The brokerage landscape has evolved, especially over the past two and a half years, as national companies retreated due to declining market conditions and profitability. Remaining key players are Compass and Howard Hanna, while most activity has shifted to local brokerages. Valuations have fallen, but competition among local brokers remains. The rise of team structures within brokerages has proven beneficial, as they effectively provide customer leads and opportunities, allowing for greater profitability despite lower commission splits for agents.
Almost every brokerage in the country has seen a decline in their profit. That would bring valuations down. Now the competition is among local brokers.
Over the last five years, the thing we've noticed is that the number and size of teams have grown. The most valuable thing a brokerage can do is provide a flow of customer opportunities.
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