Internet Access and Price Fixing Settlement Squeeze Real Estate Agents' Profits, Question Need for the Profession

Real estate agents are going the way of travel agents due to the internet providing homebuyers access to property information that agents previously controlled.

An award-winning professor specializing in housing economics, Andrew Spieler, says real estate agents are no longer needed like they once were.

The recent $418 million settlement over alleged commission price fixing indicates commissions could fall by 30%, meaning less profits and a downsizing of the real estate agent profession.

While some experts think the settlement won't change much long-term, Spieler argues the internet has already reduced what real estate agents provide in a transaction.

With low housing inventory, there are fewer potential transactions, so lower commissions per sale will squeeze agents out of the industry.