A surplus of real estate agents leads to strong competition for real estate listings
There are over 5,000 agents with only about 2,000 homes on the market per day in Knox County.
KNOXVILLE, Tenn – If you’re looking to buy a home right now, there are over 5,000 real estate agents in the greater Knoxville area working to help you out.
However, there are only about 2,000 homes listed per day.
The gap creates a fairly tight market for real estate agents.
“As you can imagine, it’s very, very competitive,” said Justin Bailey, CEO of Realty Executive Associates Inc.
It doesn’t stop there. Over the past six years, the number of real estate agents has increased.
From January to May 2021, more than 270 people joined the Multiple Listing Service (MLS), organized by the Knoxville Area Association of Realtors.
“There are probably between 40 and 50 new members every time we meet, which is pretty much monthly,” Bailey said.
That’s even more drastic than the numbers for 2020, where 129 people joined MLS from January through May.
That’s a 109% increase in the number of new real estate agents.
“One thing new agents struggle with is you have agents who have been doing this for 25 or 30 years,” Bailey said.
He also admitted that new real estate agents bring new skills; such as knowledge of social media which enables them to market themselves more effectively.
“Now you can get a real estate license, an Instagram and Facebook account, and you can appear like you’ve been doing it for a while,” Bailey said. “So it’s a lot easier to look like a pro than it would have been, you know, decades ago.”
Some new agents still face a dilemma.
In 2020, agents who typically earn over $ 125,000 saw even more money coming in; whereas agents earning less than $ 50,000 have seen their profits decline.
Bailey said the key to becoming a long-term agent is patience.
“The agents who seem to be really patient and very durable with their buyers seem to be the ones who are getting a lot of referrals right now,” Bailey said.