Fed holds rates, DFW shines in rankings, Austin leads price drops

🧙‍♀️ Witching you a magical Thursday.

Today’s newsletter is 615 words — a 2.5-minute read. Let’s dive in!

1. Compass raises agent entry standards 30%

Compass is raising minimum production requirements for new agents by 30%, effective immediately. President Neda Navab announced the change at the company’s annual RETREAT conference.

The new standards apply only to Compass Real Estate, not other brands within Compass International Holdings, including those acquired through Anywhere Real Estate. The company did not disclose the new thresholds or clarify whether they are based on sales volume, transaction count or gross commission income.

Compass also promoted Felipe Hernandez to chief marketing officer in the newly created role. He will lead brand development and consumer campaigns, including efforts to position Compass.com as a leading residential real estate search site.

2. Alexander brothers sentenced to 30 years each

Former real estate brokers Oren and Tal Alexander and their brother Alon were each sentenced to 30 years in prison for their roles in a decade-long sex trafficking and sexual abuse scheme. They were convicted in March on multiple federal charges, including conspiracy to commit sex trafficking.

Prosecutors said the brothers used their wealth and status in the luxury real estate industry to lure women to private events and trips with promises of luxury experiences and accommodations. According to the DOJ, the women were then drugged and sexually assaulted, sometimes by multiple men.

Each brother also received 10 years of supervised release. Oren and Alon were fined $300,000 each, while Tal was fined $350,000.

Oren and Tal built prominent luxury real estate careers in New York and Miami before co-founding the brokerage Official in 2022.

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3. Catch up quick

🏆 Dallas-Fort Worth tops real estate rankings for third straight year. (PWC)

💸 Zillow Home Loans launches FHA down payment assistance loan. (Zillow)

🆕 RealScout adds eXp’s Coming Soon listings to home search. (Inman)

📉 New-home sales slip 0.6% as median price drops 3.9%. (Reuters)

4. Fed holds rates as inflation pressures persist

The Federal Reserve voted 10-2 on Wednesday to keep its benchmark interest rate at 3.75% to 4%, with two policymakers favoring a quarter-point hike as inflation remained elevated. Consumer prices rose 3.7% year over year in September.

Markets raised their expectations for another rate hike in December, with CME Group’s FedWatch tool putting the odds at 84.6%, up from 78.3% the previous day. The average 30-year fixed mortgage rate also edged up to 7.35%, keeping borrowing costs high for homebuyers.

The Fed said it needs more data to assess inflation and the effects of its September rate increase. For real estate agents, persistent inflation and elevated mortgage rates could further strain affordability and delay home purchases.

5. Austin leads major metros in home price declines

Austin had the steepest annual decline in median listing prices among the 50 largest U.S. metros in September, with asking prices falling 9.8% to $446,450, according to a Realtor.com report.

Here are other key takeaways:

• Austin’s median listing price per square foot dropped 8.4% year over year, while active listings rose 1.4% and new listings increased 2.1%.

• The national median listing price fell 1.4% year over year to $419,250, marking the 11th consecutive month of annual declines.

• Nationally, 20.8% of active listings had price reductions in September, the highest share for that month since 2018.

• Active inventory rose 5.4% year over year to more than 1.16 million homes, nearing pre-pandemic levels, while pending sales fell 4.1%.

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