The real estate market in the United States has been undergoing a slump over the past few years and this fact is represented in the trends of realtor income. In 2008, the decline in income was marked at 14 percent. Home sales in the United States experienced a modest increase the following year. Despite this, the properties were valued less so realtors still felt the effects. The income of realtors fell a further three percent.
The well-publicized difficulty in the US economy is not a deterrent for those in the real estate business as a majority of them are optimistic about realtor income in 2010. In a study conducted by the National Association of Realtors (NAR), only eight percent expressed apprehension about their career’s future. A majority, representing three-fourths of those who responded, were certain that they will remain active in the market for at least two more years.
This confidence in realtor income is grounded on economics. The tax credits introduced in the latter part of 2009 provided an incentive for consumers to pursue home ownership. Jobs are expected to rise in 2010 due to the fact that the total production in the GDP of the United States rose by 2.2 percent in the third quarter of 2009. This represented the first growth it has experienced in two years.
Based on consumer credit, retail sales, and other economic indicators, the GDP is expected to increase by up to three percent in 2010. In addition to this, temporary help employment has been on the increase since July 2000. Historically, a rise in temporary jobs foreshadows an increase in permanent jobs.
Job gains represent a bright spot for those pursuing a realtor career. The housing market is rooted on employment. Job gains require office space so it could usher in an improvement for commercial realtors. More jobs could also boost the confidence of consumers to purchase a house. According to NAR, home sales for 2010 could be higher by 10 percent compared to the previous year.
In order to ensure a profitable realtor career, realtors can adapt their skills and diversify their business practices. For example, the NAR indicated that most of its members no longer focus solely on residential sales. Only three percent of the organization does not have a secondary area of specialization. Examples of the other activities engaged in by realtors are commercial brokerage, relocation, residential property management, counseling, and land development.
In addition, income can be derived from the stress experienced by the housing market. According to the NAR, the top certification held by its members is the Short Sales and Foreclosures Resource Certification. Despite the fact that this specialized training was only launched in November 2009, the certificate is already held by 12 percent of the organization’s members.
In sum, the research conducted by NAR expects the aggregate income of realtors to increase in 2010. As with any entrepreneurial venture, this forecast is based on certain implemented economic strategies such as tax credits and job creation.