Real Brokerage Agent Survey Reveals Optimistic Agent Outlook, Highlights a Strong Sellers’ Market
March 19 2024 - 6:30AM
Business Wire
Agents Remain Positive Heading into Spring
Selling Season, Despite Being Somewhat More Cautious Amid
Affordability Concerns
The Real Brokerage Inc. (NASDAQ: REAX, “Real”), the
fastest-growing, publicly traded real estate brokerage, today
announced the results of its February 2024 Agent Survey, offering
insights into housing market trends and real estate agent
expectations across the United States and Canada. The survey
reveals a resilient optimism among agents about future market
conditions in both the United States and Canada, highlighting a
prevailing sellers’ market, despite overall industry transactions
expected to decline year-over-year in February.
“We first launched our agent survey in January as a strategic
initiative to directly capture the sentiments and experiences of
our rapidly growing network of over 16,000 agents,” said Tamir
Poleg, Chairman and CEO of Real. “With a presence now covering all
50 states and four Canadian provinces, we’re excited to share our
agents’ valuable insights with the broader public. This effort
underscores our commitment to transparency and the immense value we
place on our agents’ perspectives.”
Sharran Srivatsaa, President of Real, added, “Our agents are the
true experts of their local markets. This survey bridges the gap
from their individual market insights to broader industry trends,
underscoring the pivotal role our agents play in guiding our
strategic direction.”
Key Findings:
- Agents Remain Optimistic About Forward Outlook: Real
asked agents at the end of February 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, 53% felt more optimistic and an additional 16% were
significantly more optimistic about the next 12 months, outweighing
the 7% who felt more pessimistic and 1% significantly more so. The
average response among survey participants resulted in a weighted
index reading of 69.2 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. There were similar sentiments shared by both U.S. and
Canadian agents. However, February’s index level of 69.2 showed a
slight decline from January’s 73.7, indicating a modest softening
in optimism compared to the end of January.
- Sellers Continue to Have the Upper Hand: When asked
“Would you consider your primary market to be a Buyer's market,
Seller's market, or Balanced market?” 57% percent of agents noted
sellers have the upper hand, an increase of 11 percentage points
from January.
- Total North American Home Sale Industry Transactions
Expected to Decline Year over Year in February: Real asked
agents, “In your primary market, how would you describe the number
of transactions closed in February 2024 compared to February 2023?”
The average response among survey participants resulted in a
weighted index reading of 48.7 on a 0-100 scale, with scores above
50 indicating growth and below 50, a decline. The results suggest a
decline in total industry transactions across the U.S. and Canada
during February 2024 compared to February 2023, with a decline in
the U.S. home sales market, while the Canadian market is expected
to grow. February’s index reading of 48.7 showed a modest decline
from January's 49.0 level.
- Pace of Decline in the U.S. Improves in February: The
total number of U.S. home sale transactions is expected to decline
in February 2024 compared to February 2023. However, agents expect
an easing in the pace of decline relative to January, with the
average response among survey participants resulting in a February
weighted index reading of 48.5, improving from 47.8 in
January.
- Canadian Market Growth Continues at More Moderate Pace:
Agents surveyed in Canada signaled continued year-over-year growth,
although at a more moderate rate compared to January, with the
average response among survey participants resulting in the overall
Canada weighted index reading decreasing to 51.8 in February from
55.5 in January.
- Affordability Remains the Biggest Hurdle for Buyers:
Challenges for prospective home buyers include
affordability/interest rates (45%) and inventory shortages (42%),
with economic uncertainty (5%) and buyer competition (4%) being
distant third and fourth concerns.
- Nearly Two-Thirds of Agents See Referrals as Most Effective
Lead Source: 63% of agents cite networking and referrals as the
most effective source of leads, followed by social media (12%),
online advertising (5%), and home search portals (3%).
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 February 2024 Agent Survey included responses
from over 500 real estate agents across the United States and
Canada and was launched in the last week of February 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 16,000 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/20240319283551/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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