forma condos.Canadian real estate agents are having a hard time. The cooling of the Canadian real estate market has not only put pressure on property owners who want to sell, but also affected many developers, but for the industry as a whole, the most direct impact may also be real estate agents, who rely on real estate transactions for a living.Please Visit: forma condos to Get Your VVIP Registration Today!
Compared with the hottest year in the history of the housing market in 2021, 2022 seems to be a year of housing liquidation. Home sales have nearly halved in many big cities compared with the same period last year, and home prices have fallen by hundreds of thousands from their peak at the beginning of the year. All this is directly reflected in the commissions of real estate agents, who are front-line practitioners in the real estate industry. Statistics predict that the average annual income of real estate agents in Ontario will fall by C $45000 in 2022.
After a surge last year, the situation cooled rapidly after the Bank of Canada began its interest rate hike cycle in March; average home prices across the country have tumbled 170000 yuan since the spring, with trading volumes down nearly 40 per cent compared with the same period last year. The sharp decline in sales has been several months in a row. It even fell below the average of the past 10 years.
When it goes deep into the hottest areas of the housing market, including Greater Toronto and Greater Vancouver, the decline in sales is even more severe. The losses are even more painful.
According to October data from the Greater Toronto area Real Estate Association, home sales in the area fell 49% from a year earlier.
Fewer transactions mean shrinking real estate commissions-today’s brokers are feeling the financial pain. DanielFoch, a broker and real estate analyst, predicts that the average annual income per broker in Ontario is expected to be reduced by 45000 yuan. He calculated these figures based on Ontario transaction data reported by the Canadian Real Estate Association since the beginning of the year.
According to his calculation, compared with the activities in 2021, the total real estate commission in the province’s market this year is expected to reach 3 billion yuan, with the average agency commission falling to 80000 yuan from 125000 yuan last year.
This figure is based on total sales of C $227 billion in 2021, which will result in a reduction in total transaction commissions of C $11 billion compared to the projected sales of C $151 billion this year, bringing the final total commission to C $7.5 billion.