April sales volume fell nationally by 21% as compared to same month in last year. More than 10,000 real estate agents decided to quit their profession due to low sales volume and falling commissions for last few years. The property market is going through a challenging phase this time around.
Now a day, it becomes very hard to sell houses due to low customer confidence and rising interest rates. The condition is that more and more people are leaving the industry as compared to the new one who are joining it. According to many veteran industry professionals, this is one of the toughest times ever. According to census of 2006, there were 72,000 real estate agents and from that only 50,000 remained.
In Western Australia, licensed agents dropped from 3500 to 2600 in last one year and sales representative reduced from 11,000 to 7500.
Properties are taking much longer to sell and the number of listing is 31% higher than they were a year ago as weak demand fails to absorb 130,000 private home sale.
It goes to show that we cannot continue to use solve new problems with old solutions.
Rick
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{ 3 comments… read them below or add one }
It’s a big decision to walk away from an industry one loves, but with a trainwreck of a market, and ongoing costs which are not being defrayed by commissions, staying could mean bankruptcy.
Most agents realise that things are not going to get better for a long time, and are likely to get very much worse as house prices free fall and home owners move into gross negative equity.
Most agents are also entrepreneurial, and recognise that the only way to make real money is to have control over your own business. However too many rush in without considering vital due diligence issues like product or service differentiations, proof of market, immunity to technological advancement or changing consumer buying patterns.
By choosing with the head instead of the heart, and being fully informed, a decision to do something else is probably the best decision a real estate agent could make right now, in June 2011.
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