Don’t look now, but Realtors are vanishing.

Oops, there goes another one.  Already 3 out of 10 Realtors have disappeared in the past 6 years.

Granted, our country has experienced the worst recession in at least 50 years and that alone has contributed greatly to this drop in Realtor membership.  Nonetheless, the number of Realtors has declined from a peak of 1.357 million to less than 1.0 million in just six short years, nearly a 30% decline according to the National Association of Realtors. 

NAR spokesperson Walt Molony told Tara Steele of AGBeat, “Monthly membership fluctuates because local dues cycles vary, and outside of the boom years there generally has been a seasonal dip from December to January. We focus on year-end numbers.

Annual totals for the past decade:

  • 2012 TBD (964,886 as of February month end)
  • 2011 1,009,940
  • 2010 1,066,658
  • 2009 1,112,645
  • 2008 1,197,529
  • 2007 1,338,001
  • 2006 1,357,732
  • 2005 1,264,640
  • 2004 1,102,250
  • 2003 976,960
  • 2002 876,195

Regardless of whether the annual membership of NAR dips below 900,000 or stays slightly below 1,000,000, there will continue to be a need for Realtors and those that have weathered the recent tumultuous storms are much better positioned to seize growth opportunities as the economy continues to rebound. 

Presently, even as sales prices are declining, residential real estate transactions are no longer falling throughout the country.  So, in essence there is more business to go around for those that have stuck it out.  Some Realtors are even scrambling to hire additional staff to handle this new business due to the large declines in the Realtor profession.  “I have been actively looking for two sales agents for a couple months now and it is tough to find good people”, said Adam Wavrunek, Owner of Domain Realty.

Like all good gardens, there must be a period of pruning.  It would appear that the Realtor industry is coming through the pruning period.

 

Michael Hobbs, PahRoo Appraisal & Consultancy

Twitter @PahRoo

Speaking of growth:

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11 Comments on NAR Data Indicates Realtors Are Vanishing

JUL
07
181,103 Points 2 Featured Posts

I think there are too many in the Real Estate agent game. In MA the last number I heard was 24,000 active, i.e. dues paying, agents
6:56am • #1
491,879 Points 52 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Nationally it might be true, but here on the North Shore there never has been a shortage!  In fact, very few have left during the past year.
6:58am • #2
1,120,582 Points 7 Featured Posts Outside Blog Called Shot Master

Our Area Board of Realtor membership has declined drastically.  I hope to see it pick up.
7:06am • #3
1,949,527 Points 155 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

I think it might be good for the industry as a whole that we keep losing membership. There were a lot of people who got in the business to make a quick dollar that last couple years. 
7:15am • #4
JUL
09
Attended Rain Camp

Hopefully the fall in numbers of realtors means the loss of part time and/or non-professional agents who did little to promote the perception of realtors by the general public.
7:00am • #5
226,860 Points 6 Featured Posts Called Shot Master

I posted these thoughts on another blog that referenced this one.  As I mention there... the perception that all the agents who have left were the bad ones...is totally inaccurate.  In fact, many brokers and agents I know who are not members of the Board laugh at NAR perception and just keep putting money in the bank...big money.

Here are my other blog comments:

Sorry all...I am not on board with your thoughts on this one because you are not seeing the big picture.

In 2007, after being a "Realtor" for 15 years, I joined an ag related company that had over 30 real estate agents throughout Nebraska...but none located within the Boundaries of our local Board where I was at.

This company had no ties to NAR and thus were not "Realtors" but real estate professionals. I tried to stay as a "Realtor". After all...why not? I was a CRS, GRI, ABR and a former award winning Re/Max agent. I had all kinds of plaques on the wall to prove it.

The local Board of Realtors was okay with only the Broker (who lived 100 miles away) and I joining the Board and MLS. National was okay with it. The Nebraska Association of Realtors was not and wanted ALL Company agents to join my Board in my town. Oh my...I might share some secret MLS info with one of them if they only allowed the Broker and me to join.

My Broker said that would make no sense, I agreed, so I left the local Board of Realtors. (The year before (2006) I was the Secretary/Treasurer of the Board and if you go to their MLS site today...that is my design they still use)

Here is an interesting fact: The highest commissioned Real Estate Brokers and real estate agents in Nebraska are NOT members of NAR. And even I make more than many of the "Realtors" in our area and I don't even try hard. AND I only do it part-time.

I suspect it is that way in many areas.

You throw on top of that the fact that in most Metro areas, you have to belong to 3 or 4 or more Boards because of boundaries...think Omaha...Denver...etc...and the added expense because of lack of vision to have an all encompassing one...like Pikes Peak Board of Realtors...well...that leads leads me to this set of thoughts:

You guys can sit on a pedestal and pontificate that you are the way and all the others who left NAR were not needed or of any value until you are down to a handful of "Realtors" or you can start re-energizing and making changes to your organization that make sense for the modern era... WHY? Because you are running out of numbers...

But if you are of the mindset that all those who have left NAR are just the bad seeds, dumb ones, lazy ones, incompetent part timers, failures, no-goods...or whatever you want to call them... you are wrong and one day you will wake up and some other PRIVATE for profit business will be running your business and NAR will be a weak old hag of a sister from yesteryear...or non-existent. (Think Loop-Net type of business)

But only you NAR members can change it...Only you can make the changes to make NAR relevant again...only you can actually get NAR to work for YOU and not for themselves...And you are running out of time.

Short of that...someday the last one of you NAR members can write the obituary for NAR.

 
7:48am • #6
370,033 Points 18 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

I am proud to be a Realtor® and wear the pin proudly.  Realtors® are held to a higher standard and that is good for our profession.  I am amused by grumpy professionals that are happy to see their industry be decimated, but that is this business.  Your loss can be someone elses gain.  I pay little attention to numbers like this other than to realize that I need to be the best agent I can for my clients and prospects today and every day of my career.
8:01am • #7
597,533 Points 110 Featured Posts Outside Blog Called Shot Master

Michael - I believe in pruning. I agree with Todd that when agents who got in to make a "quick buck" get out, it's good for the industry. Those folks had no intention of doing the job that your clients want and expect - and they make the entire industry look bad.
8:24am • #8
593,431 Points 7 Featured Posts Outside Blog Called Shot Master

I've been wondering about this.  I agree that there were and still are just too many agents.  It would be interesting to see if they are leaving NAR, but still working in the field as agents.  I guess the State licensing board would be the one to provide that information.
8:44am • #9

In Orange County, California we have 20,000 REALTORS.  That number has not changed much since 2005!  Our median sales price went up to $600,000+, then down to $388,000 and now sits at about $439,000.  Good or bad, I believe the Home prices are what keep so many REALTORS active in Orange County.
3:59pm • #10

Interesting statistics but not surprising. I have seen a number of agents get out of real estate. Many jumped in during the boom thinking it was easy money and found out it involved more than taking orders. I still see agents who don't answer their phones and don't return phone calls. The problem I see is many agents don't treat real estate as a business.

Jacqueline Drake CRS

Cochise County AZ
11:04pm • #11


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Michael Hobbs, SRA, Michael Hobbs, SRA, LEED GA, RAA (PahRoo Appraisal & Consultancy) Rainmaker_large

Michael Hobbs, SRA

Michael Hobbs, SRA, LEED GA, RAA

Chicago, IL

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PahRoo Appraisal & Consultancy

Address: 1707 W. Roscoe Street, Suite 1, Chicago, IL, 60657

Office Phone: (773) 388-0003

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