Real’s May Agent Survey: Market Momentum Slows as Buyer Leverage Grows

The Real Brokerage Inc. (NASDAQ: REAX, “Real”), a technology platform reshaping real estate for agents, home buyers and sellers, today released results from its May 2025 Agent Survey. The data reflects a housing market continuing to moderate, with agents reporting softer transaction activity and a clear shift in leverage toward buyers. Despite near-term headwinds, nearly 6 in 10 agents remain optimistic about their local markets over the next 12 months.

This month’s survey also provides a look into what drives agents’ decisions when choosing a brokerage, expressing brand affiliation plays a surprisingly minimal role in their choice. Instead, agents overwhelmingly prioritize compensation structure, company culture, and technology when selecting where to affiliate. Similarly, agents report that clients select them based on personal relationships, responsiveness, and professional reputation, rather than the brokerage’s brand name.

“Based on our survey, the spring market is clearly tilting toward buyers, with more inventory and greater pricing flexibility emerging across many regions,” said Tamir Poleg, Chairman and CEO of Real. “But even with this shift in leverage, affordability remains a key hurdle. Until mortgage rates ease or wage growth catches up, we expect this dynamic of increased supply yet more selective demand to define the market in the near term.”

“This month’s survey reinforces what we hear from agents every day: they’re choosing brokerages based on what truly moves their business forward: economics, culture and technology,” said Dre Madden, Chief Marketing Officer at Real. “While brand recognition still matters, it’s our values, our tools and our agent-first model that continue to drive growth and attract top talent to Real.”

Key Survey Findings: Market Trends and Insights

• Home Sales Activity Continues to Slow in May: Real’s Transaction Growth Index, which tracks year-over-year changes in home-sales activity reported by agents, declined to 44.2 in May, down from 47.8 in April. A reading below 50 indicates contraction. In the U.S., the subindex slipped to 43.9 from 49.0, while Canada’s reading was more positive, improving to 46.7 from 36.3.
• Agent Optimism Remains Positive, Though Softening: Real’s Agent Optimism Index, which measures agents’ 12-month outlook for their local markets, declined to 57.0 in May from 65.8 in April. While a reading above 50 indicates net optimism, the trend is downward. Still, 38% of agents felt more optimistic in May (including 8% who felt significantly more optimistic), compared to 22% who felt more pessimistic and 31% reporting no change from the prior month.
• Buyers Regain Market Power: In May, 43% of agents said their local market favors buyers, while only 28% said it favored sellers, and 29% described conditions as balanced. Agents cited rising inventory, longer times on the market and greater room for negotiation as signals of this ongoing power shift.
• Affordability and Economic Concerns Lead Buyer Challenges: Affordability was again the top challenge facing buyers, cited by 50% of agents. However, concern about the broader economy grew significantly: 28% of agents named economic uncertainty as the biggest barrier to buyers, up from 23% in April and the highest since the survey began. Inventory constraints (14%) and buyer competition (5%) were seen as lesser issues.

Key Survey Findings: Agent Priorities and Impact of Brokerage Brand

• Brokerage Brand Plays Limited Role in Agent Affiliation: When asked what three factors most influenced their decision to join their current brokerage, only 6% of agents selected brand reputation. Instead, agents overwhelmingly prioritized:
  • Economics (commission split, cap, revenue share) – 64%
  • Company Culture and Values – 55%
  • Technology and Tools – 38%
  • Freedom and Flexibility (e.g., ability to work how/where desired) – 32%
  • Equity Ownership Opportunity – 28%
  • Leadership and Management – 26%
  • Training and Professional Development – 17%
• Clients Prioritize Agent Relationships Over Brokerage Brand: Agents confirmed that client decisions are driven by trust and relationships, not brokerage brand identity. The most influential factors include:
  • Personal Relationships and Referrals: Cited by 89% of agents as the top driver for client choice.
  • Responsiveness and Communication: 60% of agents highlight timely follow-up and clear communication as critical for earning client trust and business.
  • Professional Reputation: 54% of agents noted their track record as a key factor in clients choosing to work with them.
• Brokerage Brand Affiliation Less Important to Clients. Regarding the importance of brand affiliation to clients, the survey found:
  • A significant 58% of agents believe brand affiliation is not important to clients (38% "not very important" and 20% "not at all important").
  • Only 27% consider it "somewhat important," while a combined 15% (9% "very important" and 6% "extremely important") view it as highly important.

A summary presentation of these results can be found on Real’s investor relations website at https://investors.onereal.com/.

About the Survey

The Real Brokerage May 2025 Agent Survey included responses from over 260 real estate agents across the United States and Canada and was conducted between June 8, 2025 and June 18, 2025. Responses to questions regarding transaction growth and agent optimism were calibrated on a 0-100 point index scale, with readings above 50 indicating an improving trend, whereas readings below 50 indicate a declining trend. Responses are meant to capture industry-level information and are not meant to serve as an indication of Real’s company-specific growth trends. Additionally, given the smaller sample size, there can be greater variability in Canada index results on a month-to-month basis.

About Real

Real (NASDAQ: REAX) is a real estate experience company working to make life’s most complex transaction simple. The fast-growing company combines essential real estate, mortgage and closing services with powerful technology to deliver a single seamless end-to-end consumer experience, guided by trusted agents. With a presence in all 50 states throughout the U.S. and Canada, Real supports over 27,000 agents who use its digital brokerage platform and tight-knit professional community to power their own forward-thinking businesses.

Forward-Looking Information

This press release contains forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “likely” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. These statements reflect management’s current beliefs and are based on information currently available to management as of the date hereof. Forward-looking information in this press release includes, without limiting the foregoing, expectations regarding the residential real estate market in the U.S. and Canada.

Forward-looking information is based on assumptions that may prove to be incorrect, including but not limited to expectations regarding 2025 market conditions. Real considers these assumptions to be reasonable in the circumstances. However, forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking information. Important factors that could cause such differences include, but are not limited to, slowdowns in real estate markets and economic and industry downturns, and those risk factors discussed under the heading “Risk Factors” in the Company’s Annual Information Form dated March 6, 2025, and “Risks and Uncertainties” in the Company’s Quarterly Management’s Discussion and Analysis for the period ended March 31, 2025, copies of which are available under the Company’s SEDAR+ profile at www.sedarplus.ca. These factors should be carefully considered and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, Real cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and Real assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.

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