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Career Handbook - Real Estate Brokers and Sales Agents Outlook
Real Estate Brokers and Sales Agents
Outlook

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Outlook

Employment of real estate brokers and sales agents is expected to grow more slowly than the average for all occupations through the year 2012. Increasing use of information technology will continue to raise the productivity of agents and brokers, limiting the potential for job growth to a certain extent. Prospective customers often can conduct their own searches for properties that meet their criteria by accessing real estate information on the Internet. Real estate companies often use computer-generated images to show houses to customers without leaving the office. In addition, cellular phones can send and receive large amounts of data, allowing agents and brokers to become more efficient and to serve a greater number of customers. However, technology should have only a limited effect on job growth, because most people still want and need the services of real estate agents and brokers to handle the actual sale. Instead, the use of technology may eliminate some marginal agents, such as those practicing real estate part-time or temporarily between jobs. Such workers generally are not able to compete with full-time agents who have invested in the technology. Changing legal requirements, such as disclosure laws, may also dissuade some who are not serious about practicing full time from continuing to work part time.

Real estate agents and brokers will continue to experience moderate employment growth due to the increasing housing needs of a growing population, as well as the perception that real estate is a good investment Low interest rates should continue to stimulate sales of real estate, resulting in the need for more agents and brokers. In addition, a large number of job openings will arise each year from the need to replace workers who transfer to other occupations or leave the labor force. This occupation is relatively easy to enter and is attractive, due to the flexible working conditions, the high interest in, and knowledge of, local real estate markets that entrants often have, and the potential for high earnings. Therefore, although gaining a job as a real estate agent or broker may be relatively easy, beginning agents and brokers may face competition from well-established, more experienced agents and brokers in obtaining listings and in closing a sufficient number of sales. Well-trained, ambitious people who enjoy selling, especially those with extensive social and business connections in their communities, should have the best chance for success.

Employment of real estate brokers and sales agents often is sensitive to swings in the economy, especially interest rates. During periods of declining economic activity and increasing interest rates, the volume of sales and the resulting demand for sales workers falls. As a result, the earnings of agents and brokers decline, and many work fewer hours or leave the occupation altogether.
 


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Data Source: Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2004-05 Edition