Fewer agents are switching brokerages
While agents tend to shop around in January, movement was unusually subdued last month. To woo top talent, brokerage leaders may have to get creative.
New year, new brokerage? Not so much — at least not yet — in 2025. With the market still sluggish and the economy in flux, more agents than usual stayed put at the beginning of the year, according to a new analysis by Relitix, an agent-focused data company.
While Relitix's Agent Movement Index showed an expected post-holiday bump last month, it was lower than a typical January — a time when agents tend to reevaluate their brokerage relationships, said Relitix Founder Rob Keefe.
"This year, that uptick appears muted. Our seasonally adjusted readings continue to slip, suggesting that many agents are staying put and that brokerages remain cautious with their hiring," Keefe said.
"While it's not as low as the environment we saw in 2018, we expect recruiters and brokerage leaders to keep refining their retention strategies until the market signals a stronger turnaround."
Why aren't agents moving? Keefe said several factors could be at play. For one, agent demographics have shifted. There are fewer new agents — a segment that tends to move around more — compared to a year ago.
Plus, budgets are tighter, there are concerns about where commissions are headed, and it's unclear how the market will fare in 2025. That sort of financial uncertainty could cause some agents to delay making any big changes.
Another possible factor? The shiny-object effect could be wearing off. In an email, Keefe told Real Estate News that there are fewer new business models to draw agents away from other brokerages.
"Everyone knows the options now. The competitive environment has stabilized to an extent," Keefe said.
Resetting expectations: The report suggests that brokerage leaders may want to adjust their recruiting goals, at least for the early part of the year, as well as their recruiting strategies. To attract top agents, firms will need to differentiate themselves with an enticing value proposition.
Fewer agents are doing deals: The report also found that the number of active agents — meaning those who have closed at least one transaction in the past year — has continued to decline during the downturn, returning to pre-pandemic levels after a big jump in 2021 and 2022.
Brokerages should be paying attention: If active agent count continues to shrink, that could also affect recruiting goals, the report noted.