Sitzer/Burnett ruling could benefit homebuilders, but early to tell, says BofA

BofA notes that a Missouri jury ruled against the National Association of Realtors and several major real estate brokerages in the Sitzer/Burnett trial, finding that NAR’s policy known as the “compensation cooperation rule” raised, inflated or stabilized broker commission rates paid by home sellers. Currently, homebuilders pay buyer agent commissions and the firm thinks the outcome could potentially be a slight positive for homebuilders, but adds that it is “too early to tell the full implications without a final judgment in the case issued.” Publicly traded homebuilders include Beazer Homes (BZH), CalAtlantic (CAA), D.R. Horton (DHI), Hovnanian (HOV), KB Home (KBH), Lennar (LEN), M.D.C. Holdings (MDC), PulteGroup (PHM) and Toll Brothers (TOL).