New Zealand seeing an increase in agents leaving the industry
The Real Estate Authority has reported a decline in the number of active licenses for salespeople and agents, as well as a reduction in the number of active real estate company licenses, according to the latest figures.
The decline in license numbers came after a surge in new license applications during the hot real estate market from 2020 to 2022.
As the housing market slump bites into agency commissions, the number of people with active licenses declined from 15,415 at the end of March 2022 to 14,808 at the end of March 2023, resulting in a reduction of 607 or 3.9%.
The market conditions have become more challenging, with low stock, reducing prices, increasing interest rates, and cost of living challenges.
REA Chief Executive Belinda Moffat commented, "This is a tough market with low stock, reducing prices, increasing interest rates and cost of living challenges."
Despite the decline in license numbers, there was also a spike in the number of license holders choosing to suspend their licenses, meaning they are no longer working in the industry but could return at a later date by renewing their licenses.