Across the board, mortgage and real estate respondents to the HousingWire Pulse Q1 2025 survey say the housing market will be flat for the first three months of 2025. The majority chose “flat” when asked the direction of home sales and home prices. The good news? HousingWire experts are forecasting a more positive outlook for this year’s housing market in their recent 2025 Housing Market Forecast: The Path to Recovery.
Respondents were a bit more positive about Q4 2024, which was collected before mortgage rates rose to 7%.
The HousingWire Pulse Survey for Q1 2025 provides valuable insights into the current state of the real estate market from various perspectives: brokerage leaders, mortgage professionals, and real estate agents. This diversity allows for a comprehensive understanding of the market dynamics.
In addition to the neutral stance on home prices and home sales this quarter, all three audiences unanimously responded that both mortgage rates and their enthusiasm for the market is also “meh.”
Clear Cooperation sentiment mixed
The sentiment of real estate brokers regarding Clear Cooperation is divided. HousingWire Pulse asked a question about how they felt about it. It’s been a topic of industry division, with big hitters like Robert Reffkin of Compass coming out against Clear Cooperation and RE/MAX supporting it. Their answers range range from strong support to concerns over its impact on smaller brokerages, an open market and competitiveness. Here’s a breakdown of the responses from the HousingWire Pulse Survey:
Supportive Sentiment
Many brokers express a firm belief in the value of Clear Cooperation in ensuring an open and transparent market:
- Transparency and fair competition: Several respondents say that Clear Cooperation is vital for maintaining a level playing field among brokerages and protecting sellers’ best interests. One respondent noted, “Clear cooperation is the foundation of this industry and has given both buyers and sellers an opportunity to win at the table.”
- Consumer benefits: Supporters also highlight the advantages for consumers, such as more exposure to listings which increases competition, ultimately benefiting sellers. A participant commented, “It makes total sense for the sellers, more exposure = greater competition.”
- Support for smaller, independent brokerages: There is a recognition that Clear Cooperation helps smaller firms remain competitive.
Skepticism and Criticism
On the other hand, some brokers are critical of Clear Cooperation:
- Restricting seller autonomy: A common critique is that Clear Cooperation limits a seller’s ability to market their property as they see fit. One respondent remarked, “Sellers should be able to dictate how their house is sold. Agents need to thoroughly explain the advantages and disadvantages of all types of ways to sell.”
- Over-regulation concerns: Some brokers view Clear Cooperation as an overreach of regulation. One participant expressed frustration, saying, “It’s an overreach of regulation and restricts an owner’s ability to market a property the way they want. Another pointed out that it favors larger brokerages, creating disadvantages for independent operators: “I think the way it is structured, it heavily favors the big brokerages while giving the independent brokerages a disadvantage.”
Mixed Views
A significant portion of brokers hold a more neutral stance:
- Mixed effectiveness: Some brokers are unsure about Clear Cooperation’s long-term benefits, with one stating, “I agree with the intent of the policy but am skeptical of its effectiveness.” Others are neutral, recognizing both the pros and cons, noting that it “has the potential of serious fair housing issues” without proper training .
- Support with reservations: Some brokers express conditional support, stating that while they believe in the idea of cooperation, they are critical of its strict timeline for entering a listing into the MLS and the involvement of non-practicing board members in decision-making.
Challenges (almost) remain the same
While housing market sentiment may be flat, the challenges for real estate and mortgage professionals stayed same as last quarter, with the exception of real estate agents, who for the first time since this survey was administered, are chiefly concerned with getting paid.
However, that fear may be somewhat unfounded, according to brokers who answered the question: Have you seen a drop in buy-side commissions since August?
Here’s a breakdown of the responses:
- No drop: 32% respondents mentioned that they had seen no drop in buy-side commissions, with some even stating that they had increased.
- Significant drop: About 8% mentioned a significant drop in buy-side commissions, with one stating a 9% drop, and another describing around 1%.
- Minimal change: Some 60% of respondents reported minimal changes or only slight decreases (e.g., 1/2% to 1%, a few basis points).
Here is a rundown of respondents’ top 5 challenges:
Looking ahead, it is essential for industry leaders to foster collaboration, share best practices, and adapt to the shifting market dynamics, particularly in the new post-NAR settlement real estate market.
HousingWire Pulse is a quarterly, forward-looking housing market and industry trend survey that focuses on the real estate and mortgage industries. The Q1 2025 survey had 319 respondents, 48% in the real estate industry and 52% in the mortgage industry.
