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Real October Agent Survey Highlights Growing Optimism Despite Rising Mortgage Rates

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Real Brokerage (NASDAQ: REAX) released its October 2024 Agent Survey showing increased market optimism despite high mortgage rates. The Agent Optimism Index rose to 68.5 in October from 67.0 in September, with 67% of agents feeling more optimistic about the next 12 months.

The survey reveals that affordability remains the primary challenge, cited by 57% of agents, up from 48% in September. In response, 44% of agents expect buyers to compromise on home features or location if rates stay between 6-7% in 2025. Location is expected to be the top compromise (38%), followed by home features (28%) and size (16%).

The market shows signs of rebalancing, with buyer's market share increasing to 27% while seller's market share decreased to 35%. The Transaction Growth Index dropped to 44.4, indicating deeper transaction declines.

Real Brokerage (NASDAQ: REAX) ha pubblicato il suo sondaggio per agenti di ottobre 2024, mostrando un aumento dell'ottimismo nel mercato nonostante i tassi di interesse sui mutui elevati. L'Indice di Ottimismo degli Agenti è salito a 68,5 a ottobre rispetto a 67,0 a settembre, con il 67% degli agenti che si sente più ottimista sui prossimi 12 mesi.

Il sondaggio rivela che l'affordability rimane la sfida primaria, citata dal 57% degli agenti, in aumento rispetto al 48% di settembre. In risposta, il 44% degli agenti si aspetta che gli acquirenti compromettano le caratteristiche o la posizione dell'abitazione se i tassi rimarranno tra il 6-7% nel 2025. Si prevede che la posizione sia il principale compromesso (38%), seguita dalle caratteristiche della casa (28%) e dalla dimensione (16%).

Il mercato mostra segni di riequilibrio, con la quota di mercato degli acquirenti che aumenta al 27% mentre la quota di mercato dei venditori diminuisce al 35%. L'Indice di Crescita delle Transazioni è sceso a 44,4, indicando una diminuzione più profonda delle transazioni.

Real Brokerage (NASDAQ: REAX) lanzó su Encuesta de Agentes de octubre de 2024, mostrando un aumento en el optimismo del mercado a pesar de las altas tasas hipotecarias. El Índice de Optimismo de los Agentes aumentó a 68.5 en octubre desde 67.0 en septiembre, con el 67% de los agentes sintiéndose más optimistas sobre los próximos 12 meses.

La encuesta revela que la asequibilidad sigue siendo el principal desafío, citada por el 57% de los agentes, un aumento respecto al 48% en septiembre. En respuesta, el 44% de los agentes espera que los compradores terminen comprometiendo características o la ubicación de la vivienda si las tasas se mantienen entre el 6-7% en 2025. Se espera que la ubicación sea el principal compromiso (38%), seguida de características de la vivienda (28%) y tamaño (16%).

El mercado muestra signos de reequilibrio, con la cuota de mercado de los compradores aumentando al 27% mientras que la cuota de mercado de los vendedores disminuye al 35%. El Índice de Crecimiento de Transacciones cayó a 44.4, indicando una disminución más profunda en las transacciones.

Real Brokerage (NASDAQ: REAX)가 2024년 10월 에이전트 설문조사를 발표했습니다. 높은 모기지 금리에도 불구하고 시장의 낙관적인 기조가 증가하고 있음을 보여주고 있습니다. 에이전트 낙관 지수는 9월의 67.0에서 10월에는 68.5로 상승했으며, 67%의 에이전트가 앞으로 12개월에 대해 더 낙관적이라고 느끼고 있습니다.

설문조사에 따르면 주택 가격의 부담 가능성이 여전히 주요한 도전 과제로, 57%의 에이전트가 이를 언급했으며, 이는 9월의 48%에서 증가한 수치입니다. 이에 따라 44%의 에이전트는 2025년 금리가 6-7% 사이에 머물 경우 구매자들이 주택의 특징이나 위치를 타협할 것으로 예상하고 있습니다. 위치가 가장 큰 타협 요소로 예상되며(38%), 그 다음으로 주택 특징(28%)과 크기(16%)가 뒤따릅니다.

시장은 재균형의 조짐을 보이고 있으며, 구매자의 시장 점유율이 27%로 증가한 반면 판매자의 시장 점유율은 35%로 감소했습니다. 거래 성장 지수는 44.4로 떨어져 거래 감소가 심화되고 있음을 나타냅니다.

Real Brokerage (NASDAQ: REAX) a publié son enquête pour agents d'octobre 2024, montrant un optimisme accru sur le marché malgré des taux hypothécaires élevés. L'Indice d'Optimisme des Agents est passé de 67,0 en septembre à 68,5 en octobre, avec 67% des agents se disant plus optimistes pour les 12 prochains mois.

L'enquête révèle que l'accessibilité reste le principal défi, cité par 57% des agents, contre 48% en septembre. En réponse, 44% des agents pensent que les acheteurs seront prêts à faire des compromis sur les caractéristiques ou l'emplacement du logement si les taux restent entre 6 et 7% en 2025. L'emplacement est attendu comme le principal compromis (38%), suivi des caractéristiques de la maison (28%) et de la taille (16%).

Le marché montre des signes de rééquilibrage, avec la part de marché des acheteurs augmentant à 27% tandis que celle des vendeurs diminue à 35%. L'Indice de Croissance des Transactions est tombé à 44,4, indiquant un déclin plus profond des transactions.

Real Brokerage (NASDAQ: REAX) hat seine Umfrage für Agenten im Oktober 2024 veröffentlicht, die einen Anstieg des Marktoptimismus zeigt, obwohl die Hypothekenzinsen hoch sind. Der Agenten-Optimismus-Index stieg im Oktober auf 68,5 von 67,0 im September, wobei 67% der Agenten optimistischer in Bezug auf die nächsten 12 Monate sind.

Die Umfrage zeigt, dass die Erschwinglichkeit die größte Herausforderung bleibt, die von 57% der Agenten angegeben wird, im Vergleich zu 48% im September. In Anbetracht dessen erwarten 44% der Agenten, dass Käufer Kompromisse bei den Funktionen oder der Lage der Immobilie eingehen, wenn die Zinsen im Jahr 2025 zwischen 6-7% bleiben. Es wird erwartet, dass die Lage der größte Kompromiss ist (38%), gefolgt von den Eigenschaften des Hauses (28%) und der Größe (16%).

Der Markt zeigt Anzeichen der Neuausbalancierung, wobei der Anteil des Käufermarktes auf 27% gestiegen ist, während der Anteil des Verkäufermarktes auf 35% gesunken ist. Der Transaktionswachstumsindex fiel auf 44,4 und zeigt einen tieferen Rückgang der Transaktionen an.

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Agents Say Buyers Most Likely to Compromise on Location to Improve Affordability

TORONTO & NEW YORK--(BUSINESS WIRE)-- The Real Brokerage Inc. (NASDAQ: REAX, “Real”), a technology platform reshaping real estate for agents, home buyers and sellers, today released results from its October 2024 Agent Survey. With responses from agents across North America, the survey reveals growing optimism about the next 12 months, even as U.S. mortgage rates remain near multi-year highs. Agents also highlighted the growing importance of buyer trade-offs, such as compromises on location or home features, to overcome affordability challenges in this higher-rate environment.

“Our October survey shows that while affordability remains a major hurdle, optimism among agents is growing because they see opportunities in today’s dynamic market,” said Tamir Poleg, Chairman and CEO of Real. “Even with elevated mortgage rates, buyers are adjusting their expectations — compromising on location, features, and more — and agents are stepping in to guide them through these trade-offs.”

“Affordability challenges are forcing buyers to rethink their options, but this also creates opportunities for agents to provide valuable guidance,” said Sharran Srivatsaa, President of Real. “Whether it’s helping buyers navigate trade-offs or explore alternative options like renting, success in this market isn’t about waiting for conditions to improve – it’s about adapting to the market as it is.”

Key Survey Findings: Market Trends and Insights

  • Agent Optimism Index Continues to Rise in October: Agents were asked, “Compared to one month ago, are you more optimistic or pessimistic about the outlook for your primary market over the next 12 months?”. Forty-seven percent (47%) of agents reported feeling more optimistic, with an additional 20% feeling significantly more optimistic. This outweighed the 9% feeling more pessimistic and 2% significantly more pessimistic, while 21% remained neutral.
    The weighted Agent Optimism Index rose slightly to 68.5 in October, up from 67.0 in September, with scores above 50 indicating a net positive outlook. Optimism improved in the U.S. but moderated in Canada.
  • Market Continues to Balance as Buyers Gain Power: When asked whether their market was a buyer’s or seller’s market, 35% of agents described their market as a seller’s market, down from 38% in September. Meanwhile, the share of agents reporting a buyer’s market rose to 27%, marking a year-to-date high and up from 23% in September. Balanced market conditions were cited by 39% of agents, a slight dip from 40% the prior month.
  • Affordability Remains the Largest Hurdle: Agents overwhelmingly identified affordability as the top challenge for prospective homebuyers, with 57% of respondents citing it as the primary issue, a sharp increase from 48% in September. Inventory constraints held steady at 22%, while economic uncertainty fell to 14% from 20%, likely reflecting a post-election environment.
  • Agents Expect Industry Transaction Declines to Deepen in October: Agents noted year-over-year declines in North American industry home sale transactions persisted in October. The Transaction Growth Index, which measures year-over-year changes in home sales, dropped to 44.4 in October, down from 46.6 in September, indicating a sharper decline as the index remains below 50.
  • High Mortgage Rates in 2025 Likely to Drive Buyer Trade-Offs: If 30-year mortgage rates remain between 6% and 7% in 2025, nearly half of agents surveyed (44%) expect prospective home buyers to adapt by compromising on home size, features, or location to make purchases affordable. An additional 20% expect more buyers would move in with family, while 17% foresee increased demand for single-family rentals. A smaller share (7%) anticipate greater interest in multi-family rentals.
  • Location Expected to Be Buyers’ Top Compromise: Faced with affordability challenges, prospective buyers are most likely to compromise on location, according to 38% of agents, suggesting they may consider homes further from city centers or outside their ideal neighborhoods. Twenty-eight percent (28%) of agents expect buyers to settle for fewer or less-updated features, such as older kitchens or bathrooms, while 16% predict compromises on home size. Notably, 12% of agents were unsure how buyers might prioritize their trade-offs, reflecting the complex decisions facing today’s homebuyers. These findings underscore the tough decisions buyers face in today’s high-rate market.

A summary presentation of these results can be found on Real’s investor relations website at the link here.

About the Survey

The Real Brokerage October 2024 Agent Survey included responses from approximately 170 real estate agents across the United States and Canada and was conducted between November 4, 2024 and November 15, 2024. Responses to questions regarding transaction growth and agent optimism were calibrated on a 0-100 point index scale, with readings above 50 indicating an improving trend, whereas readings below 50 indicate a declining trend. Responses are meant to capture industry-level information and are not meant to serve as an indication of Real’s company-specific growth trends. Additionally, given the smaller sample size, there can be greater variability in Canada index results on a month-to-month basis.

About Real

Real (NASDAQ: REAX) is a real estate experience company working to make life’s most complex transaction simple. The fast-growing company combines essential real estate, mortgage and closing services with powerful technology to deliver a single seamless end-to-end consumer experience, guided by trusted agents. With a presence in all 50 states throughout the U.S. and Canada, Real supports over 22,000 agents who use its digital brokerage platform and tight-knit professional community to power their own forward-thinking businesses.

Forward-Looking Information

This press release contains forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “likely” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. These statements reflect management’s current beliefs and are based on information currently available to management as of the date hereof. Forward-looking information in this press release includes, without limiting the foregoing, expectations regarding the residential real estate market in the U.S. and Canada.

Forward-looking information is based on assumptions that may prove to be incorrect, including but not limited to Real’s business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. Real considers these assumptions to be reasonable in the circumstances. However, forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking information. Important factors that could cause such differences include, but are not limited to, slowdowns in real estate markets and economic and industry downturns. These factors should be carefully considered and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, Real cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and Real assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.

Investor inquiries, please contact:

Ravi Jani

Vice President, Investor Relations and Financial Planning & Analysis

investors@therealbrokerage.com

908.280.2515



For media inquiries, please contact:

Elisabeth Warrick

Senior Director, Marketing, Communications & Brand

press@therealbrokerage.com

201.564.4221

Source: The Real Brokerage Inc.

FAQ

What is the current Agent Optimism Index for Real Brokerage (REAX) in October 2024?

The Agent Optimism Index for Real Brokerage (REAX) rose to 68.5 in October 2024, up from 67.0 in September, with scores above 50 indicating a net positive outlook.

What percentage of REAX agents cite affordability as the main challenge for homebuyers in October 2024?

57% of Real Brokerage (REAX) agents identified affordability as the primary challenge for homebuyers in October 2024, increasing from 48% in September.

How are buyers expected to adapt to high mortgage rates according to REAX's October 2024 survey?

According to the survey, 44% of agents expect buyers to compromise on home size, features, or location, while 20% expect more buyers to move in with family, and 17% foresee increased demand for single-family rentals.

What is the current market balance between buyers and sellers according to REAX's October survey?

The survey shows 35% of agents describe their market as a seller's market (down from 38%), 27% as a buyer's market (up from 23%), and 39% report balanced market conditions.

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