Market Disruptions Reshaping Real Estate: How to Stay Competitive in 2025

The real estate landscape is facing its most dramatic transformation in decades. From commission shakeups to rapid advancements in technology and shifting consumer expectations, agents and brokers must adapt to stay competitive in 2025.

Although the effects will vary by market, the industry is already changing—and the real question is how agents can prepare, respond, and lead through change.

Real Estate Commission Lawsuits & Regulatory Shifts

One recent and potentially pivotal development of 2025 is the U.S. Department of Justice's decision to oppose a $4 million settlement in a case involving MLS Property Information Network (MLS PIN). The DOJ argued that the MLS PIN settlement failed to address inflated commission practices and amounted to mere “cosmetic” changes. The DOJ's opposition reflects growing scrutiny of real estate commissions and renewed pressure for stronger consumer protections across the country.

Even before this latest move by the DOJ, the National Association of Realtors’ (NAR) $418 million settlement in 2024 sent a clear signal of impending industry-wide reform. Under the terms of that agreement, NAR must eliminate long-standing practices like cooperative compensation in the MLS and clarify how commissions are negotiated. These changes, set to take effect in mid-2025, represent a fundamental shift in how agents explain and justify their value to clients.

For real estate professionals, these developments bring both uncertainty and opportunity. The traditional assumption that a seller would pay both agents’ commissions is fading, and agents will need to engage more directly in commission conversations with buyers. That means agents must articulate their value clearly, navigate client hesitations with transparency, and stay ahead of potential regulatory updates that could vary by state.

What to do now: 

• Revisit your buyer and seller presentations to prepare for direct commission discussions. 

• Stay current on your MLS policies and your state’s response to national changes. 

• Take CE courses focused on ethics, legal updates, and commission structures to ensure compliance. 

Mortgage Rates, Home Prices, & Affordability Pressures

While legal reforms take shape at the top, rising financial pressures are reshaping the foundation of the real estate market. Mortgage rates—near 3% just a few years ago—have nearly doubled, reshaping the buyer landscape. As of early 2025, the average 30-year fixed mortgage rate is around 6.97%, pushing home affordability out of reach for many.

At the same time, median home prices remain high—approximately $412,000 nationwide. In some high-cost markets, it takes more than half the month’s income just to afford a mortgage payment. These pressures are especially acute for first-time buyers and middle-income households.

These pressures aren’t hitting every market equally—some regions are seeing sharper shifts, making local expertise more essential than ever.

Yet the picture isn’t all bleak. In February 2025, existing home sales rose 4.2%, showing that demand remains resilient, especially among buyers who are relocating for work, downsizing, or moving for lifestyle reasons. Meanwhile, projections from Fannie Mae suggest that mortgage rates will remain in the high-6% range for the remainder of the year.

For agents, this climate demands a new level of market fluency. It’s no longer enough to know inventory or comps—you need to understand financing realities, local affordability dynamics, and how to educate clients navigating both high prices and high borrowing costs.

What to do now: 

• Monitor your local affordability index and prepare talking points for common buyer concerns. 

• Enroll in CE courses focused on financing strategies, market analysis, and economic trends. 

• Connect with mortgage professionals to build a collaborative advisory network. 

Technology Reshaping Real Estate Workflows

While clients encounter smarter homes, wearable AI, and automated appliances, real estate professionals are facing their own tech reckoning. At CES 2025, NAR spotlighted a wave of innovative tools for real estate professionals—smart glasses that display messages only to the wearer, refrigerators that recommend grocery lists based on contents, and modular robots that autonomously maintain vacant properties. For agents, these tools signal rising expectations from buyers and sellers who are already living with next-gen convenience.

To meet the moment, brokerages and agents are embedding AI tools directly into their operations. At Inman’s 2025 conference, real estate leaders emphasized that the days of dabbling in ChatGPT are over—today’s most competitive professionals are leveraging paid versions of generative AI to write listings, enhance CRM outputs, and conduct keyword-based client outreach.

AI isn’t just for writing blurbs or emails—it’s being trained to transcribe and categorize client conversations, optimize follow-up based on engagement history, and scale database interactions in ways that would otherwise take teams of assistants. As AI capabilities grow, it’s not enough to dabble—leaders urge agents to go deeper, learning how to craft better prompts, refine outputs, and strategically automate workflows.

The takeaway? Clients are engaging with smart tools in their homes—and they now expect the same sophistication from the professionals guiding their transactions. Agents who lean into AI to boost responsiveness, personalize service, and streamline operations will have a clear competitive edge.

What to do now: 

• Audit your current systems—does your CRM or marketing platform offer AI-powered tools you’re not using? 

• Take CE courses focused on AI, automation, or digital marketing to stay ahead of trends and compliance. 

• Build smarter workflows by combining AI efficiencies with your personal insight and client care. 

Your Competitive Edge Starts Here

Disruption doesn’t have to mean instability. For real estate professionals who commit to adapting—whether that means rethinking commission conversations, navigating shifting affordability, or mastering new technologies—2025 offers just as much opportunity as it does uncertainty.

Stay informed. Stay agile. And most importantly, stay educated. WebCE’s Real Estate CE Catalog offers timely, online real estate continuing education courses designed to help you meet your requirements, grow your expertise, and stay competitive in a changing market.