Data from the National Association of Realtors shows that the growth in realtors has officially gone negative in 2023. Similar to what occurred at the beginning of the previous housing downturn and recession in 2007.
JOIN as a CHANNEL MEMBER ($5/Month) to receive weekly data and graphs on the US Housing Market: https://www.youtube.com/channel/UCVTQunGrE3p7Oq8Owao5y_Q/join
Why are realtors quitting? Simple: because home prices are going down. Historical data shows a very tight relationship between home price growth and realtor growth. And now that prices are now going down YoY due to the recession and higher mortgage rates, realtors are quitting.
Things are especially bad in cities like San Francisco, Oakland, Los Angeles, and Sacramento – where home prices have gone down the most. Realtors in these markets are earning 40-50% fewer commissions this year compared to last.
Declining commissions will likely continue to be a problem for realtors due to higher mortgage rates. Which just hit 7%. Higher mortgage rates will likely lead to a further decline home sales and mortgage applications. And further prices Americans out of the housing market.
Because right now the cost to buy is at a record $2,700/month inclusive of mortgage interest, taxes, insurance, and maintenance. Compared to a median cost to rent of $1,850/month. So long as that gap between buying and renting exists, then we are unlikely to see a rebound in homebuyer demand in the US Housing Market.
—
REVENTURE APP: https://www.beta.reventure.app/dashboard
JOIN as a CHANNEL MEMBER ($5/Month): https://www.youtube.com/channel/UCVTQunGrE3p7Oq8Owao5y_Q/join
DISCLAIMER: This video content is intended only for informational, educational, and entertainment purposes. Neither Reventure Consulting or Nicholas Gerli are registered financial advisors. Your use of Reventure Consulting’s YouTube channel and your reliance on any information on the channel is solely at your own risk. Moreover, the use of the Internet (including, but not limited to, YouTube, E-Mail, and Instagram) for communications with Reventure Consulting does not establish a formal business relationship.
Image(s) and/or Footage used under license from Shutterstock.com. https://www.shutterstock.com/
Additional stock footage provided by Envato Elements. https://elements.envato.com/