Hundreds of Fewer Brokers in Oregon
Aside from property values continuing to decline in Central Oregon, there are other peripheral issues related to the market difficulties. Hundreds of fewer brokers are expected to join the ranks of Realtors in Oregon next year, and an increasing number of real estate agents are letting their licenses lapse or go inactive. That can either be a good or a bad thing, depending on ones perspective.
“We’ve got a few years of pain,” said Gary Whiting wistfully. He is the chairman of the Regional Multiple Listing Service. Interesting to note that in these difficult times a few firms seem to be rising to the top . . . Cascade Sotheby’s International Realty in Bend is actually adding many happy brokers, most of whom appreciate the significance of a solid brand name.
700 Fewer Agents
RMLS, which maintains a database of real estate information to which most agents in much of Oregon subscribe, budgeted that next year they’ll be working with 700 fewer agents.
RMLS Peaked in 2007
Subscriptions to RMLS peaked at 9,200 in July of 2007. The number stands today at 7,200 (that’s still too many, some folks think!), RMLS believes that another 10 percent of Realtors in Oregon will let their costly real-estate licenses lapse or opt to go inactive — a choice that allows them to reactivate for less than starting the license process from scratch. It can cost more than $1,000 (not sure where that number came from!) annually for a Realtor to stay in business, factoring in state fees, membership dues, lock box services and other costs.
“Realistically, we’re seeing membership levels decline to pre-boom, pre-peak levels. We’re seeing that with home prices and home sales, too,” said Jeff Wiren, president of the Portland Metropolitan Association of Realtors. “It’s healthy for the industry. A lot of folks who left came into it when it was a good market. When the market declines, you see folks who are serious and who have chosen this as a career.”
The Association of Realtors counts 6,709 members through the end of November — membership figures that roughly match the headcount from late 2004. A single-digit percentage decline in membership is expected for 2011.
The Oregon Real Estate Agency reports gradual, though steady declines in statewide broker numbers, which currently stand at 20,264 active and inactive licenses. Big declines come with new license holders.
The average number of newly licensed brokers and principal brokers per month in 2009 was 143. That average dropped to 70 a month this year.
