The August edition of RISMedia’s Broker Confidence Index (BCI) came in at 5.6, up slightly from a 5.3 reading last month as real estate business leaders parse out rates, affordability and consumer behavior.
The overwhelming concern among brokers centered on interest rates, with multiple respondents citing rates above 6% as the primary factor affecting their confidence in the market.
This aligns with current market conditions, with the survey taking place before the Federal Reserve made a modest 25-basis point cut to interest rates this week.
“It’s going to take lower rates to move the needle in any significant way,” noted one anonymous broker, who described current conditions as “stagnant.”
Echoing similar concerns, Jim Fite, CEO of CENTURY 21 Judge Fite Company, noted that “interest rates remaining in the >6% range” is the primary factor affecting his confidence in the market. His market confidence rating came in at five out of 10.
Scott Myers, from CENTURY 21 Scott Myers, Realtors® said the factor primarily affecting his confidence was “good pent up demand,” but reiterated that “it all depends on how low interest rates go.”
A fourth, anonymous, respondent said his main concern revolved around “sidelined buyers waiting on (the Fed’s) decision and hoping for an impact on mortgage rates.”
New agents
While this type of market is far from what might seem conducive for brand-new agents to jump into real estate—especially with continued scrutiny on commission practices—brokers said they still welcome new licensees, and are even dedicating more resources to support inexperienced agents.
That is obviously a good sign for those starting new careers, but also points to some level of optimism for the future: if brokers are willing to put time and money into an agent that may not produce for some months, they are at least somewhat confident in growing their business in the near-term.
Brokers have previously advocated for stronger licensure requirements, but it is notable that many continue to welcome new agents despite all the upheaval.
Asked what is most important in determining whether a new agent is worth the investment, many brokers focused on attitude and energy, while others said even new agents should have some record of previous accomplishments.
“May sound trite—(if) they show up for work and actually do what our training programs recommend to achieve success!” said Fite.
“We recommend taking a DISC (personality) assessment. To thy own self be true,” said Todd Menard, CEO of West USA Realty in Arizona. “Resumes…provide a glimpse into what to expect. Do they show up for the work, or do they revolve and blame the last environment?”
Many brokers pointed to “hustle” or being “hungry,” while some said they look at new agents’ social media following or recent sales experience.
Notably, when asked if they are willing to support or accept a new agent with zero transactions and experience, not a single broker said they were “never” open to that opportunity, with the vast majority responding either “sometimes” or “usually.”
