There are more agents than homes for sale

Barriers to entry low, barriers to success high for aspiring brokers

National /
Mar.March 22, 2021 12:30 PM
(iStock/Illustration by Alexis Manrodt for The Real Deal)

(iStock/Illustration by Alexis Manrodt for The Real Deal)

For-sale home inventory is shrinking in the hot housing market, but the number of residential real estate agents is rising.

Just 1.04 million homes were on the market at the end of January, down by 26 percent from a year ago. The figure is the lowest on record since 1982, the Wall Street Journal reported, citing the National Association of Realtors. In the same month, the NAR had 1.45 million members, up 4.8 percent.

Michael Mitchell is among the rookies who recently got a real estate license to enter the trade. The Boston resident, a 30-year veteran of the restaurant industry, thought his customer-service skills would be helpful as an agent, but he has yet to land a single deal. The pandemic’s limiting of in-person interactions has not helped.

“I’ve learned some aspects of the business, but it’s hard to connect with people…that you’ve never met,” he told the Journal.

According to NAR, which represents the majority of active residential real estate agents and brokers in the U.S., the number of agents goes up and down with the housing market. In October 2006, shortly before the housing bubble burst, NAR membership reached 1.37 million. The number plunged to around 960,000 in March 2012 but has been increasing ever since.

Nick Bailey, chief customer officer at Re/Max Holdings, told the Journal that a spike in number is partly because entry into the industry is relatively easy.

“But the barriers to success are very high,” he said.

[WSJ] — Akiko Matsuda





    Related Articles

    arrow_forward_ios
    Wendy Silverstein (Credit: Getty Images)
    Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
    Wendy Silverstein, co-head of WeWork’s real-estate fund, is out
    WeWork CEO Adam Neumann (Credit: Getty Images and iStock)
    WeWork’s side businesses are fizzling
    WeWork’s side businesses are fizzling
    Sarah Pontius (Credit: Union College)
    Another head rolls at WeWork
    Another head rolls at WeWork
    Former Newmark brokers Christopher Cowan, Shane Ozment, and Terrance Hunt (CoStar)
    Ex-Newmark brokers appeal 1-year ban after judge upholds noncompete
    Ex-Newmark brokers appeal 1-year ban after judge upholds noncompete
    WeWork CEO Sandeep Mathrani (Getty, iStock)
    WeWork reports $802M loss in first earnings as public company
    WeWork reports $802M loss in first earnings as public company
    Adam Neumann (Getty)
    Adam Neumann breaks his silence
    Adam Neumann breaks his silence
    Sandeep Mathrani (left) is WeWork's current CEO after replacing Adam Neumann (right) in 2019 (Getty, WeWork)
    WeWork stock up on first day, but profitability still fuzzy
    WeWork stock up on first day, but profitability still fuzzy
    Newmark Group CEO Howard Lutnick (Getty)
    Newmark’s Howard Lutnick has “highly treatable” non-Hodgkin’s lymphoma
    Newmark’s Howard Lutnick has “highly treatable” non-Hodgkin’s lymphoma
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...