Real estate firms have become more profitable during the recent real estate boom that set home sales records for three straight years, according to a new survey by the National Association of Realtors.
Six out of 10 real estate firms report higher profitability in 2003, according to the 2004 National Association of Realtors Profile of Real Estate Firms. About 54 percent of realty firms expect greater profits this year, and another 32 percent believe profitability in 2004 will be equal to 2003, the survey showed.
David Lereah, the NAR’s chief economist, said that evolving technology was playing an important role in profitability.
“Many firms report they are supporting their staffs by offering technology investment, training and group affiliations that have translated into greater profitability,” Lereah said. Company size, on the other hand, has little bearing on the essential services provided, Lereah said.