A downturn in the number of houses sold in the last year has turned up the heat on the real estate industry, with agents' income dropping.
Wednesday, May 4th 2005, 7:58AM
by The Landlord
In the year to March 31, the number of house sales recorded by the Real Estate Institute of NZ (REINZ) fell to 105,001, from 121,076 the previous year.
But the number of real estate agents has increased dramatically because more people have been attracted to the industry by the booming market.
The Real Estate Agents Licensing Board says there were 16,163 agents on April 1, compared with 11,863 at the start of the boom in 2002. That combination has reduced the average number of homes sold by each agent from eight a year in 2003 and last year to 6.5 now, the lowest in four years.
Analysis of sales figures show that an agent's average income reduced from $42,308 in 2004 to $37,046.
"The cake is being divided up a bit more and that means there's a little less all the way around," REINZ president Howard Morley said.
The tightening market has led to an increase in the number of people leaving the industry. Over the past year, 2729 salespeople gave up their licences compared to 1814 who left in 2003. It appeared to be recent recruits who were bearing the brunt of the increased competition.
Ray White chief executive Carey Smith said less than half of the new recruits who joined the company last year with no previous experience lasted more than a year.
