Even though the real estate bubble has absolutely popped and many of us in the business are experiencing some of the worst years as far as our incomes, I am amazed how many people still think we have it easy. To put a reality to what “Just the Facts, Ma’am” are, as Sargent Joe Friday of Dragnet used to say, here are the sobbering statistics for the sales by agents in the Napa Valley are for the first six months of 2008:
0 sales – 261 agents Income this year $ 000 The 590 agents in these first five
1 sale – 210 agents $ 9,172 income groups represent 89.67%
2 sales – 82 agents $ 18,344 of all agents in the Napa Valley
3 sales – 37 agents $ 27,516 Average income first 6 mon 2008
4 sales – 30 agents $ 36,688 $9,388
5 sales – 9 agents
6 sales – 7 agents
7 sales – 6 agents
9 sales – 4 agents
9+ sales – 7 agents
These statistics are from BAREIS, my local MLS provider, for January 1 to June 30, 2008. Presently, there are 658 agents registered with BAREIS, down from a high of 800+, with this number expected to drop to around 550 at years end. There have been 484 sales in all property categories during this period which include SFR, condo, land, multi-units and mobile homes. The average sales price is $685,583 and the median is $475,000. For this example I chose to use the median price for I feel it is more representative of the sales prices many of the agents selling 4 or less properties encounter. Thus the per agent sales for the first six months of 2008 is .74 units and the average commission earned per side is $9,172 based upon 5.25% which is the average here.
These are very sobbering facts for all of us selling property here in the Napa Valley but I am certain we are not alone. I have chatted with several other agent friends in different parts of California and am hearing similar tales. I would love to hear from others across the country to learn what is happening in your area.