👋👋 Good morning real estate watchers! Today, we are going to talk about...

1. How this AI agent closed $100M in sales and doesn’t need coffee, lunch, or bathroom breaks. Honestly, the only break it’s taking...is breaking the spirits of every mediocre real estate agent who thought memorizing floorplans was job security.

2. We're somehow building more homes than people are forming households—but still short by millions. Basically, it’s like baking 12 cakes, realizing you needed 20, and half your guests are gluten-free millennials who can’t afford a slice anyway.

3. Why multifamily investors are cautiously optimistic—as if staring at $600B in maturing debt while nervously clutching a stress ball shaped like Jerome Powell's face.

📊 But first, it’s time for The Great Real Estate Poll—where you get to decide what rabbit hole we dive headfirst into next week (and no, you can't pick "none," you monsters).

TOP STORY

NO PULSE & CLOSING DEALS

It was bound to happen. First, artificial intelligence took over your playlist. Then it came for your calendar. Now, it wants your real estate agent.

In Portugal, real estate brokerage Porta da Frente Christie’s made headlines after announcing that an AI-powered real estate agent powered by Israeli startup eSelf AI generated an eye-popping $100 million in sales. That’s not a typo. That’s one AI agent outperforming legions of human agents without breaking a sweat—or needing a coffee break.

We’ve now reached the point where AI not only knows more about your dream home—it’s also more emotionally available, more responsive, and won’t ghost you after your offer gets rejected. Sorry, Chad from RE/MAX. The AI bot knows every detail about every listing and can chat with prospective buyers at any hour.

A $100M Wake-Up Call for Real Estate

So, what’s the secret sauce? eSelf AI’s technology integrates large language models into a highly interactive experience—think less Zillow scroll and more AI concierge with the patience of a saint and the memory of an elephant. Buyers input preferences like location, price, and square footage, and the AI serves up listings, conducts virtual tours, and answers every question faster than you can say “mortgage pre-approval.”

It’s not just about speed. According to Cília, “you as a customer are going to get...a much better service right away than you will have with a physical commercial consultant.” Why? Because the AI simply knows everything. There’s no fumbling for MLS numbers or double-checking property taxes—it's all there instantly.

The results are hard to ignore. That $100 million in sales reflects not just novelty but operational efficiency at scale. There are no salaries, commissions, or vacation days—just relentless, algorithmic salesmanship.

Million Dollar Listing better watch out—the next season might just feature three AI chatbots arguing over who gets the commission, and frankly, they’ll probably be less insufferable than the original cast.

What This Means for the Industry

The big question is: Are traditional agents obsolete?

No, but the pressure is on. According to the National Association of Realtors, as of 2024, there are approximately 1.56 million licensed real estate agents in the U.S. alone. While many pride themselves on human touch and local knowledge, AI has now demonstrated it can outperform in areas like information recall, availability, and transactional efficiency.

For brokerages, the financial incentive is clear. AI reduces overhead costs and expands client service across time zones. As Cília bluntly noted, AI “can replace a lot of the physical commercial consultants...and make the operation much cheaper.”

That’s music to the ears of brokerages squeezed by razor-thin margins and rising costs—but potentially terrifying for agents relying on those commissions to keep their mortgages paid.

The New Normal?

Still, there are limits. Real estate remains deeply personal. Trust, negotiation nuance, and understanding buyers' unspoken hesitations aren’t (yet) in AI’s wheelhouse. But as AI becomes more human-like—integrating video, image sharing, and increasingly sophisticated language models—that gap may narrow faster than many expect.

Whether we like it or not, the bots are coming.

In the meantime, AI’s $100 million debut is less a novelty and more a harbinger. The message? Adapt or prepare to be outperformed by an algorithm that never needs a lunch break.

SNIPPETS

1️⃣ Trade War Tremors: Ten states - Michigan, Texas, New Mexico, North Dakota, Montana, Illinois, Kentucky, Indiana, Louisiana, and Ohio - are experiencing the most significant trade-related GDP disruptions. The data from the International Trade Administration and Bureau of Economic Analysis for 2024 highlights the interconnectedness of international trade and local economic health. These states, with their diverse economic profiles ranging from manufacturing to energy production, demonstrate that trade wars can have substantial ripple effects on local markets, potentially influencing real estate values, commercial development opportunities, and investment strategies. Investors should pay close attention to these regions, as the ongoing trade dynamics could present challenges and unique investment opportunities in the coming years. (Apollo)

2️⃣ Housing Headaches: New-home construction outpaced household formations for the first time since 2016, with 1.36 million homes starting against just 999,000 household formations. However, the housing supply gap remains substantial at 3.8 million homes, with regional variations stark: the South could close its gap in three years, while the Midwest would take 41 years. A critical factor is the 1.6 million "pent-up" millennial and Gen Z households that didn't form due to affordability issues, with the median first-time homebuyer age reaching a record 38. It would take 7.5 years at the current construction rate to close the housing gap. Investors should pay close attention to the South and West markets, which saw the most significant improvements in housing supply in 2024, and consider opportunities in affordable new construction segments targeting younger buyers. (Realtor.com)

3️⃣ Cautious Multifamily: Multifamily real estate investors are cautiously optimistic in 2025, with 83% planning acquisitions despite challenging market conditions. A Berkadia survey reveals debt costs remain the primary market constraint, with 93% of investors finding deal underwriting difficult. The Southeast and Midwest are the most attractive regions for investment, with core-plus and value-added assets showing the most promise. Approximately $600B in multifamily debt will mature in 2025, potentially triggering market shifts. Investors closely monitor the 10-year Treasury yield, hoping it stabilizes below 4.25% to accelerate transactions. Most expect modest market improvements in the latter half of 2025, with 44.6% anticipating a significantly better investment climate by the end of 2026. (Bisnow)

4️⃣ HOLD! For Now: The Federal Reserve held interest rates steady at 4.25% to 4.5% amid rising recession concerns, with Chair Jerome Powell signaling potential rate cuts ahead. While mortgage rates, tied more to Treasury yields than Fed decisions, have dipped recently—coinciding with President Trump’s return—uncertainty remains as inflation, unemployment, and new tariffs are closely watched for signs of economic direction. (HW)

5️⃣ Cuts Please: President Trump, after initially steering clear of Federal Reserve policy, is now urging the Fed to cut interest rates to support his incoming tariffs, calling for action ahead of the April 2nd trade policy announcement. While the Fed kept rates steady this week, it signaled two cuts likely later this year. However, economists caution that pairing rate cuts with tariffs could stoke inflation. Markets expect the Fed to hold off until June, with Trump’s push adding fresh pressure on Chair Jerome Powell as the administration focuses on managing long-term borrowing costs. (CNBC)

6️⃣ Commercial Worries: The fourth quarter of 2024 saw commercial debt restructuring triple to $18 billion, compared to just $6 billion in the second quarter of 2023. While non-owner occupied and non-residential properties account for over half of this restructuring, the Florida Atlantic University (FAU) report signals "serious deterioration," specifically in multifamily and commercial construction loan segments. This trend suggests increasing financial stress in the real estate market, potentially indicating broader economic challenges and presenting both risks and opportunistic moments for savvy investors who can navigate complex lending landscapes. (Globe St)