Judge Signs Off on Historic NAR Settlement

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News Flash

NAR's Commission Game-Changer: Judge Signs Off on Historic Settlement

A federal judge has granted final approval to the landmark Sitzer-Burnett antitrust settlement against the National Association of Realtors (NAR). This isn't just another legal footnote—it affects 1.4+ million NAR members and could transform how they do business.

Say goodbye to listing cooperative compensation on MLS. The settlement bans this decades-old practice, aiming to make commission fees more transparent and negotiable. NAR members working with buyers must now enter into written agreements establishing both representation terms and compensation.

These changes represent one of the most substantial shifts in real estate commission structures in decades. The agent commission structure is on unstable ground. Will it create the transparency and competition regulators hope for? Time will tell.

And Property Values Could Also be on Shaky Ground—Literally

New analysis from First Street projects a staggering $1.47 trillion in U.S. real estate value could vanish due to climate change impacts. The culprit behind this potential wealth wipeout? Insurance costs are going through the roof.

Under risk-based insurance pricing, average property premiums could surge 29.4% by 2055. That's not a typo—nearly 30% more in carrying costs directly impacting property values.

The market punishment won't be distributed equally. Miami, Jacksonville, Tampa, New Orleans, and Sacramento are particularly vulnerable to the projected premium spikes.

Climate-related events aren't just future concerns—they're already destabilizing markets and making insurance both more expensive and harder to secure in some regions.

The bottom line: That dreamy beachfront property might come with a not-so-dreamy reality check.

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More You Should Know

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• Trump Plans GSE Privatization: The Trump administration has announced intentions to privatize government-sponsored enterprises Fannie Mae and Freddie Mac, aiming to take them public while maintaining government guarantees and oversight, a move that has significantly boosted their stock prices. [Source]

• Gen Z Buying Homes Together: A significant surge in Gen Z homeownership is attributed to innovative strategies like sibling partnerships, with a Bank of America report indicating that 22% of Gen Z homeowners bought with siblings in 2024, a dramatic increase from 4% in 2023, as they seek to overcome affordability challenges. [Source]

• Housing Market Shifts: Sellers Prevail: The U.S. housing market is experiencing a notable shift as sellers are now outnumbering buyers by nearly 500,000, according to Redfin data, potentially leading to significant adjustments in pricing and inventory. [Source]

• Commercial Real Estate: Mixed 2025: The commercial real estate market is experiencing varied performance in 2025, with industrial properties showing robust growth, office spaces striving for stability through quality demand, and retail adapting to evolving consumer behaviors. [Source]

• PropTech Set for Massive Growth: The global PropTech sector, valued at $35-40 billion in 2024, is projected to exceed $100 billion before 2032, largely propelled by artificial intelligence integration and the widespread adoption of smart building technology in new commercial constructions. [Source]

• Mortgage Rates Dip Below 7%: Current mortgage rates have eased, with the national average for a 30-year fixed-rate mortgage dropping to 6.86% and the 15-year fixed rate declining to 5.85%, offering relief to potential homebuyers. [Source]

• Housing Affordability Crisis Deepens: The National Association of Home Builders reports that nearly 75% of U.S. households are priced out of a median-priced new home in 2025 due to high prices and mortgage rates, impacting approximately 100.6 million households. [Source]

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