Did you know that the average age of real estate agents is 52, and the average age of home buyers is 32? After the peak of the real estate boom years, the recruitment of new agents into the business dropped dramatically. Many of those newbie agents who became licensed during the boom, but never really learned the trade, left as soon as the easy business dissappeared. Since the boom years the ranks have been cut by over half. However, successful seasoned and dedicated professionals of the industry remained and learned to survive and sometimes flourish in uncharted waters.
Interestingly, some of those few new agents that have joined the ranks of licensees after the real estate recession began have done quite well, despite the challenges of the market. I attribute this to their commitment to learn the trade of their profession from the beginning with excellent training and coaching, and less competition. But, overall the recruitment of new agents into the business continues to be a void. It seems that all the negative news about the real estate market over the last 7 years has given the profession a black eye. A career in Real Estate is not for everyone, the attrition rate in this industry is quite high. But, for those that develop themselves to provide a valuable service as trusted, knowledgable experts, it can be very rewarding.
In the next decade there will be a dramatic decrease in the experience and knowledge base within real estate as this aging agent population of Realtors head into retirement. At the current recruitment rate of new and particularly young agents into the industry, this will leave a historically much smaller set of agents to service a growing population and demand for real estate expertise.
All indications are that both locally and nationally, real estate values are on the mend. In our own area, the inventory is very shallow, and the demand is rising. We are starting to see prices increase, and the distress property sales percentages are dropping. Granted, we will see short sales and foreclosures continue to be part of the inventory for some time yet, but the hand writing is on the wall. Economics 101: When supply exceeds demand prices rise. With todays prices and interest rates, particularly young first time home buyers and investors are taking advantage or this unique opportunity
Real estate values and activity have always been a cycle. It looks that we are now at the very begiinning of a long term of value appreciation and increased activities. It will be slow, but steady. Three steps forward, and two backward...but progress is made. History proves this real estate cycle over and over.
For the real estate industry as a whole, lurking in the shadows is the issue that there will be far fewer experienced and knowledgable agents to assist those buyers and sellers as we venture into improving market values and higher demands. This void creates excellent opportunity for entry level real estate agents to learn a profession where there will be increasing demands for talent and EXPERTISE!
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EXIT Realty Expertise
7947 Kings Highway
King George, VA 22485
877-587-7345 Personal Fax
Helping Buyers and Sellers achieve their Real Estate goals in King George, Fredericksburg, Stafford, Spotsylvania, Caroline, Prince William, Westmoreland, Colonial Beach and the Northern Neck of Virginia. Licensed in the Commonwealth of Virginia and the State of Maryland.