Real June Agent Survey Shows Steady Optimism, Despite Affordability Concerns
July 22 2024 - 6:30AM
Business Wire
Survey Also Highlights Agents’ Critical Role as
Trusted Advisor in Real Estate Transactions
The Real Brokerage Inc. (NASDAQ: REAX, “Real”), the
fastest-growing, publicly traded real estate brokerage, today
released results from its June 2024 Agent Survey. The survey
indicates agents remain optimistic about the outlook for their
markets over the next 12 months, despite a moderate year-over-year
decline in June transaction volumes.
“June’s survey showed that our agents are optimistic about the
future, despite the prevailing interest rate environment. We are
hopeful that potential lower rates in the near future could help
ease the affordability challenges many buyers face,” said Tamir
Poleg, Chairman and CEO of Real. “At Real, we are equipping our
agents with cutting-edge technology and innovative tools to ensure
they can offer personalized, strategic insights that truly make a
difference in the home buying and selling journey.”
“More than just market experts, our agents are trusted advisors
who understand the pulse of local communities and the intricacies
of the market,” remarked Sharran Srivatsaa, President of Real.
“This month’s survey reaffirms the diverse expertise agents bring
to their clients to successfully navigate today's competitive real
estate landscape.”
Key Findings:
- Agent Optimism Index Largely Steady, Supported By U.S.:
At the end of June 2024, agents were asked, “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
respondents, 36% felt more optimistic and an additional 10% felt
significantly more optimistic, outweighing the 15% who felt more
pessimistic and 3% who felt significantly more so. The average
response resulted in a weighted index reading of 59.1 on a 0-100
scale, with scores above 50 reflecting a net positive outlook. This
compares to 59.0 in May, indicating a largely stable
month-over-month outlook, driven by an improvement in the U.S. (up
1.8 points to 59.8), which offset a drop in Canada (down 16.1
points to 52.8).
- Market Dynamics Continue to Favor Sellers: When asked
“Would you consider your primary market to be a buyer's market,
seller's market or balanced market?”, approximately half (51%) of
agents noted sellers have the upper hand. This represents a
two-point increase from the previous month. Meanwhile, 30% of
agents viewed their markets as balanced, with neither buyers nor
sellers having a clear advantage, a slight decrease from 33% in
May. Conversely, approximately 20% of agents believed buyers hold
the upper hand in their markets, up from 18% in May.
- Total North American Home Sale Industry Transactions
Expected to Decline Year-over-Year in June: Agents were asked,
“In your primary market, how would you describe the number of
transactions closed in June 2024 compared to June 2023?” The
average response resulted in a weighted index reading of 47.4 on a
0-100 scale, suggesting an aggregate decline in industry
transactions across North America in June 2024, compared to June
2023. June’s index reading of 47.4 compares to May’s 45.7 level,
which was the lowest monthly index reading thus far in 2024.
- U.S. Agents Report a Pullback in Transactions During June,
but Improvement From May: June’s U.S. index reading of 46.8
indicates fewer transactions relative to the previous year, but
represents a sequential improvement from 44.8 in May.
- Canadian Agents Report Second Consecutive Month of
Growth: Agents in Canada signaled modest year-over-year growth
in their respective regions, with the overall Canadian weighted
index reading of 52.8 in June, although this was down from 54.4 in
May.
- Affordability Remains Biggest Concern: The majority of
agents surveyed (60%) cited affordability/mortgage rates as the
biggest challenge for prospective home buyers, up one percentage
point from May and the highest reading since the survey’s launch in
January. Lack of inventory was the second most cited concern,
rising one point from the previous month to 26%. Economic
uncertainty followed, decreasing one point to 7%, while buyer
competition was the least cited challenge, decreasing two points to
4%.
- Survey Highlights Comprehensive Support and Value Agents
Provide Buy-Side Clients: The survey highlights the diverse
roles agents play in guiding clients throughout the home-buying
journey. Agents noted their top areas of expertise lie in
negotiations (76% of respondents), deep local market knowledge
(75%), providing emotional support to clients (60%), assistance
with paperwork and legalities (60%), and access to off-market
properties (29%). As one agent noted, “while buyers are more than
capable of finding a home they like, they often lack the ability to
effectively navigate beyond that point in a way that both ensures a
smooth transaction and mitigates their risk”.
- Clients Typically Tour 6-10 Homes Before Purchase,
Reflecting Agents’ Commitment: The majority of agents (56%)
reported that their buy-side clients on average view between 6-10
homes before making a purchase, with most buyers (73%) able to find
and close on a home within 0-6 months. This demonstrates the
dedication and commitment of agents, who often work for extended
periods without pay to ensure their clients find the right
property. Additionally, 8% of agents noted that their clients view
more than 10 homes during their search, while 5% of agents noted
clients taking on average more than a year to find and close on a
home.
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 June 2024 Agent
Survey included responses from approximately 200 real estate agents
across the United States and Canada and was launched in the last
week of June 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.
Additionally, given the smaller sample size, there can be greater
variability in Canada index results on a month-to-month basis.
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 20,000 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/20240722561688/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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