The number of people jumping into the real estate profession is shrinking.
The state Board of Registration of Real Estate Brokers and Salespeople issued 5,771 new licenses last year, 40 percent fewer than two years ago when 9,550 were granted.
The decline in new licensees is putting a squeeze on local Realtor groups. The Northeast Association of Realtors’ membership has fallen from a high of 1,936 members in November 2006 to 1,414 – a 27 percent drop. An orientation for new members last month attracted only four agents, when other trainings typically have drawn 15 to 20, according to the association’s chief executive.
“I’ve just never seen an orientation that small since I’ve been here,” said Anne Rendle, who became NEAR’s chief executive officer in 1998.
The Massachusetts Association of Realtors has seen a 10 percent to 12 percent drop in membership, according to Chief Executive Officer Robert N. Authier.
MAR’s membership climbed steadily from 2001 to 2006, when it peaked at 23,052 members. In 2007, it dipped 2.4 percent to 22,499. As of last week, there were 18,883 paid members. But Authier noted that the number likely will climb by the end of the month when membership dues must be paid. July figures will be more accurate since they will reflect both renewing members and new ones, he said.
Most association leaders have anticipated the reduction and adjusted their budgets.
“We’ve kind of been expecting this. When you’re in real estate, you understand there are cycles. We’ve been planning for it and budgeting conservatively,” Rendle said.
Rendle said NEAR’s mandatory training for new members used to be so packed that the group would hold the sessions in hotels instead of the group’s training room. At times, up to 80 new agents participated in the all-day orientation, she said.
“It’s definitely slacked off in terms of new people coming in,” she said.
A ‘Natural’ Choice
The number of new licenses last year was 16.5 percent lower than 2006, when 6,911 were granted. Overall, there were 70,584 licensed brokers and agents in Massachusetts in 2007, up from 65,825 in 2006.
Interest in residential real estate surged as the housing market boomed, and other industries floundered and cut jobs. Real estate schools saw a jump in the number of people enrolling in real estate licensing courses. Some say many professionals from the financial services industry migrated to real estate.
“Anecdotally, we heard that some people were seeing real estate as a natural place to go,” MAR’s Authier said.
While some groups are reporting that new-member orientation attendance has declined, others are seeing an increase, Authier said.
The Plymouth and South Shore Association of Realtors has seen a smaller decline than NEAR. The group’s membership has increased since it was formed in 2000. Membership reached 2,542 in 2006 but slipped slightly to 2,462 last year.
As of mid-January, there were slightly more than 1,800 members, according to association President Georgia Taft Pye. But Taft Pye said she expects that number to increase by the end of the month, when annual membership dues must be paid. Also, she noted, about 35 new members attended a training session in early March.
“We’re still getting new people coming in,” said Taft Pye, a Duxbury buyer’s agent. “We budgeted for a 6 percent drop last year but we only had a 3 percent drop.”
Membership at the Greater Boston Association of Realtors has been steady, according to Executive Director John Dulczewski. There are 4,983 GBAR members, compared to 4,946 last year and 4,975 in 2006. But the number of new applicants declined from 508 in 2006 to 378 in 2007.
Dulczewski said GBAR’s overall membership may have remained stable because the Greater Boston housing market hasn’t suffered the declines that other regions have. “Our jurisdiction, the 54 cities and towns in Greater Boston, had a pretty good year in terms of market activity in the first three quarters,” he said. “Sales activity for condos and single-family homes outpaced the volume in 2006 for our jurisdiction.”
The North Shore Association of Realtors has budgeted for a 10 percent decline in membership, according to Chief Executive Officer Susan Kline.
Membership peaked at about 1,500 in 2006 and was about 1,400 at the end of last year. But Kline noted that this year, there’s been a 27 percent in new membership.
“We are definitely still seeing new people enter the business, which is encouraging,” she said.
