Real estate agents across different regions of the United States are facing challenges such as high mortgage rates, inventory shortages, and uncertainties surrounding settlements and commission agreements. A recent survey conducted by Inman Intel revealed key trends and factors affecting the real estate business in the Northeast, South, West, and Midwest.
In the Midwest and Northeast, agents are experiencing severe inventory shortages compared to other regions. A significant percentage of brokers in these areas reported a decline in their listing portfolios over the past year. Lack of inventory was cited as the top business concern by agents in these regions, with a higher proportion than in the South and West.
High-level agents in the Midwest, West, and South reported higher splits with their brokerages compared to agents in the Northeast. There were also differences in the types of brokerage brands and models preferred by agents in different regions, leading to variations in agent splits.
Agents in the West are seeing a higher level of customer engagement with regards to questions about commission demands, particularly in relation to covering the buyer’s commission. This has led to concerns about commission compression or negotiation among agents in the West, who cited it as their main business concern, along with mortgage rates.
Recruiting dynamics also varied by region, with more agents in the Northeast considering switching brokerages within the next 12 months compared to other regions. However, the Midwest had a higher percentage of agents who were undecided about switching but open to the idea.
The survey was conducted between June 20 and July 3, 2024, and received 708 responses from a random selection of real estate industry professionals. The results reflect the views of the Inman reader community and provide insights into the regional housing market trends and challenges.
In conclusion, the real estate landscape differs across regions in the U.S., with varying concerns and dynamics affecting agents and brokerages. Understanding these regional differences can help real estate professionals adapt their strategies and navigate the challenges in their specific market.
Article Source
https://www.inman.com/2024/07/08/zoom-in-closer-4-regional-housing-insights-from-the-inman-intel-index/amp/