A Market in Transition

It’s mid-summer 2025, and as I have noted in the past, the real estate market is changing – although some agents may tell you that things are the same, they are as busy as ever, and the 4^th quarter is going to be the best market you’ve seen yet.

While that all sounds good, most of the industry experts, brokerages and agents out there will tell you that we are now in a buyer’s market with rising inventories, stagnant interest rates, economic uncertainty, and less active and far more skeptical buyers shifting the bar of the real estate market.

More homes have come on the market this year, but buyers are not biting like they used to. Listings are languishing on the market longer, buyers are backing out of escrows for a myriad of reasons, unlike in the past, and buyers now have more leverage on the market, as sellers have lost their ability to sell quickly, easily, and for values consistently over their asking price.

Not every market has seen major changes. The Midwest and Northeast regions are still seeing price increases, but at lower levels than in the past.  According to an August 2025 report published by Intercontinental Exchange, more than 30% of the nation’s largest markets have seen prices dip by at least 1% from recent highs. Parts of California, Arizona, Colorado and Idaho have seen home prices decline by more than 3% from recent highs, according to the report. This includes the greater Los Angeles real estate market. 

The Impact of the NAR Settlement

It is true, the recent changes to the practice of real estate have dampened agent’s ability to earn similar commissions to those enjoyed by long time agents prior to NAR’s 2024 settlement in the price fixing cases. Sellers now expect more for less, and buyers have to use their agent’s commission structure as a negotiation tool, sometimes asking agents to make less so they can win the deal. Smart agents understand, and while they work just as hard (and cover most of the costs of sale), they do what it takes to help their clients succeed. It’s not easy.  

To protect their bottom line, larger brokerages are now attempting to use clever ploys like “exclusive” listings to keep listings and selling agent commissions in house, rather than marketing them to the general public. They are also instructing agents to note that sellers are not offering concessions in the MLS, sometimes as a means to limit their agent’s ability to negotiate better terms, and also to keep their internal commission structures in place, whenever possible. 

Meanwhile hard-working agents and brokers continue to demonstrate their value, the same as they had in the past. They are doing so by earning the trust of their clients through open honesty and communication, maintaining integrity, and focusing on providing solution-based negotiations and professional services to clients, while treating fellow agents with dignity and respect.  

The Changing Agent Landscape

While these changes create a challenge for sellers, agents, and open opportunities for savvy buyers, it is important to recognize that Broker Associates, Sales Associates, and the Brokerages they work with are committed to the same principles that existed prior to the shift in market forces, and a reduction in their earning potential as a result of the NAR’s fear of bankruptcy, over their charter of advocating for the Realtors they were paid to and supposed to represent.

Many long-time agents are leaving the field, satisfied with the glory and income earned from the commission structure and easy income producing markets they enjoyed for many years. Their best days are behind them.  

As they depart, those agents bemoan that technology (syndicated web services like Zillow, Homes.com, Redfin, Realtor.com and others) have taken away their ability to educate and control a pool of clients that were always calling for help every few years.  They loved the days when they could be your hero, while carting you around in their big fancy cars, and showing you homes, managing the process from start to finish. 

The nature of the business has passed them by, and what used to be an easy and glorious job as a Realtor no longer exists. 

Notably, a number of agents are now moving from firm to firm, hoping to find a better commission package, lower overhead, more credible leads, and hoping to locate a return to the good old days of real estate. Interestingly, many firms try to lure agents to their teams, groups or staff, hoping to pluck new business from those agents’ client pool. The turnover rate for agents is increasing as the market uncertainty rises. But the changes in the market remain consistent. 

Other agents have leaned into the changes, embracing the ability to adapt to evolutions in the business of real estate, exploring ways to incorporate AI and pre-existing technologies into their sale portfolios, and while times might be tough for some agents at the moment, the adaptable ones see a light at the end of the proverbial tunnel.  

I am one of those agents, and I am as excited as ever for the future of the real estate market for years to come.

Why I’m Optimistic About the Future

One of the reasons I remain optimistic is the team that supports me at Re/Max Tri-City Realty in Glendale, California. Led by Mathu Matti, and his son Levon Matti, the group of professionals at Re/Max Tri-City Realty represents some of the very best in the industry, with all members of the team working as Broker Associates, and a support staff with some of the top Lawyers, Transaction Managers, Accounting Specialists, and the hardest working Escrow Officers in the business at Golden West Escrow. The best part is that the team is getting younger, they are hustling like never before, and they are poised to embrace the changes, and do so while offering the best service possible.  

Whether its residential real estate, or commercial real estate – where Re/Max Tri-City has one of the top 10 agents for Re/Max in the country on staff – the professionals at Re/Max Tri-City practice the business with integrity, and work in a partnership to provide their clients with the best representation possible. It may not be the biggest firm, or flaunt its technologies as superior to others, but the spirit and dedication to doing the job right at Re/Max Tri-City is stronger than any office I’ve worked with to date. 

In more than a decade of real estate experience, and after 30 years of working in private business and at NASA’s Jet Propulsion Laboratory, I have seen first-hand how the team at Re/Max Tri-City has maintained a stellar reputation as a leader in residential and commercial real estate sales in the greater Los Angeles area. 

And that’s why I work with them, as we continue to craft a vision for the future, ignoring the outdated ways of the past, and crafting a plan to provide top level services to our clients and customers, for many years to come. 

The Value of Local Expertise and Moving Forward Together

It’s notable that many sellers are using agents that come from Orange County, Santa Clarita Valley, the Inland Empire and areas far from the La Crescenta, Glendale, and La Canada areas to list their homes. These agents bemoan the long commutes; the time required to prepare a home for market, manage showings and open houses, and end up looking for a quick sale so they can move on to their next opportunity.

Ironically, many of these listings are the ones that linger on the market, over-priced, under marketed, and destined for price reductions and cancelled escrows – all leaving the sellers disillusioned, and the out of area agents offering plenty of excuses.  

I encourage you to work with a local Broker Associate, like me, who grew up in the La Crescenta area, went to local schools, owned homes in Altadena, and raised a family in the same community as you did.  Having grown up, lived in and raised a family in the communities I serve provides insight, and understanding that goes a long way towards making sure the process of selling or buying a home is comfortable, uncomplicated, and ultimately successful.  

If you are looking to buy, sell, or lease a residential or commercial property, I encourage you to contact me, and discuss how Skip McNevin Real Estate and the team at Re/Max Tri-City Realty can help you.