HousingWire Pulse: Respondents show cautious optimism about the housing market in the third quarter
The HousingWire Pulse Survey for Q3 2024 provides a detailed snapshot of current housing market sentiment and the challenges facing real estate agents, brokers and mortgage professionals. The survey shows that these sectors are generally cautiously optimistic, despite differing expectations for market trends over the next three months.
Real estate agents have a mixed outlook
Real estate agents have a mixed but hopeful outlook, with nearly 29% expecting an increase in home sales and 18% expecting a decline. They are less enthusiastic about home sales than in the second quarter of 2023. The majority (55%) believe that home prices will remain flat, while about 34% foresee an increase.
As for mortgage rates, 63% predict they will remain stable, reflecting a broader expectation of stability.
However, agents struggle with significant challenges, including low inventory, high interest rates and inflation, obtaining offers and going the extra mile in dealing with reluctant buyers and sellers. Interestingly, despite new policy and practice changes regarding compensation that went into effect in August, the real estate broker respondent cited “getting paid after settlement changes” as the least of their challenges.
Real estate agents expect house prices to remain stable
Brokers share similar market expectations, with a mix of sentiments on sales and price trends. Most real estate agents also expect home prices to remain the same and interest rates to remain unchanged.
The key challenges for brokers are similar to those of agents, focusing on operational efficiency, strategic leadership and adapting to new market dynamics. Brokers are focusing heavily on agent training and support, with the goal of increasing productivity and retaining top talent. The strategies include providing more training sessions, marketing support and technology tools to help agents navigate the marketplace more effectively. Some brokers take a selective recruitment approach, prioritizing quality over quantity to build a lean, effective team capable of high performance in a challenging market.
Mortgage professionals are optimistic about home prices
Among mortgage professionals, sentiment is slightly more optimistic when it comes to home prices.
Unlike real estate agents and brokers, the majority of mortgage professionals (53%) predict home prices will remain flat, while 34% expect an increase. Regarding interest rates, 69% expect stability, although there are concerns about possible fluctuations.
When mortgage professionals are asked about their biggest challenges, they are primarily concerned about mortgage rates, loan stability, home prices, generating leads and maintaining competitive rates and product offerings.
Operational challenges include managing workforce reductions and reduced loan origination capacity, impacting their ability to operate efficiently.
While not rated, building relationships with brokers is critical, especially in light of changes to MLS compensation policies. Mortgage professionals are focusing on educational initiatives, proactive outreach and maintaining strong partnerships to address these changes. Strategies such as attending networking events, regular communication and leveraging social media are used to strengthen relationships and increase market presence.
Overall, the HousingWire Pulse Survey for Q3 2024 points to a market characterized by cautious optimism, with a strong focus on stability in home prices and interest rates. Key challenges across the board concern operational efficiency, training, recruitment and adapting to market changes.
Industry professionals are actively seeking ways to improve productivity, maintain relationships and navigate a changing housing and real estate industry, using a variety of strategies to remain competitive and effective.
