With the drastic slow down in the number of home sale transactions, from 10k+ per month in the beginning of 2017 to 6k+ now in Sep. Would there be a shakeout in the number of real estate agents in Toronto? As the piece of the pie just shrink 30%. Even if home prices do not change much, there simply wont be enough deals around to feed 45,000+ real estate agents in GTA. Is my assessment correct? Where will they go and what will they do?
It’s a very good question!
But the answer isn’t always logical.
I often wonder how in the world most agents afford to feed themselves. I work for a top brokerage, and even we have desks that sit empty for weeks at a time. It’s rampant throughout the industry. The amount of entrants into this business who are looking for a get-rich-quick scheme probably outnumber the experienced agents.
There are somewhere in the neighbourhood of 48,000 licensed agents in Toronto.
From my research in IMS’ database, only 19,804 have done 3 or more transactions in the past 12 months.
That means there are 18,000 agents who have done 3 deals or fewer, many of them doing 2, 1, or zero.
Minus commission split and expenses, these people are likely making less than minimum wage.
There have never been “enough deals to feed” the licensed real estate agents in Toronto, but many are oblivious. Like I always say, “Just because you have a business card with your name, and a real estate brokerage’s logo, doesn’t mean you actually work in real estate.”