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A month ago we reported a significant exodus of real estate agents in Queensland due to declining house prices and sales. This came after a surge in agents entering the industry during the booming market of late 2021.
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Myles Blackwell, a former real estate agent from Buderim, left the profession in late March and described the challenges agents now face in listing and selling houses. With tough times, sluggish sales, reduced affordability due to higher interest rates, and hesitant buyers, the job becomes more demanding. Properties are more likely to fall through or take longer to sell, making it a real struggle.
In a recent market update, prominent Sydney auctioneer and agent Tom Panos claimed that the exodus of real estate agents had begun. Many agents joined the industry during the market upswing, acquiring tailored suits, upgrading their cars, and enjoying the perceived glamour. However, they now find it difficult to make ends meet in 2023. Panos referred to the exodus as a consequence of their previous easy-come, easy-go mentality. These agents came from various backgrounds, including retail, hospitality, and even baristas, lured by the allure of the real estate industry.
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CoreLogic’s June housing market report, released on Monday, highlighted the dramatic shift real estate agents have experienced, transitioning from a booming market to a downturn. Although home prices have recovered somewhat in recent months, the number of homes advertised for sale in capital cities is nearly 20% lower compared to the same period last year, and 26.4% below the average for this time of year. Regional listings have also decreased by 32.9% compared to the previous five-year average.
Actual sales volumes have significantly declined from the peak levels seen during the pandemic, returning to normal levels consistent with the five-year average. This decline in sales is particularly challenging for real estate agents, as their income relies heavily on commissions.
This situation not only impacts real estate agents but also has financial implications for state governments, as stamp duty receipts are expected to decrease. The plight of real estate agents is worth considering as they navigate their own version of the Hunger Games in their profession.
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