Hawaii real estate full time - not an easy way to make money

For those of you working hard out there, these numbers maybe interesting.  Non-realtors often think of our job as "a cruise" and how we're so overpaid. 

I'll admit I've had harder jobs - I graduated from the University of Hawaii majoring in accounting.  Passed the CPA exam and worked in two CPA firms.  Then I moved on to be the controller of a property development company for eight years.  Tired and stressed from that, I worked as controller at a trucking company for four years.  That job was equally stressful.  From there, I decided to work as a real estate agent.

Getting back to Hawaii's real estate numbers

Here's how Oahu's real estate agents have fared over a 12 month period, from September 2007 to September 2008.

- 46% of Oahu's realtors made no sales.

- 15% made one sale.

- Agents who had zero to five (0-5) transactions in 12 months made up 87% of Oahu's realtors. 

- 25% of Oahu's agents made 80% of all sales.

Compounding this problem is the number of sales.  The number of transactions closed has decreased by about 50% from our highs back in 2005.  Oahu had a little over 500 transactions closed in September.  Assuming two agents for each transaction, there were 1,000 commission checks.  Neighbor island markets are significantly smaller than Oahu.  The Big Island had 107 transaction closings in September, Kauai had 29 and Maui had 113.

A handful of agents - roughly 3%, managed to close 12 or more transactions in the previous 12 months.  I would imagine that every market has some of those people that are well connected and listings just seem to fall in their lap!  I've met and worked with a few of them here.  Some of them know their stuff and others... just seem to be lucky!

I'm happy to say that the real estate business pays my bills.  I'm not rich (just bought my first house last year) but I like this business! 

Aloha, Mike

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