Real Estate Articles
REALTOR®: DRE Commissioner Jeff Davi Predicts Number of Real Estate Agents will Drop
California Department of Real Estate Commissioner Jeff Davi spoke at a recent Silicon Valley Association of REALTORS® Palo Alto District meeting and reported there are about 547,311 real estate licensees today, but he predicts as the market slows down, the number of licensees and practicing agents in the state will drop. He's already seeing it. Today, there are about 35 applicants a week, compared with 1,000 per week just a few months ago.
The drop in numbers is a natural occurrence in any industry, Davi said, but he noted, "Real estate is cyclical." He believes the economy is strong and will not slide into a recession.
Davi said he is happy with developments that have taken place in the DRE. For one thing, online activity has cut down the licensing processing time by 65 percent - from 175 days to 66 days. Davi indicated 53 percent of license renewals, 59 percent of all miscellaneous license transactions, and 79 percent of all examination scheduling requests are now conducted using e-licensing processing.
It is the DRE Commissioner's goal to speed up the licensing process even more through electronic license exams. He said the project is underway, plans are being finalized, and construction of the project should be completed by next spring.
The DRE's mission is to protect the public in real estate transactions and provide related services to the real estate industry. Even as the number of licensees has more than doubled since 1991, his staff of 342 employees has remained the same. He reported the proposed DRE budget is $4.6 million annually.
Regulatory cases have increased steadily in the last six years because of the increase in the number of licensees and problems currently besetting the market. During fiscal year 2001-02, the DRE had a little over 5,000 cases. Davi expects the department will have 11,000 by the end of the 2007-08 fiscal year.
Audit findings show 35 percent are major violations, resulting in a revocation or restriction of a license; 23 percent are minor violations, usually resulting in suspension of a license; and 24 percent result in a corrective action letter. Most of the violations – 52 percent – stem from trust funds/records; 20 percent, licensing and employment; 11 percent, disclosure; 4 percent mortgage loans; 4 percent, supervision; and 3 percent, broker escrow.
Davi gave his take on the current real estate market and remained optimistic. In 2006, sales were the 11th highest on record. Even with sales down and an increase in foreclosures, he does not believe California is in for a recession because the economy is performing well and jobs are being created, especially in Silicon Valley.
Davi invited SILVAR members to visit the DRE Web site at http://www.dre.ca.gov/ for e-license processing, to check on the status of a license and new requirements. He also encouraged agents and the public to report violations. Victims of fraud should immediately file complaints with the DRE, so criminals can be prosecuted.
"That's the only way we can get those bad actors out of business. … We are very much complaint driven," Davi noted.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
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