Agent optimism unwavering as the market exceeds expectations
Consumers may be increasingly concerned about the economy, but agents in Real’s latest survey are largely feeling positive as they see buyers gain leverage.
With mortgage rates hovering just below 7% and economic concerns weighing on buyers and sellers, the real estate market has struggled to gain momentum this year. Yet, according to the March sentiment survey from Real Brokerage, agents are reporting high levels of optimism amid better-than-expected conditions.
Optimism remains strong as market activity exceeds expectations: Despite reports that buyers are backing off due to financial and recessionary concerns, agent sentiment hasn't wavered, the survey found. "Agents on the ground are seeing signs that the housing recovery may be more resilient than expected" despite the troubling economic headlines, noted CEO Tamir Poleg.
While Real's agent optimism index didn't change from the prior month, it remains high compared to previous surveys, and 69% of the roughly 500 agent respondents said they are feeling "more optimistic" or "significantly more optimistic" about their local market compared to the previous month. Almost half of respondents — or 45% — said the spring market has been stronger than anticipated, with just 26% reporting weaker-than-expected conditions.
An April survey from John Burns Research and Consulting also suggests conditions are improving. Although 50% of the 1,000 agents in that survey reported weaker-than-normal sales — far from a thriving market — it was an improvement over this time last year when 57% of agents noted weak home sales. And nationally, 40% of agents expect to see good sales over the next six months, down slightly from a year ago but significantly better than agent sentiment last summer.
Balance returning to the market: Sellers have had the upper hand for the last several years, but that advantage appears to be waning as many markets see home price growth soften or even reverse.
For the first time since Real launched its monthly survey in January 2024, more agents said their market was better for buyers than sellers, with 35% of responding agents describing their territory as a buyers market and 32% reporting that sellers retained the advantage. The remaining third described their market as balanced.
According to the John Burns survey, 51% of agents nationally said buyers outnumbered sellers in their market — a significant drop from 76% reported a year ago and another sign of greater balance.
Affordability remains a top concern, but economic anxiety is rising: While many agents are seeing buyers gain leverage, affordability continues to be a major hurdle — but it may be easing. Almost half the agents surveyed (48%) cited affordability as the single biggest issue for their buyers in March, down significantly from 61% in January.
Economic turmoil, meanwhile, has become a more salient issue amid tariff confusion, stock market volatility and an uptick in unemployment, with 21% of Real agents — more than double the percentage in January's survey — identifying broader economic uncertainty as the primary barrier for buyer clients.
And those concerns aren't just affecting buyers. A quarter of the agents surveyed said economic issues are "having a significant impact" on both buying and selling plans, with another 52% reporting a "moderate" effect, noting that clients were increasingly mentioning concerns about the economy.
A period of adjustment: Real President Sharran Srivatsaa said the latest agent survey marked "a clear shift" in the market as "buyers now have more negotiating power, and sellers are showing increased flexibility on pricing and concessions" than they did in recent months.
"It's a reflection of how both sides are adjusting to current market conditions after a period of historically low transaction activity," he added.
Agent comments in the John Burns report offered additional insight into buyer and seller behavior, particularly as economic instability grows due to monetary and policy decisions in D.C.
"Uncertainty regarding Trump's economic moves is scaring the pants off buyers who are taking a 'wait and see' stance for the moment," a Newark agent said, while an agent in Dallas said their sellers are "not ready to take on additional risks since most have a good amount of equity and low-interest rate mortgages."