Breaking News: How Will a Slowing Market Affect You?

Breaking News: How Will a Slowing Market Affect You?

The market is always changing - how will it affect you if it makes a turn?

slowing marketAll real estate professionals receive a different outcome to a slowing market. Think back to the Great Recession: while some real estate workers struggled, others actually gained the possibility of new opportunities.

Of course, the Great Recession was awful, and we are crossing our fingers that we are not headed down a similar path – but it is still important to know which of us will flounder, which of us will thrive, and which of us will simply survive, in the event of a slowing market.


Agents are typically opportunistic if they are experienced enough in their field, and therefore can adapt quickly to the ever-changing market. Agents are typically at the top of the food chain when it comes to market downturns because they will always be needed by clients – whether it be to buy a new home, sell one that they can no longer afford, or simply gain advice on when the market would be best to make a real estate transaction.


The market arguably affects brokers the most, since they are the ones that take the brunt of the expenses. When the market turns, a broker must act quickly to make sure that their brokerage is impacted as little as possible. Especially if a brokerage’s only form of revenue is commission, a slowing market can take quite a toll. An experienced broker will quickly pare expenses and encourage their most successful agents to help increase business, in order to account for any lost costs in a market downturn.

Tech Brokers

While brokers may be nervous for their company in a slowing market, tech brokers may have to claw their way back into business in order to keep their overall livelihood. Companies such as Redfin and Compass face awful backlash from slowing markets because they typically collect commission on buy and sell transactions – which can be as little as 1-2%. Tech brokers should be the most alert to the signs of a slowing market – without buy and sell commissions, they have no source of revenue. In this instance, tech brokers (and any other real estate professional for that matter) should always have a game plan for how they will proceed if the market takes an unexpected turn.