People keep joining the real estate profession, new data show, as the housing boom pushes more newcomers to seek what they believe are the riches of home sales.
According to statistics compiled by the National Association of Realtors, there were 976,960 real estate agents nationwide at the close of last year, 12 percent more than there were a year earlier.
The association expects to reach the million-member mark during the next few months.
Veteran and rookie real estate agents credit the growth to a sizzling real estate market and a trend toward younger people entering the profession.
Some agents are skeptical about the growth in their ranks, saying too many people are joining a profession that they think is a lot easier than it is, noting that extraordinarily low mortgage interest rates have pushed more buyers into the market.
"It’s a very easy business to get into," said Gilbert D. Marsiglia, president of the Maryland Association of Realtors, whose ranks have grown 17 percent during the past year, to 23,224 members. "But it’s extremely hard to be successful."
Many economists expect housing sales to cool this year after three years of record growth, but most expect the market to remain healthy.
Some newcomers are pleased with the choice they’ve made.
"I’ve only been in real estate for a little while, and I’d estimate that I’m already making $52,000 a year," said Janis Hall, an employee of Century 21 Real Estate in Baltimore since March 2002. She moved to Maryland last year after spending time in retail and as a flight attendant.
"I had heard the market was doing well, but I’m still amazed at my success," she said.
Industry statistics show that 86 percent of new real estate agents leave the business after their first year. Of the newcomers who stay beyond that first year, about 7 percent renew their licenses. About 76 percent make less than $30,000 a year.
"When the feeding frenzy finally slows down, people will simply stay away and leave the business," said H.T. Brown of Century 21 Real Estate in Laurel, Md.
Many longtime agents worry that too many people are joining the business in hopes of making quick money and that the industry’s reputation might suffer.
Most agents earn commissions based on home sales, but experts said marketing and other costs often swallow any profits during the first few years as agents make names for themselves.
Course fees and licensing exams can cost less than $300, but agents often spend money on advertising, computers, office materials and transportation costs.
The National Association of Realtors said the typical real estate agent is a 51-year-old married woman who works about 40 hours a week and earns about $52,200. The average age has been falling during the past few years.
"We’re seeing a lot of young people choosing real estate as a first career," said Steve Cook, vice president of public affairs for the association. "And a lot of young people who had previously worked in telecommunications are making the switch over to realty."
Although many real estate agents remain hopeful that the market will remain strong, many acknowledge that this recent run can’t last indefinitely.
"The real estate market is running at a very, very strong pace right now, and we predict it will continue to do so in the next year," said Celia Chen, a market analyst from Economy.com in West Chester, Pa. "But as mortgage rates begin to rise, housing demand will soften a bit."
Some industry leaders said there will always be room for new agents. "I don’t think we’ll see a radical decline in Realtors any time soon," Cook said. "There is a growing population in America, and the demand for houses must be met."
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
