Good news for mortgage brokers: Realtors are still optimistic about the housing outlook

Real estate agents across the US and Canada remained largely optimistic about the market’s future, despite a continued slowdown in transaction activity and persistent affordability concerns, according to The Real Brokerage’s August 2025 Agent Survey.

The survey, which polled 165 agents between August 27 and September 15, found that 60% of respondents felt more optimistic about the 12-month outlook for their local markets than they did in July.

“With the recent pullback in mortgage rates, we are hopeful the housing market will begin to recover to more normalized transaction levels. Meanwhile, Real will continue to equip our agents with the technology, tools and support to thrive in any market,” Tamir Poleg, chairman and CEO of Real, said.

Transaction growth slows as buyers gain leverage

Real’s Agent Optimism Index dipped slightly to 64.2 in August from 67.2 in July, but remained well above the 50-point threshold that signals a positive outlook.

However, the Transaction Growth Index fell to 42.7, down from 49.3 the previous month. The Transaction Growth Index is a measure of agent-reported year-over-year changes in home sales. In the US, the index landed at 43.9, while Canada saw a sharper drop to 33.3.

Nearly half of agents (48%) reported fewer transactions compared to last August, while only a quarter saw an increase. “Transaction activity continues to moderate,” the report noted, with agents in both countries citing affordability as the top challenge for buyers.

The median US home-sale price rose 2.2% year over year to $392,225 in the four weeks ending September 14, marking the largest jump in five months, Redfin reported.

In Canada, national home sales jumped for the fifth month in a row in August, eking out a 1.1% increase from July as a slow national recovery continued, according to the Canadian Real Estate Association (CREA).

Affordability and economic uncertainty dominate concerns

Affordability remained the primary hurdle for buyers, cited by 53% of agents, while 24% pointed to economic uncertainty as the next biggest challenge. Inventory constraints and buyer competition were less pressing, mentioned by 15% and 5% of agents, respectively.

The survey also highlighted a market that continues to favor buyers: 50% of agents described their local market as a buyer’s market, compared to 19% who said it favored sellers and 31% who saw conditions as balanced.

Brian Mozley, chief growth officer at Choice Mortgage Group, said the uncertainty has made things challenging for both buyers and sellers.

“I think it's really challenging to forecast where we're headed,” Mozley told Mortgage Professional America. “I also think what's happened is it's created a lot of uncertainty for buyers. What I have noticed is that buyers are a lot more on the fence. If they get into a contract on a home, they are a lot more likely to back out than maybe they would have been in the past.”

Commission rates steady, buyer agreements accepted

A year after NAR-mandated practice changes, most agents (67%) reported little to no difficulty educating clients about mandatory written buyer representation agreements. 

Commission rates also remained stable, with 72% of agents saying list-side commissions were unchanged and 60% reporting the same for buy-side. Rates for homes in the $500,000–$750,000 range were especially steady, underscoring the perceived value agents bring to the process.

Despite a softer market and persistent affordability issues, most agents surveyed by Real remained upbeat, with commission rates holding steady and buyer agreements now widely accepted. The industry’s resilience and adaptability continue to underpin agent optimism, even as headwinds persist.

A Redfin report showed that the average US buyer agent commission reached 2.43% in the second quarter of 2025, up from 2.38% a year earlier. The increase marks the third consecutive quarter of rising commissions since new NAR rules were implemented in August 2024.