PHOTO: FILE
The Real Estate Industry’s Online Backlash: From Market Insights to Agent Antagonism
The real estate industry faced a significant financial setback in June, with a sharp decline in residential sales impacting commissions heavily. According to Interest.co.nz, the industry’s gross residential sales commissions amounted to approximately $109 million in June, marking a 23% decrease compared to June of the previous year and representing the lowest level for the month of June since the site’s commission tracking began in 2016.
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Despite this, commission levels for the second quarter remained relatively stable, bolstered by strong performances in April and May. The national commission for Q2 was estimated at $421 million, a 6% increase from Q2 2023. However, the industry now faces the risk of a prolonged downturn, as a continuation of June’s slump into Q3 could spell disaster, particularly for smaller agencies. In tough markets, vendors often gravitate towards larger, well-known agencies, leaving smaller players struggling.
Ironically, this downturn coincides with the emergence of numerous “sell your own home” schemes, as vendors look to save on commissions amidst falling prices. Yet, selling a home in a tough market can be much more challenging than in a booming one, highlighting the value of a skilled agent.
Amid these financial woes, another trend is emerging: a noticeable shift in public sentiment, particularly visible in the comments section of real estate news sites like Interest.co.nz. Originally a platform for market insights, these sites are increasingly becoming hotbeds of hostility towards real estate agents. The comments reflect a growing dissatisfaction and cynicism towards the industry.
The Evolution of Comments: From Insight to Antagonism
While the financial data paints a challenging picture for the industry, the comment sections of real estate news sites tell another story. What was once a space for sharing market insights and analyses has become a battleground for criticism and negativity towards real estate agents.
One commenter sarcastically noted, “My heart breaks for these struggling RE agents ????. Let’s hope we don’t lose the best and brightest ones to Australia,” while another highlighted the inconsistency in commission rates despite significant rises in house prices over the years. “Notice how house prices have risen 50-80% over the past four years or so, but they still command the same commission rate,” they remarked.
The sentiment of resentment is palpable. Many comments reflect a belief that real estate agents are overpaid for their contributions, especially in the context of the broader economic struggles many are facing. “So many better uses for this money,” one user noted, succinctly capturing the frustration of many.
Others pointed out the irony of the situation, with users like Averageman stating, “After the bank they made exploiting Covid panic, they will have surely saved some vs splurging it on loss-making investments and Aston’s….right? If not. Burn.” Such comments reflect a belief that real estate agents profited excessively during the pandemic and now face a reckoning.
The Broader Implications
The shift in the tone of comments on these sites underscores a growing antagonism towards the real estate profession. This shift can have broader implications for the industry, affecting not just public perception but also the morale of those working within it. As the market continues to face uncertainty, maintaining public trust and demonstrating value will be crucial for real estate agents and agencies.
Interest.co.nz, while providing critical market data and insights, also highlights the importance of constructive discourse. The site’s comment policy encourages robust, respectful, and insightful debate, reminding users that abusive or defamatory comments will not be tolerated.
As the industry navigates these challenging times, the role of online platforms in shaping public opinion cannot be underestimated. For real estate professionals, engaging constructively with critics and demonstrating their value will be key to weathering the storm.
Other comments:
That’s 26,000 per licenced real estate agent for the quarter.
Not bad when they are sitting around doing nothing 90% of the time.
What this result shows is just how overpaid they really are.
They shouldn’t be making more than min wage in the current market.
“Does a struggling salesman start turning up on a bicycle? No, he turns up in a newer car – perception, yeah? They got to trust me – I’m taking these guys into battle, yeah? And I’m doing my own stapling.”
– David Brent
Fact this site gets more comments on anything property related than anything else. You sometimes see other articles on here without a single comment. Same old bunch of DGM’s spouting off and posting 20+ garbage posts on anything housing related.
I don’t understand the point of this article. Where are stories about car sales commissions? It seems that this website is trying to get traffic by triggering people about the property market.