The housing market continued to cool in May, with buyer leverage increasing across many regions of the country, according to a new survey from The Real Brokerage.
Real’s May 2025 Agent Survey — which polled more than 260 real estate professionals across the U.S. and Canada — points to softening transaction activity and a shift in market power toward homebuyers.
Nearly 60% of agents remain optimistic about their local market outlook over the next 12 months, although overall sentiment has declined since April.
“Based on our survey, the spring market is clearly tilting toward buyers, with more inventory and greater pricing flexibility emerging across many regions,” said Tamir Poleg, chairman and CEO of Real. “But even with this shift in leverage, affordability remains a key hurdle.
“Until mortgage rates ease or wage growth catches up, we expect this dynamic of increased supply yet more selective demand to define the market in the near term.”
Slower sales, rising inventory
Real’s Transaction Growth Index — which measures year-over-year changes in agent-reported home sales activity — dropped to 44.2 in May, down from 47.8 in April. A reading below 50 signals contraction.
In the U.S., the index declined from 49.0 to 43.9. Canada showed some improvement, climbing from 36.3 to 46.7.
Agents reported that affordability remained the top concern for buyers, cited by 50% of respondents. Economic uncertainty is also growing as a perceived barrier, rising to 28% in May — the highest share since the survey began.
Inventory shortages and buyer competition were seen as less pressing issues.
Power in the market is shifting, with 43% of agents saying conditions now favor buyers, compared to 28% who reported a seller’s market. Another 29% said the market is balanced.
Agents pointed to increased inventory, extended time on market and more room for negotiation as evidence of the shift.
Real’s Agent Optimism Index dropped to 57.0 in May, down from 65.8 in April. While the reading remains in positive territory — above 50 — the downward trend reflects growing caution.
Among those surveyed, 38% said they felt more optimistic about their local market compared to the previous month, while 22% reported greater pessimism and 31% saw no change.
Branding takes back seat to economics, culture
Survey findings suggest that brand reputation plays a limited role in how agents choose a brokerage.
Only 6% of respondents cited brand recognition as a top-three factor in choosing their current company. Most agents instead pointed to economic considerations (64%), company culture and values (55%), and technology and tools (38%). Other considerations included flexibility (32%), equity ownership (28%) and leadership quality (26%).
“This month’s survey reinforces what we hear from agents every day: they’re choosing brokerages based on what truly moves their business forward: economics, culture and technology,” said Dre Madden, Real’s chief marketing officer.
Clients focus on agent, not brokerage
When it comes to how clients select a real estate agent, survey respondents said 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. Responsiveness (60%) and professional reputation (54%) were also frequently mentioned.
Most agents believe their clients place little importance on brokerage brand. Fifty-eight percent said it’s either “not very important” or “not at all important,” while 27% called it “somewhat important.” Only 15% said it was highly important.
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