Notice how the chart treads the 800,000 membership line for over a decade and then all of a sudden in 2002 there is a sharp increase to 1.4 million. If you go to www.salary.com, you’ll find that most agents only make about $30,000 per year. The top 5 percent of agents rake in the six-figure incomes but many agents chase the illusive “gold rush” only to find a sales job in a declining market.
The timing is bad for many that are jumping on the bandwagon lately. As was the case with technology, many made enormous amounts of money in the 90s decade. Yet like a drip from a leaky ceiling, the drops falling to the floor only indicate a larger problem. The pent up demand will only increase – by looking at this graph, it may be the case that 2007 will be another year of increasing demand for NAR membership. Why? Well what do you think the lay public thinks when they see for sale signs all over the place and many sellers blasting the media to sell a product. If anything, it will give the perception that real estate is still a hot deal.
Many on this board are immune to this logic since we swim in housing forums and blogs and won’t be surprised when the wave hits; but the common Dick and Jane will get hit and have their shorts knocked off like the adolescents taking their first swim in the ocean. The above graph shows the national hype and I find no better word than “obsession” regarding real estate. Why, for over 15 years does membership hover around 800,000 to a sudden doubling in only three years? Can it be a massive influx of advertising, media shows, and other propaganda?
Think of the media as taking Carleton Sheets, Robert Allen, and Donald Trump and instead of having them on 3AM with the other charlatans pumping colon cleaners we have given real estate the “ok” as a get rich quick for everyone. Yet, when everyone is rich I ask who is poor?