Real Estate Industry Facts

There's been so much information in the news these days regarding nation wide home sales, as well as the general real estate industry. Let me state simple, quick facts that are easier to digest.

If the country as a whole has anywhere near 3 million transactions in a year, the 'experts' consider it a bad year or a "poor market". If the country has close to 4 million transactions during a year, that is considered a good year or a "good market".

About 2 to 3 years ago, there were approximately 7 million transactions each year - wow is right. Last year, there were a reported 6.2 million transactions and this year the predictions are for 5.7 million transactions. These numbers are for reported residential real estate sales across the United States.

Keep this in mind when you discuss the business of your Realtor friends in California, for example. Their business is based on a transaction time of 52 days for their listings. This includes days on the market, escrow period, days under contract, and closing. Basically, the day the sign goes into the yard, to the day the keys go from one hand to the other is a total of 52 days.

Now, the Realtors in California and the owners of the properties on the market can expect their time frame to jump to about 142 days (in taking the listing to getting the offer to closing the transaction). As stated by a mentor of mine, Brian Buffini, "...how would it feel if your paycheck was the same but close to 100 days later in its arrival?".

Another interesting statistic; there are 1.35 million people nationwide with a real estate license. This number represents all kinds of Realtors; new, old, professional, part time, builders with licenses, people who never intend to use their license,etc. Out of this number, a reported 400,000 have not listed or assisted a principal with a transaction.

This entry is a bit periodic, but worth digesting if you are considering getting into the business or needing a Realtor. The industry needs good people who enjoy providing a service, representing the needs from start to finish, and taking the fiduciary role of a Realtor seriously. And if your in need of a Realtor, make sure you work with one that is knowledgable of the market you're in, and performs in a professional manner.