The real estate industry is in an inflection point, with the rise of real estate agents, and a surge in sales from other industries.
But with the economy in such a slump, some real estate brokers are feeling the heat, with a recent survey finding a majority of the industry’s executives are worried about the downturn.
While some realtor and real estate business owners are also worried, a majority say the job is not a threat.
“We are seeing a lot of stress on the real estate front,” said John McEwan, CEO of realtor, Realtor’s Associates, in a recent interview with The Tennessean.
“It’s a lot like the banking industry.”
Real estate brokers said they were having trouble recruiting talent in the wake of the financial crisis.
Many were having difficulty getting credit lines, said McEwin, who is also a board member for the National Association of Realtors.
“In the short term, you can still get a loan and have it paid off in the short run, but in the long run, it’s not a sustainable business.”
McEwan said many real estate executives have seen the decline in the demand for their services and the impact of the recession.
“There’s just been a huge increase in the number of agents that are trying to take advantage of the economic downturn,” he said.
McEwin said the industry is already struggling financially and has to adjust to its new reality.
“I think for the realtor that I represent, we’re not getting the income we’re accustomed to,” he added.
“The real estate agent is not the person who can sell a house.
That’s a different type of person.”
McEllis also said some realtors are feeling a downturn.
“If you’re a realtor or a broker, you’re not just an agent; you’re also the agent for your client, your clients, and your clients’ family members,” he told The Tennesseean.
McEllises, who has worked in real estate for 18 years, said that’s a tough time for all of them.
“For me personally, my primary focus is not my client, but the families, because that’s where I really want to be,” he continued.
“That’s the person I want to serve.
It’s not the number one priority.”