Confident us agents plan to expand

Real estate firms in the US are confident about the future growth and profitability of their industry, according to the 2014 National Association of Realtors Profile of Real Estate Firms.

"The real estate industry is competitive, and Realtors know that to be successful they must have a strong entrepreneurial spirit and the know-how to make a business thrive, even in a difficult market," said NAR President Steve Brown, broker/owner of Irongate, Inc. Realtors in Dayton, Ohio. "Despite continued challenges, real estate firms expect market growth in tandem with the ongoing recovery."

Most residential firms have a positive view of the future, with 66 per cent of firms expecting to see profit from all their activities to increase in the next year. Lawrence Yun, NAR’s chief economist, says that commercial firms also have a confident outlook for the coming year.

"Commercial real estate firms are even more optimistic, with 71 percent expecting profitability to improve," said Yun.

According to the survey, 81 per cent of firms specialise in residential brokerage, with commercial brokerages and residential property management as the most popular secondary functions.

The most common concern cited by firms (59 per cent) was Millennials’ ability to buy a home due to stagnant wage growth, a slow job market and their debt-to-income ratios. Profitability, keeping up with technology, maintaining sufficient inventory, and local or regional economic conditions are the next most reported concerns firms see themselves facing in the next two years.

Despite those concerns, firm growth has not slowed. 45 per cent of firms reported they are currently recruiting sales agents, with 87 per cent of those firms reporting business growth as their primary reason for recruiting.