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NYSAR Video Flash Update: A message from NYSAR President Joe Rivellino

This video from NYSAR President Joe Rivellino has important information to help you manage the changes to your MLS and buyer representation occurring August 17 which are the result of the NAR settlement.  This information includes detailed guidance on how to comply with the changes and links to NYSAR’s free forms which meet the new standards.

For more information, visit NYSAR’s dedicated NAR lawsuit settlement resources webpage here.

A NYSAR Guide to Complying with the NAR Antitrust Settlement

On August 17, 2024, all MLSs that have opted into the NAR settlement agreement for the Sitzer/Burnett lawsuit must implement new policies affecting all participants. This guide by NYSAR is part of a comprehensive effort to help members comply with the settlement terms. The guide provides an overview of key changes, including the prohibition of displaying compensation offers on MLSs and the requirement for written agreements when representing buyers. NYSAR also is offering additional compliance resources such as instructional videos and standardized forms to ensure smooth implementation of these new policies.

Click here for more information.

Rising prices, continued high interest rates slow New York State housing market in June

Albany, NY – July 23, 2024 – Home prices rose for the 11th consecutive month and interest rates remained near seven percent, hampering homebuyers across the Empire State, according to the housing report released today by the New York State Association of REALTORS®.

The median sales price of homes jumped 8.5 percent from $413,000 in June 2023 to $448,000 last month. This marks the highest median sales price on record.

Mortgage rates continued to hover near seven percent in June. According to Freddie Mac, interest rates on a 30-year fixed-rate mortgage averaged 6.92 percent. By comparison, in June 2023, the average interest rate was 6.71 percent.

Closed sales tumbled 17.4 percent in June, from 10,446 homes sold in June 2023 to just 8,630 units last month. Pending sales also dropped, falling from 10,979 units in 2023 to 10,346 homes in June 2024. This represents a 5.8 percent decline. New listings dropped 5.0 percent – from 14,493 listings in June 2023 to 13,769 just last month.

Inventory of homes across New York continues to slide. There were 28,896 homes available across New York in June 2023 compared to just 27,603 on the market last month. This represents a 4.5 percent decline in year-over-year figures.

Additional data is available at http://www.nysar.com/industry-resources/market-data.

NEW “Freelance Isn’t Free” Independent Contractor Guidance

Effective August 28, 2024, a new law impacting the independent contractor relationship between a broker and associated licensees will go into effect.  This new law is NOT part of the NAR lawsuit settlement. The new law is called the “Freelance Isn’t Free Act” (FIFA) and was modeled after a law that has been in effect in New York City.  The new law can be found under Article 44-A of the General Business Law.  The purpose of the law is to expand protections for independent contractors (referred to as “Freelance Worker” in the law) as well as additional requires for those individuals or entities that utilize independent contractors as part of their business (such as real estate brokers).   This article will focus on how FIFA impacts real estate brokers that utilize independent contractors in NY.

One requirement of the law mandating the use of written contracts for compensation will impact NYS brokers significantly.  According to FIFA, a broker is required to have a written contract between the broker and the independent contractor.  The broker must furnish a copy of such written contract, either physically or electronically, to the independent contractor and each party to the written contract shall retain a copy thereof.  The broker is required to keep a copy of the contract for a period of six years and make the contract available to the NYS Attorney General upon request.

The written contract must contain the following:

  1. Name and address of broker and independent contractor
  2. Itemization of all services to be provided by the independent contractor pursuant to the contract and the rate and method of compensation
  3. The date on which the broker must pay the contracted compensation or the mechanism by which such date will be determined
  4. The date the independent contractor must submit a list of services rendered under the contract to the broker in order to meet any internal processing deadlines of the broker for the purposes of compensation being timely rendered by the agreed upon date required under (c) (above)

NYSAR has developed a new independent contractor agreement that includes the requirements of the law (other than the broker being required to have a separate written agreement for compensation).  The new independent contractor agreement can be used throughout New York State and New York City (as compared to the current requirement of using a different form for NYC).

NYSAR has included spaces for the names and addresses of the broker and independent contractor (referred to as “sales associate” in the independent contractor agreement).  In order to list the itemization of services (required under (b) above), NYSAR has reproduced the language found in Real Property Law §440 that sets forth what is considered a licensed real estate activity (paragraph 14 of the NYSAR independent contractor agreement).  Real estate brokers that require their independent contractors to perform services outside of those listed in Real Property Law §440 would need to add those services to the independent contractor agreement.

In paragraph 15 of the independent contractor agreement, NYSAR has included language that the independent contractor shall be paid a commission on sales without deduction for taxes.  NYSAR also included language that any such commission shall be paid when the sales associate is the “procuring cause” of a transaction that closes.  Brokers will need to develop a separate written agreement setting forth how much the independent contractor will be compensated (commonly referred to as the “split”). Furthermore, FIFA requires the independent contractor to be paid within 30 days of the receipt of the full commission paid to the broker or under a different time frame contained in the separate written agreement between the broker and independent contractor.  For instance, a broker may have a policy where all independent contractors are paid on the last day of the month that immediately follows the closing.  If the broker has a policy that differs from the 30-day requirement, they need to include that in the separate written agreement.  It is recommended that brokers have their attorney review the separate written agreement for compliance with the law.

The FIFA law also includes anti-retaliatory language to protect independent contractors who exercise their rights under the FIFA law.  NYSAR has included such language in paragraph 16 of the independent contractor agreement “Broker shall not threaten, intimidate, discipline, harass, deny a work opportunity to or discriminate against a Sales Associate, or take any other action that penalizes a Sales Associate for, or is reasonably likely to deter a Sales Associate from, exercising or attempting to exercise any right guaranteed under the law, or from obtaining future work opportunity because the Sales Associate has done so.”

Brokers will need to use the new independent contractor agreement and develop a separate written agreement for all licensees currently associated with the broker as an independent contractor (this includes existing and new independent contractors) on or before August 28, 2024.

The sample NYSAR independent contractor agreement can be found here: http://www.nysar.com/legal/forms/

NYSAR members with questions about the law and compliance may contact NYSAR’s legal hotline.  The legal hotline is available Monday-Friday from 9:00am-4:00pm at 518-436-9727.

Home sales drop across New York as mortgage rates remain above 7% in May

Albany, NY – June 21, 2024 – Home sales dropped across New York State in May as mortgage rates continued to remain above seven percent, according to the housing report released today by the New York State Association of REALTORS®.

Closed sales dipped 4.1 percent from 8,826 homes to 8,465 homes in year-over-year comparisons. Pending sales were down from 10,981 units in May 2023 to 8,465 homes last month. This marks a 4.0 percent decrease. New listings were up 2.1 percent in May – from 14,957 listings in 2023 to 15,265 homes in 2024.

Mortgage rates hit as high as 7.22 percent in May according to Freddie Mac and settled on an average monthly rate on a 30-year fixed-rate mortgage of 7.06 percent. A year ago, at this time, the interest rate stood at 6.43 percent.

Inventory of homes across New York continues to drop. In May 2023 there were 29,236 available homes across the Empire State compared to just 26,076 last month, representing a 10.8 percent drop in year-over-year comparisons.

Median sales prices jumped up 8.3 percent in May, climbing 8.3 percent from $390,000 in May 2023 to $422,500 in 2024.

Data and analysis compiled for the New York State Association of REALTORS® by Showing Time Inc.

End of Legislative Session Update

On Saturday, June 8, the New York State Legislature concluded its 2024 legislative session. In the days leading up, hundreds of bills moved rapidly through the legislative process as state lawmakers rushed to complete its business before the June 6 scheduled end-date. During that time, NYSAR identified harmful proposals gaining political momentum and quickly engaged lawmakers highlighting our concerns.

NYSAR’s successful advocacy this year demonstrates the value of the REALTOR®perspective on issues impacting real estate across New York. The following bills failed to advance following NYSAR’s engagement in opposition:

  • Legislation that would have eliminated dual agency in the state (S.9686 and A.9823);
  • NY HEAT Act, which would have expanded the state’s authority to discontinue residential and commercial natural gas services (S.2016-B/A.4592-B);
  • Legislation that would have prohibited landlords from collecting a rental broker fee from tenants (S.2783/A.4781);
  • Legislation that would have required all sellers of residential real property to provide a lead paint hazard test to a buyer or tenant prior to a transaction or lease (S.2353-A/A.4820-B);
  • Legislation that would have required all real estate licensees to request, collect and retain personal demographic data on clients and submit such information to DOS annually (S.2352/A.10386);
  • Legislation that would have authorized any city or town in the state to create a new real estate transfer tax in order to provide revenue for a community housing fund (S.7589-A/A.7496-A and S.4098-A/A.6257-A);

Our defense against many harmful bills this year, however, caps off a legislative session that saw record state investment in housing initiatives and funding after years of state inaction on a comprehensive housing plan. NYSAR remains supportive of these investments to incentivize and develop much needed housing across the state and will continue to work with state lawmakers in the best interest of our REALTOR® members. For more updates on NYSAR Government Affairs visit http://www.nysar.com/advocacy/.

For an end-of-session summary, click here.

NYSAR to offer Mediation and Ombudsman Training at no cost

NYSAR is hosting FREE mediation and Ombudsman training in June for members who would like to become locally and state certified. Training will be held at the Crowne Plaza Albany – Desmond Hotel. Training is June 17 & 18 from 9 a.m.-5 p.m. both days. 

To book at room at the Crowne Plaza Albany – The Desmond Hotel, click here.  Deadline is May 27, 2024

NYSAR will reimburse attendees June 17th hotel room after the conference is concluded and an expense report is submitted. Details will be given at the conference.

Register for this FREE class here.

New York Home Sales Rise Despite Mortgage Rates Hitting 7% in April

Albany, NY – May 22, 2024 – Home sales and new listings showed new life, rising across the Empire State in April, despite mortgage rates exceeding seven percent for the first time this year, according to the housing report released today by the New York State Association of REALTORS®.

Closed sales edged up 1.5 percent, from 7,046 sales in April 2023 to 7,155 homes in 2024. This is only the second time in the last 32 months, closed sales have risen in year-over-year comparisons. Pending sales also rose from 9,357 sales in April 2023 to 9,946 units just last month. This represents a 6.3 percent increase. New listings of homes jumped 10 percent in April from 12,481 homes in 2023 to 13,725 in 2024.

Despite this, inventory of homes overall continues to be down across the state in year-over-year comparisons, dropping 9.4 percent, from 28,179 units in April 2023 to 25,524 homes last month.

Mortgage rates exceeded 7 percent in April for the first time in 2024. According to Freddie Mac, interest rates peaked at 7.17 percent in April, settling on an average monthly rate on a 30-year fixed-rate mortgage of 6.99 percent. A year ago, at this time, the interest rate stood at 6.34 percent.

Median sales prices rose once again in April, escalating 9.5 percent from $378,000 in April 2023 to $413,750 in 2024.

Additional data is available at http://www.nysar.com/industry-resources/market-data.

Court Grants Preliminary Approval of NAR Settlement

On Tuesday, April 23, the U.S. District Court for the Western District of Missouri granted preliminary approval of the National Association of REALTORS®’ proposed settlement agreement that would end litigation of claims brought on behalf of home sellers related to broker commissions. The plaintiffs’ filing initiated the 60-day period during which all REALTOR®-owned MLSs, brokerages with total residential transaction volume above $2 billion in 2022 and non-REALTOR® MLSs that want to be covered by the settlement must act. The deadline to submit the opt-in agreements is June 18. Read more here.

New York housing inventory continues to set records, falls yet again in March

Albany, NY – April 18, 2024 – Once again, housing inventory across New York State fell to another record low in March, according to the housing report released today by the New York State Association of REALTORS®.

Inventory of homes across the Empire State fell 14.7 percent in March – from 28,060 units in 2023 to a record-setting low of only 23,924 homes statewide. This marks the 13th consecutive month inventory has dropped in year-over-year comparisons and is the lowest number of homes for sale since statistics have been kept in New York State.

Closed sales fell from 7,790 sales in March 2023 to 6,685 homes last month, representing a 14.2 percent decline. New listings were down 7.5 percent in year-over-year comparisons, from 12,749 listings in 2023 to 11,790 in March 2024. Pending sales were also lower, dipping 2.0 percent from 9,776 sales last year to 9,576 homes last month.

Mortgage rates in March continued to rise closer to seven percent again. According to Freddie Mac, interest rates averaged 6.82 percent on a 30-year fixed-rate mortgage. This is up from the 6.78 percent rate in March. A year ago, at this time, the interest rate stood at 6.54 percent.

Median sales prices rose in March, from $360,000 in 2023 to $380,000 in 2024. This marks a 5.6 percent rise in prices.

Additional data is available at http://www.nysar.com/industry-resources/market-data.

 

Take Action Now: Tell State Lawmakers to Oppose Any Form of “Good Cause” Eviction

The State Legislature and Governor Hochul are negotiating contentious parts of the State Budget right now, including statewide “good cause” eviction proposals. Please tell Albany lawmakers to oppose any form of “good cause” eviction as it would only worsen the current housing crisis throughout the state. And instead, urge state lawmakers to include measures in this year’s State Budget to incentivize more construction of new and affordable housing and help future homeowners by establishing the New York First-Time Homebuyer Savings Account Program.

NYSAR opposes “good cause” eviction legislation being considered which would:

  • Cap annual rent increases to as low as 3% or 1.5 times the CPI;
  • Give automatic right to lease renewals for tenants;
  • And prohibit the eviction of a tenant except for certain instances.

NYSAR supports the creation of a first-time homebuyer savings account program which would:

  • Provide a state tax deduction on deposits up to $10,000 per year for joint filers;
  • Require that funds be applied to the purchase of a primary residence first home, townhome, coop or condo in New York State.

Send an email to state lawmakers and Governor Hochul urging them to oppose “good cause” eviction by clicking here.

Home sales inch higher while inventory drops yet again in February

Albany, NY – March 21, 2024 – For the first time in 30 months, home sales increased in New York in February, while inventory dropped yet again to its lowest point in recorded history, according to the housing report released today by the New York State Association of REALTORS®.

Inventory of homes dropped 16.8 percent from 28,170 homes available in February 2023 to just 23,448 units last month. This marks the lowest number of homes for sale since statistics have been kept in New York State. This also marks the 12th consecutive month inventory has dropped in year-over-year comparisons.

Both closed and pending sales were up in February. Closed sales inched up 0.6 percent from 6,195 homes in February 2023 to 6,233 units in February 2024 while pending sales rose from 7,511 homes in 2023 to 7,864 sales last month. This marks a 4.7 percent increase from 2023 to 2024. It’s the first time since August 2021 that home sales have risen in year-over-year comparisons.

According to Freddie Mac, interest rates moved higher each week in February, averaging 6.78 percent on a 30-year fixed-rate mortgage. This is slightly up from the 6.64 percent rate in January. For comparison, a year ago at this time, the interest rate stood at 6.50 percent.

The median price of homes escalated 4.2 percent in February, rising to $375,000. This is up from the $360,000 median price in February 2023.

New listings also rose last month, elevating five percent in year-over-year comparisons – from 9,541 listings in February 2023 to 10,020 listings in February 2024.

Additional data is available at http://www.nysar.com/industry-resources/market-data.