The Changing Real Estate Market

Rep. Maxine Waters [D-CA]: Good afternoon ladies and gentlemen. I want to thank Chairman Ney for holding this hearing. The issue of competition in the real estate industry has generated a great deal of interest. As many of you know, the issue of competition in the real estate industry reached new heights last year with Department of Justice litigation against the National Realtors Association.

First, I believe that we are all for competition that will benefit the consumer. However, I am not sure that we should be reaching any conclusions about what is the most appropriate real estate services model -- traditional or non-traditional. I can not envision purchasing real estate without my real estate broker and agent.  I am sure there are many of you who feel the same as I do. And while there has been tremendous growth in the use of the Internet in real estate transactions, I am not comfortable that the expansion of real estate services via the Internet will afford consumers the opportunity to save money in the long run or to have their interests adequately represented.

The so-called no frills approach to the buying and selling of real estate is at the heart of the current debate about competition in the real estate industry. However, there is no evidence that consumers are seeking to use discount brokerages and Internet based services rather than the traditional services of their trusted real estate broker and agent. Indeed, it is unclear whether a more competitive market structure, with greater participation by innovative, Internet based brokers, will increase demand for these services, or if consumers will continue to use bundled services and the experience that traditional broker's offer.

This hearing should enable us to determine what is the appropriate role of the discount brokerage, the traditional real estate agent and broker, and the Internet in fostering competition in the real estate market. I would hate for anyone to reach conclusions about how best to foster competition in the real estate industry without the opportunity to assess the various perspectives on this issue. Thank you. 

Click the link to watch the video of the hearing.

https://www.house.gov/waters/media/7-25-06_The_Chaging_Real_Estate_Market.wmv

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