The HousingWire Pulse Survey for Q3 2024 provides a detailed snapshot of current housing market sentiments and challenges faced by real estate agents, brokers, and mortgage professionals. The survey reveals a generally cautious optimism among these sectors, despite varied expectations regarding market trends over the next three months.
Real estate agents have mixed outlook
Agents exhibit a mixed but hopeful outlook, with nearly 29% anticipating a rise in home sales and 18% expecting a decline, less enthusiastic about home sales than in Q2 2023. The majority (55%) believe home prices will remain flat, while about 34% foresee an increase.
In terms of mortgage rates, 63% predict they will stay flat, reflecting a broader expectation of stability.
However, agents are grappling with significant challenges, including low inventory, high interest rates and inflation, getting listings and a step further dealing with reluctant buyers and sellers. Interesting enough, despite new policy and practice changes regarding compensation going into effect in August, real estate agent respondent ranked “getting paid post settlement changes” as the least of their challenges.
Real estate brokers expect home prices to stay flat
Brokers share similar market expectations, with a mix of sentiments about sales and price trends. Most brokers also expect home prices to stay flat and interest rates to remain unchanged.
The primary challenges for brokers align with those of agents, centered around operational efficiency, strategic leadership, and adapting to new market dynamics. Brokers are focusing heavily on agent training and support, aiming to boost productivity and retain top talent. The strategies include providing increased training sessions, marketing support, and technology tools to help agents navigate the market more effectively. Some brokers are adopting a selective recruitment approach, prioritizing quality over quantity to build a lean, effective team capable of delivering high performance in a challenging market.
Mortgage professionals bullish on home prices
Among mortgage professionals, the sentiment is slightly more optimistic when it comes to home prices.
Different from real estate agents and brokers, the majority of mortgage professionals (53%) predict home prices will remain flat, with 34% expecting an increase. Regarding interest rates, 69% anticipate stability, though there are concerns about potential fluctuations.
When asked about their greatest challenges, mortgage professionals are particularly concerned about mortgage rates, loan stability, home prices, lead generation, and maintaining competitive rate sheets and product offerings.
The operational challenges include managing staff cuts and reduced capacity to close loans, which are impacting their ability to operate efficiently.
While not rated, relationship-building with real estate agents is crucial, especially in light of changes to MLS compensation policies. Mortgage professionals are focusing on educational initiatives, proactive outreach, and maintaining strong partnerships to navigate these changes. Strategies such as attending networking events, regular communication, and leveraging social media are being employed to strengthen relationships and enhance market presence.
Overall, the HousingWire Pulse Survey for Q3 2024 highlights a market characterized by cautious optimism, with a strong focus on stability in home prices and interest rates. The primary challenges across the board involve operational efficiency, training, recruitment, and adapting to market changes.
Industry professionals are actively seeking ways to enhance productivity, maintain relationships, and navigate a changing housing market and real estate industry, employing a variety of strategies to remain competitive and effective.