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roptechs navigated a complex landscape during earnings season, with mortgage rates and the National Association of Realtors' landmark settlement taking center stage. The Federal Reserve's rate cuts in September eased pressures on residential real estate firms, but relief came late in the third quarter and didn't translate to profitability for most companies.

    Zillow and Opendoor managed to narrow their year-ago losses last quarter, with Zillow reporting a $20 million net loss compared to $28 million in the same period last year. The company's revenue grew 17% year-over-year to $581 million, driven by significant annual upticks in revenues from its rentals and mortgage divisions.

    Opendoor CEO Carrie Wheeler announced layoffs of 300 employees, about 17% of its workforce, as part of a cost-cutting effort. The firm also spun off its market intelligence subsidiary, Mainstay, expecting it to generate $35 million in savings. Opendoor reported a net loss of $78 million last quarter, less than the $106 million it lost in the same period last year.

    Redfin, on the other hand, ramped up its losses, posting a $34 million loss compared to $19 million last year. Revenues fell within its forecasted range, but its adjusted EBITDA loss for the year is larger than anticipated, landing between $15 million and $22 million.

    Redfin CEO Glenn Kelman attributed the company's performance to the slow reaction of homebuyers to recent rate drops. He expects home sales to pick up in 2025 with a presidential election closing the books on political uncertainty but acknowledged that the macroeconomic environment remains unpredictable. To right the ship, Redfin plans to increase its agent count and focus on growing through media.

    The NAR settlement has led to significant changes across the industry, including Zillow's rollout of touring agreements and non-exclusive contracts allowing buyers to tour homes with an agent for a period of seven days. Opendoor shifted its policies on buyer's broker commissions, offering buyer's concessions instead of paying fees directly.

    Executives at Zillow, Opendoor, and Redfin have expressed concerns about the end of Clear Cooperation, deeming it a consumer protection measure that upholds transparency in the marketplace. Compass CEO Robert Reffkin has been vocal in advocating for an end to the policy, but his comments have faced backlash from critics who accuse him of wanting to "hoard an internal inventory of pocket listings."