71 percent of all US real estate agents did not sell an asset in 2024. That is not good for an industry with over 1.5 million real estate agents and the National Association of Realtors (NAR) which has 900 board members in need of the dues paid. In fact, the NAR has been plagued by blackmail, sexual harassment, and a multitude of scandals recently. Moreover, though, the Justice Department has been chipping away at the NAR cronyism, in full force, over the past year.
The National Association of Realtors (NAR), representing over 1.5 million members, has recently grappled with leadership challenges. In August 2023, NAR President Kenny Parcell resigned following allegations of sexual harassment. Subsequently, in January 2024, President Tracy Kasper stepped down after reporting a blackmail threat related to a past personal matter. These leadership upheavals have prompted discussions about the organization’s governance and its impact on members’ performance.
NAR operates with a leadership team and a board of directors, though the exact number of board members isn’t specified in the available sources. With over 1.5 million members, the association’s revenue is significantly influenced by membership dues. Given that nearly half of the agents had minimal or no sales in 2024, concerns arise about the financial sustainability for these agents, especially considering the costs associated with maintaining NAR membership and other professional expenses.
The disparity in sales performance suggests that a substantial number of agents may struggle to cover their professional expenses, including NAR dues, licensing fees, and marketing costs. This financial strain could lead to higher turnover rates within the profession, as agents with limited sales may find it challenging to sustain their careers.
The data from 2024 underscores significant challenges within the U.S. real estate industry. The combination of leadership instability within NAR and a high percentage of agents with minimal sales calls for a reevaluation of industry practices. Addressing these issues is crucial for ensuring the long-term viability and professionalism of the real estate sector.
In other news, NVIDIA lost $600 billion of market capitalization on January 27, 2025. This was, based in part, upon the release of China’s new AI, DeepSeek. Not only is DeepSeek open source, but it also only took $6 million to build. This, versus the hundreds of billions of dollars for US AI models. Adding fuel to the fire was the small portion of electricity it consumed compared to US AI models.
DeepSeek, developed by a Chinese startup, has garnered significant attention for its advanced capabilities and cost-effective development. The model’s efficiency is particularly noteworthy; it operates using less advanced hardware and offers services at a fraction of the cost compared to leading AI models from companies like OpenAI and Meta. For instance, DeepSeek’s R1 model charges approximately $0.55 per million tokens, whereas OpenAI’s comparable service is priced at $15 per million tokens.
NVIDIA, renowned for its high-performance AI chips, has been a cornerstone in the AI industry’s infrastructure. The advent of DeepSeek prompted a massive sell-off in tech stocks, with NVIDIA’s shares plummeting by 17% in a single day. This decline erased nearly $600 billion from the company’s market value, marking the largest single-day loss in U.S. stock market history.
The tech community has exhibited mixed responses to DeepSeek’s emergence. Meta’s Chief AI Scientist, Yann LeCun, described the market’s reaction as “woefully unjustified,” emphasizing the necessity for substantial investment in AI inference—the application of AI models to new data. LeCun highlighted that as AI systems become more sophisticated, the associated inference costs will inevitably rise. Conversely, industry leaders are acknowledging the disruptive potential of DeepSeek. The model’s rapid development and deployment have been likened to a “Sputnik moment” for AI, underscoring the intensifying global competition in artificial intelligence.
In response to DeepSeek’s breakthrough, major tech companies are reaffirming their commitment to AI advancement. Meta and Microsoft have announced plans to continue substantial investments in AI infrastructure, aiming to maintain their competitive edge in the evolving landscape. The emergence of DeepSeek signifies a pivotal shift in the AI industry, challenging established players and prompting a reevaluation of strategies in AI development and deployment.
Finally, MCS had a data breach that exposed, at least, 1,143 innocent victims. In February 2024, Mortgage Contracting Services (MCS), a real estate services company based in Lewisville, Texas, reported a data breach to the Attorney General of Massachusetts. The breach involved unauthorized access to the company’s computer network, compromising sensitive personal information, including individuals’ names and Social Security numbers. We covered the matter, in depth, in our article here. This wasn’t the first time MCS has had issues with their ability to handle data. Several years ago, the MCS website and all data went missing for over a week with no explanation. Subpoenas and data demands have been flying and thus far as a result of a class action lawsuit filed against MCS. Five continuances have been granted to MCS, without objection. It brings back memories both of the NFN Involuntary Bankruptcy, now hitting its eighth year, as well as the previous massive data breach of Assurant – Field Asset Services.
