The past several years have seen optimistic pronouncements around recovery and rising home sales. This year’s Q3 earnings reports show nobody is willing to predict when the current down market will end.
In Real REMAX’s earnings report, CFO Ravi Jani put it plainly: “I think we want to be prudent in our outlook and not plan for a recovery.” The company’s outlook is based on a scenario in which U.S. existing-home sales fall 5 percent to 10 percent next year, with home prices falling 3 percent to 4 percent. Jani said that would put transactions at their lowest level in more than three decades.
By the numbers
Agents are being held to a higher standard
One common theme in this quarter’s earnings reports was that tomorrow’s agents will need to be more prepared and more productive in order to compete in the 2027 market.
- Compass reported 85,476 agents and recently announced that it’s raising minimum production for incoming agents by 30 percent.
- Real said it had offboarded more than 1,000 agents in two months, with plans to review 300 to 400 more. CEO Tamir Poleg said the agents let go were contributing little revenue. Poleg also noted that the company recently saw an uptick in agents leaving real estate altogether.
- REMAX North America saw agent count fall 3 percent. “We don’t expect an immediate reversal in agent attrition in a franchise business,” President Jenna Rozenblat said.
- Outlier AGNT saw its agent count rise 5 percent as transactions rose 8 percent. However, according to CFO Jesse Hill, it too is “focused on operational efficiency” heading into 2027.
In addition to brokerage commentary, Zillow discussed its renewed focus on its Preferred program, a performance-based agent partnership program that depends on an agent’s ability to actually close transactions, not just field and nurture leads. The company expects 100 percent of its connections to flow through Preferred by the end of this year.
The takeaway for agents? Production is now the metric by which they will be judged, and those who can’t close may find themselves looking for a new place to hang their license.
Mortgage giants profit amid market stall
While acknowledging that the upcoming market looks even tougher, Rocket President, CFO and Treasurer Brian Brown said, “We’re ready for it.”
The lender’s Redfin acquisition paid off with portal visitors starting a purchase mortgage from a listing rising 50 percent year over year. That translated to gains in both purchase and refinance market share and the best margin in nearly five years for the mortgage giant.
One way agents can differentiate their service is by helping buyers compare their portal-guided financing offer with that of the agent’s preferred lender or the brokerage’s in-house option.
Fannie and Freddie reported rising net income, with Fannie posting 35 straight profitable quarters. Freddie saw particular activity among first-time buyers, who made up 51 percent of its single-family purchase acquisitions. With the new National Association of Realtors Profile of Home Buyers and Sellers, out on Thursday, emphasizing “historic challenges” for first-time buyers, understanding your buyer client’s financing options is more important than ever.
Your broker-owner or managing broker is watching your performance more closely than ever, so we’re here to ensure you always have the best ideas for lead generation, transaction management and pipeline consistency. Here are just a few recent stories to set you up for your best year ever in 2027.
The gratitude marketing plan: How to use November to set up your best January ever
When you’re overflowing with gratitude, it spills over into the way you engage with clients — and the way they remember you, luxury broker Tiffany McQuaid writes.
I emailed 500 homeowners around a home we sold and got a listing appointment. Here’s how
Circle prospecting emails can start real conversations. See how Krys Benyamein‘s team emailed 500 homeowners after a sale and landed a listing appointment.
The minimum viable pipeline: 5 numbers that put you in control
Turn your real estate income goal into a 6-month forecast. Bob Burns offers five numbers to help you build a minimum viable pipeline and fix a short month before it happens.
The Download is a column in which Inman’s Christy Murdock takes a deeper look at the top-read stories of the past week to give you what you’ll need to meet Monday head-on.
