Democrats take control of both houses of Congress. Zillow launches into residential real estate market. New owners led by Dan Duffy take control of United Country Real Estate, country’s oldest real estate franchisor. HomeServices acquires Harry Norman in Atlanta. Signs of deepening housing downturn and rise in delinquencies showing up in Sunbelt states. Cendant spins off Realogy through IPO.
President Bush veteos bill allowing embryonic stem cells from further research use
Federal study concludes that low-fat diets do not prevent stroke and heart attacks
Industry • Zillow enters market • Sotheby’s/NRT acquires Julia B. Fee in New York and Pitts and Bachman in Santa Barbara • Traders publishing acquires Katabat • Dan Duffy and investors take control of United Country Real Estate • HomeServices acquires Huff Realty in the Cincinnati area • HomeServices acquires Harry Norman of Atlanta, Georgia • Realestate.com broker network expands rapidly • Signs of more severe downturn showing up in California, Arizona, the midAtlantic and other areas. • REAL Trends begins to rank top agents in partnership with The Wall Street Journal
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30TH Year REAL Trends
YEARTWENTYONE | 2007 EXISTING HOME SALES
5,030,000
NEW HOME SALES
776,000
The seriousness of problems in mortgage markets was brought home with the collapse of Bear Stearns. President Bush signs bill moving auto miles per gallon (MPG) to 35 by 2020. United States and India reach accord on development of India’s nuclear power program. Russia renounces Conventional Arms Treaty.
Realogy to be acquired by affiliate of Apollo. RE/MAX of California acquired by RE/MAX International. Realtors® Property Resource (RPR) is conceived. Windermere announces marketing partnership with Google. Trulia signs deal with Keller Williams and RE/MAX.
Volume 4 Issue 5 LORE 2007
Industry • Realogy to be acquired by an affiliate of Apollo Management • Windermere announces marketing partnership with Google • First American acquires Lucero • Data security becomes a big industry issue • Long and Foster acquires W. C. and A. N. Miller • Trulia becomes more potent player in online real estate and signs deals with Keller Williams and Realogy • RE/MAX International acquires California, Hawaii, Florida, North and South Carolina master franchises • First warnings about foreclosures in subprime market emerge • First foundations of Realtors® Property Resource appear from NAR PAG project • Housing market indicators show that market is falling rapidly • Realogy signs deal to franchise Better Homes and Gardens in residential real estate • Short sales and REO enter real estate vocabulary in force • REAL Trends releases book “People Still Matter.”
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30TH Year REAL Trends
Bear Stearns collapses beginning run on mortgage derivative markets
YEARTWENTYTWO | 2008 EXISTING HOME SALES
4,100,000
NEW HOME SALES
485,000
Barack Obama is elected U.S. President. Fidel Castro steps down after 49 years of rule in Cuba. California Supreme Court rules that gay couples have a right to marry. Equity markets begin sharp descent worldwide. United States takes over Fannie Mae and Freddie Mac signaling end of private ownership for the two firms. Housing markets spiral downward through the year, heading towards worst year for housing in 40 years. Gary Keller releases second book, “Shift.� Countrywide and Merrill Lynch are taken over by Bank of America. REAL Trends moves into new corporate headquarters in Castle Rock, Colorado.
California Supreme Court rules that gay couples have the right to marry
Castro steps down as head of Cuba after 49 years in charge
Barak Obama elected U.S. President
Industry • HGTV launches housing listing site • Fidelity launches Cyberhomes.com • Auction market heats up • Sales continue to sag across the country • Keller William’s Gary Keller releases second book called “Shift” • Federal government takes over failing Fannie and Freddie • Lehman Brothers goes bust over mortgage investments • GMAC sells its residential franchise and relocation business to Canadianbased Brookfield • Fidelity and Land America merge • Countrywide and Merrill taken over by Bank of America • Wachovia taken over by Wells Fargo • REAL Trends moves into new corporate headquarters • Better Homes and Gardens Real Estate relaunches, Sherry Chris named CEO
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30TH Year REAL Trends
YEARTWENTYTHREE | 2009 EXISTING HOME SALES
4,300,000
NEW HOME SALES
374,000
US Air flight lands in Hudson River—all passengers safe. Singer Michael Jackson passes away. Chrysler and GM file bankruptcy. Senator Ted Kennedy passes away after more than 40 years in the Senate.
Foreclosures rise by 81 percent in one year, according to RealtyTrac. RPR is launched. Brokers begin to offer job-loss protection on home purchases. MLS data sharing agreements become common in the industry.
Senator Ted Kennedy of Massachusetts dies
Singer Michael Jackson dies
Industry • Foreclosures increased 81 percent in 2008, according to RealtyTrac • CE Shop announces that it offers online CE credits in 38 states • Brokers offer job-loss protection on home purchases • MLS data sharing agreements sweep the country • Housing sales start to stabilize • RPR launches • Need for social media policies newest wave in real estate marketing • Paul Knapp, founder of Iowa Realty, the Des Moines-based giant, passes away. Created first large brokerage to pass 60 percent market share.
Chrysler files for bankruptcy; United States bails out General Motors and Chrysler later in year
US Air Flight lands in Hudson River in New York—all passengers are safe
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30TH Year REAL Trends
YEARTWENTYFOUR | 2010 EXISTING HOME SALES
4,200,000
NEW HOME SALES
322,000
The United States, Russia and China agree to sanctions against Iran banning the nuclear weapons research. U.S. Supreme Court rules that corporations are like people for the purposes of free speech (Citizens United). Greece debt crisis explodes inside European Common market. Quicken Loans expands its offerings to include referrals to real estate agents from loan application process. USAA Real Estate launches a new service for its nearly 12 million members. There is a new trend of homeowners strategically defaulting on their existing homes so that they may purchase new, lower-priced homes. Market downturn hits all brokerage firms hard.
Republican Scott Brown surprises with win of Kennedy’s seat
U.S. Supreme Court rules that corporations are allowed to expend monies for political purposes
Industry • Housing subsidies distort market • Strategic defaults become major part of some markets • REAL Trends 500 data shows pain of downturn on largest brokerage firms • USAA announces national real estate search service • Virtual brokerage firms start to gain traction • Brokerage websites losing ground to national portals • Quicken Loans expands In-House Realty to match buyers with agents
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30TH Year REAL Trends
YEARTWENTYFIVE | 2011 EXISTING HOME SALES
4,300,000
NEW HOME SALES
305,000
Osama bin Laden is killed by special forces in Pakistan. Obama says Defense of Marriage Act not defensible. Japan hit by enormous earthquake which destroys several nuclear power plants. Arab Spring, which starts in Tunisia, spreads to several other Arab nations, including Egypt and Syria.
Brookfield acquires Prudential Real Estate and Relocation. Keller Williams and Market Leader launch first end-to-end technology solution for agents. Historic independent firm Latter and Blum affiliates with ERA. REAL Trends publishes book “Game Plan,� about future of industry.
Arab Spring arises with numerous overthrows of leaders throughout Arab countries, including Egypt, Libya and Tunisia
Japan hit by enormous earthquake triggering severe damage to nuclear reactors
Industry • Website analytics take on significant new role in measuring effectiveness of online marketing • Brookfield acquires Prudential Real Estate and Relocation • Keller Williams and Market Leader establish national technology platform • REAL Trends publishes new book called “Game Plan” • Data shows that agent losses concentrated in younger agents • Latter and Blum, major independent, affiliates with ERA • United Country launches urban brand • Real Estate Digital formed
Osama Bin Laden is killed in Pakistan
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30TH Year REAL Trends
YEARTWENTYSIX | 2012 EXISTING HOME SALES
4,600,000
NEW HOME SALES
390,000
President Obama is re-elected. Hurricane Sandy strikes New York metro area causing widespread damage. European Union imposes oil embargo on Iran. Mars rover Curiosity lands on Mars and confirms possibility of life on planet. Berkshire Hathaway acquires controlling interest in Prudential Real Estate. Realogy announces plan for new IPO. Sales to international buyers and investors hit all-time high of 9 percent of all U.S. purchases.
President Obama is re-elected
Rover Curiosity lands on Mars and sends troves of data about potential life on the planet
Hurricane Sandy strikes New York City and Jersey Shore
Industry • Berkshire Hathaway purchases Prudential Real Estate and Relocation • Supreme Court rules against HUD in Quicken Loans case • REAL Trends study shows website traffic predicts home sales levels • Realogy announces filing for IPO • Sales to international buyers and investors hit 9 percent of U.S. housing sales—record levels • REAL Trends releases Against all Odds whitepaper • REAL Trends hosts European conference in Lisbon, Portugal
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30TH Year REAL Trends
YEARTWENTYSEVEN | 2013 EXISTING HOME SALES
5,100,000
NEW HOME SALES
429,000
Egyptian military takes over government. Former NSA analyst Snowden exposes top secret files. Meteor hits Siberia killing thousands and flattening land. Boston Marathon hit by terrorist attack.
experience and recovery. Off-market listings and private-agent networks rise in a time of tight inventory. REAL Trends launches America’s Best Real Estate Agents, verified findings of agent and team rankings.
RE/MAX Chairman Liniger releases book, “My Next Step,” recounting harrowing health
Boston Marathon hit by terrorist with bombs
Industry • Dave Liniger releases new book, “My Next Step,” recounting his brush with significant health challenges and recovery • Disparate impact issues begin to impact residential lending • REAL Trends launches America’s Best Real Estate Agents rankings of top agents and teams • Off-market listings become new trend in brokerage sales • Richard Elsea, chairman and founder of Real Estate One in Michigan, passes away. He was the creator of the first U.S. residential franchise and a partner in one of first computerized MLSs in the country
Snowden admits he is source of leaks from NSA files
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30TH Year REAL Trends
YEARTWENTYEIGHT | 2014 EXISTING HOME SALES
4,900,000
NEW HOME SALES
437,000
For the first time, a spacecraft lands on a comet. ISIS takes over key cities and territories in Iraq and Syria. Scottish citizens elect to stay as a part of Great Britain. U.S. Supreme Court finds for Hobby Lobby in Affordable Care Act case. Gino Blefari assumes leadership role at HS Franchise, also known as Berkshire Hathaway HomeServices. Chris Heller and John Davis assume the CEO and President’s roles respectively at Keller Williams Realty International, and Dave Liniger steps back in as CEO of RE/ MAX International. Samuelson and Beardsley depart Move, sparking litigation with Zillow. Former President George W. Bush highlights REAL Trends Gathering of Eagles conference and company releases new book, called “Game Changers.”
ISIS takes over key cities and areas of Syria and Iraq
One World Trade Center opens. It replaced the Twin Towers that were destroyed on 9/11
Industry • REAL Trends publishes book, “Game Changers.” • President George W. Bush keynotes REAL Trends Gathering of Eagles • Federal court rejects disparate impact regulations • Blefari in as new CEO at Berkshire Hathaway HomeServices franchise. • Heller and Davis in as CEO and President of Keller Williams International • Liniger re-assumes CEO role of RE/MAX International • Samuelson and Beardsley depart Move, sparking litigation • Keller Williams passes 100,000 agents
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30TH Year REAL Trends
YEARTWENTYNINE | 2015 EXISTING HOME SALES
5,300,000
NEW HOME SALES
501,000
Terrorism continues to spread outside of the Middle East as western powers seek to contain ISIS. Paris and Brussels are hit hard with terrorist attacks. U.S. Supreme Court ratifies gay marriage. Presidential elections in United States start early and contested in both parties.
Zillow and Move fail to agree on extension of ListHub feed, Zillow begins establishing its own direct MLS and broker feeds. Upstream is launched in partnership with NAR. Zillow buys Trulia, and News Corp. buys Move.
Marijuana now legal in four states, others moving in that direction
Terrorist attacks hit Paris and Brussels as ISIS spreads to other points of the globe
Industry • Realtor.com’s Listub and Zillow discontinue syndication feed • Zillow announces acquisition of Trulia • News Corp. announces acquisition of Realtor.com • Upstream project announced • Zillow announces acquisition of dotloop • Liniger replaces Kelly as CEO of RE/MAX • Heller replace Willis as CEO of Keller Williams • HomeServices acquires First Weber in Wisconsin • NAR announces deal with ZipLogics to provide free forms and transaction management • Consumer Financial Protection Bureau (CFPB) issues alert on mortgage marketing service agreements (MSAs.) • Private equity house buys interest in Lone Wolf Real Estate Technologies • Xome launches end-to-end real estate service
Satellite does first pass by Pluto
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30TH Year REAL Trends
YEARTHIRTY | 2016 EXISTING HOME SALES
5,500,000
NEW HOME SALES
550,000
CFPB launches investigations into brokerage industry marketing service agreements (MSA) chasing hundreds of brokers out of mortgage business Compass raises additional $75 million in capital, raising war chest to continue its pursuit of the acquisition of top producing agents and teams REAL Trends 500 takes market share from the industry, first recorded time in past 25 years when the largest firms gained share in an “up� market year
United Kingdom votes to leave European Union in what is dubbed Brexit. Markets shudder momentarily.
Industry • Merger and acquisition activity hits new high • REAL Trends 500 increase share—fastest in past 20 years • NRT acquires Hammond Real Estate • HomeServices acquires Berkshire Hathaway HomeServices Florida Network Realty
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30TH Year REAL Trends
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COMING SUMMER OF 2017
REAL Trends Family Photo Album We believe that relationships are the most important part of our 30 years. To show our thanks we have collected more than 400 photos of the women and men who have enriched our lives and careers. This summer we will share these photos and others yet to come through Realtrends.com.
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30TH Year REAL Trends