In every new iteration of our industry, there are bright spots. Here are a few:
The use of agents by consumers hit an 18-year high in 2018 at 90 percent. Even millennials used agents to buy and sell at a 92 percent level (Harris Insights/REAL Trends 2018).
Nearly two-thirds of all consumers still found and chose an agent because of a relationship of some kind.
Millennials and Gen Z have the same appetite for homeownership as all previous generations, and they will become the largest, most prosperous and most educated generations in American history.
Gross commission incomes came in at just over $72 billion in 2018. The average commission rate remained above 5 percent during the year. Total commission revenues were flat in 2017 even though unit sales were down.
For the first time in nearly 40 years, private investors are investing in brokerage. All past purchasers were involved in building their brokerage firms—trying for scale. Investors today think there are new and creative ways to build brokerage firms and take advantage of the proven cross-marketing activities of related core services.
Technology is driving fewer agents to do more of the business. For the top 10 percent of agents and teams, productivity is rising. The real promise of technology to equip agents and brokerage firms so they all benefit from increased productivity has not been fully developed yet but it will be.