Here is some good news for anyone looking for Realtor® jobs or considering a career in real estate. Most real estate firms are confident that their income will increase next year, according to the National Association of Realtors® (NAR) annual Profile of Real Estate Firms.
In fact, only 22 percent of firms polled expect their income to remain the same. “A majority of firms have a positive view of the future, with 95 percent of all firms expecting their net income to either increase or stay the same in the next year,” said Chris Polychron, President, NAR.
Also, real estate agents want to keep more of their hard-earned commissions. “Studies show that the majority of buyers and sellers choose their agent from someone they already know. REALTORS ® whose business is referral-based are starting to demand higher commission splits from their managing broker. This is evidenced in the rise in popularity of the 100% commission model. Once a real estate agent goes to a 100% firm, they never go back!” says D.J. Parris, President, Sales and Marketing for Kale Realty.
Housing recovery is fueling optimism. With the housing market recovery in full swing, the number of home sales and prices has been rising steadily across the country. And it is widespread. Not only have major cities like San Francisco, Boston and Denver experienced tremendous growth, but smaller cities including Billings, MT and Midland, TX have had stellar improvements as well.
But one real estate market in particular, Chicago, has been on a tear. The number of home sales in the metropolitan area shot up nearly ten percent from last year, and the median price for a single-family home in Chicago is up to $226,700, a four percent year-over-year increase. Home sales and prices are expected to continue rising, albeit at a slower pace.
Chicago has also been one of the fastest growing cities for tech jobs and could be considered the Silicon Valley of the Midwest ranking third in the nation, behind Seattle and San Jose, between 2010 and 2013 based on data from CBRE.
Technology isn’t killing Realtor® jobs; it’s made them more efficient. In fact, more than 90% of all home purchases are still transacted through a real estate agent, according to NAR statistics. Although prospective home buyers and sellers can go online and research a wealth of information, real estate is a complicated transaction requiring precise knowledge and important skills that only a licensed real estate agent with a fiduciary duty to the client can fulfill.
As baby boomer real estate agents are beginning to retire from the industry, there is a growing demand for Millennials and Gen Xers to represent the next generation of real estate professionals.