The latest data reflected in the July 2024 Agent Mobility Index (AMI) shows that the real estate agent landscape has changed significantly, highlighting the cooling trend in agent flow and the cautious sentiment emerging in the market.
Key observations from the July 2024 AMI:
- Agent growth stopped: The trend of increased active drugs that we have been observing for several months appears to have stopped. The stable number of active drugs may signal a more challenging environment for new entrants.
- Agent movement reduced: Agent movement between brokerage firms resumed from fall 2023 to spring 2024, but now we are seeing a decline. This suggests that the period of enhanced liquidity may be coming to an end as agents adopt a wait-and-see approach to the new industry structure.
- Impact of changes to NAR commission rules: The implementation of National Association of REALTORS (NAR) board rule changes has created uncertainty for agents. This uncertainty makes agents more hesitant to take major actions, leading to reduced agent turnover.
Commenting on these developments, Rob Keefe said: “July’s data clearly shows that the market is transforming. After several months of increased activity, agents are starting to take a more cautious approach, which may be a sign that Dealing with the Uncertainty Created by Recent Industry Changes Now is the time for brokerages to pay close attention to these trends and adjust their strategies accordingly.
This month’s survey results differ from trends we’ve seen in previous AMI releases, where we note a continued increase in active agents and agent movement. For example, our June 2024 release highlighted the continued increase in active agents and agent flow stabilizing at pre-2017 levels. However, the July AMI’s trailing 12-month score was 98.9, the monthly score was 101.1, and the seasonally adjusted score was 88.3, reflecting the beginning of a potential shift in market dynamics.
Rob Keefe is the founder of Relitix.
This column does not necessarily reflect the opinions of the HousingWire editorial staff and its owners.
To contact the editor responsible for this article: [email protected]
