About the talk
00:40 The virtual transaction of the future is now
22:50 Leading in chaos
32:05 The hardest times
40:01 Discrimination issues
46:33 High-touch service in a low-touch world
1:06:53 What the world needs
1:10:03 The evolving ecosystem of real estate
1:21:00 National Association of Realtors
1:27:07 David Doctorow on the new partnership
1:29:20 The 30-, 60-, and 90-day housing outlook
1:32:57 The government support
1:34:56 Sellers and property managers making it work
1:35:46 Existing home sales pick back up in 2021
1:39:05 Mortgage rates remain historically low through 2021
1:40:40 No panic!
18 years experience in real estate entrepreneur coaching, management, sales, marketing and recruiting. Helping Realtors with their vision, strategy and plan of action. Professional speaker, motivator and firm believer that when there's a will there's most certainly a way.View the profile
Pete Flint is a Managing Partner of NFX, an early stage Bay Area based Venture Capital fund, focused on Network Effects. Prior to NFX, Pete founded Trulia, a leading online real estate company. He was its CEO and Chairman from inception to acquisition by Zillow for $3.5B. Prior to Trulia, Pete was part of the founding team at lastminute.com, a leading European online travel company that was acquired for over $1Bn. He is a founding Board member of New Story Charity, a technology platform focused on building sustainable communities globally, and also a founding board member of GBx, the leading British technology community in Silicon Valley. He received a Master's and First Class Degree from the University of Oxford, and MBA from Stanford GSB.View the profile
Owned by Brad Inman, “Inman” is a digital media company that reports on the real estate industry. Founded in 1996, Inman has grown to become the largest real estate news company. The firm publishes more than 3000 stories a year and produces widely popular events where the industry learns about the latest market trends, new technology and business models. On the Inman stage, Brad Inman has interviewed many technology and media personalities including Rupert Murdoch, Arianna Huffington, Craig Newmark, Barry Diller, Kara Swisher and Barbara Corcoran. In 1999, Brad Inman founded online real estate firm, HomeGain, which was acquired by media company Classified Ventures in 2005. Among other innovations, Homegain was the first company to offer consumers an instant online home valuation tool. Brad Inman was one of the first investors and served as chairman of blogging platform Curbed before it was sold to Vox media.View the profile
Robert Reffkin is the Founder & CEO of Compass, a technology-driven real estate platform. Prior to Compass, Robert worked at Goldman Sachs as Chief of Staff to the President & COO following five years working in the firm's private equity arm. Prior to Goldman Sachs, he worked at Lazard and McKinsey & Company. In 2005, he was appointed as a White House Fellow to serve as special assistant to the Secretary of the Treasury. He was appointed by Mayor Bloomberg to serve on the NYC Workforce Investment Board and the NYC Board of Education, known as the Panel for Educational Policy. He also founded New York Needs You (the most time intensive career mentoring program in NYC) and founded Bronx Success Academy 1 elementary school. He received a B.A. and M.B.A. from Columbia University. He recently completed 50 marathons, one in each U.S. state, to raise $1 million for youth education and enrichment programs.View the profile
I am an innovator and investor working in the real estate industry. I am passionate about doing things better, exploring new ideas, and doing business in a way that is both effective and humane. I believe strongly in the power of women to shift paradigms of leadership and success in the 21st century.View the profile
Senior leader with deep marketing, strategy, and business development expertise along with a proven track record of strong general management experience in driving results and building teams. Significant turnaround experience. Forbes Top 50 Most Influential CMO (#37) in 2015View the profile
As Chief Economist for Windermere Real Estate, Matthew Gardner is responsible for analyzing and interpreting economic data and its impact on the real estate market on both a local and national level. Matthew has over 28 years of professional experience both in the U.S. and U.K. In addition to his day-to-day responsibilities, Matthew also sits on the Washington State Governors Council of Economic Advisors; chairs the Board of Trustees at the Washington Center for Real Estate Research at the University of Washington; and is an Advisory Board Member at the Runstad Center for Real Estate Studies at the University of Washington where he also lectures in real estate economics. Matthew is also one of a select number of economists who provide their housing market forecasts to Reuters for their Home Price Forecast Survey and also participates in Zillow’s Home Price Expectation Survey.View the profile
Rest assured we are working very hard to make sure today goes on-off without any issues whatsoever. We're going to have a great time. Also, keep in mind. Everything is on-demand. So, the child is hungry. Do you need to walk the dog? Remember yesterday today and tomorrow we'll all be on-demand on inman.com. So, rest assured you won't miss anything. I won't chat too much longer will get right into it will be back right after this with Pete Flint See I told you that would be fast and welcome Pete. Welcome to the virtual stage. Hi Casey, great to be here. I've been going to Inman since
2004 and this is definitely the most difference Inman event. It's a shame not to get one together. But anyway, nice very nice to meet you. I know it's at least we prepped a little bit beforehand then and you're at your home mine and it said it's definitely different but it's nice to get to see you have some insight into everyone's home lives. I guess. I know you're hiding from your children. Is that correct? I am hiding in you know, that someone might have forever Just don't pin any minute, but we used to that
these days so I can wait for the joy of these events as we get to see the real you and the real home and that makes it quite special. Things are things that are changing rapidly. And that's why we have you here. We want to we got to get your Insight at your expertise your genius for say let's talk about the transaction of the future because it's not the future anymore. It's here right now. So, talk to me about what you see on the another side of this and what it's going to do to the real estate transaction. Well, maybe just I mean just give it some time about how
you know why I kind of look at on my real estate from the nurse in the back in 2000 c2500 2015 information revolution has been powdering them formation amazing tools like Trulia and Zillow and Redfin and others just enable can see him as access the information and I think it also helped agents 2015 the next Revolution and probably I was at open-door kind of life was at the was ringing thesaurus The Ballad of the starting line for the 4th at Revolution. The whole bunch of other companies is going to open up for me in different ways. The next wave is absolutely the
transaction Revolution and we take that have his own impact in virus different ways. Net worth of fundamentally. Hope consumers in providing confident and convenient clothes. I think it would help many participants within the industry but it will result in significant disruption. No doubt about it and there and there will be absolutely winners and losses in that transaction. And who do you winners and losers Wicked elaborate on that So I think if you think about the festival this is not just happening really, so you think of every transaction if you think of what's happening in
the industry is going from this discipline ship to this online shift and there will be when I did that will benefit from this because this is Agent Service as we know all they provide a valuable role in the ecosystem role in frequent infections won't disappear I'm going to be trying. Companies that are commodity businesses that I think they're going to be disrupted. I think there was some big box Brokers that is taking agents commission and providing limited value to those there at the companies that I would say, they all kind of like
asset-heavy and Legacy companies that are kind of way down will buy these cost that doesn't have the expertise which I think you're going to struggle in this rendition. And as we have seen in so many Industries weather that you see how this is a revolution is happening literally a case of three months and it's being dramatic and his absent going to happen in online real estate as well. It's funny. You know when you grow up you are saying that people older than you are always right and they know how to do it. Right? And that's just how
it's done. And the older that I bought in that I always question everything like that is just nonsense. We don't need that or just more convoluted and I'm happy to see that we're finally in the time where we have been forced to question. Absolutely everything and there is just such nonsense in some of these transactions Brad talks about the two of you talk about it on your podcast, which is great. By the way, if you haven't listened to it every everyone it's listening it was back in April, but it's just like a notary like really like do we have to travel or find a notary during a pandemic to
get a deal done? If it's just nonsense. So, talk to me like you were going to start to become more frugal and how is that going to impact the transactions in general? Not just real estate just you know the business. Yeah, I think just I mean to see a point earlier like so older people actually the other way I look for younger people. Like what is the 20-year old’s doing? What is the 30-year old’s doing life in? the life and the business and I think you know, why is
when they don't want to talk to someone, they want to do things and you know, of course, you mean interactions good for many transactions human interaction is like it's unnecessary. Like why I need to sit down with a human being I do absolutely go to look up where they kind of how they use the Performing transactions and that what apps do DB where that the future is going in terms of how I'm pretty sure transaction the game like saving money around the house start-up timing is everything and really list one is like what is the
enabling technologies that enable change. I have cancer receiving it now, Professor that is sort of high-security transactions going on. The technology is that everyone's plugged in 24/7 and mobile technology is really cultural acceptance like is this is not meeting someone in person like hopefully acceptable absolutely except for today. So, what is the code for acceptance about things in 3, what is the economic imperative? What is the economic? And so, people looking to save money I had you don't think the release a
transaction is going to get cheaper the resort of structural reasons why this were the commission rates and where they are and I actually didn't see that changing kind of meaningfully for the foreseeable future, but I do see whether that's great agents are going to replace me the occasions whether that's convenient transactions are going to replace sort of slow and Thomas & Friends accidents where the reams of paper which would be for water going to come down to just a few simple clicks and authorization that's going to happen. So, it's more going to be a revolution of convenience and simplicity
and integration than it is going to be a sort of a revolution of a pricing cost. Tell me I think that you are a supporter of believing that companies entrepreneur startups can thrive in times like this. I'm certain times and Tweed. I've been about a little bit since that's what you do tell us. What is if someone right now is thinking I want to make something big I think now is the time is now the time and what are the characteristics of a frightening company in something like this? Yeah, so I guess it comes from a little bit of
my own experience in terms of founding a building Trulia rent in 2008 2009 and I would say for pretty much everyone speaks to those that go through that came out incredibly strong and it and its really great position. So, I guess this would be clear. It's not clear that real estate spacing it down right now. Like I think you know looking at sort of some of that the dates are in as many people in this world and some and the event I have way more than I do that kind of really say is
going to be is going to be challenged. So, I guess I guess this world has changed except change and so the old Playbook is no longer than the current Playbook so you can be as sort of a deer in the Headlights. Almost incapable of executing leaning change your product or service. What did the consumers wanted how do I offer that service? make that Isabel make that promote that's ultimately to be in a position to take mortgage companies that come out of this and take
one is to really think about what is the am I providing a nice to have breast if they must have and what we see in this time is that the sort of luxury goods is just certain frankly relevant and we wear your product rule accepted by the marketing and Silicon Valley people talk about this. Rob Porter Market fit is very open to this time. You either have it or you didn't answer tuning your product to really meet the needs of the market today is critical. So, making sure that you truly have this with a circle port at Market fit and adjusting her portrait to do that.
I guess you know that kind of thing is really just to think about how you scale the business in and how do you take market share? And how do you really lean into this opportunity? If it's interesting, I still see a lot of an agent to just taking in and thinking it's going to get back to normal. So, it's nice to hear from you. And hopefully, the audience is listening that we don't even know what normal is any more. So those who are kind of out of the box then ask you to
so many younger agents. I'm not young anymore. I'm kind of young but there's a man there doing it, right you're having fun doing it, right and don't charismatic and you're just Brawn to them and they haven't stepped foot in the house and God knows how long that everything's virtual and we have a question from the audience, Renee Funk, to ask Pete what virtual process or tool being utilized in the sales process. Now do you say it will remain a standard in the industry moving forward? Why I think that the
anymore by looked the number of transactions that consumers and you can get this day to the number of transactions that were done without the consumer entering the Harlem and the number and you see this kind of dwindling kind of number in terms of people in a consumer's Jenny looking and the number of transactions that were being consummated is present with increasing at a time. So, I actually think the notion of virtual home tours and boats you open how this is going to become a mainstay just the convenience factor.
With one another one would just be this sort of the digital close. This is going to be simple as going to be efficient and that's going from a sort of like being a necessity. You can home from your cell phone from your home. That will become a necessity. Ring to Atlanta and they were like, well, we'll just close on the way by faith and say didn't even think that that wasn't an option, but we can’t do it from the car? We're moving our whole family across the country. What are you talking about? Like it's impossible
virtual tours there. They're kind of clunky right now in Virtual showings old clunky cuz we just started like really pushing him out 60 days ago. So, imagine how amazing and beautiful they'll be in an important part of the transaction in just another couple of weeks or so. Whatever you said but more interesting. I'm sure the other component is that the cell phone chat Noir just getting better and better and better and I think the next several years with augmented reality. The cameras are getting better with virtual reality.
You know, the experience. Is it going to be remarkable when I think they look at the virtual meetings that we have right now? is very sore the flat two-dimensional and you can imagine the world in just a few years, but this is going to be more immersive more three-dimensional more sense of the field from the time you come from is starting to see, Venture tools and that will come from a more immersive experience it every time Absolutely have another question.
This is an easy one rod screws out here in Houston at har.com good friend of mine survey showed more than 60% plan to work at home post Kobe. How do you see that impacting traditional bricks-and-mortar broker offices? Why I think I mean really for all businesses be gone from this and I thinking in Sarnia, crop text Jenna baby come from this soda acid heavy industry to connect to acid lights in protein big box in the brokerage industry to Tulsa Technology Company that I said happy to acid lights. We were thinking of the open door
and I think they're going to have structural cost advantages, but you're going to be beneficial to them. It's going to cost a bunch is going to be transferred to agents who are going to get a better deal. I'm sure is nice to work from home now and again and many of us now we go to set up so I should just as productive no more productive than before. So I think it's going to be a permanent change the way the brokerage is a run. But also, how we live our lives that kind of the emergence of the
suburb is it's going to be huge San Francisco where I live is a ghost town right now people go down Trend sit down prices of town and it's going to be a growth of the suburbs, which I think is going to be frankly a boon for many of the people in the real estate industry. That's awfully nice to know that you can take an hour drive from where your office was, and I basically get a house for free comes first than what you're used to paying if you're in the center of the city, so that will definitely change things for sure talk to me as we
as we work on wrapping up and we touch on this a little bit, but I would love for those who are watching you right now. What advice do you have? share with them just in general as an honest entrepreneur? What is the one thing I mentioned as early as I can think about what the Youth of today at doing? What are the 2020 rolls are doing and almost as bored as a what does the weather look like in for you? time and do that now and it may take you time to think about going to get there, but try to think about what the weather's going to be like in three
is and do that and do that today and that is going to be digital that's going to be simple that's going to be integrated and I and I think this is me since there is an opportunity across-the-board and obviously, we have multiple crises is today, but that's the opportunity. So, leaning into to. How can you make your business going to fit the market today and capture the opportunity in front of you? And you feel confident that real estate agent will continue to be the center of the
transaction. I hope the industry if they offered a commodity by-products where if your Community Financial Service or you're just passing information or if you are providing the sort of let's just said sending transactions without providing a loaded value. You're fundamentally a pretty good at replacing kind of community services. So, you know, this is no opportunity for agents. They need to move the app to hide transactions. And I think there is going to be the next few days which is like the direct to Consumer brands
that are focused on you know, that will happen. And I think competition is a great thing on the flip side. I think they've been charged yet transaction will be performed by agents with a neighbor with its technology to help them to provide simple integrated digital clothes for the main for the Maine state line up CC agent. And I'm not going to ask any more questions about the perfect way to go out, Pete. Thank you so much. We appreciate you being here at I know it's
somewhat early where you are and just thank you very much. The invite was very welcomed right now. My pleasure. Great to be on great save on ticket. a state all right everybody and we have another special treat for you. It's my boss Robert rescue and right now is going to be joining Brad and then talking about meeting and chaos, and I will throw it over to that gentleman. Greetings everybody. It's great to be back here. We are Wednesday morning on the second day of this great experiment. It's only shares something with
you 30 years ago this month. I did my first event. It was a physical event. It was for consumers with the San Francisco Examiner where I'm sitting right now. I took a long walk this morning from the Haight-Ashbury through to where we had that first event and it reminded me that I had done physical event every year for 30 years and this will be the first year. We may not have one and I like you and sentimental about, But I also remember way through that event together took us about three months and suddenly we had 10,000 people lined up around blocks to learn about how to buy and sell
a house cuz they didn't have the internet back then and I want to thank our team thank our ambassadors thank our sponsors and thank all of you for taking a chance on a new product Josh Albertson RC you came up with this idea with the team about doing a virtual event just about two and a half months ago. It's a new product and we made some mistakes and we've had some glitches staring at the cameras with no audio with Rich Barton, but I am so impressed by all the people that came together and most importantly our customers who took a chance on this and I think virtual events have
legs. I think virtual events will continue but I also have a warm heart, you know, most of my career I've done physical events. I guess. That's what we call him now and we're going to do more of them all. I want to thank all the international people are that are attending and listening to us Americans rant and Rave about all kinds of stuff. And thank you and the beauty of virtual events as we can go around the world until you're going to be hearing a lot more from Inman about virtual events, and we're going to update you on the physical events as well. But thank you all from
the bottom of my heart for being here. Now. I'm super excited to have with us this morning Robert Reffkin truly a leader in the industry the CEO and Co-founder of Compass. A company that about seven years ago stormed into the real estate industry and really made a difference and you know, one sign of someone that makes a difference is if they're controversial and Robert has been controversial which I love about him every entrepreneur every startup every company that tries to make a difference is controversial and even this
morning Got an email saying ask Compass if they're going to survive and I wanted to say what should I ask that of all the companies in this time that we're all facing. So, we'll ask Robert that and many more questions. Hey Robert. Are you there? I'd like to welcome you to the Inman stage here. How are you? I love the pictures that are you at your wedding and my wedding. I was probably 30 pounds lighter and 8 years younger. It's another great shot. Hey, Robert. How are you doing? Look into thanks. Thanks for asking. It says it has been a challenging week
for our country and then actually and this has been the hardest time on a human level that I can imagine for my recent history as a country and I think it's okay to not be okay at this time. I think us is Asian VR. I'm always trying to put on a good face and make it feel like your things are great. I think it's okay to not be. Okay and on one hand, we have a crisis that really surprised us and that was a crisis. That was a global pandemic left his country with a hundred thousand and less
job and it prevents us from having our basic freedom of moving around for two-plus months and the other hand. We had a crisis that is building up in the country for Which is police brutality against the black community. I think this country is the saying enough is enough right there been similar murders in the past where people come up and advocate for changing the hasn't happened in so that in this current environment and I think it's important to highlight a couple of things one is the peaceful
protesters are different Community than the violin router is right up there two completely different communities and we should address them as such this is despite what the media is showing in terms of images. Secondly, the police Community is not one model with a group that all things to say great police in the police that that has led to murder and in so I think we should recognize it things you need to be addressed, but they were good police in as well. And then lastly, I am incredibly
optimistic about the future and we as an industry. We have two million people in our company has 20000 people we can make a difference and we just highly recommend that everybody do three things one advocate for racial tolerance with your family with your friends with your team to volunteer and donate to nonprofits that are advocating for racial tolerance in an elimination police brutality organization, like the NAACP legal defense fund but at the local and state level as well, and I'm very optimistic. Thank you for letting me share those Dawn and
you thinking That was a great opening Robert in later on when I get the ask you, I know you had personal experience as a black man in America that I am a white man haven't had and I think we want to hear about that just because I think we need to reinforce like what this country is still suffering from under that some people don't get it before you that lets how is compass doing, I say in my intro mention this, you know, I get this email as I get frequently how is compass are they going to survive, and I turned it back to them and said are you
going to survive? Is anyone going to survive in this economy? We just tell us how does compass doing to forget the conspiracy theorist. I assume like any business you're scrambling. I know we are everybody is that I know unless you maybe you know you owe them, but how is compass doing just lay it out for our audience here? Yeah, so look like we're doing very well our revenues up 47% year-to-date over the prior year. We hired more events in March then January combines. I believe we're seeing a shift in all
Industries or digital and virtual Solutions in a gym to Peloton movie theatres in Netflix retail stores to Amazon in from a company perspective. I think Amazon is seeing the benefits of virtual Solutions more than they have in the past. I was a fortune. We've invested hundreds of millions of dollars into a technology platform to do just that as an agent-client are asking more than ever before. How can you sell me? home virtually, how can you mark it adversely? How can you show it virtually? How did it at my house? And we have
answers to this question with a virtual agent service leave, so I'm very Thankful as a company with a history of 130 Market every market different as you can imagine the wheel adapters very normal to us and we want to come to the academy is growing burned during the time. I joined over 200 Virtual Office meetings providing emotional support in like practical didn't support our enemies during the. Of time. And so, we had to do very well. Well, I'm happy to hear that because you have in your market shares pretty extraordinary and I
think you're held to a different standard cuz you're a newbie, you know, you're new to the industry. I mean your 7 years so it's not exactly new but I think even to this day Redfin tell to a different standard cuz it's 10 years, you know, we don't ask the same questions of real G and Berkshire Hathaway, but I think because you know that's what goes on here. Let me ask you what the hardest part of the last few months has been maybe pre the last week being a leader of a real estate company for that matter any company right now. Yeah, you look for me. It is
finding the best way to support or evens obviously Aiden's are only customers. I work for them. They don't work for me and the diversity of the agent makes a very hard to give them all what they need and what I mean by that is some people are singing Jimmy tools so I can succeed in this time so I can store my clients and its time summer singing Give me to go so I can learn because I can't show this time. Why are you giving me tools? to learn and to grow a few things are so stressed out? You shouldn't you be just helping us on an emotional level is actually impossible to give
to get everyone with any because I can eat and reflect the diversity of so many different types of personalities. And so, I really leaned in to be invisible being active over-communicating to our agents again joined over 200 Virtual Office meetings and we've over under the videos every day on Instagram and I got so much feedback that is like getting to be too much that I have brought it down. People that were overwhelming into how you find the right balance
to give his wonderfully on a diverse Community? What would they need to be successful emotionally as a? human being but also professionally during the spirit of the time. Let's move on to another are you and I in preparation for this talked about Suddenlink data has become never more important, you know, and I think the backdrop of that is listening sometimes to our politicians the news media Broadcast News. In fact, I had watched it for a year until I got here, and they had Broadcast News on the television. So, I turned it on
got a big headache watching it but data now I think is fundamentally more important to know the facts and if we can't get the people interpreting the packs worse and believe them we went dead, and we want to date on the virus. We want to date on the death ray went data on what's going on in the markets. Do I have it? Right that data suddenly become more important to all of us as citizens, as consumers, and as people because it's something you can rely on and why and real estate. Do you think suddenly it has so much important? Yeah, that's why I think is important differences
are two major types of data around an agent's client base SAS theorem in data around listings. I think the more important data is data around an agent find the base. My mom is in the past and she mentioned that some people are scared that scared about the privacy of their data and she suggested that we should create data plans that I sign and every time I die synopsis entire company, which is a deer data is their data in a we will never contact our clients without their permission and even if they believe I'm pissed that they can bring their email today
so important and there's a lot of fear that certain brokerage firms crate around data. I think there's a spirit routed in general. I think there are certain Brokers actually do cheap people client database and then contact them after they leave which is horrific. I think it's really important to have a ceramic hundred percent of just know they need to be around but less than 27 actually use one in any meaningful way and that's why we've invested over $59 in building a
CRM from scratch. We had a question before this. Someone fired went over on me on Facebook contractually. Is that still part of the mix on your CRM? You're so we acquired the company contractually the way that they are at the arc around the way to have identified them at the way that we do everything at Compass. We ask agents what do they want? Who do they like the devoted to seeing her run? to be like that. So, then we talked with contractually and we acquire them they have to still have it can't be around that the Tempest can
use third-party see around that people have used and they can continue to use if they've already had in the past and team has filled with our own Engineers. They have built a compass around which is different than the container place around one of the key differences. Is it connecting to the rest of the next to our marketing Center newsletter social media or sir? I connect to a mobile. So, everything being in one place is very important for us. Leave that one of the key innovations is the integration
integration will always save Aiden's more time and get in a better quality of life and having to patch together all these different party platforms. Remember the password and try to get in to get them all at the same time. Gotcha. Let's do a quick multiple-choice here in a quick one here. ‘Cos I got a couple more questions before we run out of time Robert. I wish I had an hour with you but multiple choice which of these Technologies right now. Do you think are the most important productivity tools? Is it the digital consumer experience or is it leads or is it?
some sort of digital concierge service? How would you rank those? What do you think in the ancient world right now is most important? Okay, and I can't get you off the stage without asking us, but I know you're fully capable of answering it in the news had a story recently about SoftBank’s earnings and you know our headline Dino upset some of the compass people. I don't think the story said anything, but it inferred or might have ignited bird but suggested that maybe SoftBank problems were bleeding into Compass, but we got a bunch of questions here SoftBank
anything that we should know put it in perspective for the human reader. So maybe we can put it to bed and people to stop sending me these emails, but can I come inside on the other side? ‘Cos we get complaints from both sides. Yeah, you look in normal times. I'd be happy to go back and forth, but it was so much negativity that's in the world right now. I don't want to have a conversation about a third-party investor the dummy control compass. And anyway, I don't think the right time. Okay, that's a better choice. I'll accept it. Let's wrap it up
Robert with you shared with me and you share that thinking an email to your employees in different places. You went to grade school if you were raised by a great family speaks. So fondly of your mother, you worked in the White House you work at Mackenzie with Ryan Snyder. I mean everything about your story is just amazing yet because you're a black man. You have experienced things that I haven't shared a couple of those stories just so we can again reinforce with people,
you know, some people have to go through here. That is underneath. I think some of the anguish and anger that we see across the country right now. Yeah, but look I had when I was. Berkeley California moving to New York experience a lot of places, right? I experienced police stopping me in the middle of the street in not my experience taxis. It is passing by and I was the only black person in many of the places that I worked in. So, you don't feel like you belong
on and on about other aspects. I think I can deal with that. I have been lucky I had benefited from at least 20 sponsors, not Mentor sponsor people that use their social and political Capital to help me succeed from the time that I was a teenager all the way to the present my first investor and put it back on invested a Family Dollars into Compass right again in just go down through so many people In Black, by the way, that if anyone of them were not there I wouldn't be where I am. And so yeah, I hear
a lot about giving back to others so that they can benefit. We can realize their dreams and the things that I focus more on Joey and I don't talk about the things I do it as much, but I started a nonprofit called America needs you would have helped thousands 1000 students were first in their family to go to college then it became America needs using for seeing they're all below the poverty line 80% black and brown Career Development call a sword to summer internships and two years later and then found it a charter school in the Bronx and
I ran 50 Marathon 20 States raising billion dollars to help people realize the vacation of their dreams. I think that's one of the best ways to to help people of the long-running the Owensboro political system is people get elected every 2 4 and 6 years will education takes 30 years have the impact in so but it is hard for politicians to be motivated to solve that problem. The second thing that I leave again with an advocate for four people that are watching. I have never heard as many people outside of a community ask what they can do to help. I just haven't seen that before and after
the Civil Rights Movement, but in my lifetime, I haven't seen that in. So again, I'd encourage you to Advocate volunteer in boat and really if you there's someone that used to be a sponsor. Nascimento does my bike that's good. But do you see how you can help him if we're a good thing that we're pushing through and Compass is we're going to create a vendor list of a people that are coming are there black and brown and whether is photographers with public rate or play. You and Eden Community you
control spin you can do a lot. Even if she just earned a percentage of what you spend your money on that you give your two people from history of our country built. The line has been towards a better world and I think there was any link to a decade. You can see that and it's going to continue. You know what? I was going to ask you the final question. What can the Indian Community do? And I think he just now that I'm going to summarize it. I love that active verb Advocate advocated for Daxton opinions Expressions; you know doing something. I love the sponsor. I always hated
the word Mentor, you know, sponsor someone and I think this summarizes your last point is use your pocketbook, you know, use your influence use it in a way that achieves these goals and I think we all need to achieve Robert. Thank you so much. I really appreciate what you've done. You are welcome voice in the industry. You're always there you're always present. You've always supported the Indian Community and keep up the good work and congrats on your success. Thank you. Okay game, this is Brad Inman. Check it out. I think we got Katie up again.
Together they form the gold standard in brokerage Tech and the only truly to close experience in North America. Styles on the few companies that Not only was supporting agents but was supporting the top agents in the business if exclusive is limited. It's really designed to Target grow. The only reason you limit it is that you want to take a couple of top people and grow them and it's really important that a lot of real estate companies. Don't treat their top agents as an entrepreneur inside really does, we've had a dominant position in this market and we
are not about maintaining it were about growing it. The cloud CMA our goal is to make you look awesome. awesome at the kitchen table awesome from your iPad awesome in the living room awesome from Great big thanks to Robert and Brad for that previous session a lot of inside Farrah and I'm proud to work for a man who won speaks up like that moving on now. I want to chat a little bit about customer service, and we talked about it all the time. But now more
than ever is it important for you to really shine. I like Pete Flint said this morning and those who will Thrive through this and be successful or those who just increase the level of service that they can deliver. Speaking of that low touch World ‘cos we were definitely a low touch world right now. I'm going to throw it over to the wonderful Clelia and Will Guidara Hospitality Guru. I've heard great things. I'm super excited. My pen for notes taken away guys.
Welcome, everyone. This is clearly a few years. I'm so excited to be joining you this morning. I'm joined here by Will Guidara who I'm going to have to introduce himself, but who I would say he is a guru in the world of hospitality and really thinking about what Hospitality means most brought Thee Well, thank you so much for joining us. Thanks for having me and I really enjoyed being together with this group in New York City. I'd like to say a month ago. But actually, I'm realizing it was a lot longer than that guy think I'm empathizing with the world and struggling to
understand the passage of time these days by good thing and a Bad Thing depending on how you think of it before but you were one of the hits of the New York Nets in January. So, we felt like we have to have you back. It was not the normal kind of event that I'm used to speaking at but I was so I felt so connected to the sense of hospitality that I fell in the room. And it was inspiring to me to see that hospitality can be found in every industry so long as you surround yourself with the right people. I didn't
even know me for Eleven Madison Park MI also opened a bunch of hotels told the Nomad and I have a conference call the welcome conference, which is a Hospitality conference that takes place every year at Lincoln Center to be here. As was saying to you, I think this is not a distance conversation for the real estate industry because I think that restaurants are generally like the lifeblood of neighborhood and what's happening to restaurants today has meant for him in the residential.
Can you talk to us about what's happening what you think is going to happen and what we can do to be an ally Listen restaurants are in a really difficult place right now. I think of that there's no industry licensing. No industry many industrialists have been extraordinarily impacted 5s and devastating ways. But I think that everything from your local fine dining place to live the Corner Pub to the pizza place. All of them are especially vulnerable for a number of reasons. MA restaurants rely completely on
social Gathering does it take out a delivery that people are doing right now is not doing anything to make up for the business that we've all lost. An independent restaurant, especially a really lack access to Capital. It's hard to get a loan for a small restaurant and right now getting an investor to come in and invest it is almost impossible. I said are in a precarious place. One of the reasons I was out of the White House was to talk about fixes to PPP which I think everyone's at this point the night with the PPT program, which has been
really good for some small businesses and restaurants and everything I was there to do is to talk about the additional release that is required to help us reopen. The thing about restaurants that's different from some of the other Industries is when we closed everything that we had that we would have been serving the next day. We had to don't answer the damn restaurants reopen not only that they have to pay for all the food that they donated months ago. But then they need to pay to refill the entire restaurant not to mention the fact that we've been paying rent the entire
time we're closed until what we were there to talk about with the president. And what we've been screaming for the mountain tops with members of Congress and the house and the Senate is it okay to it needs to be fixed. So, we have a reasonable chance of reopening but there needs to be a specific restaurant relief given beyond that so we can stay up and we've been using the metaphor of a bridge the PPP is the first half of the fridge but in the absence of more relief, it's only a half and I think we can all see very clearly that I have
a bridge is as worthless what we're looking at whether it's due to occupancy restrictions or people's discomfort with gathering in a small restaurant revenue going to be down for a long time and with the margins of a restaurant if you are suffering at 10%, 20%, 30% Revenue decrease absent real relief a lot of the restaurants that make up the cultural fabric of the cities in the towns across America. Will go away forever. Centrepoint, how can people support through me
work with the Independent Restaurant Coalition, which is why I was down in DC we've worked with Congressman Blumenauer out of Portland to propose a restaurant stabilization fund Amber working in a companion bill in the Senate right now, but anyone who believes as I do that restaurants are an an extraordinary vital part of either the cultural ecosystem every town across America or the economic ecosystem in every town across America. Find the biggest organization that is part of and get them to reach out to representatives in your area and talk about how much we need that release.
As I said, I think it's an important thing for those of us in residential real estate to remembering because or not remember but to take action on hospitality is the vibrancy of the hospitality industry is often linked to and we want to get back open and serving people, Listen, every one of us that went into the restaurant business. We didn't do it because we thought we'd make good Jillian's of dollars or anything like that. We did that because we love the work. We love the feeling we get every single day when we open our doors and create a little world for people to
walk into and I sat at the CEO connect event that we have an opportunity in restaurants to create magical worlds in the world. That means more magic and our world has never in my life. Be there more magic than right. Now I would just say I think this is a great reminder for us in the real estate industry that we can really stand in solidarity with you in the hospitality industry and think about what we can do and how we can help influence. The station that will support the
whether it's as an individual or as an organization, what does it really mean if I called? Part for a bill that's being considered but raindrops make oceans. It's nothing short of extraordinary what we can accomplish together to the ridiculous you think about hospitality and send me what the weather is for Hospitality in a world. Where I do, and I think it's so important. Just say that out loud and to name it for yourself and believe it with every ounce of your being because
there is no line of work that's consistently easy. If the last few months have taught us anything. It's that life can be extraordinarily difficult sometimes. And if you don't believe I truly in your heart that the work you're doing matters that you can in some small way makes a meaningful impact on someone else's life through what you do on a daily basis. I'm a really hard day is what it's really hard to get out of bed, but If you do believe that there's meaning whether it's in my rule in my world
and helping create a world where people can come to celebrate. Can come to invest in a relationship can give themselves the grace to forget challenging moment sore and your Collective world where? I mean I think the extent to which you feel comfortable in your home has never felt more important than it has to help people find I say all the time in my restaurants with my team's like I want to make this restaurant feel as if people are coming home. You are all actually the ones playing Matchmaker between people and their lives with their home which happens to be where they
spend those lives forget in the drama of your getting the transactions up. Well, yeah, I mean it and I think, by the way, it's easy to forget that in the drama of restaurants whether you're trying to refill at 4 tops at 8 to cancel the last minute or whether the food's behind her any details that at the end of the day are not anywhere near as significant as the underlying reason for doing what you do, and I think it's one of the most beautiful parts about this time in
quarantine. A lot of people have had so much time alone that they've had the ability to reflect on things in a more deep and sincere way the man having a really long time. One of the things I've talked about is that this has been for me and some of the people I love in me life a season marked by a rebirth of appreciation for the things that we love for the people that we love recognize and we've all lost a lot there for the things that we still have left. and I'm and hopefully A rebirth of appreciation for why what we get to do?
It's such an important and meaningful thing to do. I think that is a beautiful one to put on what I see people have been a challenging though. Also, I think I'm aware that we haven't even talked about the needs of your how you Define hospitality or service and I think you put such beautiful language. Can you just talk a little bit about that? So, people have contacted us we talked about how it's relevant today. I mean how I define hospitality and service
listen, you need to derive the significant and genuine pleasure of serving other people is forward that was used in my company one is as hospitality and that is Like when you see someone drop a scarf on the street in front of you in New York City in the winter that you run off and pick up that starts and give it back to them, not for financial gain or not. Even for some sort of karmic pump because the actor beside graciousness on another human being
it makes your day a better day. I talked a lot about how around the holidays there are people that like to give gifts and those that like to receive guests. I want to surround myself with those who like to give gifts but to be super clear. They're just as selfish as one another because the gift Giver the gift for them with the look on someone's face them when they receive that gift until I think it's just like recognizing that I'm getting super boxy supercell foxy. I believe that we can make the world a better place just by being really nice
to everyone that comes in the doors of our restaurants. And I think the same is true of anyone that does anything. I believe that there was a law passed that everyone had to be really nice to everyone that works at the DMV would suddenly be the most hospitable place on Earth. No, but I believe that service and Hospitality are I mean like it can be as simple as the Golden Rule just treating other people and the way that you want to be treated and caring so much about making other people happy that you'll be unreasonable
almost no way that's a little bit more on better than it was in the past and you shared some optimism. I'll say a few things one. Okay. I have a bunch of friends for in the tech industry and one of the things we've always identified as being different between Tech and restaurants. Is that when they're developing a new app? They'll build it to like 10% and then release it into the world. It's all buggy and imperfect people love it. In restaurants, we've always had to build our entire restaurant full budget know before we ever get a sense of whether people are going to react to
it. There's an expectation of perfection. And how much of that expectation has been thrust Upon Us and how much of it to be put upon yourself is. Unclear but I found that the world right now in all of its challenges no of the sadness and all of the lost. One of the Silver Lining is that we are being given Grace. Like we've never been given before to try new things to be playful and fun and creative and I'll tell you on the other side of me focus will be less on Perfection and more on being thoughtful human and I think the world has playfulness in it. It
craves people doing things just because they believe those things are off. And you can pivot and try something new and if it doesn't work, you can pivot again so long as you're doing it for the right reason. And I'll tell you what that inspires me and fills me with so much joy and excitement because joy and excitement are the things that the world needs more of right now than anything. Don't you think about being thoughtful of you beautiful put it? What is it that you're going to look like for you? What do you think that could look like for other people?
How come you can rip on that idea to create something for people who are watching this? I'll tell you the story of a restaurant in Seattle. The restaurants called calmness. It's one of the nicest fine dining restaurants in the Northwest and they were one of the first and what they did is instead of serving people in their fine dining room. They started the bagel shed in their parking lot and a burger joint in their parking lot. A couple of weeks later those things have gotten so busy and so popular that it no
longer felt safe. But then they didn't think that though the city felt connected enough to one another they felt a connection to the restaurant. They were eating the restaurant's food at home are part of the beauty of a restaurant is being in the energy surrounded by people. You don't know and feeling like your part of something bigger than yourself. So, they started Bingo virtual Bingo where they put a bingo card in every single person's delivery and invited them all to go online that night in joining the virtual fun and they had a blast
and for 30 minutes that night the city felt connected to one another now, here's one of the most revered fine dining restaurants in America doing bingo online. That's not normal. And in some ways are in an old world. It would really on the advice of them. but what they thought about it and this goes back to hospitality is It's not about what we do. It's why we're doing it and how we're doing it. And if you remember what the true purpose. What you are true purpose is
what is that thing that gives you a sense of meaning and nobility and if you find yourself in a position based on the events of the world around you unable to pursue that purpose in the way, you've always pursued it before. That doesn't mean you get to stop. It just means you need to try something new. Yes, I think I love that story which is a story that I heard but I don't think I have interpreted in this wet as you are about. What do you feel like?
the world is like what could you imagine doing? I mean people crave social interaction Play Crave emotional connection. We've been trying our best to do that through zoom in. In some ways. I've been staying connected to people that I love more during the season in my life than before, but it's not the same. people we're social creatures. And listen to the reality of this. As for restaurants at the very least on the other side of it. There's a lot of people that are saying it's just not going to be the same way. There's going to be wearing masks and to take temperatures all of
these things. But I think that if everyone else in the room is looking at things like that as obstacles. We have the collective capacity to look at them as opportunities. I'm excited to take someone's temperature in the most hospitable way imaginable. I'm excited to show people. That if you smile big enough, you can still see someone smile when they're wearing a mask. And I think that's a metaphor about Hospitality. There's a lot of things that are going to get in the way of human connection for the foreseeable future so many things in pursuit of safety. That will make it
harder to connect. And the way that we were once used to connecting been the same way that if you smile big enough, you can see someone smile through a mask in an effort to connect with other people that we do them louder that we do them with more 10 NASA tee that we can all the way in even if we're not allowed to physically lame all the way. And that gets me excited. Well, it's such a pleasure to talk to you as always thank you so much for joining us
Wasn't that nice I know that I enjoyed it very much. So, I think that the two of you were going to jump right back in now and no time to waste the evolving ecosystem of real estate. Let's chat a little bit about that and I think they were like really CEO heavy today. I've got some big experts are coming to the main stage virtually, of course as so now I am happy to introduce a course Brad and David Doctorow CEO of Move. Clelia Peters. You're the best. I love when you do these interviews you do with such sincerity and in intelligence and bright in all of our moderators
and I just want to once again thank our sponsors in the reason isn't this isn't adding I don't have to do this is not applied because they're paying for it, but they took a chance on this event and the fact they took a chance and they gave us to keep all our team on board and also to charge her our customers to only fifty bucks. So, I'm just going to run to the list really quick cuz it's an amazing list and they are agent image. Boomtown Zillow concierge auctions CoreLogic data tree front app. I real estate Pro exact contact 1000w 1000 watt.
So I am really excited to have with us David Doctorow he's someone that's new to our industry. I think we all want to get to know him. He and I chatted about this and he knows he's playing catch-up and he was very candid. So welcome David Doctorow CEO of realtor.com David. Are you there? I am Brad. Good to see you. I like the fireplace. You have a fire going there. Yeah, it's about 96° here where I am today. So, but you get the idea so nice warm feel.
Did you have that before isolation appeared before isolation? Although I've got a little bit of a haircut at this time around maybe you know what it normally looks like. Remind me to mine is definitely a function that long hair is a function of not being able to go to my barber. Welcome to the world of real estate David and I got to start with a weird question only because I have a writer that I'll always love he's left us. Are you related at all to Yale?
doctoral is there any relationship there to the famous writer is my grandfather's second cousin and I'm not a genealogist, but I don't really know what that makes him to me, but we are related in a while ago. Well, good genes. I one of me favorites favorite writers. So, how are you doing? Are you doing okay through all of this? I'm doing I'm doing great. Of course, this is a sobering time we're living in right now between crisis and of course the events of
the last week. It's a challenging time, but I'm I've really been enjoying my time at realtor.com so far. I'm about 2 3 4 months and and it's been a great start. I'm really excited about what lies ahead before talking about it. And just so we share I think your bio is online. But if this is the case, you're new to the industry and people want to know where you came from. You were an Expedia you were also where else where you tell me a little bit about you. And also, I saw a team of
marketing through this it seems like something realtor.com probably needs right now. So, I thought that was good credentials to give it some Just a Little by of where you been. Yeah, so I come to realtor real estate from eBay previously in before that Expedia. I've been in the marketplace business for the last decade and I've been stuck in my time so far here in real estate at how a similar some of the patterns of marketplaces are fundamentally marketplaces are really about connecting buyers and sellers to do things and to enable
the intermediaries who are involved in those markets to help and the more that in Marketplace as you keep it that simple and that clear Affair the better infinite complexity to solving problems, but the end consumers really just care about are you helping him get the job done and they're trying to accomplish. That raises one question, David. Marketplace that was buying and selling your competitor is Zillow and you guys have started over the years before long before you to Trail in and maybe there's different metrics. I don't know
about but clearly, they seem to be the winner here and they've gotten into the transaction. So, they're more like eBay and more like Expedia where realtor.com is kind of insisted to stay in. The traditional role is an advertising Marketplace. We noticed right away. You made some management changes brought in some technology people in one of your Acquisitions band who I think the world cup. Is there a possibility that you will? turn this more into a Marketplace like places you've been in the past. Are you going to stick to the new score model of being an advertising
platform? Yeah, well, there's just took me a lot in that. I think we're we you declared Zillow the winter. We think the game's not over. We're certainly a Challenger in this race. We know we know we have a lot of stuff that we can build upon. We were really proud of the history of being an advertising-oriented business and that will continue to be a significant part of our future but at the same time we think that broadening the aperture of the problem helping consumers trying to search and discover homes to in the end helping consumers think
about making great homes, and when needed sell home is something that we can contribute to and we seek to do that in partnership with the entire industry and that's because we think that me and if we do that, we can prevent more choice to Consumers, which is a real value to them and the end will be able to collectively Faster than those companies that have them or closed approach to work that's oriented towards them own proprietary products. You know, this is a lot of great examples in history. Where an underdog sneaks upon them as you said
to Proclaim winner. And I don't know if I have the right to Proclaim Zillow the winner. Is that how you see yourself doing Underdog here and wearing all the clothing of an underdog which is can be very powerful to motivate the troops. Yeah, I look I think that the focus we have is just to continue to approve and we did a lot that we can build a pond and we've got traffic and leads that are growing faster than the competition and lost months. We've got a terrific Brands we got great data, but we do think that by dialing up our focus on the consumer
experience and trying to provide Rich information that helps consumers accomplish what it is in deep partnership with the Realtors. This is something we can do a lot more of we also are really proud of the referral model that we've developed quickly acquired the opposite E-Business a year-and-a-half ago this we think quietly has become a real competitive advantage and we'll see to invest more to create more distance between us and the competition and will continue to innovate in our leads and marketing-oriented products with a lot more that we can do to
help Realtors accomplish. What they needed to have happened when they prefer to interact with us that way. Yeah, I got a lot of questions about this ahead of time. You probably saw it on Facebook. We should have dressed a couple, but one was it sounds like that's going to be your focused and I've cities a great example and those guys, you know master that where you're going to double down on Lee quality lead conversion. Is that lead volume one of the lead Words, which one are you focused on and how can your customers like where's the identity of the realtor in there?
How do they stand out? You know, how did they get associated with the lead? What are you doing for them? Etcetera. Yeah why I do want to reinforce the connection first between the how we see it in the consumer and the realtor the more we do to bring more consumers to our site and the more that we can understand about those consumers in Ted the better. We think we can package up that consumer and enable Realtors to serve them. Well, Real Focus getting that rich intelligence and bringing more of them. We will also that as you rightly point out.
We will leverage the referral model as one of the ways that will connect Realty listed those consumers and will expect to continue to do so at the model that it provides an excellent consumer experience. And ultimately, we think can be the basis for providing much more to the consumer in partnership with the realtor. But in the end, we know that we've always been in the advertising and Leeds business for a long time. We won't rest on our Laurels. There are ways that will need to innovate and we're beginning to do that with some testing already in the last couple months
that we think will provide us a clear path to the next generation of Leeds oriented products in this is going to be in the end the way that we serve realtors in the wide array of approaches that they might want to have. And how do you look at you inherited a relationship with the largest and most powerful trade Association? I think in the world the National Association of Realtors, you know, we hear gossip. We're reporters get tips. We hear it's a good relationship or it's a bad relationship. We are going to break it. You going to change it. How do you view that? I mean it
it must be a good thing. But it also must be a heavy weighted time two to do everything you may want to do. You know, it's a just to make sure everybody does know we have a privileged relationship with the National Association of Realtors, since the beginning of this business and my coming in I feel that such a gift for us. It's an asset that we have probably underutilized. If I'm honest we see an opportunity to continue and too deep in that partnership. We're certain that in
discussions about the specifics of how that may unfold but fundamentally it emanates from the fact that we're both trying to serve the same that the same customers are members, in the end, AR Realtors. We hope to serve and we're trying to find the right ways to reach those people and to innovate with those people. So, there's no opportunity for us both Let us all in the audience close your eyes and imagine and you tell me what will realtor.com looks like in a year. What could I imagine it looking?
like I'm becoming what I guess it's what you're probably when you were hired here, you know David, what's your vision for realtor.com? So, what is your vision for realtor.com? What are we going to see in a year or 5 years or whatever you want to tell me in this era? I first half let's be honest anybody that knows how to prognosticate where we're going to be in our society in the air right now, I think is going out on a limb. So, we're all going to learn a lot in the next year about what actually transpires but, of course, we do have a direction and a plan that we seek you
will find realtor.com continue to really focus on bringing more consumers to our site in new ways and to create a consumer experience that really stands out. Focused on innovating to provide consumers with new experiences a couple of examples. We recently lost three automated valuation models that we think provide consumers with an array of information that the end will help them decide more quickly and more readily whether to list their home and contact a realtor to do so, we also launched a partnership with to provide access
to creative financing models in this time when consumers frankly need it is given the situation pushed the consumers experience and bring consumers or side a whole lot. You will also find us lean into the industry much more than I think we have in the last while it's always been part of our DNA, but I believe if we take on partnership in Earnest really it in discussion with with Realtors with Brokers MLS. There's a lot more than we can accomplish when we team-up. I believe that will animate
faster and that's Frank. As I said earlier produces more choice for consumers and more business for all of us, and I think that'll be great in yet. Yeah, I've been saying David that I think consumers now more than ever cuz there's uncertainty and this is certainly in the marketplace about what my what my house is worth with the houses worth and baking that into search. You know, I'd love to see an overlay when I'm looking at a home. So just tell me exactly what's going on in that zip code. I would say that's a true value of a realtor cuz no one else really offers to the true value of the
realtor is the one that has that you know that zip code 99496 801 a tattoo to their forehead of their ass and it is until those tools are available and they're really never going to be available at the Nuance level that a realtor knows but if we could just start adding that in search of more integrated thoughts away instead of a button over here. I think it would be it would be an idea. I'm also interested in easy knock. So is that partnership been announced are you doing that soon or can people ‘cos again I think you know liquidity is an issue
getting in and out of homes as difficult. Is that something that's in place now in realtor.com? Yep is actually in place now on our side. We haven't been overly vocal about it. I think our priority was really just on getting that capability in that partnership live. So that consumers could begin to tap into it and access the financing options that I need during this time in the end. We're certainly about trying to create access for consumers to the things that they need ultimately creating choice and you'll see us
That is great. Well, I want to welcome you to the Edmond community and where he'll just so you know to it sounds like your kind of doing a startup. So we'll think of you in that group, which we have you know, deep-seated heartfelt support for the startup and if you need anything, then we can you can be assured. They'll be there to help. I noticed you're already engaged on Facebook coast to coast and that's actually got some CEOs avoid that like the plague but the fact you're there you'll get a lot I throw stuff up all the time and they give us really great feedback. So, I
really want to thank you for being here today and we're here to help and good luck to you know, if you're maybe in a year you'll be the winner. The long race. It's a long race, Brad. We're going to have fun with it and look forward to working with you all really excited to be here. Fantastic gang before I hand it back to Katy. I wanted to thank the people of the in the community who constantly give us counsel and advice. I mentioned Facebook coast to coast and if I put the word help up there, I not only get all kinds of help and
ideas and opinions. But we also get criticisms and we get in if there's a lot of assaults Thursday time. So, you know, there are the haters and there's all of that but I walked him at all the first amendment of organization, and we love feedback and during this last week. We got a lot of feedback and it inspired Us in so many ways and you know, I think we scratch the surface of all the things that end it can do but I also in that vein wanted to mention I'll be back tomorrow at noon Pacific time and I want to urge all of you to be there ‘cos it's going to be an opportunity to do
what we called the town hall and it won't be us. Talking to you. It'll be you talking to us and its open territory. You can talk about the tech glitches we had with production. You can talk about it. What do you think virtual has a life? You can ask it's about. When is our next physical event? You can in a gibbous hell about a reporting coverage. You can tell us what we should be doing differently, or you can tell us where great if you'd like, but I please join me tomorrow at 12. That's when I'll be back, and I can't wait to feel your comments and questions or better yet not feel them.
Listen. I'm really looking forward to listening to not blabbing tomorrow when I'm with you. Thank you all have a great the great day participate in everything going on this afternoon, and I'll hand it back to my fav Katie. Thank you Brad. I also want to say that typically during the town halls. When we are all in person. Sometimes we miss a lot of people because they are flying out and that's when the flight was, or I have to get back on the road. So, I think it's very interesting is going to be pretty cool that we have a
virtual Town Hall so we can have a ton of participation. So, sales manager, I have been dealing with I think nothing but Market stats and the economy and I am no Economist. So, I'm very excited for our next panel ever going to talk about 8 housing Outlook. What does it look in? 30 60 90 days from to expert Smithfield. We had Matthew Gardner Chief Economist at Windermere and Skylar Olsen director of economic research for Zillow. Good morning, everyone. I hope you hope you're all doing very well and welcome to a brief discussion. Hope he briefed on what's going on the
economy specifically as it pertains to real estate by the how are you, my dear friend? Hi, I'm doing great. You know, there's a lot of things going on. There's a lot of things to look at and talked about in many ways. I'm sure Matthew you also feel like this is the economist super. I knew I think Rob see right. I think there's so much misinformation out that I'm so I can send you out that I'm hopeful with it in a little chat today making crank. Sometimes he's with that. She can let you go first. So, I'm going to disappear. I can't wait to hear what you have to say.
I'll join you back in a little bit. I'll see you soon because really Abdullah we are all things data right that I Want to Be Free. We have a great the advantage and privilege really in this environment of sending a lot of engineers is trying to figure out what's happening in the housing market by pulling daily metric. So, this is been intense. This has been incredible the job losses have been significant 37 million unemployment claims filed. This is
big. This is huge. The graph of your scene in front of you here is a similar to drop off in terms of you know, housing activity and economic activity in housing Excel. So, for example, if you look at the pending sales numbers see you at that time series of the beginning starts in just mid-February you're looking at falling off of a cliff significantly. I'm to the point where even now after a steady increase in a steady recovery knock on wood. We've already seen bottom here that's going to happen a few times in our conversation will be knocking on wood, but you can
see that pending. Almost 12% below those 2019 level steadily coming back out and importantly coming back a little bit faster than Stellar activity. So, buyers are coming forth harvesting available inventory may be taking advantage of virtual tools or getting a gun in any way they can but sellers are still hesitating in a big Way new listing for existing homes on the market for sale fell almost 44% relative to the same time in 2019 that's steadily increased as well. Not as significant as a pending sale
and it still remains a good negative 28% below 2019 model that's going to make it hard for buyers as we continue to the recovery the Fast Fire as those that were Brave those that Embrace those virtual tools came to the markets are harvesting inventory for the overall inventory is still 20% below. It's a huge economic and healthy activity. But we're watching the recovery happen as we speak and one of the reasons why the recovery might be faster than we would have thought or why housing is more resilient in this
experience is because we went through something incredibly traumatic just a couple of Jacks and a half a decade ago, right that housing bubble and bust this experience is nothing like then we have 4.5 access homeowners in the people who got too much credit who couldn't sustain job loss in those foreclosures came tumbling down economic support at this time is incredibly significant in terms of unemployment benefits in terms of small business loans, hopefully, all of that and then we'll keep from having significant foreclosures that would cause the house
prices to fall significantly like they did last time now again, no access inventory, no access homeowners tight credit leading into this crisis good home buying a pretty stellar sales number as late. As you know, February all memes of housing are going to be more resilient to this crisis and it's not just the housing market doing well before it's also his fundamental demand has not gone. The record expansion is gone, but they're still in this look at his age distribution in the US here. We see the different generational booms, right Boomers and Millennials the
millennial of pikas those guys in the worst. There's 3.1 million more of them still having kids is going to push the median age of the first-time home buyer out further substantial Sheeran. Generation pushing forward who didn't get job lots of high-income and hopefully metros will bounce back very quickly because they have the ability to work remotely there in industries that have tended to bounce. Fast. So, what does that mean? Put it all together look over the Run prices won't fall as significantly as you might expect. This is not like the
global financial crisis is not like the housing bubble and bust we strike home prices to fall anywhere from two to 3% Now. We already talked about how housing activity pulled back significantly our forecast has actually been revised from what you see here in terms of pending or season sales volume dropping we originally forecast to drop anywhere from 50 to 60% from those High February numbers now are now past is a little bit closer from 40 to 50% or are you starting to see that study and a slow recovery in terms of activity and wire may be able to
recover his embracing the ritual tools to get it done. We've seen the creation of 3D home tours skyrockets 600% over the past few days. It's incredible resilience in the housing market and its economic agents both particularly buyers with sellers. Grizzly tools to make it work now. I'll welcome Matthew back to give us his Insight. Now. There's a lot to talk about. I know I spoke very quickly, but Matthew wants you taken away. Thanks, that was suddenly I heard you speak and smoking weed on stage several times I've
ever heard you speak. I'm not pretty impressive coming from an Englishman by myself. So, here's my take a message to let you know I'm looking at that which is can be rounded out to a seasonally adjusted annual rate of my first light this second quarter as you can plainly see and it's really quite remarkably ugly as however, that said I am expecting to see some significant improvement in the second half of the earth and I honestly believe it's going to be a story or tale of two jobs of the year. 7 perspective the last time we went down this wall full point three million
roughly analyze the rate of transactions, which is really pretty remarkable a long time ago. Said sales in April web better than I had expected or their month-to-month sell single-family house for sales were down about 9% multifamily. Have it down significantly more around 20% I do expect, however, as I mentioned a few seconds ago, we are going to see some improvement in the second half of the year list several reasons for this one of which is that still believe housing. We know the Scottish said we are very much not in the situation we were in
back in 2008 is a very different place in time. But at the same time, we're also saying the fact that I just got to mention the oven me some first-time buyer some younger household who will delay they’re for what do I expect to see in times of April sales year-over-year we can be Daniel B. I think that we can be down somewhere around 11 % again total sales 2020 vs. 2019. However, I expect 2021 to be quite a year in sales will be up by about 13% However, it's still going to take us to a point in time. That's not that much further
Advanced combat to be sore before COVID-19 hit in terms of home prices again. It's going to be in to see how this plays out. I do expect we are going to see a poke in the second quarter again. You can wonder why to hang on a second, we all still going through a novel coronavirus. What are the impacts that we just haven't seen it in terms of pricey less Choice absolutely. Do you a listing? However also few are by us prices drop march to April by about 2.2% of the year of the amazing seven and a half percent. So, although I do expect to see
all things being equal home prices out by about 1.7%. We could say that more than that next year probably coming in at around two and a half to send the barrel 70 significant presumptions that the biggest one is ever going to come up with a vaccine. Are we going to come out with a cure? COVID-19? And that might look a little different but am I expecting to see any form of price contraction? I'm quite frankly. I'm not expecting to see that. I have a watery a 2/8 / affordability when you look in the Matrix income to mortgage rates. I'll catch a mortgage rate in the second
most markets the country. We are winning. Hey, how about all my friends down in California? That is a study where we are still seeing an issue. Why do I think we will see it? I'm so pick up as well. Then we start looking at mortgages at this quite frankly. It is insane to the average 30-year conventional fixed-rate mortgage. Every time we're going to be hanging around the doldrums up between 3 and 3.2% through the end of 2021. And if you think that that is an aggressive forecast another couple of weeks ago. I
fix rates down at 2.9% Spring Lake spring of next year mortgage rates 30 years fixed actually tracked the yield on 10-year treasury has not spread between the two has been roughly about 1.7% of the time going back to the seventies right now. It's actually a full percentage point to point. Tell me what the name implies the fact we could see a three-point wealth of where we are today. We could see mortgage rates drop down and in essence, rates should be closer to
and a half percent Center Norfolk 3% Demand on home price growth. Finally. I pretty quickly knew a hispanic couple of chops, and I'll run through the break. We fix motion for parents major topic has slowed down as you can see; I have significantly however just made me not going to see a big push in X all foreclosure activity for parents request a lot of activity about his tailed off as well as Hockessin's next Apple Juice by Moon Taxi Association. It's up
cost for a week's game that defines we are at that is Demond out there is finally I know that Master job losses by income. This is hitting the apartment Market harder and it is the ownership of Market Altamonte Springs today because of the supply issues that are going to be pervasive went out in 2008 Health crisis. No 8 housing prices. All right, so I'm so what is the time I'm hearing a lot of rain across the country selling and the Western US. The Bottom Feeders around that they seem to think we're back in 2018 game. You can pick up the house
for the same price of a six-pack of beer. I'm just not saying that in any way shape or form. I expect them to be if I think they are going to be sadly disappointed when it comes to the fact of not just a choice for the price point of hugs. Yes. We could do you think Well, so yeah, and we can't we see in general but not a lot of signals that prices are falling so we can watch those list prices and some of the median sale price is for you know, the ones that close at this very low transaction volume. And we do see you know, in a
lot of cases. Naturally. They're flat, right? They're not the climbing but in some places even when meeting list price her recent medium sale prices are going down to look at the composition change of the inventory high-end homeowners told back in more than lower and homeowners Morgan optionality up here, right? You can decide to sell it when it's a good time 7 look like a good time. Like maybe now's a little bit wild right you pull back. We're seeing those median list price policies home stay on the market more off and everyone pulled back one more song on the top signal at
all, but there are on the market. You can question no appropriate and also you look at average list price. Yes. Absolutely. That is flat and at some point, that we were late through running down in sales price appreciation. The numbers make 8.7 trillion dollars of equity right now looking for the short sale. So good luck find it. Right exactly. Yeah. This is a Saving Grace for you know any home sellers that find themselves having to sell maybe if you didn't intend to for your own job loss or you know, whatever can happen to any of these households in situations like these home prices are not
because of all the Housing Finance apparatus around the homeowner, you know, which makes us believe you don't have both you and I know we talked about this before then housing for-sale housing is much more resilient. We're much more work needs to increase the amount just the fact to look at house use a hedge against inflation. Look at houses as a hedge against the battery could see future bugs make their appearance might have A little bit tougher came to a crisis last time we just
have like those back on-again things will pick back up again if that I have no doubt. But what I've been telling US Cellular broken so many missing quite frankly it is when you wake up every morning if you sell real estate repeat after me, this is a Health crisis. I think you do that. You're going to be in good shape. Thank you so much for joining us this morning at that wraps up the first part of the second day of the Kinect now, we will see you back here at 2 p.m.
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