Sales slump maybe tough on realtors

The days when all a Vancouver realtor needed was a sign and pen to make a sale may be behind us.

The softening housing market could lead to tough times for some realtors, especially those who have recently entered the profession, said the president of the Fraser Valley real estate board.

“I think it’s going to be tougher for the more-inexperienced realtors, those who are three or four years in,” said John Barbisan. “What they’re used to is not what real estate is typically like.”

The 35-year veteran said agents will be forced to be more like “consultants than auctioneers” as they help to connect buyers and sellers.

While the Real Estate Council of B.C. hasn’t seen a significant drop in the number of realtors across the province, there are signs uncertain market conditions are impacting local agents.

According to the council, there were 25,987 licensed real estate professionals in B.C. as of Dec. 31 — a 36-person drop from Sept. 30, although still slightly higher than June 30. The dramatic increase in the number of licensees — from about 21,000 in 2012 to 26,000 in 2018 — seems to be slowing.

The president of the Real Estate Board of Greater Vancouver said agents must be able to manage sellers’ expectations in a challenging market.

“Communication is going to be important,” said Phil Moore. “It’s not like it was two years ago. Properties are sitting longer on the market.”

While the board’s membership has grown by about 1,000 members over the last two years, it has declined slightly in recent months. At the same time, home sales in Metro Vancouver have dropped, with about 40-per-cent less sales in January compared with the same month a year earlier.

“In my experience, most people give (real estate a try for) four years,” said Moore. “Because our industry is open to part-time, you’ll find that some keep another job for the first two years while they’re learning.”

But the realtor said the current market conditions could also benefit buyers’ agents, who will have more time to do their due-diligence and find the right property for their clients. Some people who “gave up” on the market over the last two years are house-hunting again.

Longtime Vancouver realtor Charlie Kiers said he’s hopeful that the market is stabilizing as he’s noticed increased interest at open houses.

“We’re in a normal market,” he said, adding the last few years aren’t an adequate reflection of the typical real estate industry.

A similar argument is being used in a divorce case between a West Vancouver realtor and his wife, first reported by CBC News.

According to a B.C. Supreme Court judgment, realtor Jason Soprovich is arguing his past income isn’t a good indicator of what he can afford to pay in spousal and child support. Over the last seven years Soprovich’s real estate company earned more than $13 million.

In the court documents Soprovich said “it would be devastating to him if his income for support purposes is based on an average of the realty company ’s past three years’ net income ... He says that the real estate market slowed down from 2016-2017 and is likely to slow further down in 2018.”

Communication is going to be important . ... Properties are sitting longer on the market.