Social Media: There are many new agents in the building – over 900 of them.
ART: Just a suggestion if we want to use Eddie’s photo from Korofi: Preview of Eddie Boccar’s attachment headshot 2.jpeg Eddie Boccar’s head view 2.jpeg74 KB Otherwise there might be something that showcases new agents flooding commercial and living quarters of new york
More real estate agents entered the New York City market in May than in any month since the pandemic began. according to Korofi, an information company that tracks the movements of agents.
The 912 new residential and commercial agents represent an increase of 7 percent since April, when the number first approached pre-pandemic levels. The monthly average was 886 agents two years ago.
According to Corofy CEO Eddie Boccar, the number of new faces is growing in all areas. “It looks like we’ll break another record in June,” he said.
Korfi defines new agents as real estate professionals who first linked their licenses to a New York-based firm. Most of them have never worked in real estate.
The growth was likely the result of three factors: the lifting of Covid restrictions in New York, the appeal of a hot market, and the multitude of laid-off professionals looking to change careers, Boccar said.
“Naturally, you are attracted to an industry such as real estate, post-pandemic, where the barrier to entry is not that high, but the opportunities are really great,” Boccara said. Licensing requirements vary by state, but class time can be as little as 30 hours and exam and license fees are a couple of hundred dollars. In New York it is 75 hours of coursework as well as about $ 500…
In April, nearly half of the 854 new agents joined Manhattan firms. Brooklyn brokerages received 22 percent, Queens 19 percent, and Bronx or Staten Island firms 10 percent.
From January to April, 10 firms accounted for about 20 percent of new agents. Corcoran Group, Compass, Douglas Elliman, E Realty International and Keller Williams NYC accounted for 12.3 percent, with Corcoran leading the way.
During this period, about 3.1% of agents entering the industry joined Corcoran, double the company’s share of new agents for all of 2019.
The brokerage firm cited training, resources and culture as key factors in its efforts to attract and develop newcomers.
“We offer a full suite of virtual and face-to-face sessions on emerging technologies, advise on how to leverage social media, analyze current market conditions, share strategies to help get new listings, and more,” said Amanda Cajano, CEO agency experience at Corcoran. Other large firms make similar transfers…
Compass came in second with 2.8% of new agents, up from 1.9% in 2019.
“It looks like the Compass rival to attract new talent, despite the previous strategy of competing for the best agents, ”Boccara said.
Also last month 1,926 agents transferred their licenses according to the State Department. In May, Corcoran saw 12 agents leave the brokerage while Compass lost six.
Some economists suggest that the introduction of new agents into the playing field provides some advantages – for a start – employment opportunities, but success is not guaranteed and can have negative consequences, especially during the housing crisis.
The influx of agents occurs at a time when there is more agents than there are houses for sale. With few listings, new agents can spend most of their time looking for clients rather than gaining experience, said economist Sonia Gilbukh, co-author of an article on new agents in the housing market.
“New agents are more likely to undervalue the home, struggle to find buyers and fail to convincingly represent the home,” she added.
“The longer your home is not for sale, the more likely its prices will fall further, the more likely you are to delay mortgage payments and possibly end up in foreclosures,” said Gilbukh, who conducted analysis linking surplus supply of real estate agents to these results.
And there is usually not much to write about salaries: most new agents make only one or two transactions a year, Gilbukh said, and some do not.
But success is not so much about the market as about individual agents, Carriño said, adding that Corcoran prioritizes quality over quantity. She cited mentoring from senior managing directors to help new agents learn the basics.