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A staggering 71% of active real estate agents in the United States did not close a single home sale last year, according to a recent report by Inman and Redfin. This eye-opening statistic highlights ongoing struggles in the U.S. property market, which is being impacted by rising home prices, low inventory, and increasing home insurance challenges.
Real Estate Market Faces Major Challenges
Despite a booming housing industry in previous years, real estate agents are now struggling to secure transactions. The National Association of Realtors (NAR) disputes the claim, stating that only 5% of its 1.5 million members reported zero transactions in 2023. However, affordability concerns and inventory shortages remain pressing issues across major states such as California and Florida.
Environmental factors, including wildfires, hurricanes, and flooding, are further complicating the market. In states where natural disasters have become frequent, buyers are finding it increasingly difficult to obtain home insurance, leading to delays in property sales.
Optimism Amid Market Uncertainty
Despite these challenges, many real estate agents remain optimistic. The report found that 50% of surveyed agents expect an increase in home sales in 2025, as mortgage rates are predicted to stabilize around 6.5% by year-end. Additionally, housing inventory levels are expected to rise as more homeowners become willing to sell.
The final months of 2024 already showed signs of market recovery, with home sales beginning to climb. Lawrence Yun, Chief Economist for NAR, believes that rising incomes and a steady boost in available properties could create renewed enthusiasm for buyers.
The Role of Real Estate Agents Remains Strong
While digital platforms continue to play a crucial role in homebuying, traditional real estate agents still dominate the market. In 2024, 88% of all home purchases in the U.S. were made through an agent or broker. Direct sales from builders or previous homeowners accounted for only 10% of total transactions, demonstrating the continued reliance on industry professionals.
As market conditions evolve, agents are advised to adapt their strategies to remain competitive. With a shifting economy, rising home prices, and fluctuating mortgage rates, real estate professionals will need to be proactive in navigating the challenges ahead.
SOURCE: MYNBC