Foreclosed Homes and Commercial Property for Sale Affect Realtors

The rise in the number of foreclosed homes and commercial property for sale in New York has affected realtor memberships in some areas. Reports revealed that some realtor organizations are experiencing a decline in membership numbers as clients continue to be scarce, with majority of potential buyers opting to stay out of the market.

Housing industry analysts stated that the increase in foreclosure homes in Brooklyn and distressed properties in areas like Albany and the Bronx resulted in homebuyers opting to remain on the sidelines, with some waiting for further decreases in prices while others were simply turned off by the idea of homeownership because of persistent decreases in values of residential properties. There are other areas of the real estate business however, that is being affected by the housing crisis that might not be as obvious.

When the supply of foreclosure homes in New York started reaching record highs, business became tougher for realtors. This resulted in membership declines among realtor groups, analysts have reported. In Albany, for example, the Greater Capital Association of Realtors has reported a decline in the number of member agents and realtors, with the association posting a decrease of 6% as of March of this year.

For 2011, the latest count showed that members of the association totaled 2,674, down from the 2,849 counted in November of last year. Analysts attribute the decrease to the continuous weakness in the real estate market, with distressed commercial property for sale and foreclosed houses continuing to rise in various areas of New York. The association reportedly expects further decreases in membership numbers, although they stated that further declines in the coming months will be minimal.

One good thing about the decline, the association reveals, is that it was lower than the projected 8%. However, as long as the number of foreclosed homes for sale in the region remains elevated, most realtors expect business to be poor and association memberships to be down. Last year, the Capital Region recorded its fourth year of continuous housing sales decline, with figures sliding by 7%. When compared with the peak period of November 2007, sales in the area were down by 29%.

New York real property agents and realtor groups are expecting memberships to continue to drop in the coming months as the rise in the number of foreclosed commercial property for sale and distressed houses continues in the region. They also stated that the trend will persist for most of 2011.