Housing stats in 2006 started off at a record pace in Canada, but industry predictions are that 2006 will not have as many new homes built as 2005. CTV.ca reports on the slightly faltering demand for new homes. CMHC has numbers on units sold in 2005 through MLS (Multiple Listing Service), and they are quite staggering: 482,788 the number of units sold, $249,365 average selling price, which makes the possible commission earned (at a very modest 4%) over 4.8 billion dollars. MLS is run through the CREA (Canadian Real Estate Association) who currently have about 82,000 members. Using the modest numbers I came up with the average commission earned by a Realtor is about $58,000 per year. Not too bad.
Forecasts show 2006 and 2007 as slower years with less units sold, but the average price will rise in each of these years as well.
Wednesday, May 10, 2006
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I like the way you figured out the average yearly commission earned by Real Estate agents. That's the kind of deductive reasoning that adds value to a comment on an article. Digging a little deeper. That's just in Canada - how does that calculate on a World scale? Can that be compared to another industry?
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