When she first entered the real estate world back in 1975, Jo Barmes could not believe her success. A booming market in Lawrence made her job a pleasure.
"I hardly had to work," she said.
As the national real estate market boomed, so did agents' paychecks for years to come.
Not any more.
"Things are much tougher and tighter now," said
Barnes. "It takes a lot more discipline and committment to be
successful."
Barnes and real estate agents across Kansas are
feeling the effects of the nationwide mortgage crisis and an overall
downward-spiraling economy. Statewide, the number of real estate agents
is plummeting. Homes are being sold slower, and new construction is
down.
Kay Wertzberger, executive officer of the Lawrence
Board of Realtors, has seen a significant decline in the board's
membership over the past two years. The board currently has 390
members, down from 423 in January of 2007. In order to become a hold
the title of "realtor" in Lawrence, one must be a member of the board.
However, a real estate "agent," which only requires state
certification, can sell real estate without being a 'realtor."
Wertzberger said the lack of home sales is driving realtors away. She
also believes that gas prices have directly affected the Lawrence
market, reducing the number of resident commuters.
"I know a lot of families that had one person
working in Kansas City, and the other in Topeka, while they were living
in Lawrence. Gas prices have pushed many to move to one city or the
other," Wertzberger said.
Kelly White, Director of Licensing and Education at
the Kansas Real Estate Commission (KREC), said that the real estate
market in Kansas is being hit hard. The number of new applicants taking
the real esate license exam has been dropping over the past four years,
White said. In 2007, 1561 applicants were eligible for real estate licensure by the KREC, down from 1765 in 2006, and 1948 in 2005.
"This is a really tough industry right now to try to get your foot in the door. This is a very hard time to get into the real estate industry," White said.
The Lawrence real estate industry certainly has not received quite the hit that other markets around the country have seen. Some real estate agents in Lawrence point to Lawrence's unique geographical location between the capital city and the Kansas City area. Having a major university in town also helps to stabilize Lawrence's market. Barnes said that despite national ups and downs in real estate, Lawrence generally remained stable.
"We never boomed as high as the coastal markets in Florida or California, but we certainly haven't ever hit the bottom either," Barnes said.
Doug Stephens, president of Stephens Real Estate in Lawrence, agrees that the Lawrence market is rough. Their agency of 70 has lost five agents over the past two years. Stephens added that they have space available but they were not hiring. Stephens pointed out just how favorable the market in Lawrence is now for buyers. Stephens, like Barnes, said they are still selling a fair amount of real estate, just not nearly as fast or for as much money.
Steven Miles, Appraisal Manager for Douglas County said that the downturn in real estate has affected new home construction as well. In the first five months of this year, new construction within Lawrence is down 60 percent from the same time frame of last year.
Miles confirmed that the number of overall sales has gone down from previous years.
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