Real Brokerage Agent Survey Reflects Continued Optimism Ahead of Anticipated Industry Changes
April 16 2024 - 9:09AM
Business Wire
Agents Foresee Improved Transparency as Real’s
Agent Base Grows to Over 17,000
The Real Brokerage Inc. (NASDAQ: REAX, “Real”), the
fastest-growing, publicly traded real estate brokerage, today
announced results from its March 2024 Agent Survey, offering
insights into housing market trends and real estate agent
expectations across the United States and Canada. The survey
reveals continued optimism among agents about future market
conditions in both the United States and Canada, despite
expectations of a continued year-over-year decline in industry
transactions in March. The survey also highlights agent
expectations for improved transparency and readiness as the
industry prepares to implement practice changes associated with the
National Association of Realtors (NAR) recently announced
settlement agreement.
“We are grateful for the perspectives of our growing agent base,
which has now surpassed the 17,000 milestone,” said Tamir Poleg,
Chairman and CEO of Real. “Their opinions and insights are
essential in guiding our approach, ensuring we remain thoughtful
and agile as we navigate industry shifts together.”
“Embracing change and fostering transparency are cornerstones of
our culture,” remarked Sharran Srivatsaa, President of Real. “Our
agents' continued resilience and adaptability are critical as we
position the Company to capitalize on evolving industry dynamics
and emerge even stronger.”
Key Findings:
- Agents Remain Positive About Forward Outlook, Although
Optimism Index Ticks Down Sequentially from February Level:
Real asked agents at the end of March 2024, “Compared to one month
ago, are you more optimistic or pessimistic about the outlook for
your primary market over the next 12 months?” Among the agents
surveyed, 45% felt more optimistic and an additional 15% felt
significantly more optimistic about the next 12 months, outweighing
the 13% who felt more pessimistic and 7% who felt significantly
more so.
The average response among survey
participants resulted in a weighted index reading of 63.3 on a
0-100 scale, with scores above 50 reflecting a positive outlook and
those below 50, a negative one, thus signaling an expectation for
improving year-over-year growth trends in the year ahead. March’s
index level showed a slight decline from February’s 69.2,
indicating lower optimism compared to the end of February,
primarily due to a decline among U.S. agents, which offset improved
optimism among agents surveyed in Canada.
- Balance of Power Shifts Further Towards Sellers: When
asked “Would you consider your primary market to be a Buyer's
market, Seller's market, or Balanced market?” 61% percent of agents
noted sellers have the upper hand, an increase of 4 percentage
points from February, while only 13% of agents believe buyers have
the upper hand in their markets.
- Total North American Home Sale Industry Transactions
Expected to Decline Year over Year in March: Real asked agents,
“In your primary market, how would you describe the number of
transactions closed in March 2024 compared to March 2023?” The
average response among survey participants resulted in a weighted
index reading of 48.6 on a 0-100 scale, with scores above 50
indicating growth and below 50, a decline. The results suggest a
modest decline in total industry transactions across the U.S. and
Canada during March 2024 compared to March 2023, with a decline in
the U.S. home sales market, while the Canadian market is expected
to grow. March’s index reading of 48.6 was slightly below
February’s 48.7 level.
- More Pronounced Decline Expected in the U.S. in March:
The total number of U.S. home sale transactions is expected to
decline in March 2024 compared to March 2023. Agent responses
indicate a more pronounced pace of decline in March relative to
February, with the average response among survey participants
resulting in a March weighted index reading of 47.3, below the 48.5
level reached in February.
- Canada Market Growth Accelerates: Agents surveyed in
Canada signaled accelerating year-over-year growth compared to
February, with the average response among survey participants
resulting in the overall Canadian weighted index rising to 62.9 in
March from 51.8 in February.
- Affordability and Low Inventory Remain the Biggest
Challenges: Challenges for prospective home buyers include
affordability/interest rates (47%) and inventory shortages (40%),
with economic uncertainty and buyer competition tying for a distant
third (each at 5%).
- Over One Third of Agents Expect Practice Changes to Improve
Commission Rate Transparency: Agents were asked whether they
believe (i) a new rule prohibiting offers of buyer broker co-op
compensation on the MLS and (ii) a requirement that MLS
participants working with buyers enter into written agreements with
their buyers, would improve transparency regarding commission rates
in real estate transactions. 37% of agents surveyed believe these
industry practice changes would improve transparency, compared to
29% who believed the changes would be neutral, and an additional
29% who believed the changes would not improve transparency.
- Agents See Buyer Agency Agreements as an Opportunity to
Communicate the Value Agents Bring to a Transaction: 45% of
agents surveyed believe securing written buyer agent agreements
will be relatively easy, contrasting with 27% who foresee potential
difficulties. Meanwhile, 23% of agents are neutral on the issue,
believing the ease of securing a written agreement will depend on
each client’s understanding of industry practices.
- Approximately Half of Agents Anticipate a Decline in
Buy-Side Commission Rates Due to the Proposed Practice Changes:
39% of agents surveyed expect buy-side commission rates to decline
slightly as a result of the proposed practice changes, while an
additional 12% expect buy-side commission rates to decrease
significantly. This compares to 35% of agents who expect buy-side
commission rates to remain about the same, and 9% who see an
opportunity for buy-side commission rates to increase as a result
of the proposed changes.
An infographic including key survey takeaways can be found on
Real’s investor relations website or by following the link
here.
About the Survey
The Real Brokerage March 2024 Agent Survey included responses
from over 400 real estate agents across the United States and
Canada and was launched in the last week of March 2024. Responses
to questions regarding transaction growth and agent optimism were
calibrated on a 0-100 point index scale, with readings above 50
indicating an improving trend, whereas readings below 50 indicate a
declining trend. Responses are meant to capture industry-level
information and are not meant to serve as an indication of Real’s
company-specific growth trends.
About Real
Real (NASDAQ: REAX) is a real estate experience company working
to make life’s most complex transaction simple. The fast-growing
company combines essential real estate, mortgage and closing
services with powerful technology to deliver a single seamless
end-to-end consumer experience, guided by trusted agents. With a
presence in all 50 states throughout the U.S. and Canada, Real
supports over 17,000 agents who use its digital brokerage platform
and tight-knit professional community to power their own
forward-thinking businesses.
Forward-Looking Information
This press release contains forward-looking information within
the meaning of applicable Canadian securities laws. Forward-looking
information is often, but not always, identified by the use of
words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”,
“expect”, “likely” and “intend” and statements that an event or
result “may”, “will”, “should”, “could” or “might” occur or be
achieved and other similar expressions. These statements reflect
management’s current beliefs and are based on information currently
available to management as of the date hereof. Forward-looking
information in this press release includes, without limiting the
foregoing, expectations regarding the residential real estate
market in the U.S. and Canada.
Forward-looking information is based on assumptions that may
prove to be incorrect, including but not limited to Real’s business
objectives, expected growth, results of operations, performance,
business projects and opportunities and financial results. Real
considers these assumptions to be reasonable in the circumstances.
However, forward-looking information is subject to known and
unknown risks, uncertainties and other factors that could cause
actual results, performance or achievements to differ materially
from those expressed or implied in the forward-looking information.
Important factors that could cause such differences include, but
are not limited to, slowdowns in real estate markets and economic
and industry downturns. These factors should be carefully
considered and readers should not place undue reliance on the
forward-looking statements. Although the forward-looking statements
contained in this press release are based upon what management
believes to be reasonable assumptions, Real cannot assure readers
that actual results will be consistent with these forward-looking
statements. These forward-looking statements are made as of the
date of this press release, and Real assumes no obligation to
update or revise them to reflect new events or circumstances,
except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20240416117239/en/
Investor inquiries, please contact: Ravi Jani Vice President,
Investor Relations and Financial Planning & Analysis
investors@therealbrokerage.com 908.280.2515
For media inquiries, please contact: Elisabeth Warrick Senior
Director, Marketing, Communications & Brand
press@therealbrokerage.com 201.564.4221
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