Agent sentiment dips, but buyers are gaining ground
Two new surveys provide a snapshot of what agents are seeing in the market, and while they’re slightly less optimistic, they remain “net positive.”
Key points:
- An agent survey from Real Brokerage reported a slight decline in agent optimism from June to July.
- The majority of agents surveyed by Real and Bright MLS report that affordability remains a primary hurdle for buyers.
- At the same time, the market appears to be shifting in buyers’ favor, agents note.
How were agents feeling about the health of the housing market in the weeks leading up to the big deadline to enact new business practices? Two recent surveys help shine some light on agent sentiment and more.
Agent sentiment slid slightly
In the latest survey of agents conducted by Real Brokerage, the company reported a slight dip in agent optimism about the coming 12 months. When asked how they felt about the market compared to the prior month, 45% of Real agents reported feeling more optimistic, while an additional 5% were significantly more optimistic. However, 16% of respondents reported feeling more pessimistic and 5% significantly more so.
"July's survey showed a slight dip in agent optimism as we navigate current market conditions and practice changes required by the recent NAR settlement," Tamir Poleg, Chairman and CEO of Real said in the report.
Notably, sentiment was down in the U.S. but up in Canada, and agents' overall outlook remained "net positive."
A shifting market
When asked whether their primary market favored sellers or buyers, agents suggested that the tide is turning.
In June, 51% of agents in Real's survey said it was a sellers market, but that figure dropped significantly to 33% in July. Similarly, the number of agents who view their market as balanced jumped to 42%, up from 30% the previous month.
Only a quarter of agents said buyers now have the upper hand (up from 20% in June), but that figure could continue to trend upward going into fall, when buyers are likely to have more of an advantage. Last month, NAR Chief Economist Lawrence Yun said he's "seeing a slow shift from a seller's market to a buyer's market."
Buyers are still struggling
Over half of Real agents — or 56% — reported low affordability and high mortgage rates being the biggest hurdles for their buyer clients. But that does reflect a drop from June, when 60% of agents reported challenges with affordability.
And according to a separate Bright MLS survey of 535 buyer agents and 752 listing agents, buyers are still grappling with the tough market. When looking back over the last six months, over 72% of agents said they had a buyer pause or stop their home search.
When asked why their clients withdrew from the market, the top reasons were high housing costs and lack of affordability, high mortgage rates, and the frustration of dealing with competition and multiple offer situations. Nearly 27% of agents surveyed said their buyers took three to six months to find a home, while over 29% said clients spent more than six months on their home search.
Sellers are still offering credits
The majority — or 82% of Bright agents surveyed — noted that sellers are largely happy with the price they're getting on their home, though many sellers are also offering credits and concessions to help get the deal done.
More than 22% of agents reported sellers contributing to buyers' closing costs, while roughly 37% said their sellers provided credits for repairs or items discovered during inspection. Nearly 24% of agents had a buyer and seller negotiate a sale-leaseback.