National Average Realtor Commission 2019
- 1992 = 6.04%
- 2005 = 5.02%
- 2011 = 5.3%
- 2013 = 5.38%
- 2014 = 5.18%
- 2015 = 5.26%
- 2017 = 5.12%
- 2018 = 5.08%
Above numbers are from Real Trends, a real estate news and research company based in Colorado.
The More Real Estate Agents There Are – the Lower the Rates
In their latest report, Real Trends does a fantastic job charting out the forces that affect real estate commission rates, the most striking being the number of Realtors. Right now the number of Realtors is at an all-time high, so therefore we see reduced commission rates.
Other Factors Bringing Commission Rates Down
There are an increasing number of Brokerages out there that offer lower cost models for real estate agents to operate in, and so those same real estate agents do not have the same pressure to charge higher commission rates. There is also an increasing number of cash buyers offering to purchase homes at discounted home prices in the form of iBuyers, or online instant home buying portals.
Will Real Estate Commission Go Back Up?
Real Trend’s work on charting out the number of Realtors as it drives commission rates up and down – is incredible. There is an outside chance as the national real estate market cools that the number of Realtors will drop (it dropped in Oregon by around 50% in the last real estate crash) and that alone will drive up commission rates. But even with a decrease in real estate agents, there is still only an outside chance of commissions rising due to the vast number of lower cost Brokerage models. And while instant home offers haven’t sold many homes yet, they may gain a bit more market share (though I expect that market share to have a significant cap and always remain an outlier). So these additional forces may keep commission rates from increasing much or at all while Realtor member count drops. Time will tell.
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