realestate

Slowing Market Shifts Power to Homebuyers

Agents remain optimistic about local market outlook, despite overall sentiment decline since April.

T
he US housing market continued to cool in May, with buyer leverage increasing across many regions, according to a new survey from The Real Brokerage. The company's May 2025 Agent Survey found that transaction activity is softening and the balance of power is shifting towards homebuyers.

    While nearly 60% of agents remain optimistic about their local market outlook over the next year, overall sentiment has declined since April. "The spring market is tilting towards buyers," said Tamir Poleg, chairman and CEO of Real. "However, affordability remains a key hurdle until mortgage rates ease or wage growth catches up."

    Sales are slowing down, with inventory rising in many areas. The Transaction Growth Index dropped to 44.2 in May, indicating contraction. In the US, the index declined from 49.0 to 43.9, while Canada showed some improvement.

    Affordability remains the top concern for buyers, cited by 50% of respondents, followed closely by economic uncertainty at 28%. Inventory shortages and buyer competition are seen as less pressing issues. The market is shifting in favor of buyers, with 43% of agents saying conditions now favor them, compared to 28% who reported a seller's market.

    Agents pointed to increased inventory, extended time on market, and more room for negotiation as evidence of the shift. However, optimism among agents has declined, with Real's Agent Optimism Index dropping to 57.0 in May.

    The survey also found that brand reputation plays a limited role in how agents choose a brokerage, with only 6% citing it as a top-three factor. Instead, economic considerations (64%), company culture and values (55%), and technology and tools (38%) are the main drivers of agent choice.

    When it comes to client selection, personal trust and communication far outweigh brokerage branding. A total of 89% of agents cited personal relationships and referrals as the most important drivers for client decisions, while only 15% said brokerage brand was highly important.

Real estate market slows, giving homebuyers increased bargaining power nationwide.