The hot U.S. housing market is poised to deliver an excellent year for real estate agents.
According to a new analysis by Knock, a property-technology company that lends customers money to buy a new home while also helping them sell their old one — commission revenue, the cut that brokers get for helping people buy and sell homes — is on track to increase 16 percent in 2021, surpassing $100 billion for the first time.
Despite a minor drop in the rate that agents charge consumers, the growth occurs. According to Knock, the average commission rate in 2021 will be 4.94 percent, which is 20 basis points lower than it was two decades ago.
Even as companies promising to speed the process with technology have grown, real estate agents have remained the most popular way to buy and sell properties in the United States. As home prices rise across the country, real estate agents, who normally receive a share of every transaction, have seen an increase in earnings.
While the price hike benefits agents, it shines a light on a business source that has been criticized. The US Justice Department withdrew from an antitrust settlement with the National Association of Realtors made during the Trump administration earlier this month, stating that it intended to pursue an investigation against the organization.