Real Estate Agents vs. Houses Sold - You do the Math
There are 437,000 agents in California, enough to form the state's eighth-largest city. With only 680,000 home sales a year, competition for listings can be savage.
Let's think about that for a minute. Using those numbers, each agent gets 1.5 sales per YEAR! Of course, the median home price is somewhere around $500,000 in California, so each agent would make somewhere around $30,000 per sale (that's at 6% commission with no splits!). At 1.5 sales per year, each agent makes $45,000! Granted, my numbers aren't precise. I also haven't taken into account the fact that the agent must split with the firm they work for.
Anyway, there's definitely some bubble action going on in California.
Tags: Housing Bubble Full text!