Top concerns of brokers for 2018 housing market

Fifty-seven percent of brokers report they are feeling optimistic about the housing industry in 2018.

Another 20 percent reported they have a feeling of ‘high’ confidence, with only 3 percent reporting low confidence, according to the recent survey results release, “What keeps brokers up at night?” by Better Homes & Gardens® Real Estate and RISMedia.

However, lack of inventory is the top concern for the majority (51 percent) of brokers, the survey found. Recruiting is a concern for 29 percent, while 25 percent said non-traditional competition is their top worry. An additional 14 percent said traditional competition, while 12 percent cited economic uncertainty.

When it comes to profit, there are always obstacles. Again, brokers cited lack of inventory as the top challenge for profitability, followed by increasing agent productivity and pressure on commission. Still, 14 percent of brokers reported that streamlining technology platforms was their top challenge for making a profit, while the economy and technology costs were both concerns to others.

Recruitment of agents is the top operational challenge, brokers reported. Agent productivity, business model competitiveness and talent attraction were also concerns for day-to-day business.

What are brokers worried about this year in the industry? Thirty-eight percent cited 100 percent commission/flat-fee models as the biggest threat, and 30 percent said direct-to-consumers models. Another 21 percent said online and digital models are the models that are the biggest threat this year.

Overall, brokers top concerns are across the market. The No. 1 answer to “What keeps you up at night?” for brokers was recruiting more agents (22 percent), followed by new business models (20 percent), uncertain economy (15 percent), keeping up with technology (14 percent), lack of inventory (11 percent) and housing legislation (3 percent).

What are your top housing concerns in 2018?