HousingWire’s Q3 2024 Pulse Survey provides a detailed snapshot of current housing market sentiment and the challenges facing real estate agents, brokers and mortgage professionals. The survey shows that although expectations for market trends in the next three months vary, these industries are generally cautiously optimistic.
Prospects for real estate agents mixed
The outlook for agents is mixed but hopeful, with nearly 29% expecting home sales to rise and 18% expecting a decline, with less enthusiasm for home sales than in the second quarter of 2023. will remain flat, while about 34% expect it to increase.
When it comes to mortgage rates, 63% predict rates will remain unchanged, reflecting broader expectations of stability.
However, agents are grappling with significant challenges including low inventory, high interest rates and inflation, listings and further dealing with reluctant buyers and sellers. Interestingly, despite new policy and practice changes regarding compensation taking effect in August, real estate agent respondents ranked “getting paid after settlement changes” as the least important challenge.
Real estate agents expect home prices to remain flat
Brokers have similar market expectations and have different views on sales and price trends. Most agents also expect house prices to remain flat and interest rates to remain unchanged.
The key challenges faced by brokers mirror those faced by agents, centering around operational efficiency, strategic leadership and adapting to new market dynamics. The brokerage places a strong emphasis on agent training and support, aiming to increase productivity and retain top talent. These strategies include providing more training courses, marketing support and technology tools to help agents navigate the market more effectively. Some brokers are taking a selective recruiting approach, prioritizing quality over quantity to build a lean, efficient team capable of delivering high performance in a challenging market.
Mortgage professionals bullish on home prices
Mortgage professionals are slightly more optimistic about home prices.
Unlike real estate agents and brokers, a majority of mortgage professionals (53%) expect home prices to remain flat, with 34% expecting them to increase. Regarding interest rates, 69% expect them to be stable but are also concerned about potential volatility.
When asked about their biggest challenges, mortgage professionals were particularly concerned about mortgage rates, loan stability, home prices, lead generation and maintaining a competitive rate schedule and product offerings.
Operational challenges include reductions in management staff and reduced loan closing capacity, which impacts their ability to operate efficiently.
While there are no ratings, building a relationship with a real estate agent is critical, especially in light of changes in MLS compensation policies. Mortgage professionals are focusing on educational initiatives, proactive outreach and maintaining strong partnerships to navigate these changes. Strategies such as participating in social events, communicating regularly and leveraging social media are being used to strengthen relationships and increase market influence.
Overall, the HousingWire Q3 2024 Market Pulse Survey highlights cautious optimism in the market, with a focus on the stability of home prices and interest rates. Key challenges across the board relate to operational efficiency, training, recruitment and adapting to market changes.
Industry professionals are actively seeking ways to increase productivity, maintain relationships, and navigate the ever-changing housing market and real estate industry, employing a variety of strategies to remain competitive and efficient.
