Real Estate Market on Upswing
Big brokers report rising revenues and fatter profits, but some challenges remain.
(Boonton, NJ, April 20, 2017) — It’s nothing like the housing boom of 12 years ago, but today’s real estate market is on a decided upswing, one that has rewarded the nation’s largest brokers with higher revenue and profits.
But, as Realogy Chief Executive Richard Smith indicates, this boom faces a number of headwinds, reflecting the muted nature of this housing recovery.
Among the challenges real estate brokers face in today’s bull market:
Intense competition. One hundred percent companies and technology-driven brokerages such as Redfin are elbowing their way into increased market share.
Split pressure. As the joke goes, agents won’t be happy until brokers cough up unlimited services and 100 percent of the commission. Until they land that deal, they’ll keep negotiating for better terms or switching brokers.
A constantly shifting market. Now that distressed sales have disappeared and the heat has left the high-end market, the momentum has shifted to entry-level homes.
Rising mortgage rates. Mortgage rates spiked after the presidential election, then flattened. However, most industry experts expect rates to continue to rise through 2017.
More on current trends and how broker/owners are meeting them appears in the April issue of Real Estate Broker’s Insider newsletter.
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