According to the Organisme d’Auto-réglementation du Courtage Immobilier au Québec (OACIQ) 2012 report and data from the Greater Montreal Real Estate Board (GMREB).
16,100 real estate brokers in Quebec among 1436 real estate agencies
11,439 real estate brokers among 959 real estate agencies only in Montreal
1484 new real estate brokers in 2012
Although many rushed into getting their license before the new law entered, the increase in the duration of training hours did not seem to be a sufficient barrier to reduce the number of new brokers. With some real estate agencies who have true broker business “centre” models with high rents, fees and charges versus costs of the agency for which some members & officers (or former members & leaders) often sit on various committees or organizations related to the real estate industry, it is quite possible (perhaps unconsciously) to make decisions that perpetuate this older business model. A real estate broker’s education should consist of at least a university degree (10 courses) as was done with financial planners a few years ago.
Luxury Real Estate
Only 106 transactions exceeded the 2 million mark in Montreal in 2012. Several brokers seem mesmerized by commercial brokers promoting luxury properties. Targeting only the high-end market today is a risky bet. We see the historically dominant broker in this niche mainly announce properties in the million (see under $ 500,000) mark to find their former volume of properties at high prices, too diluted among thousands of brokers in today’s market. Moreover, the duration in making a sale in this market has increased considerably to more than a year. Unfortunately, the statistics on this subject do not take into account the expired properties in calculating the period. For example one of the famous multi-million properties in Old Montreal, initially listed at about $ 7 million in Spring 2009, now priced at about $4.5 million under a new brokerage contract since the beginning of the year, is not considered as a sale made in over 3 years of since listed but only calculated from the last broker’s mandate.
The impression sold by some real estate agencies, training institutions and organizations (do not forget that often benefit from an increase in the number of real estate brokers) is an average salary of $ 40,000 for a real estate broker, the illusion of abundance has now given way to disillusionment for many brokers.
This period of upheaval will be to the benefit of the profession that must look forward and not get caught up in the immobility of a sometimes too heavy of a structure. Especially when it comes to decisions that may give the illusion too often to be taken to protect corporate interests (& maintain administrative positions) rather than the real benefit of the majority of its members that are 100% invested in their profession by providing a high level of service but also on the quality of service to the public and the perception of added value for the sole purpose of protecting the reputation of the profession in the public’s eye.