The National Association of Realtors and two brokerage firms were ordered to pay nearly $1.8 billion in damages to about a half a million home sellers after a federal jury found they had conspired to artificially inflate commissions paid to real estate agents.

The decision could radically alter the home buying process in the US and could potentially lead to a restructuring of the entire real estate industry, lowering the cost of moving homes by reducing commissions, The New York Times reported.

A Missouri jury Tuesday sided with the plaintiffs in the class-action lawsuit, awarding them a total of $1.78

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Using a travel agent to buy a plane ticket or a stockbroker to trade equities seems like relics of the past. And yet, every day, people across America hire a real estate agent to help them sell a home. It’s one of the few industries that has been able to largely avoid the disruption that has helped consumers cut costs in the Internet age.

And that is largely because of the power of the National Association of Realtors, the largest professional organization in America and a significant lobbying group for the real estate industry.

But the

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Editor’s Note: This article appeared in the Winter 2024 print edition of REALTOR® Magazine. For the resources and key developments on pending litigation, turn to competition.realtor.

Since it was handed down in October, the verdict in the Sitzer-Burnett case has been top of mind for the industry. The National Association of REALTORS® has made it clear it intends to appeal the verdict. In the meantime, REALTORS®, members of NAR, should be aware of what the case is about and what it means for them.

The case: Sitzer-Burnett is a class-action lawsuit that was filed in

Existing-home sales posted a slight gain last month, breaking a streak of five consecutive monthly declines and foreshadowing what is expected to be a more favorable real estate market in 2024.

The National Association of REALTORS® reported Wednesday that existing-home sales, which were completed transactions for single-family homes, townhomes, condos and co-ops, rose 0.8% in November. That figure is likely to grow in the coming months as borrowing costs fall, says NAR Chief Economist Lawrence Yun. Mortgage rates averaged 6.95% last week after reaching nearly 8% earlier this fall.

Still, November existing-home sales were down 7.3% from a year earlier,

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Bob Goldberg, chief executive officer of the National Association of Realtors, the nation’s largest trade association, is stepping down, the organization announced Thursday.

Earlier this week, a federal jury in Missouri found NAR and two brokerages conspired to keep real estate agent commissions artificially high and determined they were liable for $1.8 billion in damages.

NAR has faced a difficult year, setting aside the jury verdict and even the troubled housing market.

In August, the NAR president, a member agent Kenny Parcell, resigned amid sexual harassment allegations. Earlier this month, Redfin withdrew its membership from NAR.