Agents' income down as dwelling transactions slip to GFC levels
The reluctance of home owners to sell – and home buyers to purchase – has cut possibly 18% off estate agent incomes in the past financial year.
“It is no wonder that many property professionals are experiencing financial challenges,” RP Data research analyst Cameron Kusher says.
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His latest research shows the dollar value of residential property transactions across Australia over the 2010-11 financial year fell 18%.
Queensland, with a 27% drop, had the largest fall in the total value of sales, followed by Western Australia, with a 22% drop.
South Australia recorded the only increase – a very mild 1.3% gain.
The total dwelling sales over the 2010-11 financial year equated to $193 billion – the lowest since 2008-09 during the global financial crisis, when total values fell by about 14%.
Houses accounted for $142 billion and units for about $51 billion.
Kusher says that the annual change in annual dwelling sales value and the annual volume showed the two measures almost in perfect unison.
“For the 10-year analysis, the correlation between the two is 95% and shouldn’t come as a surprise, because sales volumes are currently sitting at a similar level to what was recorded during the depths of the financial crisis.”
