While real estate brokerage leaders are embracing artificial intelligence (AI), they are doing so cautiously, according to RealTrends Q3 2023 BrokerPulse survey. About one-fourth of respondents said that they are not interested in using it, or are actively staying away from AI, the majority are exploring ways to use it. “It’s a new thing in our industry, although I can see the merits given how other technology has helped,” said a California-based independent broker.
A Colorado-based independent broker-owner shared similar sentiment, “It’s an interesting concept. We are trying to figure out uses and kicking it around.”
However, those leaders who are implementing AI are using it for newsletters, blog posts, listing copy, business planning and other marketing content creation. “We are teaching agents what we have learned so far, but are currently only using it in property descriptions,” said a Realty ONE broker-owner. Overwhelmingly, they agreed that AI is a tool and will not replace the person.
RealTrends BrokerPulse requests surveys from some 19,000+ real estate brokerage leaders around the nation on market trends and brokerage opportunities and challenges. Of the 118 completed surveys, 27% were from the Southeast, 25% from the Southwest, 21% from the Midwest, 16% from the Northeast and 10% from the Northwest. RealTrends BrokerPulse is a forward-looking, quarterly survey.
Housing market outlook
Real estate leaders surveyed for the RealTrends Q3 2023 BrokerPulse were much less pessimistic about today’s housing market outlook in the third quarter. Only 14% said they were pessimistic, compared with 19% in the Q2 2023 survey. Some 41% were optimistic and 40% were neutral.
In addition, 25% (down from 30% last quarter) predicted the market would be down more than 5% this quarter. In the first quarter of 2023, a whopping 66% of those surveyed who felt the market would be down in the first quarter. In Q3 2023, some 50% (up from 39%) said the market would be flat, while 25% (down from 32%) thought the market would be up more than 5% in the third quarter.
When it comes to home prices, 53% thought home prices would flat in the third quarter, while 35% predicted home prices will be up more than 5% and 13% predicted they would be down more than 5%.
Some 25% (down from 48%) of respondents predict that interest rates will go up this quarter. The same percentage of respondents (25%) said they think rates will go down.
Productivity, motivation and regulation are key
Brokers continue to prioritize increasing agent productivity and looking for ways to keep agents motivated as we move through this uncertain market.
Other challenges rounding out the top five were keeping reducing operational expenses, pressure on net and/or gross margin and rising interest rates.
Of course, as in all markets, recruiting and retaining agents are top mentions when asked about priorities.
RealTrends also publishes AgentPulse survey which will help brokerage leaders gauge what agents understand about the technology and marketing solutions they find important and offer agents a temperature of the market.
If you have questions about BrokerPulse, email HWMedia’s Senior Director of Data and Content Tracey Velt at tracey@hwmedia.com. Also, be sure to sign up for RealTrends Daily, a roundup of news, tips and strategies for success.