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Brokerage Leaders Are Betting on 2025 – Time Will Tell If They're Right
Brokerage leaders haven't been this confident in years.Â
Our latest real estate leadership survey shows a sharp jump in optimism. Two-thirds of brokerage leaders we polled at the end of last year expect higher profits in 2025.Â
More importantly, over 70% predict an increase in transaction volume: it's the highest confidence level recorded in the last three years.Â
Just two years ago, only 20% of leaders felt the same way. Some may ask, "Are real estate leaders seeing something others aren't?"Â
A Bottomed-Out Market Breeds ConfidenceÂ
Consumer confidence is still in the trenches. Buyers are wary. Inventory in many markets remains scarce. But brokerage leaders? They're looking ahead.Â
The numbers suggest that industry leaders believe the worst is over. The sentiment aligns with broader business trends. The Conference Board's latest CEO Confidence Index surged to a three-year high in Q1 2025, with 44% of CEOs saying economic conditions have improved in the past six months. That's double the rate from last quarter.Â
For real estate leaders, the logic is simple: Sales volume can't stay low forever. At some point, demand should return to more normal levels.Â
- Biggest concerns: recruiting, margins, and AI adoption: Even with an optimistic outlook, brokerage leaders aren't expecting smooth sailing. They know growth won't come without its challenges.Â
- Recruiting remains their biggest concern: Every year, brokerages report their number one priority is to attract and retain top talent. The competition for skilled agents remains fierce. Leaders are looking to improve recruitment and retention strategies to ensure they have the right agents and teams in place to respond to market changes.Â
- Profit margins continue to challenge: While firms anticipate more transactions, rising operational costs and business anomalies could make profitability harder to maintain. Brokerage leaders know that increasing sales volume alone isn't enough: they'll also need to manage expenses wisely and find efficiencies – and are turning to new tech in response.Â
- AI use and adoption are now priorities: Artificial intelligence is no longer an abstract concept for brokerage leaders but emerging as a pressing issue. Last year's leaders focused on legal battles over commissions, but this year, AI has emerged as a top-five concern. Leaders are evaluating how AI can enhance, rather than disrupt, operations. Many firms are investing in AI-powered marketing, predictive analytics, and automation tools to improve efficiency – but the adoption of safe, reliable, and responsible AI is paramount for future success.Â
A Year of Opportunity – or Uncertainty?Â
The next six months will tell whether real estate leaders' confidence is well-founded. If transactions rise, it could be a sign that the real estate market has turned a corner. If not, they may have to rethink their strategies heading into 2026.Â
Brokerages are preparing for both scenarios. Some are leaning into technology and automation to hedge against market unpredictability, while others are doubling down on recruitment and retention strategies to position themselves for long-term success.Â
For now, they're moving forward. Time will tell if their positive outlook for a market rebound will pay off. Â
