(Published on - 4/4/2022 7:42:59 PM)
Are we in a Real Estate Agent Bubble?
Let's face it there are more real estate agents in the business now than were in 2018, during the Pandemic people were locked down and watching a lot of HGTV and for the first time ever New Jersey allowed agents to get their training and license online.
Home prices started to surge during the Pandemic and people in the more congested areas started to move to different states and areas and started to cause microbubbles and honestly a rock could have sold a home.
Now we are seeing these newer agents can't get any of their offers accepted because of the fierce competition and I predict that 40% of the people who got licensed in the last year or two are going to leave the business as well or become part time with a full time job.
Other factors that are at play here are companies like EXP and Keller Williams with their aggressive recruiting tactics and convincing anyone who can fog a mirror that it's a great idea to get a real estate license, I have seen it before.
I remember back in 2021-2022 when the market started heating up with all the liar loans out there and there was a company called YHT Foxtons who was going to take over the world with their 1% listing fees and when the market changed their model died rather quickly.
I do think this market will adjust maybe 7-12 months from now and companies will once again have to adjust their focus on the new market, it's coming I don't think it will be a crash like many are claiming but I do believe once supply chains catch up and interest rates rise we will start trending towards a more even market.