#USA #Boston #Real Estate #AccountTECH #NAR Settlement

5 Months Post-NAR Settlement: Commission Rates on the Rise

In a surprising turn of events, new data illustrates a rebound in real estate commission rates following the National Association of Realtors (NAR) Settlement finalized in August 2024. Initially, a decline was observed, but this article delves into the analysis that has emerged since then, particularly focusing on trends at the 150-day mark post-settlement.

Initial Trends and Changes

At first glance, the settlement appeared to lower commission rates significantly within the first 60 days. Analysis revealed that both buyer and seller commission rates experienced a decline compared to previous year averages. The notable dip included a decrease in seller rates from an average of 2.79% down to 2.75%, while buyer rates fell from 2.60% to 2.54%. This trend caused concerns regarding the potential long-term effects of the settlement on commission structures.

However, as we approached the five-month mark in January 2025, data began to shift. Seller commission rates showed a surprising increment, averaging 2.73%, compared to 2.72% from the same time last year. This slight year-over-year increase indicates a recovery after declining for three months post-settlement.


A Closer Look at Seller Commission Rates

The journey of seller commission rates is particularly intriguing. After a notable reduction reaching a low of 2.69% at the 90-day mark, rates began their recovery. By 150 days, they reached 2.73%. The graph provides a visual representation of this trajectory and indicates a pattern of stabilization in seller commissions, countering any initial fears of prolonged reductions.

Notably, the settlement provisions prompted discussions among agents about negotiating commission rates. The slightly increased average suggests that many are maintaining or securing higher commissions, likely in light of regional market dynamics.

Buyer Commission Rates: A Recovery Story

Buyers faced a similar predicament early on post-settlement. Initially facing a decline, rates dipped to the lowest observed levels of 2.49% before stabilizing and mirroring prior year figures by the five-month interval. As of January 2025, buyer commission rates have returned to 2.55%, reflecting the previous year's average. This rebound highlights the market's ability to correct itself over time despite initial fluctuations.

Summary of Key Rate Changes

Let's summarize the significant changes in commission rates over the five months:

Market Influencers

As the data suggests, various factors likely impact commission structures beyond the settlement itself. Economic variables such as inventory fluctuations, interest rates, and local market conditions may play substantial roles in shaping these trends. The recovery in buyer commissions aids in alleviating fears regarding ongoing declines while highlighting the adaptability of the real estate market.

Conclusion

Five months after the NAR Settlement, the data presents a more complex picture than initially perceived. While buyer commission rates have stabilized at previous levels, seller rates are exhibiting a modest increase. This implies a level of confidence returning to real estate professionals amid regulatory changes.

Ongoing monitoring of commission rates will be essential to determine whether these trends solidify or evolve further in response to changing market landscapes. As the industry continues to adjust, innovative tools and analytics, such as those provided by AccountTECH, will prove vital in helping real estate professionals navigate these trends. By examining a total of 224,176 transactions from 1,290 offices, this analysis offers a solid foundation for understanding the intricate dynamics of the market.

For more information and insights, visit AccountTECH at www.accounttech.com.

• ---

This article was authored by Mark Blagden, CEO of AccountTECH.

For inquiries, contact: Theresa Hurt at [email protected]