The number of real estate agents peaked last year, or maybe not it is hard to tell. The number of home sales started to decline last year and has continued on a downward trajectory.
There have been a lot of layoffs in real estate companies and in real estate technology companies. I know several people who are looking for work. It is possible that there was a little over-hiring based on projected growth.
Our economic system is based on continuous growth, which isn’t sustainable for any industry.
Some real estate agents have gotten jobs in corporate or government real estate departments, and others have found jobs outside of real estate.
You might say there is a recession or a depression in real estate workers, reminding me of the housing market crash and the great recession. Some real estate agents retired early and others found jobs while the rest of us slogged through a down market. As home prices went down so did commissions which are often based upon the sale price of a house.
I had a couple of side hustles that helped pay the bills.
This is a good time for consumers to negotiate the best rates when working with real estate agents. When choosing an agent choose one with experience. New agents tend to charge as much as experienced agents charge. Always ask if they have ever sold a house before or how many houses they have sold or how many buyers they have represented.
Often new agents don’t know what it is they don’t know and do not ask for help. As independent contractors agents do not get a lot of supervision.
It is true we all need to start somewhere and most new agents will get experience from working with friends and relatives and maybe a neighbor or two.
According to the National Association of Realtors, 87% of real estate agents fail within the first five years. Often the agents who fail do not make enough money to pay their personal bills and business expenses. Most real estate agents work on a 100% commission basis and only get paid after a successful closing.