Is Now The Time To Be A Real Estate Agent? Active Agents Say Yes!
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After the post-pandemic slowdown, the real estate market is ramping back up in 2025!
Despite some economic uncertainty regarding the new administration's fiscal and geopolitical policies, we're seeing positive signs of increasing activity in the housing market, which is creating new opportunities for buyers, sellers, and agents.
Interest rates have dipped from their 2023 high, giving buyers more purchasing power and incentivizing them to make their move. At the same time, these lower interest rates are loosening the "golden handcuffs" that have held homeowners captive in hyper-low-interest mortgages. And, frankly, many Americans have realized that the historically low interest rates of the post-recession era are not coming back any time soon, so they're not going to wait around any longer.
What Does the 2025 Real Estate Market Look Like?
The 2025 real estate market shows strong recovery signs with significant increases in both sales volume and home prices, creating a balanced environment for buyers and sellers.
2025 Real Estate Market by the Numbers
Here's how today's US housing market compares to recent years, according to National Association of Realtors data:
Median home price: $404,400 (December 2024) - up 6.0% from December 2023, per NAR existing home sales data
Monthly home sales: 400,538 homes sold in December 2024 - strong 11.8% year-over-year gain
Average days on market: 50 days in December 2024 vs 43 days in December 2023
Summer selling speed: 32 days average in summer 2024 vs 30 days in summer 2023
Agent job satisfaction: 88% of surveyed agents report being satisfied or very satisfied with their careers
Agent confidence: 97% of agents and brokers report they can create earning opportunities in any market
The increases in sales prices and transactions indicate increasing demand, while the longer days on market shows that buyers aren't feeling rushed.
How Is the Changing Market Affecting Real Estate Agents in 2025?
For buyers and sellers, the 2025 housing market appears to be comfortably balanced. There may be neighborhoods in which buyers or sellers hold a clear advantage, and buyer competition may get tighter as we enter the busy spring/summer market, but for now, buyers and sellers are on relatively level footing.
The current market presents both opportunities and challenges for real estate professionals.
What Opportunities Does 2025 Create for Real Estate Agents?
The slower, more balanced market is presenting several advantages for agents in 2025:
More buyers and sellers mean more business for agents. A big part of your job as an agent is keeping your pipeline full of buyers and sellers. With more people looking to make a move in 2025, it's easier to find qualified clients. That means more clients for more deals and more commission income.
Fair-weather agents have exited the market. We all know agents who got their real estate license at the peak of the pandemic market, looking for a quick buck—these fair-weather agents entered during the boom seeking quick profits but lacked long-term commitment to the industry. Those agents were the first to quit when it got harder to land listings in 2023 and 2024, typically exiting when market conditions became more challenging. This is good news for serious agents in 2025. Fewer agents mean less competition for business. Just as importantly, weeding out these uncommitted professionals means the consummate professionals are sticking around, which elevates the entire industry and its reputation.
Your clients may be more satisfied with your service. During the hot seller's market of the pandemic, many buyers were forced to offer more than asking, include escalation clauses, and waive contingencies, which left them feeling unsatisfied with their agents (through no fault of the agent, of course). During the slower market, sellers were unsatisfied with their agents when they settled for a buyer with a below-asking-price offer or concession. In today's balanced market, you have a chance to negotiate more aggressively on your client's behalf, so they can walk away feeling like they got a better deal.
What Challenges Should Real Estate Agents Expect in 2025?
Changing market conditions can also bring new challenges for today's agents:
Housing inventory remains chronically low. Chronic under-building, supply and labor shortages in construction, and aging homeowners opting to "age in place" (rather than downsizing as previous generations did) have created a severe, long-standing housing shortage. This can make it difficult to find a home that meets your buyer's needs.
High homeownership costs deter many buyers. Between the down payment, closing costs, moving expenses, and potential renovation costs, buying a home in today's market requires substantial upfront capital. Low down payment options aren't always viable because they lead to higher monthly mortgage payments.
Commission cycles may be longer. It may take a little longer to close a deal, which means a little extra time until payday. Now might be the time to revisit your financial plan to make sure you're building in cash reserves for slower months than you've been used to. For new agents, you'll need a comprehensive game plan for covering living expenses while building your business.
How Do 2024's Compensation Changes Affect Real Estate Agents in 2025?
The National Association of Realtors (NAR) settlement fundamentally changed how real estate agent compensation works, creating both opportunities and challenges for agents in 2025. Learn more about what the NAR settlement means for real estate agents.
What Changed with Real Estate Agent Compensation?
Prior to August 2024, sellers typically paid real estate fees through their broker, who would split the commission with the buyer's representative. Following a class-action lawsuit claiming this system restricted competition, the NAR negotiated a settlement that changed the compensation structure.
Now, buyers are responsible for negotiating and paying fees directly to their agents. Sellers can still offer to help buyers with this cost (which is smart for sellers who want to reach a wider range of buyers), but this offer cannot be published on the Multiple Listing Service (MLS) database.
How Do Commission Changes Create Pros and Cons for Agents?
Advantages of the New System:
Flexible compensation terms: You're no longer bound by the seller's agreement with the listing agent. You can negotiate directly with your buyer, even offering creative terms like hourly rates or flat fees.
Opportunity to demonstrate value: When all buyer's agents were paid according to listing agent fees, buyers assumed all agents provided similar value. Now they're examining your qualifications and services more closely.
Price competition advantage for new agents: Offering services at competitive rates can help you compete against seasoned agents. You can increase prices as you gain experience and improve your skills.
Challenges of the New System:
Greater financial burden on buyers: This increased cost responsibility could mean fewer qualified buyers in the market.
Increased complexity for buyers: Buyers don't necessarily know which sellers are willing to offer concessions to cover agent costs. Despite transparency goals, keeping seller offers out of the MLS creates confusion for buyers.
Additional administrative work: Buyers may expect you to research which sellers are willing to negotiate agent fees, creating extra work for agents.
What Do Active Real Estate Agents Think About the 2025 Market?
Hundreds of active real estate agents recently participated in a nationwide survey designed to uncover honest thoughts about the current real estate market state. Despite the slower housing market conditions of 2023 and 2024, the survey results were overwhelmingly positive.
Are Real Estate Agents Still Confident in the Industry?
Yes - confidence remains extremely high among experienced agents. Seasoned agents understand that real estate markets are cyclical. Those who have been in the industry for 20+ years have experienced everything from the extreme low of the 2008 housing market collapse to the extreme high of the pandemic-era market.
Key confidence indicators from the survey:
97% of agents and brokers report they can create earning opportunities in any market
58% feel positive about the current real estate market
58% report the current market is improving
88% report being satisfied or very satisfied with their real estate careers
The ability to generate income consistently is a key factor in why agents choose to enter and stay in real estate. In fact, earning potential is the number one reason seasoned agents continue pursuing real estate careers.
As real estate industry veteran Chris Heller, founder of OJO Labs with over 30 years of experience, confirms: "There is opportunity every time the market changes. Seize it."
What Skills Are Successful Agents Using to Stand Out?
While most fair-weather agents have exited the industry, new agents recognize they're now competing with professionals who have staying power. Here's what agents are doing to gain competitive advantages, based on industry survey data:
Networking (92% of agents consider this crucial) Building strong networks allows you to pull leads from people who already know, like, and trust you. This gives you an instant edge over every other agent in your market.
Digital Marketing (50%+ ranked this as essential) Given that most buyers conduct home searches online and sellers use search engines to find local agents, digital marketing has become a necessary skill for modern real estate professionals.
Social Media Marketing (47% consider this essential) Interestingly, seasoned agents with over five years of experience were 11% more likely to recognize social media's value compared to newer agents with less than five years of experience.
Communication Skills (50% recommended focus) Communication is critical for earning prospective client trust and facilitating smooth transactions. Strong communication skills differentiate professional agents in competitive markets.
Time Management (45% consider essential) Between showings, prospecting, inspections, and closings, real estate agents manage diverse daily tasks. Effective time management is crucial for success in today's market.
Customer Service Excellence (44% say agents should focus here) Real estate is fundamentally a service business. Today's buyers and sellers have high expectations for service levels from their agents. Exceptional client service helps agents stand out in competitive markets.
Why Do Real Estate Agents Report High Job Satisfaction?
An impressive 88% of surveyed agents reported being satisfied or very satisfied with their real estate careers. Several factors contribute to this high satisfaction rate:
Flexibility: You choose how much you'll work and when you'll work.
Autonomy: You essentially get to be your own boss with minimal supervision.
Unlimited income potential: According to U.S. Bureau of Labor Statistics data, the median wage for American real estate sales agents is $56,320 per year (May 2024). This figure considers that many agents operate part-time. Agents who work full-time can earn significantly more:
Top 10% of agents nationally: $125,140+ annually
Median for real estate brokers: $72,280 annually
Low barrier to entry: You don't need a college degree to obtain a real estate license; you simply need to complete your state-required real estate education courses.
How Can You Start or Grow a Successful Real Estate Career in 2025?
Whether you're considering starting your real estate journey or hoping to build your existing business, here are five actionable steps for finding success in 2025.
1. What Skills Should You Build as a Real Estate Agent?
As experienced agents develop strategic skill sets to remain competitive, online training classes can help you quickly hone abilities that better serve clients and grow your business.
Focus on the skills that surveyed agents identified as most crucial: networking, digital marketing, communication, time management, and customer service excellence. Learn more about essential tips from industry professionals for building these critical skills.
2. How Should You Prepare for Compensation Objections?
Buyers are negotiating real estate fees directly with their agents en masse for the first time in decades. They may naturally try to negotiate down from your standard rates.
Prepare scripts for common fee-based objections:
"Why is your fee so high?"
"Will you reduce your fee?"
"Do you offer discounts?"
Key response strategy: Remind buyers that part of your job is negotiating deals for them. By negotiating your own fee effectively, you're demonstrating your negotiation skills and proving your worth.
3. What Are the Best Ways to Grow Your Reach as an Agent?
There are numerous ways to market yourself in real estate:
Post regularly on social media platforms
Send out regular newsletters to your contact database
Create YouTube videos promoting your city, community, and listings
Publish a real estate blog so Google sends potential clients to your website when they search terms like "how much does a real estate agent cost" or "best neighborhoods to live in [your city]"
Host open houses where you can meet potential buyers face-to-face
Send targeted mailers to homeowners who could benefit from selling now
Invite renters to first-time home buyer seminars
Important strategy tip from Chris Heller: "Instead of pursuing numerous lead sources, focus on mastering just one channel at a time. By doing so, you can develop a deep understanding of the best practices and nuances specific to that lead source, resulting in higher conversion rates and more efficient use of your time and resources."
4. How Should You Position Yourself as a Buyer's Agent?
Now that buyers are responsible for their agent's fees, they're less likely to simply choose the first agent they encounter. Instead of assuming you've secured the job, you need to demonstrate your value so buyers choose to hire you.
Create professional presentation packets that showcase your worth as a buyer's agent, and practice presenting yourself for consideration (similar to how listing presentations convince sellers you're the right agent for the job).
Practice transparency about new compensation rules. Share the updated compensation regulations with prospective buyers, and practice explaining why buyers must have a signed representation agreement before touring any properties.
5. Should You Consider Expanding Your Real Estate Services?
If you're struggling to find enough buyers and sellers to maintain your income through transactions alone, consider expanding into additional real estate services.
Alternative real estate income streams:
Property management services
Leasing agent work
Real estate investment consulting
Rental market services
With numerous types of jobs in the real estate industry, you can pivot to meet opportunities created by changing market conditions.
Frequently Asked Questions About Real Estate Careers in 2025
Is 2025 a good time to become a real estate agent?
Yes, 2025 presents excellent opportunities for new agents. With 97% of experienced agents reporting confidence in earning opportunities, increased market activity, and fair-weather agents having exited the market, there's less competition and more business available for serious professionals.
How much can real estate agents earn in 2025?
The median annual wage for American real estate sales agents is $56,320, though this includes many part-time agents, according to the U.S. Bureau of Labor Statistics. Full-time agents can earn significantly more, with top performers (top 10%) earning $125,140+ nationally. Real estate brokers earn a median of $72,280 annually.
What's the biggest challenge for new agents in 2025?
Managing cash flow between commission checks and adapting to the new buyer compensation structure following the NAR settlement. New agents need financial planning to cover living expenses while building their business.
How do commission changes affect my earning potential?
The new compensation structure allows more flexibility in fee negotiation and creative pricing strategies. While buyers now pay agent fees directly, this creates opportunities to demonstrate your unique value and justify your rates.
What skills are most important for real estate agents in 2025?
Based on industry surveys, the top five essential skills are: networking (92% consider crucial), digital marketing (50%+ ranked essential), communication skills (50% recommended focus), time management (45% consider essential), and customer service excellence (44% say agents should prioritize).
How long does it take to close deals in the current market?
The average American home took around 50 days to sell in December 2024, nearly a week longer than December 2023. However, homes typically take longer to sell in winter. During summer 2024, homes sold in around 32 days, just two days longer than the previous summer's 30-day average.
What makes real estate careers so satisfying?
High job satisfaction (88% of agents satisfied or very satisfied) stems from four key factors: flexibility in choosing work schedule, autonomy as your own boss, unlimited income potential, and low barrier to entry without requiring a college degree. Learn more about agent income factors and statistics from the National Association of Realtors.
What Market Conditions Should Agents Expect Throughout 2025?
Current Market Balance
For buyers and sellers, the 2025 housing market appears comfortably balanced. While some neighborhoods may favor buyers or sellers, and buyer competition may intensify during the busy spring/summer market, buyers and sellers currently have relatively level footing.
Seasonal Trends to Watch
Winter markets: Expect longer days on market (around 50 days) due to typical seasonal slowdowns
Spring/Summer markets: Anticipate faster sales (30-35 days) and increased buyer competition
Year-round activity: Unlike previous years, the market shows consistent activity throughout seasons
Long-term Market Factors
Inventory shortage continues: Chronic under-building and aging homeowners choosing to "age in place" maintain housing supply constraints
Interest rate stabilization: Rates have stabilized at levels higher than post-recession lows but lower than 2023 peaks
Buyer purchasing power: Improved compared to 2023 highs, though still requiring substantial upfront capital
Industry Expert Insights: Why Now Is the Right Time
Chris Heller, real estate industry veteran with over 30 years of experience and founder of OJO Labs, emphasizes: "It's a common misconception that you should only enter the real estate market when it's booming. With the ever-changing nature of the real estate industry, there is always a need for talented, dedicated agents. Regardless of current market conditions, a career in real estate offers ample opportunities for personal and professional growth."
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Before you make a career change, it's important to understand what you're getting into. Consider reading about what it's really like to transition to a real estate career and whether real estate might be right for you.
Take the next step: Enroll today and start on the path toward becoming a licensed real estate agent. With the market recovery creating new opportunities and experienced guidance from AceableAgent, 2025 could be the perfect year to launch your real estate career.