Phoenix real estate agents are often asked what they spend their days doing, and the answer is often quite different from what most people would expect.
In fact, in the past five years Phoenix realtor-client service companies have earned more than $15 million from real estate sales in Arizona, according to data from the Arizona Association of Realtors.
Phoenix real estate buyers have seen a 30% drop in their real estate price, and there’s a reason for that.
The real estate industry is struggling, and in a world of skyrocketing prices and a glut of supply, the Phoenix area has been hit hard.
According to a recent report by The New York Times, Phoenix realtors lost more than 2,000 jobs between July 1, 2018 and July 1 of 2019.
This comes as the region is seeing a record number of vacant homes.
In addition, the number of Phoenix jobs lost to the industry increased by a whopping 33% between June 2017 and July 2018.
Phoenix has a large number of apartment complexes and housing projects in the Phoenix-area, and Phoenix-based realtor Eric Schmitt said that, in general, realtours and agents who work in these locations often sell their homes to other realtourists who then sell them to others.
Schmitt said he has worked with more than 100 Phoenix-related realtor-client companies and said he believes that, on average, agents make a $1,200 to $1.00 an hour.
Schmit said that it’s a big chunk of money for a job, but he’s confident that it isn’t necessarily the only reason why the Phoenix realty market is struggling.
“There are lots of other reasons,” he said.
“A lot of these people are working very hard and really trying to do well for their clients, and so there’s probably a lot of other things that they’re working on that they don’t really talk about.
There are a lot more opportunities out there for people to make money.
There’s a lot that’s up for grabs.”
The real estate market in Phoenix is the second-worst in the state behind the city of Las Vegas, and according to a report from the National Association of Home Builders, there are just under 100,000 homes in the city.
Realtors and agents in Phoenix are still able to make good money for themselves, but it doesn’t come without downsides.
In the past year, Phoenix area realtor service companies were hit hard by the wildfires in Arizona.
In a report released by the Arizona Home BuildERS Association in May, realtor services in the area reported that the average rent of an apartment unit was $1 million per month, while the average home price was $2.5 million.
The Arizona Association for Realtor-Client Services (AARCS) said that in the five months prior to the fires, real estate brokers were able to earn a combined $6.5 billion in fees.
The industry’s bottom line is now a lot less stable, according the association.
As a result, the market has seen an increase in vacancies and a decrease in agents’ paychecks, which are typically tied to the market.
“We have to work harder, and we have to make more money, because the housing market is going through some serious changes,” said Schmitt.