I appreciate Tom’s concern, outlined below, but things aren’t quite so bleak. It’s true that if you do the math, and divide the 65,000 single family homes and condos sold so far this year by the 40,000 licensed real estate agents, you get at the 1.6 houses per agent number he quotes. However, of those 40,000 licensed real estate agents, probably a quarter or more work in real estate part-time, or less.
That shouldn’t detract from the main gist of the story, of course. I agree, there has been a huge number of new agents entering the business over the past year or two (or more). As Tom so eloquently puts it, many of these new agents will be faced with low pay and lots of work, over the first couple of years, and a high percentage will probably give up, if the market should cool.
This will mean less competition for those able to weather the storm.
By Tom Witkowski, Boston Business Journal
A 46.1 percent increase in the number of Realtors in Massachusetts since 2001 means there is now one Realtor for every 1.6 houses sold in the state so far this year. That number is on track to fall far short of the 2.9 houses sold for every one Realtor four years ago.
Many new agents have flocked to real estate sales, attracted by the flexible schedule and potential of financial success. The robust Massachusetts market has also brought soaring home prices, which have translated to skyrocketing commissions for some.
Complete article: Realtor surplus