Number Of Estate Agents To Be Cut In Half

One thing about the bubble housing market is that the number of estate agents rise dramatically. What about in a cooling market? Well let's just say the metaphors used by our business media invoke carnage...

Mass culling of surplus estate agents on the way

THE good times are over for estate agents in the residential property market as rising interest rates turn on the heat and buyers stay away.

“We’ve had a fantastic rainy season, but with the rains have come many weeds. And when the dry season arrives only the trees will be left standing,” said Neville McIntyre, chief executive of Jigsaw Holdings, which includes estate agencies Aida and Realty.

McIntyre said the number of agents had increased from about 57000 in May last year to the current 77000.

This, he said, was because of the low requirements for entry to the occupation — no qualifications are required to become an estate agent.

McIntyre said the industry had the capacity to cope with only 32000 to 36000 agents. He foresees “a major fallout” of estate agents as soon as the residential property market tightens further.

That's right folks. From 77 000 agents to 36 000, more than a 50% cut in the estate agent population.