According to the National Association of Realtors Profile of Real Estate Firms, firms are confident in their future. They showed optimism for increasing profitability as well as in the industry’s future growth.
“A majority of firms have a positive view of the future, with 95 percent of all firms expecting their net income to either increase or stay the same in the next year,” says NAR President Chris Polychron in an article by Florida Realtors. “The improving economy continues to fuel job growth, and while some markets are still recovering, the demand for real property is back – and prospects are looking good for the real estate industry.”
75% of commercial firms who participated in the survey predicted increases to their net income in the upcoming year. Similarly, 69% of residential firms predicted an increase in their net income.
The survey also finds much more than just future confidence: it also found that the most popular specialization firms have is residential, average sales volumes across different types of firms, and challenges firms predict for their future.
51% of firms named profitability as the biggest upcoming challenge to them in the next two years, and they also worry about keeping up with technology as well as maintaining sufficient property inventory.
45% of firms also predict competition to increase in the next year, and 44% are actively recruiting new agents. This shows that competition is not stopping firms from growing.
The 2015 NAR Profile of Real Estate Firms was based on an online survey sent in July of this year to a national sample of 138,669 executives at real estate firms. This generated 4,555 useable responses with a response rate of 3.3 percent.
Surveys recently have been showing much optimism and confidence in the future of real estate, and this one by the NAR is positive as well. The market is booming, strengthening, and growing. Wait no longer to buy your dream property today in South Florida!