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INDUSTRY-SPECIFIC NEWS ARTICLES
Market Shift Highlights Fundamentals of Real Estate Brokerages and Their Operations
2022 proved to be a challenging and tumultuous year for many sectors, and realty was no exception. The real estate market saw a downturn in performance, with a reduced number of transactions. Many brokerages, including some of the largest in the U.S., were forced to forge new paths and plan alternate strategies to ensure an uptake in performance.
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Powerful predictors to keep a close watch of include agent count, transaction volumes, and the relative growth and decline of brokerages in the previous year. These can all give a clear indication of future performance.
eXp has continued its trajectory as one of the fastest-growing real estate brokerages in the world, with an exponential increase in the number of its U.S. agents alone and a global agent count of more than 87,000 currently. Directly correlated to agent count are transaction volumes and an overall performance rating of brokerages. Amongst some of the largest brokerages globally, eXp Realty, once again, outperformed the market with a transaction growth of 12% in 2022, compared to an overall market decline of 18%.
With the declining market, many companies across various industries, including brokerages within the real estate sector, have been forced to cut costs to enhance profitability. eXp, however, has increased operating expenses from a smaller base.
The market outlook in 2023 continues to be questionable, with growth in agent count and transaction volumes forecasted to remain sluggish. However, one key element to be mindful of is that this is a numbers game: less transactions will go to fewer agents, and therefore, brokerages with a strong agent count growth will essentially outperform the market (with eXp being a key example).
In conclusion, companies with sustainable models, lower overheads, and strong recruiting are more likely to succeed than those without. eXp Realty – with all the above as key features within its agent-centric model – looks set to continue its positive trajectory.
