Sturdy foundation: Widespread economic prosperity will translate to industry growth

Over the five years to 2017, increasing per capita disposable income and historically low interest rates helped increase home affordability, contributing to recovery for the Real Estate Sales and Brokerage industry in California. The residential market represents nearly two-thirds of industry revenue, making the industry especially sensitive to housing prices and existing home sales. Revenue is anticipated to continue improving over the next five years, though higher interest rates could increase borrowing costs and temper demand for homeownership. Nevertheless, general economic improvements and strong corporate profit will help improve the commercial market, and new residential construction will lift industry sales...read more.

Industry Statistics & Market Size
Revenue
$24bn
Annual Growth 12-17
5.0%
Forecast Growth 17-22
Profit
Employment
162,380
Businesses
129,187

Industry Threats & Opportunities

  • Rising consumer incomes and strong corporate profit reserves will propel an expansion in new real estate construction
  • Historically low interest rates and improving access to credit enticed consumers to enter the housing market
  • Projected consumer spending growth will drive business expansion and bolster new construction
  • Industry Report - Industry Locations Chapter

    The geographic distribution of the Real Estate Sales and Brokerage industry closely follows the distribution of the general population. Three of California's most-populous regions also have the highest proportions of industry establishments: Los Angeles County, with 25.4% of establishments and 26.0% of the population; the San Francisco Bay Area, with 20.6% of establishments and 19.6% of the population; and the San Diego Area, with 14.2% of establishments and 8.9% of the population.Home prices in these regions have also appreciated rapidly over the past five years. According to the California Association of Realtors, from 2012 onward, home prices in the counties of Los Angeles and San Francisco rose more than 78.0% and 102.0%, respectively...purchase to read more.

    Additional Insights for the Real Estate Sales & Brokerage in California Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Real Estate Sales & Brokerage in California Industry are

  • Effective product promotion
  • Effective cost controls
  • Having contacts within key markets
  • IBISWorld analysts also discuss how external factors such as Home Price Index in California and year conventional mortgage rate in the Real Estate Sales & Brokerage in California industry impact industry performance..

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    What's in this report

    What is the Real Estate Sales & Brokerage in California Industry?

    This industry comprises brokers and agents who sell, buy or rent real estate for others. Industry operators do not own these properties but act as intermediaries between owners or sellers and buyers or tenants.

    Industry Products
  • Residential sales
  • Residential rentals
  • Commercial sales
  • Commercial rentals
  • Transaction, advisory and other services
  • Industry Activities
  • Selling residential or commercial real estate for others
  • Buying residential or commercial real estate for others
  • Renting residential or commercial real estate for others
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Home Price Index in California
  • year conventional mortgage rate
  • Homeownership Rate in California
  • Corporate Profit in California
  • Per Capita Disposable Income in California

  • Current Performance
  • Steady growth
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Gradual housing demand growth
  • Online listings
  • Table: Real Estate Sales & Brokerage in California Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Real Estate Sales & Brokerage in California Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Real Estate Investment Trusts
  • Apartment Rental
  • Commercial Leasing
  • Storage & Warehouse Leasing

  • Key Selling Industries
  • Billboard & Outdoor Advertising
  • Newspaper Publishing
  • Printing
  • VoIP
  • Wired Telecommunications Carriers
  • Wireless Telecommunications Carriers

  • Products & Services
  • Residential sales
  • Transaction, advisory and other services
  • Commercial rentals
  • Commercial sales
  • Residential rentals
  • Chart: Real Estate Sales & Brokerage in California Industry Products and Services Segmentation

  • Major Markets
  • Residential homeowners and renters
  • Office and professional space
  • Retail and commercial space
  • Other nonresidential space
  • Chart: Major Market Segmentation for the Real Estate Sales & Brokerage in California Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWage costsPurchases, depreciation, rent, utilities and marketingOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Real Estate Sales & Brokerage in California

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Real Estate Sales & Brokerage in California Industry

  • CBRE Group Inc., First Team Real Estate, RE/MAX LLC, Realogy Holdings Corporation, Realty One Group, Inc.,
  • Table: CBRE Group Inc. - financial performance
  • Table: First Team Real Estate - financial performance
  • Table: RE/MAX LLC - financial performance
  • Table: Realogy Holdings Corporation - financial performance
  • Table: Realty One Group, Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Real Estate Sales & Brokerage in California Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Real Estate Sales & Brokerage in California Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Home Price Index in California (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Foreclosure
  • The legal process in which an owner's right to a property is terminated, usually because the owner defaulted on the property's mortgage.
  • Franchise
  • A form of business that operates under a contract agreement and usually pays a business organization a fee to operate under the franchiser's trade name.
  • Real Estate Broker
  • An individual who runs a real estate office and manages agents.
  • Write-Down
  • The process of reducing the book value of an asset because it is overvalued compared with its current market value.
  • What Our Customers Say

    Why buy this report?

    The Real Estate Sales & Brokerage in California Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Real Estate Sales & Brokerage in California:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Real Estate Sales & Brokerage in California market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Real Estate Sales & Brokerage in California, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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