By James P. Schlimmer, SVP Real Estate Growth Officer, Equity Trust
For nearly three years, national housing activity has remained at historic lows. According to weekly Altos Research data, inventory, pending sales, and days on market have all reflected a prolonged slowdown unlike anything seen since the early 2010s.
Even as mortgage rates show signs of easing, the market is still far from a typical cycle:
- Inventory has hovered between 630,000 and 860,000 nationally for much of 2025—levels far below the pre-pandemic baseline.
- Pending sales volume has remained muted, with many weeks in 2025 showing only 55,000–70,000 homes under contract nationwide.
- Median list prices have flattened or pulled back, softening from the mid-$450,000 range down toward $430,000.
- Days on Market have stretched back into the 110–120-day range nationally, reflecting slow-moving buyer activity.
For title companies, this prolonged stagnation has created a simple reality: Fewer transactions mean fewer title orders. And with many markets still working through a three-year trough, companies are asking:
What happens when the market starts climbing back to normal, but the distribution model has fundamentally changed?
While the market slowed, national DTC platforms accelerated their race to control the consumer journey, especially the parts that connect directly to Lender, title and closing.
Rocket: Demonstrating the Scale of a Unified Funnel
Rocket’s Q3 earnings highlighted how powerful a vertically connected model can be:
- Over 500,000 Redfin users began mortgage pre-qualifications in September alone.
- 13% of Rocket’s purchase closings now come directly from Redfin-sourced buyers.
- They onboarded 400 loan officers in one month, reinforcing their DTC recapture strategy.
- All of this activity is funneled toward Rocket’s integrated closing arm, Rocket Close.
In other words, while the total number of closings is constrained, the share controlled by large DTC ecosystems is expanding.
Zillow & Compass: Tightening Their Ecosystems
Zillow and Compass continue to push toward deeper integration of search, private listings, agent tools, lending, and closing.
Even while they battle in court, both are moving rapidly toward ecosystem models that:
- Keep the consumer inside a controlled funnel
- Reduce reliance on independent title providers
- Link property search directly with mortgage and ultimately, title
Once built, these ecosystems act as moats, making it harder for local, independent title agencies to stay included in the conversation as transaction volume rebounds.
Opendoor’s New Shopify CEO: Trying to Reinvent Its DTC Path
Recent Opendoor earnings reveal a push toward:
- “Buy Now” functionality allowing consumers to self-serve
- AI-driven inspections
- A future marketplace model where the entire transaction happens inside Opendoor’s environment
Each of these moves represents the same trend: Control the consumer, control the closing.
What This Means for Independent Title Companies
Even as the market recovers, the competitive landscape may not return to “normal.”
Large platforms are building funnels that direct the consumer from:
Property Search → Listing → Pre-Qual → Offer → Contract → Closing
And that closing path is increasingly their own in-house title provider.
Independent title companies that wait for volume to “come back” may find themselves recovering into a reshaped market—one where consumer pipelines are already spoken for.
That’s why more title companies are evaluating complementary revenue lines that:
- Do not require additional staff
- Do not require new systems or operational lift
- Help stay top-of-mind with clients and agents
- Provide educational value in an increasingly complex landscape
One area gaining attention: 1031 exchange referral opportunities.
Why 1031 Revenue Matters in a Slow (and Changing) Market
A 1031 exchange is a tax-deferred strategy many real estate investors use when replacing investment property. But most clients do not fully understand the rules, the timelines, and the Qualified Intermediary requirements.
That is where title companies may play a meaningful, value-added role by:
- Educating clients and agents on the basics
- Providing helpful, non-advisory resources
- Introducing clients to a trusted qualified intermediary
- Staying involved in real estate conversations even during slow periods
And because Equity 1031 Exchange handles the administrative and operational work, the title company’s role may be limited to education and referral—no additional staffing or processing required.
Some companies also pursue revenue-share structures, helping diversify income while transactions remain constrained.
To see how 1031 strategies can fit into your business with minimal lift, watch our on-demand webinar:
Slower Market, Smarter Closings – How Title Companies May Add Revenue with 1031 Exchanges.
Watch On-Demand
This session is designed to give title companies practical, actionable insight—and resources you can put to work immediately.
About Equity 1031 Exchange
Equity 1031 Exchange provides reliable, nationwide Qualified Intermediary services backed by IRS Section 1031 compliance. As a proud member of the Federation of Exchange Accommodators (FEA), our team includes multiple Certified Exchange Specialists® (CES®) who ensure every exchange is handled accurately, securely, and with exceptional client care. Equity 1031 Exchange facilitates all types of 1031 exchanges —delivering support and peace of mind at every step.
Disclaimer
The role of Equity 1031 Exchange, LLC as Qualified Intermediary is limited to acting as qualified intermediary within the meaning of Regulations section 1.1031(k)-1(g)(4) for Federal and state income tax purposes. In this regard, Equity 1031 Exchange is not providing other legal, investment, or due diligence services. The taxpayer/exchanger must direct all investment transactions and choose the investment(s) for the exchange. Nothing contained herein shall be construed as investment, legal, tax or financial advice or as a guarantee, endorsement, or certification of any investments, legal effect or tax consequences of the transfer, conveyance and exchange of the Relinquished Property and/or the Replacement Property.