An Agent Bubble?

January 6, 2006

Opportunity grows in slowing real estate market

Big brokerages may benefit as smaller companies sink or sell
Monday, January 02, 2006

By Glenn Roberts Jr. Inman News

Excerpt...
There is no "real estate bubble" in store for the industry in 2006, said Brent Bonine, executive director of sales and marketing for Buffini & Co., a coaching company for real estate professionals. "However, we do see a 'real estate agent bubble.' The increase in licensed agents has outpaced the number of units sold for the past few years," he said. [I'm sure he means on a percentage basis]

A rapid pace in real estate sales and price-appreciation that has sustained agents during the real estate boom, Bonine said, but that equation is changing. "As the pace of deals slows and prices settle to normal, agents with low production will be squeezed out of the market," he said.

There is a graying population of real estate agents who are looking to reduce their workload or retire, and Bonine said he expects a stream of experienced and low-producing agents to leave the business as the market settles down. In this fallout is an opportunity, he added.

"Real estate agents who can articulate their value to their clients and who serve their clients will see an increase in market share as the consumer begins to demand more from their agents," he said...

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