Market Overview and Key Findings

The residential real estate landscape in 2024 has been marked by unique challenges, notably influenced by substantial legal settlements and evolving market conditions. This year, the nearly $1 billion settlement related to the Burnett lawsuit has significantly impacted the real estate sector, as reflected in RISMedia’s 37th Annual Power Broker Survey. These developments, alongside a mandated rule change on August 17, persistent inflation, rising home prices, and limited inventory, define a tumultuous market environment.

Interestingly, while the previous year saw a collective decline of over $3 billion in sales volume among the top real estate brokers, 2024 has shown a resurgence in sales volume despite a reduction in overall transaction counts. This juxtaposition highlights how tight inventory levels have driven existing home prices upward.

The relevance of year-over-year comparisons is complicated this year because several leading firms, including Crye-Leike and Carolina One, opted not to participate in the current survey amid continuing legal uncertainties. To create a meaningful analysis, the data from these firms was omitted from last year’s totals, revealing a year-over-year decrease of more than 19,000 transactions alongside an increase in sales volume exceeding $100 billion.

Consolidation Trends

Another notable trend is the consolidation within the residential real estate sector. This year, some formerly prominent firms, such as @properties Christie’s International Real Estate and Latter & Blum, have been integrated into Compass, which has solidified its position at the top for the fourth consecutive year.

Despite these industry shifts, there remains a sense of optimism among this year’s Power Brokers as they herald the potential of forthcoming months. Notably, 37% of brokers assess their market as “Challenged,” while 35% view it as “Balanced/Healthy,” hinting at possible improvements ahead, contingent on several factors.

Challenges Ahead

Entering 2025, Power Brokers express significant concerns influenced by ongoing legal challenges and a transitional political landscape. Many are feeling the repercussions of economic uncertainty as well.

“2024 is going to leave a lasting impression for years to come… The confusion and misinformation is leading to trust issues with people inside and outside of real estate,” stated Corey McCloskey, president of John R. Wood Properties Christie’s International Real Estate, emphasizing the unprecedented nature of the current climate.

Dan Kruse, CEO of CENTURY 21 Affiliated, echoed these sentiments, explaining how the cumulative effect of lawsuits and an evolving political situation has contributed to a cautious market atmosphere. “The events of 2024… have created a lingering hangover effect on the real estate market,” he stated.

Mortgage Rates and Consumer Behavior

Another significant hurdle continues to be mortgage rates. Many brokers anticipate that sustained high rates will keep potential buyers hesitant, thereby affecting market activity.

“Interest rates remain stubbornly high, and a lack of inventory weighs on the market,” affirmed David Caveness, president and CEO of Carpenter REALTORS®.

Others note the intricate relationship between consumer confidence and current economic conditions. “Affordability and consumer confidence will make the biggest impact,” warned Tiffany Harris, broker/owner of CENTURY 21 Harris Hawkins & Co.

Looking Forward: Navigating Change

As 2025 draws near, leading brokers foresee that adaptability will be crucial for success. The consensus emphasizes embracing the ongoing market transformations as necessary for survival and growth.

“The events of 2024… are significant, but the true impact on the 2025 market will stem from the broader theme of change itself,” remarked Mary Goudreault, president of Connect Realty Inc. This notion reflects the importance of resilience and creativity in responding to new market realities.

Many industry leaders advocate for a proactive approach, suggesting that those brokers and agents who quickly adapt will leverage their competitive edge amidst these challenges.