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At the same time, inflation has pushed up the prices of everything from food to gasoline to housing. Under such circumstances, how should we survive?
But in Canada, there is a group of people whose income has not been affected or even doubled, that is, real estate agents.
In 2021, real estate agents across Canada earned billions of Canadian dollars in commissions.
According to the Canadian Real Estate Association (Canadian Real Estate Association), 666995 homes were sold in 2021, with a total turnover of C $481.1 billion.
Assuming that the average commission for each transaction by a real estate agent is 4 per cent of the house price, it is expected to charge a commission of up to C $19.2 billion.
Amy Leong, a broker at Engel and Volkers in Vancouver, said: “I think everyone has experienced some inflationary disasters in the past two years, but in our industry, we are lucky not to encounter this problem.”
To put it simply, the average national house price in Canada in 2021 soared by 26% in a year, which means that the commissions of most real estate agents will also rise at the same time, because their salaries come from a fixed percentage of the sales price.
However, this percentage cannot be generalized. Generally speaking, a 5% commission is a normal level, and a 3% commission is rare, but in some cases it can be as high as 6% or 7%. There are also a small number of transactions that belong to owner service fixed fees or commission-free sales.
Phil Soper, president and chief executive of Royal LePage, Canada’s largest real estate agent brand, which has 22000 agents, says the average commission is likely to be 4.1 per cent in 2021, according to his data.
“over the past few decades, commissions have basically fallen at regular intervals, from 5 per cent 20 years ago and 6 per cent before that.”
But Phil says the money is not distributed equally among real estate agents and tends to vary widely.
