Real Estate Firms Anticipate Increased Profits, Competition

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This article, by Tory Barringer, gives a fairly good look into the expectations of the real estate industry as a whole. Please read the article below and let me know what you think.

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The majority of real estate firms responding to a survey from the National Association of Realtors (NAR) expect profits—and competition—to heat up over the next year as the housing market continues to look up, the association (sic).

NAR released on Tuesday its 2013 Profile of Real Estate Firms, which examines the makeup of companies, their offerings, and their expectations for the industry. This year’s report was based on a questionnaire mailed to a national sample of 121,931 executives at real estate firms; the survey’s response rate was 5.5 percent.

Out of those firms that responded, 84 percent were independent, non-franchised companies, while 13 percent were independent franchises; the remainder were subsidiaries of a national or regional corporation. The majority—approximately 80 percent—specialize in residential brokerage, with commercial brokerage and residential property management the most common secondary functions.

Sixty-nine percent of respondents said they expect profitability to rise over the next year, and most are preparing to battle for every dollar.

“Two out of three real estate firms expect competition in the marketplace to increase, both among firms and nontraditional market participants,” said Paul Bishop, NAR’s VP of research. “Because real estate is an entrepreneurial field, some experimentation in business models is likely when the market is in a recovery phase.”

To see the complete article – please use the link below.

Anticipate Increased Profits

Explore posts in the same categories: Real Estate Market Trends

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