Nationally today the National Association of Realtors NAR issued some new statistics regarding home sales. (keep in mind that these numbers are a national average, and do not apply across the board!) What the numbers do reveal are trends. Nationally of course home sales are off, but they are off 20.7% from this time last year. Seasonally adjusted, sales of re-sale homes are 4.97 million units in October. a big chunk in the drop was condos which accounted for 9.1%! Why? Because they are glutted!
The problem in many markets are that home sales has dropped in the last few months almost 40% in certain price ranges and areas. Some locals have seen even bigger drops. In the Atlanta area this is compounded by a 300% increase in agents for the last few years..they are all pursuing less deals. In the real world it will mean that many cannot pay thier bills.
In recent weeks in the Atlanta area I know of 10 major real estate offices that closed their doors unexpectedly! You can call it what you want, some may have called it a consolidation of offices, elimination of duplicative efforts, but the reality is that there isn't enough money going around to pay the bills and keep the lights on. Sometimes you cannot help but wonder how many agents survive, pay hospitalization, or car payments. The Atlanta area has about 45000 agents, and last month there were 3500 single family home sales, and 676condo/town home sales throughout the entire area of the MLS. A few years ago we had only about 13000 agents, and about the same number of sales. In my own area of North Fulton county where there are about 15000 agents that reside here...last month we saw 79 sales in area 13, and 107 in Area 14.
I guess it is safe to say, that if you are a buyer or a home seller, it is going to make sense to work with someone that can afford to advertise your home to sell it for you. Home buyers will have to find an agent that is not rushing them to buy a home to pay the agents rent or mortgage. Representation is supposed to place our cleints first!