Now is a terrible time to be a realtor

Surprisingly, the housing bubble actually reduced realtor incomes. As house prices took off into the stratosphere, far too many rookie realtors thought that the market offered an easy way to make big money. However, the laws of supply and demand are harsh and unforgiving. Soon, there were too many realtors chasing too few sales. According to the NAR’s membership profile:

In 2005, NAR commissions typically ranged between 4.3 percent and 5.3 percent of the sale price.

The median gross income for Realtors in 2006 was $47,700, down slightly from 2004 when the median earnings were $49,300.

Between 2002 and 2004, median earnings had decreased 5.6 percent while NAR membership increased 26.6 percent to 1.1 million.

As such, there are too many realtors, suffering from declining incomes in an industry in collapse.