The "smoking gun" driving NAR membership numbers
The membership of the National Association of REALTORS® has grown steadily over the years, although it has taken some hits every so often in the face of economic recessions. But for the most part, NAR membership has grown in defiance of economic and housing market conditions.
The "smoking gun" behind the boom in REALTORS®, at least according to PoliticalCalculations.com, is technology. "Our working theory is that technological innovation, first in the form of the computerized MLS and later through improved access to information through computerized database and Internet technologies, lowered the barriers and costs of entry to larger numbers of real estate agents, above and beyond what would be expected if only the health of the U.S. housing market and economy is taken into consideration," says PoliticalCalculations' April 9 entry.
Technological improvements have made it easier for more people to become real estate agents and brokers, according to PoliticalCalculations, and those same innovations may work in reverse to reduce the numbers of real estate professionals as consumers gain greater access to property information.
The theory certainly has merit, although technology is only part of the story behind the growth of real estate as a career. Lower interest rates and the general demand for housing are also significant factors, among others. And it's worth noting that 1975, the year noted by PoliticalCalculations for both the launch of computerized multiple listing systems and massive growth in NAR's membership, was also the year that NAR began offering a REALTOR-Associate® category of membership. NAR had primarily been an organization for brokers before 1974, but the new category opened membership to hundreds of thousands of sales agents. That change was the major force behind NAR's sudden exponential growth in 1975.
Comments
I just have to comment on this one. Technology may have lowered some entry barriers but it also raised them. I train other agents so many are technologically illiterate. Experienced agents are having trouble too. I think the day will come when real estate compnaies will wake up and smell the coffee by either hiring the tech literate or figuring out how to train agents so that they can work with consumers on the internet. At the state level it is just about impossible to get technical course approved for continuing education credits and there is little technical train except that which is provided by vendors selling products.
Posted by: Teresa Boardman | April 17, 2007 07:58 AM