$COMP

California Regional Multiple Listing Service (CRMLS) sued Compass in federal court over rules penalizing agents for publicly marketing office-exclusive listings. CRMLS seeks to uphold its rules under antitrust laws and prevent Compass from pursuing claims. Compass had threatened legal action if CRMLS did not stop enforcing the rules, arguing sellers should be able to publicly market listings without penalties.

Real estate stocks declined due to rising bond yields and sector rotation into technology. KB Home (KBH) fell despite earnings beat, citing margin guidance. S&P 500 Real Estate Index dropped 1.36%. Crown Castle (CCI) and SBA Communications (SBAC) led large-cap losers, while Howard Hughes (HHH) gained 13.63%.

Goldman Sachs maintained a Neutral rating and $12.00 price target for Compass Inc. (NYSE:COMP), citing a deteriorating U.S. housing market. It lowered Q3 2026 EBITDA estimates to $281M and revenue to $3.89B. Compass shares are up 30% over six months but down 2.2% recently. The firm expects Compass to outperform due to its premium market focus and inventory strategy.

Real estate stocks declined as the Fed raised interest rates, pushing mortgage rates to nearly 7%. The S&P 500 Real Estate Sector Index fell 2.3%, with residential REITs down 4.8%. Zillow (Z) dropped 10% after a court ruling, while Alexandria Real Estate Equities (ARE) gained 4.2%. Several joint ventures were announced, including one by Realty Income (O) in Europe and another by Digital Realty (DLR) in Türkiye.

A U.S. judge ruled against Zillow's request for an injunction in its lawsuit against MRED and Compass, requiring Zillow to comply with MRED's listing standards in Chicago. MRED and Compass celebrated the ruling, while Zillow noted it's not a final judgment. The decision impacts real estate professionals in Chicago, with some viewing it as a win for transparency and consumer choice. Compass and Coldwell Banker, both owned by Compass, praised the ruling, while independent brokers expressed mixed v

A federal judge denied Zillow's injunction against the Chicago MLS (MRED) and Compass, allowing private listing networks to operate. The ruling may enable MLSes to expand nationally with private networks, though Zillow argues these networks harm transparency and market access. The case is now in arbitration, with Congress also scrutinizing the practices.

Analysts Jake Fuller (BTIG) and Howard Penny (Citi) maintained Buy ratings on Compass (COMP) and Goodman Group (GMGSF). COMP has a $15.30 avg. price target (43.3% upside), while GMGSF has a $24.74 avg. target (39.7% upside). Both stocks have consensus ratings of Moderate Buy (COMP) and Strong Buy (GMGSF).

The antitrust case between MRED and Zillow is paused and headed to arbitration, with Judge Tharp staying the case to avoid inconsistent rulings. Legal experts note that arbitration proceedings are private, and Zillow's preliminary injunction was denied due to insufficient evidence of a conspiracy. The ruling is seen as skeptical of Zillow's case, but a settlement is still possible.

Consumer groups sent a letter to state attorneys general, urging an investigation into Zillow, Compass, and other real estate platforms for practices they claim reduce housing affordability. The letter follows an FTC settlement with Zillow over a $100M deal with Redfin, which the groups argue favors Zillow. They also criticize Compass's private listing practices and referral fees.

Zillow's motion for a preliminary injunction was denied, sending its claims against MRED to arbitration. Zillow aims to fight for a fair housing market, while MRED calls the ruling a victory for transparency. Compass and Zillow shares fell after the Federal Reserve rate hike. Zillow sued Compass and MRED in May, alleging collusion to hide listings.