Confidence among real estate firms has increased with the majority expecting business to improve
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Confidence among real estate firms has increased with the majority expecting business to improve.
For the third year in a row, the National Association of Realtors survey of firms has found that most are optimistic about the future of the industry and most expect to be profitable.
“Real estate firms continue to have a very positive outlook on the state of the industry. As the survey found, 90% of real estate firms expect net income to increase or remain the same over the next year,” says NAR president William E. Brown, a second-generation Realtor® from Alamo, California and founder of Investment Properties.
Despite continued confidence challenges remain, including rising prices and low inventory. Realtors are also concerned about increased competition from non-traditional platforms and technology disrupting the industry.
“There is no doubt that the real estate industry is rapidly changing, and with it comes growing competition,” said NAR CEO Bob Goldberg. “To stay ahead of this evolution and succeed in a more competitive market, NAR is establishing a new Strategic Business and Technology group to focus on business and technology solutions that ensure the role of the Realtor® is essential to the consumer.”
The figures show that 60% of firms expect to increase profit next year (down from 64% last year) but half expect competition to increase, mostly from virtual firms.
The active recruitment of new agents was reported by 43% of respondents, 49% among residential firms and 84% for firms with at least 4 offices.
More real estate firms may opt for mergers and acquisitions as the NAR figures show that those with 4 or more offices and typically 81 full-time licensed agents had a median brokerage sales volume of $235 million in 2016 (up from $203.8 million in 2015.) Those with a single office and just 2 full-time agents had a median of $4.3 million (down from $4.5 million.)
For the third year in a row, the National Association of Realtors survey of firms has found that most are optimistic about the future of the industry and most expect to be profitable.
“Real estate firms continue to have a very positive outlook on the state of the industry. As the survey found, 90% of real estate firms expect net income to increase or remain the same over the next year,” says NAR president William E. Brown, a second-generation Realtor® from Alamo, California and founder of Investment Properties.
Despite continued confidence challenges remain, including rising prices and low inventory. Realtors are also concerned about increased competition from non-traditional platforms and technology disrupting the industry.
“There is no doubt that the real estate industry is rapidly changing, and with it comes growing competition,” said NAR CEO Bob Goldberg. “To stay ahead of this evolution and succeed in a more competitive market, NAR is establishing a new Strategic Business and Technology group to focus on business and technology solutions that ensure the role of the Realtor® is essential to the consumer.”
The figures show that 60% of firms expect to increase profit next year (down from 64% last year) but half expect competition to increase, mostly from virtual firms.
The active recruitment of new agents was reported by 43% of respondents, 49% among residential firms and 84% for firms with at least 4 offices.
More real estate firms may opt for mergers and acquisitions as the NAR figures show that those with 4 or more offices and typically 81 full-time licensed agents had a median brokerage sales volume of $235 million in 2016 (up from $203.8 million in 2015.) Those with a single office and just 2 full-time agents had a median of $4.3 million (down from $4.5 million.)
