The Real Estate Agent Pool is Drying Up

March 17, 2023

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Real estate brokers are concerned about a potential reduction in the number of real estate agents in their markets during 2023.

The average income level for real estate agents has a huge impact on the flow of people into or out of the industry.
A tight correlation occurs between average commission per member and the flow of agents into and out of the business. When the average commission per member exceeds $55,000 per year in 2005 dollars, NAR membership tends to grow.
Knowing the relationship between commissions per member allows forecasting for 2023, which likely holds a drop in NAR membership, a decline in commissions, and a continued slide in the number of sides per member.
A more severe downturn could see a steeper fall in NAR membership, leading to the largest percentage drop in the last 25 years, exceeding the 11% drop from 2006 to 2007.
The shrinking pool of real estate agents will yield more pain in the bottom half of the production ladder in the office. Brokers who anticipate and actively manage this trend will gain share at the expense of those who don't.

Mortgage rates plummet below 6%

Mortgage rates for all key terms have fallen since yesterday, according to data compiled by Credible.
30-year fixed mortgage rates have plunged by more than a quarter of a percentage point to hit 5.99%.
Borrowers may want to lock in a rate today ahead of likely fluctuations.
Mortgage refinance rates have also fallen across all key terms, with 10-, 15-, and 30-year rates dropping by a quarter of a percentage point or more.
Homeowners who can manage a larger monthly payment may want to consider 15-year rates, which are currently the lowest available at 5.375%.

Bankrate recently conducted a study on the states in the US with the highest and lowest property taxes.

Property taxes are an essential source of funding for schools, roads, infrastructure, law enforcement, and other services.
West Virginia had the lowest property taxes in the country, with only $812 per year on a median-value home. Other southern states with low taxes were Alabama, Arkansas, Louisiana, and Mississippi.
New Jersey had the highest property taxes, with an average annual tax bill of $12,061 on a median home value of $484,393.
Local laws in some states provide tax savings for seniors, veterans, and the disabled.
The chart in the article shows the top 10 locales with the highest and lowest property taxes on a median-value home, as well as the median home value in each location.

The family of a woman killed by her neighbor claims the companies responsible for property management at a southeast Las Vegas condo complex should have been aware of the neighbor’s criminal history and provided more security.
The victim's family alleges that property management should have known that the defendant was previously convicted of a felony.
The lawsuit names Terrasanta Ltd., Terrasanta Condominium Owners Association Inc., and FirstService Residential LLC as defendants.
The victim was strangled and beaten to death by her downstairs neighbor, who now faces a murder charge and jury trial in October.
The victim’s family claims negligence and that property management caused her wrongful death.

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