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A typical monthly mortgage payment is now $2,588 — a nearly $250 dip from an all-time high in April, according to an analysis by Redfin released Thursday.

The latest adjustment marks the lowest a typical monthly mortgage payment has been in six months — and, with a mere 1 percent month-over-month increase, the smallest uptick in five years, according to payments tallied by Redfin during a four-week period ending Aug. 11.

Coupled with declining mortgage rates, the reduced payments should convince some prospective buyers to return to the market, if they haven’t already, Redfin Premier agent Brynn Rea said in a statement. On Wednesday, mortgage-purchase applications rose 3 percent week over week on a seasonally adjusted basis, according to the Mortgage Bankers Association.

“I expected more buyers to come out once mortgage rates started falling,” Rea said. “Although there’s been some increase in house hunting, it hasn’t been substantial. Budgets are still a primary concern for buyers, and homes remain quite expensive for many.

The total number of homes for sale in the U.S. increased nearly 20 percent year over year with a large portion of inventory sitting on the market longer, giving buyers more room to negotiate. Additionally, under 30 percent of homes are selling above the asking price, down from 35 percent the previous year.

Despite an improvement in costs and inventory, pending home sales have not picked up, falling 5.1 percent year over year to 82,160, representing the largest drop since November with the exception of last month’s 6.2 percent decline.

Several factors are contributing to buyer hesitation, including the fact that home prices, while lower than their July peak, are still near record highs. Furthermore, some potential buyers are holding off due to uncertainty about the economy surrounding the upcoming presidential election.

Buyers are uncertain whether mortgage rates will continue to decline or if a recession in the U.S. looms ahead.

According to Redfin’s recent CPI report, inflation is continuing to ease, reinforcing expectations that Fed may begin cutting interest rates in September although the extent of the cuts is uncertain. Markets have already priced in expectations for significant rate reductions.

If the Fed does not meet these expectations, rates could increase modestly. If cuts are as aggressive as anticipated, mortgage rates could fall further. If lower rates boost demand, home prices may rise.

Redfin’s Homebuyer Demand Index, a metric that tracks requests for tours and other services from Redfin agents, is down 10 percent year-over-year, the smallest decline since April.

“A lot of buyers are waiting to see if mortgage rates will drop further, especially if the Fed cuts interest rates, and they’re also keeping an eye on the economy and the upcoming election,” Rea said.

Email Richelle Hammiel

Whether it’s refining your business model, mastering new technologies, or discovering strategies to capitalize on the next market surge, Inman Connect New York will prepare you to take bold steps forward. The Next Chapter is about to begin. Be part of it. Join us and thousands of real estate leaders Jan. 22-24, 2025.

After launching a boutique brokerage in 2013, co-CEOs Eric Walstrom and Alex Irrer joined @properties Christie’s International Real Estate REMI in 2021. Since then, they’ve increased their sales volume tenfold, opening eight offices in the state of Michigan. In the process, they’ve focused on maintaining their boutique brokerage culture and high level of service to both agents and clients.

According to the broker-owners, the industry is headed in the direction of agent quality over transaction-based service. Find out how they combine rapid organizational growth with a commitment to exceptional agent performance.

Name: Eric Walstrom and Alex Irrer

Title: Co-CEOs

Experience: 19 years (Walstrom), 14 years (Irrer)

Location: Michigan

Brokerage name: @properties Christie’s International Real Estate REMI

Rankings: No. 6 brokerage in Michigan on sales volume

Team size: 189 agents

Transaction sides: 1,920

Sales volume: $1,100,000,000

How did you choose your brokerage?

We chose @properties Christie’s after two years of meeting with every single brokerage in the state of Michigan and a few outside the state, to understand each brokerage’s value proposition and how they would fuel our agent and brokerage growth. Most brokerage’s “value” was a better deal, their size/market share, or established brand.

The offering from @properties Christie’s was different right from the first meeting. They focused on the agent and client experience above all else. Their “value” of technology, marketing and culture were tools an agent and our brokerage could actually use to help grow their business.

Finally, it was the amazing people in leadership that swayed our final decision. This business is all about people/relationships and we felt a very genuine comfort in the people who were leading the brand.

What do you wish more people knew about working in real estate?

We wish more people knew the courage and risk it takes to become a full-time real estate agent. There are not many current professions that are 100 percent commission where you have to earn the business every single day.

What’s your top prediction for the future? 

We believe the brokerage industry will separate into something that resembles the current mortgage industry. There will be a large acquisition/merger by one of the portals (Zillow, Realtor, Redfin, Homes.com) of a large, nationwide brokerage franchise. When that happens, you will have a clear distinction between the “portal agent” and a local brick-and-mortar agent in terms of level and cost of service.

Tell us about an epic fail you’ve experienced since you’ve been a broker

Shortly after we created the company, we recruited an agent who did not fit our core values but was a top-performing agent in the market. Our failure was not removing the agent from the brokerage sooner than we did.

The top agent stunted our growth and ability to attract other high-performing agents. Once we finally decided to remove the agent, a flood of growth occurred. We learned to protect our core values and culture above production and rankings.

What makes a good leader? 

A good leader is an exceptional listener, understands change creates opportunity and remains calm throughout significant change.

Email Christy Murdock

This report was originally published on July 22, 2024, exclusively for subscribers of Intel, the data and research arm of Inman. Subscribe to Inman Intel for a deeper analysis of the business of real estate.

Today’s renters are still largely unaware of the National Association of Realtors settlement’s true implications for their homebuying prospects.

But the more they learn about the deal, the less they like it.

Meanwhile, homeowners are broadly intrigued by what the deal could mean for their position in negotiations when it’s their turn to list their current properties for sale, according to the Inman-Dig Insights consumer survey of 3,000 working U.S. adults in early July.

The survey is conducted quarterly by Inman Intel in an effort to gain a representative idea of how potential real estate clients feel about a broad range of housing topics.

One major takeaway? The NAR settlement is being broadly received as consumer-friendly, and may be actually improving public perception of real estate professionals, not harming it.

But when certain groups of consumers dive into the details, they’re less likely to say they stand to benefit from the sweeping changes facing the industry.

Intel subscribers can read the complete breakdown in the full report.

In for a rude awakening?

For months now, 3 out of 4 consumers have said that they have not heard of a settlement involving the National Association of Realtors.

This won’t surprise many real estate professionals. 

In the Inman Intel Index, a separate survey of real estate professionals conducted each month, agents have consistently said that most of their clients are not yet bringing up the news or asking about how they might benefit from the deal.

But one thing that does stand out: consumers who have heard of the deal but not necessarily digested its full implications believe that it’s a win for them. 

• 64 percent of consumers in early July who had heard of the NAR deal said they believed it would be good for consumers or a win-win for both consumers and the real estate industry.

But the more renters in particular learned about the details, the less they liked the deal.

As part of the survey, Intel briefed non-homeowners — including renters and potential first-time buyers — on some of the details. 

Renter respondents were told that proponents believed the changes could bring down overall commissions that consumers pay. Respondents were also informed that, in some cases, buyers might have to pay their agent’s fee out of pocket if the seller chose not to cover it.

• Only 55 percent of renters who were briefed on these implications said the NAR settlement would be good for consumers or a win-win for both consumers and the industry. 
• 24 percent of renters who were briefed on the details said the NAR settlement would be bad for both the consumer and the real estate industry. That’s more than three times the share of adults who had simply heard of the NAR deal through the news or word of mouth prior to taking the survey and gave the same response. 

U.S. adults who say they’re likely to buy a home sometime in the next 12 months expressed a strong aversion to paying their buyer’s agent fee out of their own pocket if the seller declines to cover it. 

But if it were to happen, they wouldn’t give up on the home right away.

• Only 10 percent of likely buyers said they would be open to paying their agent’s fee out of their own pocket.
• 32 percent of likely buyers said they would be open to countering at a higher price, but insist that the seller cover the buyer’s agent fee.
• The largest group of likely buyers — 47 percent — said they would counter at the same price, but try to sweeten the deal with concessions such as waived contingencies or more earnest money in order to secure the seller’s coverage of their agent commission.
• Only 11 percent of likely buyers said they would remove themselves from consideration for the home if the seller initially did not want to pay the fee.

An opportunity — and a pitfall

U.S. homeowners are broadly intrigued by the idea of not covering the buyer’s commission. But if their agent advises that not covering the fee might make their listing less attractive to buyers — as most agents tell Intel they are likely to do — most consumers either give in to buyer expectations or take a more moderate approach.

• 36 percent of homeowners said that they would opt to offer the full 2%-3% buyer commission, if advised that declining to do so might hurt the listing.
• On the other hand, 24 percent of homeowners said they would decline to cover the buyer commission and list it for full price — a gambit to take full advantage of the policy change, at possible risk to the sale of the home.
• The remaining 40 percent of homeowners chose some in-between option — such as lowering the asking price below the listing’s comps while declining to pay the buyer agent’s commission, or offering to cover only part of the fee.

With seller clients in particular, the path forward is murky.

Real estate professionals clearly believe that sticking to a hardline refusal to cover the buyer-side fee will harm a listing. They tell Intel that they will advise their clients to consider the impact such a move could have on how long the property takes to sell, and the price it will end up going for.

And here, 3 in 4 consumers are saying that they would heed this advice — at least in part.

At the same time, nearly 2 in 3 consumers might be at least willing to push the boundaries and try to leverage this new option into a negotiating tool, or a hard line in the sand.

An unexpected boost

When asked by the Intel Index each month, brokerage owners and executives consistently say they believe the public has a negative opinion of real estate agents.

This concern is echoed by many agents who view NAR as responsible for maintaining a positive public image of real estate professionals — a task for which the trade group receives largely negative marks these days.

But so far, if anything, the NAR settlement appears to be improving public perception of real estate agents, not hurting it.

• 58 percent of consumers in July had a positive opinion of real estate agents, compared to only 7 percent who had a negative opinion, according to the Inman-Dig Insights consumer survey.

What’s more, that’s not just a snapshot in time. Consumers were asked how their opinions have changed over the past year, a period which included a down market for transactions in which affordability was poor and commission practices dominated the headlines in real estate circles.

• 34 percent of employed adults said their opinion of agents had improved over the past 12 months, compared to 6 percent who said it had worsened.
• Consumers who had already heard of the NAR settlement before taking the survey were nearly twice as likely to say their opinion of real estate agents had improved over the past year, with 60 percent choosing this option.

About the Inman-Dig Insights Consumer Survey

The Inman-Dig Insights consumer survey was conducted from July 5 through July 7 to gauge the opinions and behaviors of Americans related to homebuying. 

The survey sampled a diverse group of 3,000 American adults, ranging in age from 24 to 65 and employed either full-time or part-time. The participants were selected to produce a broadly representative breakdown by age, gender and region.

Statistical rigor was maintained throughout the study, and the results should be largely representative of attitudes held by U.S. adults with full- or part-time jobs. Both Inman and Dig Insights are majority-owned by Toronto-based Beringer Capital.

Email Daniel Houston

Whether it’s refining your business model, mastering new technologies, or discovering strategies to capitalize on the next market surge, Inman Connect New York will prepare you to take bold steps forward. The Next Chapter is about to begin. Be part of it. Join us and thousands of real estate leaders Jan. 22-24, 2025.

In real estate, keeping morale high during tough times isn’t just a nice-to-have; it’s essential for survival. When markets shift or the economy takes a hit, maintaining a motivated and cohesive team becomes a leader’s most critical challenge. Let’s explore eight leadership strategies designed to uplift your team when the stakes are highest.

1. Prioritize your people

With real estate teams, your business is as strong as the people behind it. Your team isn’t just executing tasks; they’re crafting experiences that clients invest in. If you want to lead in this space, your focus must be laser-sharp on your people.

Invest in their growth, celebrate their wins and be their fiercest advocate. They are your engine, and to keep it running smoothly, you need to ensure it’s well-oiled with support, recognition and opportunities for development.

2. Embrace life beyond work

High-stakes environments can take a toll on personal well-being. Top team leaders in real estate understand that success requires more than just work. It’s about balance.

Encourage your team to tap into their physical, emotional and spiritual reserves. Lead by example — prioritize relationships, health and reflection. A leader who embodies this balance creates a ripple effect, promoting a culture where your team thrives both in and out of the office.

3. Infuse energy into your team

You’re at the head of a real estate team, not just managing your transactions but leading people who drive your success. After navigating rough waters, your team needs a source of renewed energy — and that source is you.

Instead of draining the room, bring passion and positivity every day. Your team has weathered a storm; now, they need a leader who inspires and reignites their drive. Make your presence a boost, not a burden.

4. Master the art of communication

Communication isn’t just about transferring information — it’s about influence. Whether you’re addressing your team or negotiating with your clients, your words carry weight. Refine your messaging to ensure clarity and impact. But communication is more than speaking; it’s about listening and understanding the nuances that drive your business. Effective leaders know how to make their words resonate and their silence meaningful.

5. Lead with integrity

In a world where clients demand the highest standards, your integrity sets the tone. Scandals and breaches of trust are a dime a dozen in today’s real estate business news, but leaders who stand firm on principles build more than a brand — they build legacies. By consistently demonstrating integrity, you not only motivate your team but also instill a sense of pride and loyalty. This commitment to doing the right thing strengthens your team’s resolve and cements your team’s reputation.

6. Listen like you mean it

Real leaders know when to stop talking and start listening. In challenging times, your team needs to feel heard more than ever. The most powerful tool in your leadership arsenal is active listening. When you tune in to what’s being said — and what isn’t — you build trust and uncover valuable insights. This empathetic approach not only solves problems but also fosters a deeper connection with your team, making them more committed to the collective success.

7. Lead through competence, not title

Your title might open doors, but it’s your competence that earns respect and drives results. Lead by example — mentor, empower and partner with your team. This approach creates a culture where leadership is about action, not position.

Your team will respect a leader who isn’t afraid to roll up their sleeves and work alongside them. This shared sense of purpose and competence will not only help you navigate tough times but also set a solid foundation for future success.

8. Cultivate a problem-solving culture

Set a standard where problems are seen as opportunities for innovation. Encourage your team to approach challenges with solutions in hand. This proactive mindset not only speeds up resolution but also empowers your team to take ownership of their work. As a leader, guide them to refine their problem-solving skills, creating a culture where obstacles are simply the stepping stones to greater achievements.

In the hyper-competitive world of real estate, where every detail can make or break a deal, your leadership during challenging times will define your legacy. By focusing on these strategies, you not only maintain morale but also foster a resilient and motivated team. Remember, in this industry, it’s not just about surviving tough times — it’s about emerging stronger, with a team that’s ready to redefine success.

Chris Pollinger, founder and managing partner of RE Luxe Leaders, is the strategic advisor to the elite in the business of luxury real estate. He is an advisor, national speaker, consultant and leadership coach.  Learn more about their consulting, coaching and advisory programs at RELuxeLeaders.com