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There are 1.5 million Realtors nationwide, but fewer than a third of them are actively closing deals.
Joe Rath, senior director of brokerage operations and head of industry relations at Redfin, shared this insight during Inman Connect New York.
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According to Rath, Redfin’s annual survey focuses on agents who are actively closing deals across brokerages.
“Thirty percent of agents are responsible for the majority of transactions,” Rath explained.
“Seventy-one percent of agents did not close a deal last year.”
Rath highlighted that not all Realtors are closing transactions, which can skew the data, but emphasized that the survey reflects the perspective of actively working agents.
The survey revealed that half of active agents anticipate an increase in home sales and over half expect home prices to rise in their regions.
Rath mentioned Redfin’s collaboration with Inman Intel and highlighted their findings that agent optimism is improving, especially regarding buyer pipelines.
When asked about the appealing aspects of being a real estate agent, respondents cited entrepreneurial independence and the satisfaction of helping people.
However, in 2024, the percentage of respondents who would recommend becoming a real estate agent reached an all-time low, possibly due to challenging market conditions.
With fewer new agents entering the field, experience levels are rising, and agent productivity is increasing with a majority closing five or more deals annually.
While agent incomes have risen, a significant portion still earned less than $50,000, indicating challenges in the industry.
Respondents’ main concerns included unpredictable income and difficulty in attracting customers, with commission splits and fees being crucial factors when choosing a brokerage.
Redfin’s initiatives, such as Redfin Next, aim to address these concerns by reshaping pay structures to better support agents.
Despite the push for improved technology and training, some agents prioritize higher commissions, reflecting a divide in preferences within the industry.
Looking ahead, agents anticipate challenges in home affordability, inventory, and issues with home insurance, particularly in states like California and Florida.
The industry also faces potential challenges like declining commissions and legal actions, impacting agents’ business strategies.
Overall, the real estate landscape is evolving, with agents adapting to changing market dynamics and consumer demands.
Email Andrea V. Brambila.
