As the real estate market really started ramping up 5 years ago or so, more and more people began fleeing from their current career paths to “get their license”! So many people witnessed friends, family, colleagues, neighbors, etc. making so much in commissions and investment properties of their own, that they obviously wanted in on the big money. Though the barriers to entry are fairly low in the residential real estate industry, it is very difficult to stand out and compete. There is a ton of competition and those with experience are usually the ones to prevail during a declining market.
Of the nation’s Realtors, real estate is the first career for only 4% according to the National Association of Realtors. When the housing market was at record levels and homes and condos were flying off the shelf a few years ago, everyone wanted in on the game. Of course, many forgot to think of the real estate business as cyclical in nature, so by the time they received their license and were ready to start taking on listings…the market had turned. Now they either have to stick it out and hope for the best, or go back to their previous career hoping they didn’t already burn that bridge!
This has been the case in many of the nation’s active condo markets such as Tampa,Orlando, and
have gone through the cycle and are now selling at a more normal absorption rate than in the previous few years. Many people in
Tampa for example who were leading perfectly successful careers, quit to sell real estate or become investors in home and condos. Pre-construction investing was at the forefront of this strategy for the young and inexperienced. Many people made plenty of money without really knowing anything about real estate. Many became agents without really knowing anything about what it really takes to perform your job to the best of your ability. Being a Realtor in markets like
Tampa is far more challenging than many would think and takes far more hours in a week than most plan for. Many people thought they could come into the industry and do the job “part time” to supplement their income…not realizing that to be successful selling Tampa condos it is a full time job, plus weekends!
The interesting thing is that many who entered the market with little to no experience right as the cycle slowed won’t be able to weather the storm. Those who have the experience to know what to expect during a soft market will prevail. According to the National Association of Realtors, the median income of Realtors last year was $47, 700, down from $49, 300 in 2004. And Realtors with two years or experience or less earned a median of $15, 300.
We have high hopes for the rest of the year and 2008. Many
Tampa condos have actually been flourishing and selling like hot cakes. Homebuilder, JMC Communities who features two of their high-end communities on www.newcondosonline.com
have continued to see a strong number of reservations and closings. Other areas near
St. Petersburg have also seen strong sales numbers. Just like other market areas of
Florida, things have slowed a bit, but not as much as other markets that were hit hard by investors and speculators.