Real estate in Texas: the number of real estate agents down in the cooling market
The number of active agents in Dallas fell to 756 in September from 947 in August, according to AgentStory.
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The number of realtors who sold one or more homes last month fell sharply in Dallas — and even more so in Austin — in another sign of the rapidly cooling Texas housing market.
The number of active agents in Dallas fell to 756 in September from 947 in August, according to AgentStory, a technology company that publishes home sales profiles for real estate agents. The number of active agents in Austin fell to 389 in September from 810 in August. Both markets had well over 1,000 active agents in March, April and May, before the numbers started to drop.
Active agents are defined as those who sell at least one home in a calendar month.
At the request of The Business Journal, AgentStory pulled aggregate data on real estate agent trends in Texas’ hottest real estate markets. The company typically releases individual agent performance data to help consumers, but the data shared with the Business Journal is an aggregated view.
In Houston, the state’s largest city, the number of active agents fell to 1,674 in September from 2,003 in August. Houston peaked at 2,450 active agents in April.
StoryAgent counts provided to the Business Journal are for individual cities, not metropolitan areas.
“The rate of deceleration in Texas is deep,” Jon Cardella, co-founder and CEO of AgentStory, said in an interview with the Business Journal. “The volume falls through the floor. The volume (of transactions) is decreasing, as you would expect, due to the fact that the rates are so high at the moment compared to the last few years.”
New real estate agents have flocked to the sector over the past two years as the pandemic fueled a boom in the housing market.
The United States had more real estate agents in 2021 than ever before, according to data from the National Association of Realtors, as the so-called big quit prompted many of those leaving other jobs to try their hand at real estate. sale of houses. NAR figures for this year are not yet available.
National Association of Realtors membership grew to 1.56 million at the end of 2021, from 1.48 million at the end of 2020, as housing demand increased. The typical NAR member saw higher sales volume ($2.6m vs. $2.1m) and more transactions (12 vs. 10) in 2021 compared to 2020.
The median gross income for realtors was $54,300 in 2021, down from $43,330 in 2020, according to NAR. Realtors with 16 or more years of experience had a median gross income of $85,000, up from $75,000 the year before, as income is generally correlated with experience.
Cardella said agents who jumped into residential real estate when the housing market soared should not make an abrupt exit due to the downturn.
“There is some correlation, but I think most of them will stay and continue to pay fees (for things like NAR membership and access to the registration service database multiple) and wait for the market to recover,” Cardella said. “They are paid enough for a few transactions.”
With average sale prices around $400,000 and commissions averaging 5.5%, agents can make a decent living selling three or four homes a year and get paid handsomely if they average one sale. per month, Cardella said.
It would take a severe and prolonged downturn for officers to wash up in large numbers, he said.
“When the annual dues come next year, you might see people start to drop out,” he said. “They’ll say, ‘I don’t want to pay thousands of dollars to stay. But it takes at least a year for there to be a purge. You need a nuclear winter like we had after 2008 or something. Most people say it’s going to last 12-18 months, so obviously those people are going to hang. around and wait for him.”
In Dallas-Fort Worth, home sales are falling while home prices are plateauing.
Home sales in DFW were down about 14% year-over-year in August, according to Re/Max’s latest National Housing Report. The number of homes sold in DFW totaled 9,182 in August, compared to 10,635 homes in August 2021.
Due to the sharp rise in mortgage rates, housing demand has plummeted across the state and homes are staying on the market longer, according to a report from Texas A&M University’s Texas Real Estate Research Center.
“Overall home sales have been in free fall since about April,” the report said. “At the current rate, 2022 sales will likely be lower than 2021.”