Sunday, June 1, 2014

Where Have All The Real Estate Agents Gone?

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(Mod: Realtors take it on the chin on this blog from time to time. Sometimes it is well deserved, but oftentimes it is kind of cringe inducing, at least for me. Some real estate folks I know are people of good conscience and care about this community deeply. Others are just damn good at what they do …  However, there are those certain individuals who do need to be noted as well. None of whom got the Mosca listing, I might add. This despite their wasted years of fraudulent service to that individual's delusional political ambitions ... Anyway, here is an article that appears on a blog called Dr. Housing Bubble. And what it tells us is that the profession of Realtor in the State of California is in decline and, slowly but surely, those practicing that profession are becoming an endangered species here. )

The disappearing real estate agents of California: From 542,000 in 2008 to 403,000 California Broker and Sale Licensees. Low volume and low sales continue to dominate market: One of the more interesting sidebars of the jump in home prices in 2013 is that many real estate agents are not necessarily thrilled. You would think that with prices in some areas reaching near peak levels that real estate agents would be jumping for joy. Alas, money is made on sales volume. You make more money on five home sales at $400,000 than on one home sale at $600,000. Investors continue to dominate the market so even for loan processors, the volume for mortgage applications has been low. We have seen a continuing decline of licensed California agents and brokers.

The peak was reached back in 2008 and since then, many have simply allowed their licenses to expire and new blood is not entering the game in any significant way. The trend is unmistakable and you would think the recent run-up in prices would be a call to action for many future agents and brokers. Yet with so many investors going straight to auction, working off the books, and the proliferation of real estate data the demand is simply is not there. Sales volume continues to be incredibly anemic and we have seen a recent increase in inventory this year but nothing dramatic. The reality is, for those looking to buy inventory remains thin and we still have a good number of house horny buyers.

Where did the agents go?
The peak number of California broker and sales licensees hit in 2008 at 542,267. Since then, there has been a slow and steady progression down. Today, we have 403,842 licensed brokers and agents in the state and every subsequent year since 2008 has seen a continued drop. What is going on given that in virtually every city of California prices went up in 2013? Prices went up because of a manipulated market, massive investor demand (waning), and house horny buyers leveraging every penny they have.

Yet none of this is truly a sign of a healthy overall economy. Like roaches, folks are scrambling from the light trying to grab onto anything that potentially has the ability to generate yield (any yield). It is an incredibly interesting trend because from 1996 to 2008 every subsequent year saw a steady increase in licenses going out to brokers and real estate agents. The bar is not a tough one to jump so this is a good indicator of an overall perception of the industry. Yet with sales volume so low, commissions have been slammed. Take a look at the data.

(Mod: There is a lot more to this fine article on Dr. Housing Bubble.com, and you can read the rest here.)

http://sierramadretattler.blogspot.com

42 comments:

  1. Real Estate Agents have one purpose only, sell and sell at a high prices to keep the unsold stock of homes or dwellings from soaking the market and dragging the neighborhood an city down. They are also work to keep the right KIND of people in or out of a city.

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    1. some of the realtors in SM are just blatantly dumb when it comes to marketing - they get invovlved in politics, endorse candidates and alienate a large % of their customer base

      I can think of about 10 agents in SM and a couple of agencies I'd never use - ever and when I get a chance, I word of mouth them negatively

      fact is, for what realtors actually do, they are overpaid in terms of actual commission but then they've got to turn alot of houses to make serious money

      during the bubble, it was easy to sell a house, alot of idiots overpaying for a house but now it's an actual job and you've got to work it

      I had a self important agent tell me once that low income housing in SM was $ 600 k and she was vocal in her anti Measure V and endorsed the candidtates that put SM in the mess it's in now



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    2. 7:56.."They are also work to keep the right KIND of people in or out of a city."....do tell, how does one do that, I believe it's called discrimination, and you put your license on the line doing crap like that, so please enlighten us, you seem so well informed.

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  2. Tip to Sierra Madre realtors :
    Join the fight against over development in Sierra Madre.
    Join our fight for a building moratorium
    Join our fight for clean water.
    You will protect your livelihood here in little Sierra Madre. Listing and selling homes to people who don't want to live in McMansions
    People who love small Sierra Madre.
    People who don't choose to live in Arcadia.
    You will sure not be the realtors who list or sell these huge monster multi family homes, think about it.

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    1. it's all about the commission baby

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    2. Of course it is, it's how they are paid

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  3. The Sierra Madre local realtors can still make a good living here in Sierra Madre, listing and selling homes....provided they join us in fighting massive over development, namely, McMansions.. provided they join us in making sure our city council sticks to our general plan, local good people worked on for the last few years.
    Provided they support our fight for clean water and oppose anymore of these water for development scams.
    If these horrible McMansions are built, the town changes drastically, and none of you will be the ones listing or selling the property. Think about it. Protect small town Sierra Madre, protect we the residents and protect your own jobs.

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    1. Realtors are notorious in their support of filthy water, and why are they called McMansions, they are Mansions, I LOVE 'EM!!

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  4. One of the continuing Measure V/DSP hangover issues is that many local realtors worked very hard to ruin downtown Sierra Madre with bad development. It was a betrayal of trust, one where people who should have behaved better attempted to sell our town out to big money outside interests. A lot of people have found that hard to forgive.

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    1. even Joe Mosca used an out of town realtor

      in the end, he scammed everyone, even his closest allies

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    2. I'll never use a Webb-Martin realtor, the agency as a whole was rude and aggressive during the Measure V campaign and were tickled with the Cumquat attacking decent citizens

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    3. Nobody will ever use a Webb- Martin Realtor again, they don't exist.

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    4. The names change, the faces remain the same.

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  5. the old angle for realtors was that they "marketed" your house, which can be done today by a 12 year old with a laptop

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    1. Really, can a 12yr old get your home on the MLS, exposing your home to thousands of professionals looking to do business, can a 12yr old drive clients to your house, hold open houses, arrange workmen for necessary repairs, run credit checks, handle escrow checks, ya, thought so....good lord.

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    2. looks like a real estate agent got offended lol

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  6. what I don't get about realtors, is why they put their photograph in their ads?

    its a waste of ad space, self indulgent promotion and it's like a car dealer putting a bumper sticker on your car when you leave the lot

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    Replies
    1. They want you to like them. well-coiffed blond hair apparently being the flag many choose to fly.

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    2. It's called promotion, put a face to the name, why does Ford put Ford on their cars, or McDonalds put McDonalds on hamburger wrappers....THINK!

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    3. some of those faces shouldn't be seen

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    4. 4:12, you must be a realtor.

      it's cheesy self promotion at best and a waste of ad space for the client. I'd rather have an agent who puts my interest ahead of his/her chasing the next commission.

      if I were a real estate agent, I would use that space on my yard signs to sell the house with a photo or something unique about the property


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  7. the attraction to the industry was that it wasn't that hard to sell during the bubble but once it became "work" those who didn't want to devote the time and energy just left the industry or went dormant and are waiting until it's a easy sale again

    I think many new agents are surprised on how much work it actually is to find listings and the agent is always on the job and catering to clients. The industry needed a good culling of the bloat of agents.

    Real estate gets alot of people thinking "well I could always try real estate sales" and it's realtively easy to get into to but not so easy to make serious money in.

    given todays' technology and availablity of alternatives, I'm not surprised that the need for agents has dwindled and the actual value of money paid in commission (6%) outweighs the return of the use of an agent for listing and marketing the property

    if a homebuyer uses a self sales agency (sell it now etc) and pays a lower commission to a buyers agent, the buyer agents shun that property and try not to show it but that puts the interest of the agent ($) ahead of the client





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    1. If you're paying a 6% com you're a putz, it's all negotiable. The influx of Asian Realtors in the last 15 years has driven down rates in this area, competition is fierce and Realtors are slittin' their own throats on rates to get listings. Do your homework and sell your own house and save thousands of dollars.

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  8. My advice to an active realtor....retire or get a real job!

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    1. Or perhaps a side step into reverse mortgage sales. I hear many former realtors and brokers are finding bilking elders to be lucrative.

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    2. Reverse mortgages are an ALF kind of equity removal. There are many ways to acquire the life's work of the elderly.

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  9. This comment has been removed by a blog administrator.

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    1. Somebody call the paramedics. The citizen needs an intervention.

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    2. Maybe he's sad because something has gone wrong in his life.

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  10. As a group, real estate agents are just as responsible as predatory mortgage lenders for the terrible financial crisis many people had to go through.
    Individually there are exceptions, people with ethics and intelligence. But that is the minority.

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  11. Were any members of the real estate community invited in for the secret New Urban Waste/Cam Thornton/Mater Dolorosa meetings at City Hall?

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    1. Why would they be invited, they can add nothing to the discussion that the developer doesn't already know, homework is done.

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    2. You hate the people of this town, don't you.

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    3. I love this town, it's the people I can do without.

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    4. You need to give people the chance to ignore you.

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  12. An Arcadian resident who grew up in Sierra Madre, supports the Lizzys Train Inn, is a realtor now with a company in Pasadena, was thought the Arcadian Realtors oppositon to Measure V--the NO vote--was wrong.

    I would use him (and his wife who works with him) to sell my house when the time comes. When he retires, I would use anyone he recommends. Sierra Madre realtors have burned too many people and been on the wrong side of the argument to save Sierra Madre. As a local business I cannot support them.

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    1. A good Realtor does not get involved in local politics, they tend to stay neutral, with the few exceptions, eg...tricycle riding ding bats, momma bears trying to get junior into city hall, and those on the margins of being just able to eek out a living at it, your Roses, Dugans, Rix's, Towles(rip), Pocks, oh, and you know this one, Morins, tend not to get involved, better to remain neutral in the area you ply your trade, don't want to polarize the prospective client base...imho

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    2. so 4:00, you saying Carol Canterbury isn't a good realtor or just not smart in her sassy approach?

      she did get nipped in the bud by the owner of her agency and she's been quieter but still active

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    3. Christ, not Canterbury again riding her big wheel up the street with the designer sunglasses and Mickey Mouse ears.

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  13. This is an easy one; "Anonymous June 1, 2014 at 4:25 PM 7:56.." implied consent - are you still living in the dark ages? It's called steering - please stop with the puffy chest and facial expressions.

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  14. 20/20 ran a report on it's news show and with hidden cameras found realtors going through home owners dressers, one old agent stealing underwear and one agent priced the home too high so he and another agent could use it as a love nest - yuck - he lowered the price after a couple of months when he was done using the house.



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  15. As a group, real estate agents square measure even as accountable as predatory mortgage lenders for the terrible money crisis many of us had to travel through.
    Individually there square measure exceptions, folks with ethics and intelligence. however that's the minority.

    ReplyDelete