Survey Also Highlights Agents’ Critical Role as Trusted Advisor in Real Estate Transactions
TORONTO & NEW YORK–(BUSINESS WIRE)–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:
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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.
Contacts
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
