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Relitix’s latest release of the Agent Movement Index
(AMI) for September 2024 reveals a significant downturn in agent mobility, with the seasonally adjusted metric hitting its lowest point for September in eight years. This decline suggests that agents are increasingly hesitant to switch brokerages as we move deeper into the fall season.
KEY OBSERVATIONS FROM SEPTEMBER:
Seasonally Adjusted Metric at 8-Year Low: The AMI’s seasonally adjusted figure for September dropped to 84.2, the lowest since 2016, indicating a sharp decrease in agent movement compared to previous years.
Acceleration of Decline: The reduction in agent mobility, which began over the summer, has not only continued but accelerated into the fall months.
Potential Reasons for Decline:
NAR Settlement Distractions: The implementation of the National Association of Realtors (NAR) settlement has created industry-wide distractions, causing agents to focus on adapting to new regulations rather than considering brokerage changes.
Agents Exiting the Industry: There may be an uptick in agents who are planning to leave the real estate industry altogether, reducing the pool of professionals interested in changing brokerages. We’ll know more when license renewal season arrives at the end of the year.
Challenges for Recruiters: With the current market conditions, recruiters will face increased difficulties in attracting and retaining top talent this fall.:
Rob Keefe, Founder of Relitix, commented on these developments: “The data from September underscores a pivotal moment in our industry. Agents are exercising caution, influenced by the NAR settlement’s implications and uncertainties about their future in real estate. Recruiters will need to be more strategic and proactive to navigate these challenges successfully.”
This month’s findings mark a continuation—and acceleration—of trends noted in our recent releases. In August 2024, we observed the agent mobility hitting a record low, and now September’s data confirms that the downward trajectory is persisting. The decline contrasts sharply with the more optimistic outlook from earlier in the year, such as our May 2024 report, where we highlighted an increase in agent mobility and a rise in active agents.
The September AMI recorded a trailing 12-month score of 96.6, a monthly score of 87.4, and a seasonally adjusted figure of 84.2, all reflecting the significant decrease in agent movement.
About the agent movement index: The agent movement reflects the relative mobility of experienced agents between brokerages. The score is computed by estimating the number of agents who changed brokerages in a given month. To be counted the agent must be a member of one of the analyzed MLS’s and change to a substantially different office name at a different address. M&A-driven activity and reflags are excluded as are new agents and agents who leave real estate. Efforts are made to exclude out of market agents and those which are MLS system artifacts. The number of agents changing offices is divided by the number of agents active in the past 12 months in the analyzed market areas. This percentage is normalized to reflect a value of 100 at the level of movement in January 2016 (0.7313%). The seasonally adjusted value divides the monthly result by the average of the same month in prior years.
Analyzed MLS’s represent over 800,000 members and include: ACTRIS, ARMLS, BAREIS, BeachesMLS, BrightMLS, Canopy, Charleston Trident, CRMLS, GAMLS, GlobalMLS, HAR, LVAR, Metrolist, MLSListings, MLSNow, MLSPIN, MRED, Northstar, NTREIS, NWMLS, OneKey, RealComp, REColorado, SEF, Stellar, Triad, Triangle, and UtahRealEstate.
About Relitix: Relitix provides data-driven decision support for brokerage leaders across the United States. A pioneer in applying AI and data science technology in brokerage management, Relitix profiles over 1.2 million agents in more than 130 markets nationwide to help brokers recruit, coach, and retain agents. Advanced data tools allow unprecedented visibility in agents, offices, and markets for strategic planning and M&A support. Learn more at www.relitix.com.
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