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2006 Outlook: Optimistic overall, brokers worry about commission pressure, economic trends

(Boonton, NJ, December 19, 2005) — With even the most bullish housing cheerleaders warning of a slowdown in the housing market, brokers should be worried about 2006, right?

Not exactly. In an annual survey of readers, Real Estate Broker’s Insider finds that fully half of brokers expect 2006 to be better than 2005 for their firms. Only 29 percent expect 2006 to be worse, while 21 percent predict 2006 will be about as good as 2005.

“Indeed, brokers have grown weary of media speculation that a housing crash is imminent,” says editor Jeff Ostrowski. “Still,” he continues, “brokers aren’t entirely Pollyannas. Three quarters of brokers expect mortgage rates to rise this year, and only a quarter expect sales volumes to grow.”

Meanwhile, brokers acknowledge that they face a number of challenges in 2006. Chief among these are:

• Increasing commission pressure from discounters. With homes nearly selling themselves in many hot markets, consumers will increasingly wonder why they need to pay 5 to 6 percent to full service agents.
• Cooling economy and housing market. With gas prices soaring, housing costs rising, and wages realtively stagnant, some brokers fear an economic slowdown isn’t far behind.
• Difficulty recruiting qualified agents. No matter whether the housing market is booming or bursting, real estate brokers can be counted on to worry about recruiting.

The full text of the article, “2006 Outlook: Optimistic overall, brokers worry about commission pressure, economic trends,” is available online at the Real Estate Broker’s Insider website, http://www.BrokersInsider.com/rebisample.php or by phoning the publisher at 1-800-232-4317.

About Real Estate Broker’s Insider

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