Real estate brokers are heading for the door in droves as the nation’s housing market cools — even in the usually scorching market of Miami.
The number of “active” agents in the Florida city plunged by 36% in the fourth quarter of last year compared to the same span in 2021, according to a new study.
Citing statistics from Agent Story, the Real Deal reported that there were 4,529 active Miami brokers in the fourth quarter — down 2,580 from the comparable period just one year ago.
Agent Story, which tracks broker activity, defines “active” agents as those currently listing and/or selling properties.
Only 20% of all 22,286 Miami brokers were active in the fourth quarter of 2022, the study found.
As Miami’s prices went into orbit during the city’s pandemic-fueled real estate boom, brokers flooded the market to take advantage of the lucrative situation.
But with activity seizing up after sharp interest rate hikes and a wobbling economy, brokers appear to be pivoting in droves.
Unsurprisingly, the number of property sales in Miami dropped by 48% in December, year-over-year, after unprecedented hikes in prior quarters, according to a report from the Miami Realtors Association.
But don’t expect any massive Biscayne Bay bargains just yet.
While other markets have already seen widespread price-cutting, Miami home prices have largely held the line amid the downturn — at least so far.
Sales prices rose by 1 percent in the fourth quarter of 2022 compared to the same period in 2021.
Agent Story found that the number of active agents has cratered in other major markets as well, including in Los Angeles.
The firm found that there were 27% fewer active brokers in the California city in the fourth quarter of 2022 compared to the same period in 2021.
Citing the ongoing decline, brokerage giant Compass announced an unspecified number of layoffs earlier this month, and other major firms have indicated similar plans.
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