Real estate agents may experience a possible increase in their compensation, as commissions are on the rise at an unusually fast pace.
The housing market has been in a state of recovery for months, but realtors, who were affected by the recent recession more than most, are finally seeing the improvement implemented in their salaries.
There was an uptick of 2.7 percent in the value of commissions for realtors for every transaction from March to April, the highest gain of its kind in eight years, found in the producer-price index. It was also the third-largest monthly increase in public property records. The Wall Street Journal reported an increase in home prices overall could be held responsible for such a rise - sellers are more likely to grant a full three percent commission when their home sells for a higher price.
"As commissions and volume goes up, there's going to be a decent-sized improvement in their earnings," Evan Mann, deal analyst at Gimme Credit told the news source.
Real-estate brokerage firms' stocks go up
Realtor firms are showing signs of an improved market in their stock prices as well as in their commissions. The news source notes that the largest real-estate brokerage firm in the country, Realogy Holdings Corporation, has hiking the prices of their share by 79 percent since their initial public offering, and for good reason. Between 2011 and 2012, their average home sale price rose 7.7 percent. Trulia and Zillow, two relatively new firms, have reflected similar success in their shares. The former's share price rose 58 percent from their initial offering, and the latter's recently landed at $52 per share, up from a year long low.
New realtors emerge
As the housing market improves - and Realtors' commissions along with it - retired real estate agents are renewing their licenses, and new realtors are getting theirs for the first time at an increased rate, according to WBIR. The Tennessee Real Estate Commission is busier than ever, as requests for licenses are at a five-year high. They issued more than 1,000 licenses from January to April of 2013, at a median of 258 per month. Real estate agent Vickie York of Cry-Leike Real Estate Services noted that he came back to the field out of enjoyment of the work, but was also lucky to have come back in a market that wasn't hurting.