C
ompass, a real estate brokerage, has filed a lawsuit against Zillow, alleging that the company's ban on private home listings is an anticompetitive tactic to protect its monopoly and revenues. The suit, filed in federal court in Manhattan, claims that Zillow's policy of blocking homes from being listed on their search platforms if they are marketed elsewhere for more than one day violates antitrust laws.

    Compass is seeking an injunction to bar Zillow from enforcing the "Zillow Ban" and unspecified damages. A Zillow spokesperson has denied the allegations, stating that the company will defend itself in court. The lawsuit comes as the housing market becomes increasingly competitive, with sales of previously occupied US homes declining in April due to higher mortgage rates and rising prices.

    The intense competition is causing a split in buyer behavior, with some scrambling to secure a home before conditions worsen while others are holding off on homeownership altogether. A survey of top lenders found that 63% believe the US is headed towards a recession, which has significant implications for buyer psychology and lender strategy.