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Industry Trends: Profit crunch concerns overhang broker optimism for 2004

(Boonton, NJ, December 18, 2003) — Real estate brokers are largely optimistic about their prospects for the coming year — but they’re also worried about continued pressure on commissions and profits.

Some 79 percent of brokers believe 2004 will be better than 2003, according to Real Estate Broker’s Insider’s annual reader survey. Only six percent of respondents think this year will be worse than last, while 15 percent expect business to remain the same.

While brokers predict that they’ll be able to boost their own results, they’re also concerned about the industry-wide profit crunch. More than half of brokers cite as their biggest concern the financial pressures posed by discount firms and declining commissions.

While profits are the number one concern of brokers, there are other hot-button issues including the economy.

Real Estate Broker’s Insider’s readers are generally bullish, says editor, Jeff Ostrowski, with 41 percent expecting home sales to climb next year and 34 percent expecting the current record levels to remain steady. Only a quarter of readers expect a decline in sales.

That might be a little too optimistic, according to the National Association of Realtors, which expects a modest downturn in sales in 2004 from the record levels of 2003.

The full text of the survey report, including data on mortgage rates, technology and regulatory issues appears in the January 2004 issue of Real Estate Broker’s Insider. The report is available by phoning the publisher at 1-800-232-4317.

Real Estate Broker’s Insider provides agency broker/owners with actionable news and information on managing their businesses for greater profitability.

Website: http://www.BrokersInsider.com