The continued decline in agent turnover reflects ongoing challenges in the real estate market

Important observations from October

• Continuous decrease in agent’s movement:

The seasonally adjusted AMI metric for October fell to 86.2, marking another drop in agent activity and continuing the downward trend seen in recent months.

• Factors contributing to deterioration

The Presidential election and the implementation of the National Association of Realtors (NAR) dues seem to have had a major impact on agents’ propensity to move between brokerages.

• To fix it up a bit:

The seasonally adjusted metric for September was revised slightly higher, but this correction did not reverse the downward trend in agent movements.

• Future recovery opportunities:

With the election now over and the industry adjusting to the NAR settlement, there are high hopes that this decline could reverse in the coming months.

Rob Keefe commented on these developments: “October’s data underscores the significant impact of recent events on our industry. The combination of political uncertainty and major regulatory changes has clearly influenced the decisions of residential agents. However, since these factors are stable, we expect a potential multiplier in the agent’s movement. Brokerages must remain vigilant and ready for potential spikes as the market adjusts to the new normal. ”

This month’s findings continue the trend seen in recent AMI releases. The September 2024 report already showed a sharp drop in agent traffic, with the seasonally adjusted figure falling to an 8-year low for that month. October’s data confirms that this downward trend continues, albeit at a slower pace as indicated by the upward revision of September’s figures.

October’s AMI recorded a trailing 12-month score of 96.0, a monthly score of 89.6, and a seasonally adjusted figure of 86.2, all of which indicate a continued decline in agent movement. These metrics serve as important indicators for brokerage firms and real estate professionals navigating current market conditions.

Rob Keefe is the founder of Relitix.

This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.

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