Shares of Zillow (Z) sank as much as 15% Friday alongside other real estate names after the National Association of Realtors reached a legal settlement that paves the way for homebuyers and sellers to pay lower commissions.
The NAR reached a nationwide settlement of claims that the industry conspired to boost agents’ commissions, the organization said on Friday. If approved by a federal court, the settlement will likely usher changes to the way consumers buy and sell homes. The NAR said it will pay $418 million over the next four years to end litigation.
Real estate names slid on the heels of the NAR’s groundbreaking settlement, with investors expecting these rules to impact spending and competition for lead generation. Alongside Zillow’s decline, shares of Anywhere Real Estate (HOUS), Compass (COMP), and Redfin (RDFN) fell as much as 15%, 11%, and 5%, respectively.
In its 10-K filed…
