Tough market creates struggles for real estate agents too

The sluggish housing market is wreaking havoc on everyone's lives, including real estate agents. It's not just their professional lives that are being affected with real estate downturn; many are struggling financially and are at risk of losing their own homes.

The real estate slow down is difficult for everyone right now. Buyers struggle for a number of reasons; many can't qualify for the loans they once could, so fewer are jumping into the game. Others need to sell their own home first; higher housing inventory/competition and fewer qualified buyers make selling a nearly impossible feat right now. But the buyers and sellers aren't the only ones being affected by the declining market. A large number of real estate agents are struggling financially as they see their client base and income shrink. I know several that have taken on second jobs to pay their bills, and a few that have quit the business all together to search for a more stable job.

Besides seeing a decline in business and income, many real estate professionals are facing foreclosure of their own homes. The housing boom created a frenzy and some real estate agents decided it was time to buy before prices escalated too high. Some bought investment properties, others just upgraded to bigger homes while loans were affordable and easy to get. The tide has turned and many of these same agents are trying desperately to sell what they can no longer afford. I can't tell you how many foreclosures and short sale listings I see that are "agent owned". I know of one home that was purchased by an agent during late 2005; they paid $260K more then what they're currently selling it for now through short sale. I hate to criticize but the home was never worth what they paid (IMHO) so I don't have a lot of sympathy for their situation. Everybody knows what goes up must come down, and prices were bound drop sooner or later.

This morning's USA Today features a story about how the sluggish housing market is affecting real estate agents nationwide. The article presents some interesting statistics about just how many real estate agents are fleeing the industry.

- The number of real estate agents fell nearly 25,000 from December 2006 to Dec 2007, compared with a growth of 12,500 from Dec 2005 to Dec 2006.

- After hitting a membership high of 1.4 million in 2006, the National Association of Realtors reported only 1.26 members as of July 2008.

- Payroll employment of brokers has dropped from a peak of about 380,000 jobs in spring 2006 to 340,000 jobs currently, Zandi says. Many more non-payroll jobs have been lost. And more losses are coming as home sales sink back to levels last seen in the early 1990s.

It's always interesting to read the comments that viewers make at the end of these articles. Most feel real estate agents are blood suckers that created all these problems and that those now struggling are getting what they deserve. Why all the hate?! Not all real estate agents are vultures, waiting to feed on the naive buyers and sellers of the world. Being a real estate agent is a tough job if your do it correctly, and this rough market is a learning experience that can make or break you. Those lucky enough to survive are learning the tricks of the trade that can make them strong and successful in any type of market or career. Just hold on tight because I think it's going to be a long and bumpy ride!