“As soon as the market begins to slow you’re going to see a lot fewer part-time agents in the business,” Andrew Mitchell, a chartered real estate broker with Vistacor Realty Group in Montreal, told CREW. “And that is born out if you look at the number of registered agents – they tend to increase with markets that are getting hotter and decrease when the markets cool.”
Agents who got into the hot market for easy money when homes were selling quickly suddenly realise the amount of time and work involved in getting homes sold in a quieter market, and so a lot of them don’t stay in the business.
According to CMHC’s fourth-quarter outlook, a rise in the inventory of unsold homes, higher prices and mortgage rates, and an increase in the supply of rental units are all expected to contribute to the slowdown.
CMHC chief economist Bob Dugan says gains in provinces like Ontario and BC have offset the drop-off in oil-producing provinces like Alberta, but that this counterbalancing effect will decrease over time, and so housing starts and MLS sales are projected to moderate in 2016 and 2017.
Calls from CMHC for a cooling of Canada’s housing market over the next two years and a corresponding slowing of business for real estate agents has some predicting a reduction in the number of part-time sales reps.