The Ten 2024: New rules, old battles and seeking ‘peace’
Leaders stepped up as the NAR settlement changed the game, Clear Cooperation fueled division and the Department of Justice stoked fears in this surprising year.
Editor's note: In this year of evolution — much of it mandated by legal challenges — a handful of people and themes have emerged as defining forces. Real Estate News has selected the top newsmakers of 2024, based on their industry impact and influence. They are The Ten.
As the Sitzer/Burnett commissions trial moved toward its epic finale — the approval of settlements totaling $700 million — a theme emerged in the sometimes contentious proceedings: Peace.
Ethan Glass, attorney for the National Association of Realtors, said NAR didn't want to settle but did it to "provide certainty for everyone" in the face of "catastrophe," while a lawyer for HomeServices of America said the deal offered "peace and closure" for the company and its franchisees.
The approvals, though facing appeals, have allowed the industry to exhale and get back to business in a year that has been full of surprises.
And through it all, a handful of people and themes have emerged as defining forces. They are The Ten. This month, we will tell their stories, with a look back and an eye toward the future.
Changing the rules: Buyer agreements and more
August 17 was a new day as the NAR deal to settle commissions lawsuits shifted the way agents interact with buyers (agreement first, then home tours) and the way buyer agent commission information is communicated (not on the MLS).
These changes, which some in the industry are resisting despite calls to quit trying to find workarounds, now have a judge's official blessing. Still to be seen is their long-term impact on commissions, which seem to be holding relatively steady so far.
Clear Cooperation: Who is fighting for the consumer?
No matter what side they're on, the industry leaders debating the future of Clear Cooperation insist they are fighting for the good of consumers.
Those in favor of keeping the policy — which requires listings to be shared on the MLS within a day of being publicly marketed — say it protects the open marketplace that has become the envy of the world. Those against Clear Cooperation (most notably Compass CEO Robert Reffkin) say it limits seller choice.
The only thing clear for the moment is that there is no set timeline for a decision on the future of the policy, which rests in the hands of the NAR Leadership Team.
The Department of Justice takes aim at real estate
Just days before the NAR settlement was approved, the DOJ jumped in with a late filing questioning a core aspect of the deal: buyer agreement requirements. The judge was unmoved, but at the hearing, a DOJ attorney made clear that the agency reserves the right to continue to investigate what it sees as anticompetitive behavior.
Consider this the cherry on top of the sundae for an agency that an industry lawyer characterized as "incredibly aggressive." Will the agency "get their wings clipped" in 2025? We'll see.
eXp Realty CEO Leo Pareja takes the lead
As agents struggled to process the impact of the NAR settlement, Leo Pareja — who was promoted to CEO of eXp Realty in April — led a virtual town hall that drew nearly 50,000 viewers and eased a lot of concerns. But he didn't stop there. As eXp took a leadership role with forms, Pareja made it clear that the brokerage would "go further than the settlement."
Pareja, who also came out in favor of Clear Cooperation, has been a steadying — and motivating — force for eXp as it has faced executive departures, lingering sexual harassment lawsuits and a declining agent count (with the silver lining of increased transaction volume).
MLS ownership goes private — in a very public way
The dramatic, first-of-its-kind change in ownership at REcolorado raised some concerns, but new owner Joseph Burks said his intention is to ensure that "REcolorado remains a cornerstone of our real estate community with an even broader offering of services and technological advancements." Association leaders, meanwhile, said they did not profit from the sale.
As 2024 drew to a close, REcolorado named a new president and CEO, Dana Bennett, who brings decades of MLS and brokerage experience. She and Burks are promising to add value for subscribers and, as Bennett put it, "propel the company into its next chapter."
Real Brokerage President Sharran Srivatsaa promotes tech — and kindness
Real loves to tout its tech, which is ambitious, proprietary and an important part of the fast-growing brokerage's success. However, the impact of its charismatic president, Sharran Srivatsaa, cannot be denied.
Srivatsaa has been essential in terms of telling the Real story, and in the process selling people on its success. He has also, like eXp's Pareja, been someone that agents have looked to as a guide through challenging times, and he has used his platform to advocate for kindness as well as a focus on productivity.
Home search portals take big swings in pursuit of Zillow, and each other
CoStar CEO Andy Florance has made it clear that his goal is to topple Zillow from its place as the dominant home search site for consumers. CoStar rolled out a $1 billion effort to promote Homes.com, which has paid off in the form of a big increase in traffic in 2024, though it still lags behind its competitors — including Realtor.com.
This summer, the rivalry with Realtor.com moved from the court of public opinion to the actual court, pulling the two companies into an ongoing legal battle over the alleged theft of trade secrets. The judge advised both parties to settle, but the case continues.
Housing market defies optimistic predictions
This was supposed to be the year that the housing market bounced back. Instead, home sales have failed to gain momentum, even with a late-year rally, and time is running out on 2024 outpacing last year, though pending sales are sending a promising signal. A common theme throughout the year? Optimism, followed by disappointment.
Mortgage rates dipped slightly this fall, but the reprieve was only temporary. As buyers continue to face record high home prices, hopeful eyes are now turning to 2025, despite uncertainties.
Law professor Tanya Monestier speaks up for buyers and sellers
Tanya Monestier, a law professor at the University at Buffalo School of Law, has emerged as a high-profile consumer advocate, tackling some of the thorniest topics in real estate: buyer agreements and the NAR settlement.
On buyer agreements, Monestier has advocated for forms that both consumers and agents can easily understand, creating a draft as a model for the industry. And on the NAR deal, she filed a 136-page objection spelling out numerous and wide-ranging concerns, and she has continued to speak out in the wake of the settlement's approval.
NAR seeks unity after fending off attacks from all sides
Just when it seemed the National Association of Realtors was getting significant traction in its move to make peace with those left out of its settlement, explain rule changes to consumers and get ahead of antitrust issues, the New York Times published two new investigations into the organization, one focused on "lavish" spending that includes six-figure payments for volunteers — touching off waves of frustration and calls for reform — and the other alleging political bias via an affiliated nonprofit.
Meanwhile, court battles have continued, with the DOJ pursuing investigations, and agents, brokers and local associations challenging NAR's three-way agreement through lawsuits, letters and defiance. Through it all, however, membership has held steady, and the organization is looking toward the future.