Compass and Zillow might disagree on many things, but when it comes to the proposed parameters of their expedited discovery, the two adversaries managed to agree on a few items. 

In a joint letter filed on Monday addressed to Judge Jeanette A. Vargas, the parties outlined their proposals for the expedited discovery Compass was granted in relation to its motion for a preliminary injunction. The Robert Reffkin-helmed firm is asking the court to stop Zillow from enforcing its listing access standards, which bans listings that are not entered into the MLS within 24 hours of public marketing. However, according to a Compass spokesperson, some listings held by its agents received violation notices from Zillow after being entered into their local MLS within 24 hours of marketing as coming soons and not active listings.

The preliminary injunction is part of a lawsuit Compass filed against Zillow in late June, in which it claims that Zillow is a monopoly and is harming competition and Compass through its listing access standards policy. 

In the joint letter, the parties tell the court that expert witnesses used in the lawsuit may opine on general real estate industry background information, the nature, rationale, and effect of Compass’s three-phased marketing strategy and Zillow’s listing policy, harm to the market and competition (or lack thereof) with respect to Zillow’s policy, the balancing of anticompetitive effects and pro-competitive benefits with respect to the Zillow’s policy, market definition, market power (or lack thereof), and rebuttal to opinions raised by other side’s expert. 

Both sides agree to withdraw some data discovery requests

Both sides have also agreed to withdraw their respective data-related discovery requests due to the expedited nature of this discovery phase. However, both said they wish to retain the ability to “issue such discovery requests for data after the preliminary injunction evidentiary and hearing phase of the case is complete.”

Compass said it is limiting the scope of its expert discovery to areas that provide necessary background and to only the elements of their claims that are currently being disputed. This will include expert testimony on the alleged “irreparable injury” Compass has suffered as a result of Zillow’s policy. However, Zillow contends that “allowing expert testimony on irreparable harm to Compass (or lack thereof) is both unnecessary and would constitute sandbagging.” 

“Any information relating to harms that Compass claims to have suffered is within Compass’s own knowledge and could and should have been set out with Compass’s PI Motion,” the letter states.

Parties disagree on expert testimony details

Additionally the parties disagree on whether the expert testimony needs to be identical to Compass’s opening papers. 

Compass argues that “prohibiting the experts from fully considering and incorporating the record evidence would do a disservice to the parties, the Court, and market participants in the real estate industry. And preserving Plaintiff’s expert’s ability to respond to Defendants’ arguments certainly does not amount to ‘recasting’ Plaintiff’s essential theories of the case—which are unambiguous and well understood by Defendants.”

On the other hand, Zillow contends that it is only able to meet an expedited discovery schedule if it knows what to focus on in its fact discovery. 

“Allowing Plaintiff to change the whole theories of their antitrust claims after the close of expedited fact discovery and in an expert report, with only three to four weeks for Defendants to respond, would be highly prejudicial and akin to allowing a Plaintiff to amend its complaint after the close of merits fact discovery and in the middle of expert discovery,” the letter states.

Compass, Zillow can take up to five depositions

When it comes to depositions, the parties agreed that they should be eligible to take up to five depositions, telling the court that “establishing any additional restrictions on depositions or hearing witnesses at this time is premature and unnecessary.” In the same vein, Compass also tells the court that it is premature at the moment to limit the number of witnesses who will testify at the hearing.

Zillow, however, argues that “the number of party fact witness depositions should be based on the number of first-party witnesses each party may call at the hearing, both of which must be subject to a reasonable cap.” Due to this, Zillow is asking that each party be allowed to call up three first-party fact witnesses at the hearing and be able to depose up to five fact witnesses from the other party.

Although there are some similarities when it comes to the proposed schedule for the expedited discovery, Compass has proposed that the hearing begin on November 3, 2025 and last four to five days, while Zillow has asked for it to start on December 8, 2025, and only last three days. Regardless of when the hearing occurs, the parties have agreed that the deadline for Zillow to file its motion to dismiss should be 30 days after the court rules on Compass’s preliminary injunction motion. 

The nation’s top brokerage by transaction side count, eXp Realty, is continuing to add agents. On Wednesday, eXp announced that Southern California-based independent brokerage Palm Realty Boutique was joining the firm. 

Founded by Brett Zebrowski, Palm Realty Boutique serves clients in the South Bay, Playa Del Rey and Beverly Hills markets.

“We’ve been courted by national brokerages for years, but I never wanted to lose what made us special,” Zebrowski said in a statement. “eXp lets us keep our brand, our culture, and everything we’ve built and then gives us a Ferrari engine to power it further.”

He also said the welcoming and attentive nature of the brokerage’s leadership, including CEO Leo Pareja, helped convince him to make the move. 

“Brett and his team represent the best of boutique luxury real estate; high-touch service, deep community roots, and incredible results,” Pareja said in a statement.

In 2024, Palm Realty Boutique’s 90 agents generated $750 million in sales volume from 370 transaction sides, according to a press release. 

Zebrowski and his team will join eXp’s luxury division, giving them access to the brokerage’s global referral network. 

“This isn’t a goodbye to who we are,” Zebrowski said. “It’s a hello to what we can become.”

On Tuesday, eXp announced that former Keller Williams CEO Chris Heller was moving his team to the company.

As Arizona grapples with rapid growth and a changing climate, long-standing groundwater regulations are being tested in courtrooms, boardrooms and booming desert suburbs.

Developers and regulators are locked in a deepening dispute over how to manage the state’s finite water supplies — with the future of real estate, agriculture and sustainability hanging in the balance.

“When the Groundwater Management Act was passed in 1980, it really focused on the urban areas,” said Rita Maguire, an attorney and former director of the Arizona Department of Water Resources. “It was the five major population centers for the state. So places outside of what we call active management areas were essentially unregulated.”

Even within AMAs, the law draws important distinctions between homes built within the boundaries of a designated municipal water provider and those built just beyond.

Cities like Phoenix must prove every 15 years that they can meet water demands for the next century — but developers building just outside those boundaries only need to prove it once, Maguire said.

“When you’re talking about a developer who builds outside of a designated service area and gets a certificate of assured water supply, it’s a snapshot,” she said. “At that point in time, they had a 100-year assured water supply. Going forward, they don’t have to have further proof.

“They’re done. They sell their homes and they’re on their way to develop another subdivision.”

Assured supply requirements under fire

That 100-year rule — widely considered one of the most rigorous groundwater standards in the nation — is now at the heart of a legal fight.

In 2023, the Arizona Department of Water Resources released a new groundwater model showing that key growth communities like Buckeye and Queen Creek no longer have enough groundwater to support new subdivisions over the long term.

The model effectively halted new, for-sale housing outside of designated municipal providers in those areas.

Spencer Kamps, vice president of legislative affairs for the Home Builders Association of Central Arizona, sharply criticized the model.

“We think it’s significantly flawed, inaccurate and has been misrepresented,” said Kamps. “The consequences are that you can no longer grow any homes for sale outside designated providers. And the two biggest communities impacted by that are Buckeye and Queen Creek, the fastest growing communities in the valley, and [the] most affordable housing market in the valley all have been shut down.”

The builders’ association filed a lawsuit earlier this year challenging the department’s findings and accusing the state of singling out the for-sale housing market while allowing other sectors — such as industry and rental housing — to continue using groundwater with fewer constraints.

“There are eight to nine projects that are currently stalled because of the groundwater model,” Kamps said. “And due to that, there’s been in excess of $3 billion invested in the ground solely for houses.

“We have plans for over 200,000 lots in northern Buckeye and that’s been challenging, to say the least.”

Differing views

Maguire argues that the 100-year requirement is a cornerstone of water sustainability and consumer protection.

“I think that the 100-year assured water supply is really important consumer protection,” she said. “Frankly, it could be longer — 100 years goes by pretty quickly.”

She also highlighted the difference between renewable water — such as surface water from the Colorado River — and groundwater, which can take centuries to recharge.

“You pump that water out, it isn’t immediately replenished,” she said. “It takes hundreds of years, millennia, to restore an aquifer.”

Kamps countered that the law now penalizes industries that replenish aquifers through programs like the Central Arizona Groundwater Replenishment District.

“If you replenish your groundwater, you can’t grow. But if you mine groundwater — which is what commercial and industrial users do — that’s okay,” he said. “It’s upside down.”

“No single for-sale home”

The dispute has put a spotlight on one of the fastest-growing regions in the country.

Communities like Buckeye and Queen Creek have become magnets for families priced out of central Phoenix — but many of those areas fall outside designated water provider zones.

“Right now, you can build data centers and chip factories as far as the eye can see, but you can’t build one single for-sale home,” Kamps said. “That’s not protecting the aquifer — that’s shutting down housing.”

He pointed to large industrial users like the Taiwan Semiconductor Manufacturing Company plant in Phoenix, which he said uses between 30,000 and 35,000 acre-feet of water annually — equivalent to more than 100,000 homes.

“Housing uses far less water than agriculture and actually reduces ag pumping,” Kamps said. “We need to be at the table — because right now, the system is broken.”

Maguire said occasional confusion over water availability is exacerbated by homebuyers coming to the state who may not understand Arizona’s complex system of water rights and regulation.

“If there’s a misconception, it would only be to the extent that you’re not aware that there is some risk associated with the long term availability of groundwater supplies across the state,” she said. “That’s why we adopted the various regulatory programs to try to put in place more protection.

“Certainly if you have Colorado River water, that’s a better source of supply.”

Science, lawsuits, political pressure

The builders’ lawsuit also challenges the state’s use of hydrologic modeling to determine water availability.

Developers commissioned an independent environmental firm to produce their own groundwater model for the Phoenix basin, which, according to records, offered significantly more optimistic projections for the region’s aquifers.

Kamps said it’s common for developers to submit independent hydrology reports — sometimes at the state’s request.

“It’s very common for the Department to say, ‘Hey, we need more hydrology at your site.’ We go out, examine X, Y and Z, and provide that information,” he said. “No different than what’s being done here.”

But Maguire suggested that technical arguments may mask deeper legal and political tensions.

“There are places where we’re running low on groundwater,” she said. “In fact, we’re hitting the legal boundaries for access to groundwater, and they are denying applications for a certificate of assured water supply. That creates political pressure to revisit that regulatory program.”

Eyes on the Colorado River

Looking ahead, both Maguire and Kamps said that Arizona’s role in regional negotiations over the Colorado River will be critical.

New water-sharing guidelines are being developed to replace the current framework, which expires in 2026.

“The states and the feds are sitting down and trying to come up with a new paradigm for how to operate,” said Maguire, “primarily Lake Powell and Glen Canyon Dam, and Lake Mead and Hoover Dam. How much water is released when it’s released? What are the conditions for releases?”

She noted that 22 Native American tribes in Arizona — many of whom rely on Colorado River water — are also part of the negotiations.

“You’ve got a lot of folks watching and trying to ensure that they have a secure water supply post-2026,” Maguire said.

Kamps said the homebuilding industry should have a voice in those discussions as well.

“Well, guess what they’re doing with the Colorado River,” he said. “They’re renegotiating so nobody can offer up any water to our builders to finish these projects. It’s not because of any ill will. It’s just like they don’t know if they’re going to have the water next year, so the consequence is there is no water available for us to move these projects forward.”

A statewide reckoning

The debate over groundwater in Arizona is more than a clash between developers and regulators — it reflects a broader reckoning over how the state will grow in an era of rising temperatures and tightening water supplies.

Despite the complexity of the issues, Maguire sees growing public understanding as a hopeful sign.

“The press is doing a pretty good job of covering these water issues,” she said. “They’re very complicated, but I think overall, the public’s pretty well educated and certainly has the resources available to understand what the political leaders and the business leaders are trying to do to ensure that there’s a secure water supply.”

But as legal battles unfold and reservoirs dwindle, Arizona faces difficult decisions about what — and whom — its water laws are really built to protect.

“What (regulators) are saying, and what the deficiency letters have said that we’ve received is, ‘You may actually have 100 years worth of water at the location of your site, but a well may go dry in Coin Creek, and you need to resolve that,” Kamps said. “That is a new policy position out of the department that’s never been done before, and that’s one of the issues we’re we’re discussing in court.”

Forget The Block, you could buy incredible properties from a helix-inspired country estate to cantilevered shipping-container-style homes or an abandoned church in Daylesford right now.

The ritzy regional suburb’s property market has more than its share of stunningly renovated and recently built homes already up for grabs, without waiting for a group of amateur renovators to down tools.

In fact, local agents have warned waiting even a few more weeks could wind up costing prospective homebuyers.

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McQueen Real Estate’s Kim McQueen said once the show’s properties were listed online it was expected there would be an uptick in demand for other listings in the regional Victorian town — making now the best time for those considering a purchase there.

“A lot of people are waiting for The Block to launch and we are expecting renewed interest,” Ms McQueen said.

“If you are after something really nice, now is the time to jump in. But be quick.”

The agent, who has been working with The Block in Daylesford, said she expected the shows new offerings would be quite varied, and all to have a key difference to a lot of the area’s other homes as they will have “everything down to the knives and forks included”.

Take a look at what’s already on offer, and potentially well below the prices the show will be asking for in November.

Helix House, architectural wonder

Modernist design, steel, iron and Mt Gambier Limestone combine at this incredible Daylesford property that takes in its impressive views via double-storey glazing.

Two buildings connected by decking include a hexagonal turret that works as a stand-alone unit and a curving, angular main residence with a second six-sided tower.

The floorplan at 12 Indigo Lane includes a music room, gallery, library, multiple living spaces and voids soaring above most of the ground level.

Listed with a $2.9m-$3.19m asking price via McQueen Real Estate’s Kim McQueen, it’s set on a 1.89ha allotment.

“It’s the most amazing house, it’s very unique and it’s just stunning,” Ms McQueen said.

A 10 minute walk to the Daylesford township, the property is still in its own private world

Shipping-container chic, compact home

Carr Design’s architecture and interiors can be found throughout Australia’s capital cities.

But you probably won’t see much like these shipping-container style residences located a short stroll from Daylesford’s eponymous lake.

Belle Property’s Shona Halahan is handling the sale and said the 3/25 King St property, as well as its neighbour at No. 4/25 King St.

The $1.195m asking price gets you a three-bedroom, three-bathroom floorplan and a light and bright decor with minimal bills, thanks to a 7.5 star Nationwide House Energy Rating Score.

It also comes with one of the more modern aesthetics around town.

Renovated barn, rustic charmer

Windows shipped in from regional France, a mix of wood cladding, corrugated iron, exposed beams and a loft-style all give unsubtle nods to this home’s past life as a barn.

McQueen Real Estate’s Kim McQueen has it tagged as a “local icon” that embodies a “rustic barn style”.

“It’s a fairy-book barn,” Ms McQueen said.

“And it’s on the doorstep of the botanic gardens.”

The 1 Wombat St property is near the town’s popular Wombat Hill Botanic Gardens, which was the home of beloved children’s character Blinky Bill the koala.

With arguably just six interior walls in total throughout the home, the two-storey address manages to create two distinct living areas, three bedrooms a kitchen, laundry and two bathrooms.

La Dolce Vita, contemporary cottage

Big views meet bold design features including Egyptian double doors and a cast-iron glass house at this verdant address.

From the Esse Ironheart English stove to the claw foot bath, French-style conservatory, and ornate light fittings — it’s got the kind of design hallmarks that would have TV reno show judges quickly onside.

It’s also won space in home design magazines and is being described as “a storybook come to life”.

Shona Halahan at Belle Property is handling the sale for the home at 33A Camp St, as well as a bare block at neighbouring 33B Camp St, with a $1.695m asking price.

Graffiti-lined, abandoned church

If you are looking to get your hands dirty, the one-time St Andrews Presbyterian Church at 19A Camp St is taking expressions of interest until 3pm August 1.

Jellis Craig’s Gary Cooke is handling inquiries and said while the church was a prominently-located landmark, its future was likely in the hands of developers.

“No one is going to knock it down … you just need the vision and capacity to get in and do the work,” Mr Cooke said.

At present permits for the 3247sq m site would allow for about 10 units to be added into its interior and another eight at the rear of the block, but there’s scope for alternatives to be considered.

“It’s an incredible property, but it has been vacant for at least 20 years,” Mr Cooke said.

Kids have gotten in and vandalised the walls with graffiti, and a few windows have broken — but overall it’s in impressive condition for something built in 1903.

It even still features an organ installed in 1905 by E Cornwall Cook.

The property has $1.65m-$1.75m expectations.

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Compass Real Estate reported its strongest quarterly performance in company history during the second quarter — delivering record revenue and profitability despite challenging housing market conditions.

The company reported a 21.1% year-over-year revenue increase to $2.06 billion in the second quarter of 2025, with total transactions rising 20.9%.

Compass CEO Robert Reffkin emphasized the company’s strategic focus on agent empowerment, technology innovation and operational execution Wednesday during a second-quarter earnings call.

“I hope more brokerage CEOs see our results as a signal that they will attract more agents if they fight for them and not simply acquiesce to portals and MLSs that ban and fine agents for marketing listings outside their platforms,” he said. “Now, beyond our record agent recruiting quarter, our M+A pipeline is also larger than it has ever been.

“As we said previously, a slowing housing market or a move higher in rates will likely hurt our competitors more than Compass as they don’t have the capital, the technology or the operational resources to scale, and this is exactly what we are seeing play out today.”

Their record results contrasted with a 0.9% decline in overall market transactions, Reffkin added.

The acquisition of Christie’s International Real Estate contributed 10.4% of the revenue growth during the quarter.

Organic revenue grew year-over-year by 8.7%, while revenue from acquisitions completed since April 1, 2024, added 12.4%.

Adjusted EBITDA increased by $48.5 million to $125.9 million from $77.4 million a year prior. Operating cash flow reached $72.8 million, with free cash flow at $68.0 million.

At quarter-end, cash and cash equivalents totaled $177.3 million, with $50 million drawn on the company’s revolving credit facility.

Market position, agent retention

Compass expanded its national market share to 6.09% in Q2 2025, up 96 basis points from the prior year.

Organic market share grew by 40 basis points. The company’s principal agent count increased 23.3% year-over-year to 20,965 — adding 832 agents sequentially from Q1 to Q2 2025.

Agent retention remained strong at 97.5%, a 20 basis point improvement.

“The consistent thing we are hearing from agents that join this quarter is that they want to be at a company that stands up for agents and stands up for their clients,” Reffkin said. “No agent wants to be told by a portal or an MLS how they must work, and none of their clients want to be limited in when and how they market their home.

“The reality is, the intention of the portal and MLS listing policies is control. The purpose of control is to get the homeowners’ listings from agents for free and to monetize those listings on their platforms. And the mechanism for control is banning and fining agents that market off their platforms.”

Total transactions closed by Compass agents hit 73,025 in the quarter. Gross transaction value (GTV) grew 20.3% to $78.3 billion, with organic GTV at $69.3 billion, ahead of the market’s 1.4% GTV growth, Reffkin said.

Expansion in title and escrow

Compass’ title and escrow business also hit new highs in revenue and attach rates, with attach rates now approaching 75% in some markets.

“This gives us confidence that over the long term, we can attach (title and escrow) at a 50% in most of our markets,” Reffkin said. “We expect contribution from this business to increase meaningfully over the coming years.

The business recently expanded to New York — one of Compass’ largest markets — and is projected to cover 70% of the company’s geographic footprint by the end of this year.

Technology and future outlook

Reffkin highlighted Compass’ technological progress, particularly its plans to leverage artificial intelligence (AI) to enhance agent productivity and operational efficiency.

“We envision a platform that is made more seamless as we leverage AI to be the connective tissue for all the wonderful tools we created for agents so far,” he said.

He stressed that Compass already has the team and technology to harness AI without massive new investment.

“Most of our competitors’ agents are on third-party software platforms that do not allow them to connect all the various parts of an agent’s workflow,” Reffkin said. “This ultimately will take value away from these brokerages, while increasing the value of brokerages like ours in the eyes of the agents.”

Reffkin said beta testing of Compass AI 2.0 will begin this fall — initially focused on improving agent productivity before expanding across the organization.

For the third quarter of 2025, Compass projects revenue between $1.725 billion and $1.85 billion, with adjusted EBITDA estimated between $60 million and $80 million.

The updated full-year 2025 outlook anticipates non-GAAP operating expenses between $1.01 billion and $1.02 billion, reflecting a slight reduction from prior guidance.