This week the Swanepoel TRENDS Report (RealSure Publishing) released the names of the top companies that during the previous calendar year (2007) set forth actions that were different and memorable and could potentially have a far reaching impact on the real estate industry in the years to come. This week Swanepoel announces the top 10 events that made headlines and captured the attention of the real estate industry. The selection of these events was based upon their potential future impact on the industry rather than only their 2007 impact.
Dominating the real estate market in 2007 was unquestionably the devastation caused and left behind after the collapse of the subprime market and the mortgage fiasco. After that a smorgasbord of items filled the top slots with technology dominating numerous rankings. Fascinating was the inclusion of the controversial CBS 60 minutes TV program, the Department of Justice investigation into the industry and the closing down of one of the “dotcom” darlings.
Here is a synopsis of the top 10.
1. The Collapse of the Subprime Market
The velocity with which the mortgage market came to a grinding halt pulled hundreds of companies into bankruptcy, including the 10th largest mortgage lender American Home Mortgage. Few were spared significant losses and even giants like Countrywide, Citibank and Merrill Lynch & Co. wrote down tens of billions. Pundits speculate that this may officially lead into a recession.
2. The Break Up of Cendant and the Creation of Realogy
In a transaction valued at $7.75 billion, Realogy was created (as a spin off from Cendant) and sold to an affiliate of Apollo Management, L.P., a leading private equity and capital markets investor. If anyone is still in doubt, rest assured that real estate brokerage is officially on its way to become corporatized and is no longer the last remaining bastion of small entrepreneurship.
3. Revival of Better Homes & Gardens
Once a popular real estate franchise, this well established brand disappeared off the industry’s radar in 1997 only to be re-introduced exactly 10 years later with the signing of a 50-year licensing agreement with Meredith.
4. Google and WEB 2.0
The Web roared back with vengeance, renewed vigor, new VC funding, new ideas and retooled and rebranded pre-2000 companies. And the leader of the pack, Google, is the epitome of the quintessential personification of WEB 2.0. It has become the nexus of all information.
5. DOJ Releases Study on Real Estate Brokerage
The U.S. Federal Trade Commission (FTC) and the U.S. Department of Justice (DOJ) have decided to participate more extensively in the transformation of the real estate industry and are flexing their muscle.
6. MLS Consolidation Heats Up
Consolidation isn’t new but with the strong pressure toward larger and larger MLSs, the DOJ is breathing heavily and with the growing pressure and ability to create single seat sign-on access, consolidation discussions have multiplied exponentially as MLS talks about mergers and consolidations picked up momentum and statewide MLS systems became the flavor of the year.
7. Fidelity Reboots Cyberhomes
Fidelity National Real Estate Solutions (FNRES) becomes the first title company to reach out directly to serve home buyers and sellers with listing by re-launching Cyberhomes and replacing Realtor.com in its longstanding relationship with AOL to become the exclusive listings content provider for AOL.
8. Guthy-Renker Buys RealtyTrac
When the world's largest direct response television company, with sales of more than $1.5 billion per year, acquires a real estate venture it’s worthwhile following closely.
9. CBS’ 60 Minutes Debates Real Estate
The segment on 60 Minutes by Lesley Stahl titled Chipping Away at Realtors' Six Percent became one of the most controversial TV shows about real estate in recent times when she attacked Realtors® 6% commission.
10. Closing Down of Foxtons
Born in the Web 1.0 era, lasting through the crash and surviving with a name change from Your Home Direct (YHD) to Foxtons, the discount real estate brokerage company filed for bankruptcy in 2007.
For expanded information on above as well as details on the top 10 trends that are expected to influence the coming 12-18 months get a copy of the 170-page 2008 Swanepoel TRENDS Report. Authored by Stefan Swanepoel this Report is widely recognized as the most comprehensive report analyzing trends in real estate. The new 2008 Report is scheduled for release on February 1st and copies can be ordered at Amazom.com or RealEstateBooks.org. |
