AI Adoption Among Real Estate Agents Surges Year Over Year

The Real Brokerage Inc. (NASDAQ: REAX, “Real”), a leading real estate technology platform redefining the industry through innovation and culture, today released results from its June 2025 Agent Survey. The data points to ongoing market trends: increasing buyer leverage and a continued decline in transaction activity compared to 2024. While agents remain optimistic about the potential for market improvement over the next year, affordability remains a key concern amid sticky mortgage rates and home prices near all-time highs.

This month’s survey also highlights the rapid adoption of Artificial Intelligence (AI) as a productivity driver among real estate agents. Fifty-eight percent (58%) of agents reported using AI tools daily — a notable increase from approximately 50% last year, with the primary use cases concentrated in marketing and content creation.

“Our June survey shows a continued moderation in transaction volume, leading to an even more buyer-friendly market,” said Tamir Poleg, Chairman and CEO of Real. “In a challenging market, agents are increasingly leveraging AI in their daily workflows to innovate and improve efficiency.”

“The survey results reinforce the industry's demand for advanced technology tools, validating our strategic focus on a comprehensive, AI-powered platform,” said Pritesh Damani, Chief Technology Officer at Real. “While the survey shows that the primary use cases for AI used by agents today are predominantly focused on marketing, our vision extends much further. At Real, we are actively building technology to empower every part of the transaction workflow, from initial discovery and client engagement to the complexities of negotiation and the final close.”

Key Survey Findings: Market Trends and Insights

• Transaction Growth Index Shows Modest Improvement from May: Real’s Transaction Growth Index, which tracks agent-reported year-over-year changes in home-sales activity within their local markets, rose to 46.2 in June, a modest improvement from 44.2 in May. This improved index suggests the pace of decline in local market activity was more moderate in June than in May. (Note: This index reflects agents' perceptions of local market trends and is not indicative of Real's company-specific transaction volume. Scores are weighted on a 0-100 point scale, with scores above 50 indicating year-over-year growth and scores below 50 signaling a decline.) In the U.S., the subindex was 44.8, compared to 43.9 in May. Meanwhile, Canada’s index reading was 59.6, up from 46.7.
• Overall, 45% of agents saw fewer transactions take place in their markets this June compared to June 2024 (including 7% who saw significantly fewer transactions), while 23% saw an increase in transactions. Twenty-nine percent (29%) of agents reported transaction activity that was approximately flat year-over-year.
• Agent Optimism Remains Resilient: Real’s Agent Optimism Index, which measures agents’ 12-month outlook for their local markets, grew slightly to 59.5 in June from 57.0 in May. While a reading above 50 indicates net optimism, overall sentiment remains similar to this time last year. Still, 48% of agents felt more optimistic in June (including 10% who felt significantly more optimistic) compared to May.
• Buyer Power Strengthens Across Markets: In June, 48% of agents said their local market favors buyers, marking an increase from 43% in May. Only 26% said it favored sellers, and 26% described conditions as balanced. Agents also noted increasing inventory, longer times on the market and greater room for negotiation as signals of this ongoing power shift.
• Affordability and Economic Concerns Persist for Buyers: Affordability was again the top challenge facing buyers, cited by 51% of agents. Economic uncertainty also remains a significant barrier, with 26% of agents citing it as the top challenge for buyers, only slightly down from 28% in May. Inventory constraints (16%) and buyer competition (5%) were seen as lesser issues.

Key Survey Findings: Utilization of AI Tools Among Agents

• Daily AI Use Surges Among Agents: Nearly 58% of agents reported using AI tools on a daily basis, a notable increase from approximately 50% last year. An additional 25% of agents use AI a few times a week, and 14% use AI a few times a month.
• AI Transforms Marketing and Communications: Agents are leveraging AI tools across multiple facets of their business, with the most prevalent use cases including:
  • Marketing and Content Creation: An overwhelming 88% of agents utilize AI for enhancing marketing assets, property descriptions, social media presence, and virtual staging.
  • Client Communications: Fifty-eight percent (58%) of agents are streamlining interactions through chatbots, automated follow-ups, and AI-generated email drafting.
  • Market Analysis and Forecasting: Thirty-four percent (34%) of agents are leveraging AI to analyze pricing trends and neighborhood insights.
• Time Savings Leads Benefits of AI: When asked about the biggest benefit from incorporating AI into their work, the survey found:
  • A significant 68% of agents appreciate substantial time savings enabled by AI;
  • Only 14% credited AI tools with improving their marketing effectiveness;
  • Conversely, 9% of agents have yet to see a significant benefit from AI in their business.
• Concerns with AI Focus on Accuracy and Human Touch: Agents were also asked what their biggest concern is with using AI. The survey found that:
  • Twenty-nine percent (29%) of agents are worried that AI produces inaccurate or biased results;
  • Twenty-four percent (24%) are concerned about AI potentially reducing human connection or empathy in client interactions;
  • Twelve percent (12%) cited data privacy concerns or difficulty understanding how to use AI tools effectively;
  • Thirteen percent (13%) reported having no concerns in using AI.

A full summary of these results can be found on Real’s investor relations website at https://investors.onereal.com/.

About the Survey

The Real Brokerage June 2025 Agent Survey included responses from over 140 real estate agents across the United States and Canada and was conducted between June 30, 2025 and July 15, 2025. Responses to questions regarding transaction growth and agent optimism were calibrated on a 0-100 point index scale, with readings above 50 indicating an improving trend, whereas readings below 50 indicate a declining trend. Responses are meant to capture industry-level information and are not meant to serve as an indication of Real’s company-specific growth trends. Additionally, given the smaller sample size, there can be greater variability in Canada index results on a month-to-month basis.

About Real

Real (NASDAQ: REAX) is a real estate experience company working to make life’s most complex transaction simple. The fast-growing company combines essential real estate, mortgage and closing services with powerful technology to deliver a single seamless end-to-end consumer experience, guided by trusted agents. With a presence in all 50 states throughout the U.S. and Canada, Real supports over 28,000 agents who use its digital brokerage platform and tight-knit professional community to power their own forward-thinking businesses.

Forward-Looking Information

This press release contains forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “likely” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. These statements reflect management’s current beliefs and are based on information currently available to management as of the date hereof. Forward-looking information in this press release includes, without limiting the foregoing, expectations regarding the residential real estate market in the U.S. and Canada.

Forward-looking information is based on assumptions that may prove to be incorrect, including but not limited to expectations regarding 2025 market conditions. Real considers these assumptions to be reasonable in the circumstances. However, forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking information. Important factors that could cause such differences include, but are not limited to, slowdowns in real estate markets and economic and industry downturns, and those risk factors discussed under the heading “Risk Factors” in the Company’s Annual Information Form dated March 6, 2025, and “Risks and Uncertainties” in the Company’s Quarterly Management’s Discussion and Analysis for the period ended March 31, 2025, copies of which are available under the Company’s SEDAR+ profile at www.sedarplus.ca. These factors should be carefully considered and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, Real cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and Real assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.

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