“We’ve seen this movie before.”
We often hear this phrase from industry veterans when in challenging times – a way of casually dismissing the anxieties of alarmists who think the sky is falling just because the market has cycled low again. After all, the veterans say, the upswing is right around the corner.
In 2024, real estate leaders will confront one of the most challenging periods in the industry’s history.
Inventory remains low while mortgage rates rise to two-decade highs, complicating buyer demand; the central organization of real estate, NAR, faces significant criticism for its culture and policy; the structure upon which brokerages collect fees from consumers is on the verge of foundational change; real estate portal heavyweights are investing heavily for a greater share of real estate consumers’ attention and wallet; and generative AI promises an all-encompassing allure.
Against this backdrop, real estate brokerages face dwindling profits, compressing commissions, and a struggle to provide sustaining value to agents, while also making enough revenue to grow, adapt and sufficiently invest in their future.
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