C
ompass, a real estate brokerage company, has filed a lawsuit against Zillow over its policy to ban private home listings. The lawsuit claims that Zillow's exclusionary policy is an anticompetitive tactic designed to protect its monopoly and revenues in violation of antitrust laws.

    According to the complaint, if a home seller and their agent market their property off Zillow for more than one day, Zillow will ban it from being listed on their search platforms. Compass argues that this policy aims to steer all home listings onto Zillow's dominant platform, allowing it to monetize each listing and maintain its monopoly.

    Compass alleges that the "Zillow Ban" reduces homeowner choice and prevents rivals from competing against Zillow. The company seeks an injunction to prohibit Zillow from enforcing its ban and similar policies, as well as a trial by jury and unspecified damages.

    The housing market has become increasingly competitive in recent times, with existing home sales declining in April due to elevated mortgage rates and rising prices. Sales of previously occupied US homes fell 0.5% in April, marking the slowest pace for that month since 2009. The National Association of Realtors reported that sales barely moved in May, with high mortgage rates and rising prices making homebuying less affordable.

    The imbalance between sellers and buyers has also become a significant issue, with nearly 34% more sellers than buyers shopping for a home as of April, according to Redfin's analysis. This is the lowest number of buyers in the market since records began in 2013, aside from during the pandemic in 2020.