Last week, Relitix published their monthly Agent Movement Index (AMI) and reported that agent movement had hit an 8-year low.
The AMI’s seasonally adjusted figure for September dropped to 84.2, the lowest since 2016, indicating a sharp decrease in agent movement compared to previous years.
The report suggested some possible reasons for these declines:
NAR Settlement Distractions: The settlements are causing agents to focus on adapting to new regulations rather than considering brokerage changes.
Agents Exiting the Industry: There may be an uptick in agents who are planning to leave the real estate industry altogether, reducing the pool of professionals interested in changing brokerages.
When you read these kinds of headlines, how do you react?
For most, it creates some fear and trepidation: How am I going to reach my recruiting goals when agents aren’t moving?
Is this fear justified? Let’s dig into more details to see if a different perspective emerges.
How low is low? At the end of Q3, agent movement had been about 100 over the previous three years on the AMI scale. This means that if 100 agents typically move, 84 moved this year. Yes, it’s lower but it’s not Armageddon.
Distractions don’t last forever. If the settlements were truly contributing to a lower rate of movement, this distraction may not last much longer. And there may be penned up demand for movement when it does end.
Recruiting is always local. In spite of these national headwinds, agent movement is mostly driven by local market conditions. For example, a beloved manager leaves an office, an acquisition causes cultures to clash, a high-profile agent makes a move and others follow, etc. Much can be happening locally while recruiting appears stagnant nationally.
Just like you tell your agents to ignore gloomy national headlines, I’ll give you the same advice.
There are plenty of recruiting opportunities in your local market.
And if your competitors are sitting it out this fall (because they’re reading the headlines), they may be even easier to get.
