Don't look now, but Vancouver's strong real estate market has become a Lotusland for rookie realtors.

The Real Estate Board of Greater Vancouver has increased its number of licensees for the sixth straight year. As of May 31, Vancouver was home to 587 - or 6.8 per cent - more realtors than at the same time last year. The total number of licences increased to 9,167 from 8,580.

"The number of new entrants has slowed down a bit from the last few years," says Brian Naphtali, the board's president. "They're not as high as at this time last year."

From May 31, 2005 to May 31, 2006, the number of new licensees increased 7.5 per cent to 8,580 from 7,984.

Rick Valouche

Despite the slowdown of new entrants this year, Naphtali expects the number of licensees to continue to climb as the industry's Baby Boomers approach retirement, which takes on a different meaning in real estate because some agents take out their licences after retiring from other careers.

"The average age of a realtor is in the mid-50s," says Naphtali, a 30-year veteran realtor. "So I definitely see opportunity for young people in our industry in the near future. I definitely think (there will be a mass exodus of realtors as Boomers retire.) We don't really have any mandatory retirement programs in real estate. But, from what I've seen, as people mature in our industry, they want to have a bit more time to themselves than the demanding job of real-estate permits."

If one takes into account that half of 2007 has passed, the number of new realtors should increase by about 500, or 5.6 per cent, from the end of 2006.

In all of 2006, 682 new realtors entered the Vancouver industry, bringing the total to 8,915 from 8,233 - an 8.3-per- cent boost.

"There's a feeling out there that it might not be that easy to make your fame and fortune in real estate," says Naphtali.

The recent increases relate more to a recovery than a boom. Although the number of licensees has climbed every year since 2002, the board has not yet returned to its start-of-year record of 9,893, set in January 1995.

But, like Hank Aaron's once seemingly unbeatable baseball home-run record, the mark could be surpassed in the near future.

"We've seen some pretty healthy statistics since 2002," says Naphtali.

Between 1995-2001, the number of Vancouver realtors at calendar year-end fell a whopping 29 per cent to 6,511 from 9,199. Vancouver had more than 10,000 realtors between July and October of 1995, but the numbers began to dive due to a market slowdown and downturn in the provincial economy.

Naphtali attributes the steady increases since to the strong B.C. economy and the fact that, unlike many other entrepreneurs, realtors don't face large entry costs.

Rick Valouche, owner of TRG - The Residential Group, who served as the board's president last year, notices more people in their mid-40s are taking out their licences. But Naphtali says most of the newcomers at his company, ReMax Select Properties Ltd., are in their late 20s and early 30s.

Valouche says high property prices - which spell bigger commissions - are not necessarily the prime motivator for prospective realtors to study for their licences. The increase is more about property supply and demand.

There are just not enough properties available in the Lower Mainland right now because of high demand.

"We always are a year behind, whatever happens in the market," says Valouche. "If and when (the increase in realtors) does stop, it'll be six months to a year when you'll see people dropping out of the industry."

Even if the totals continue to rise, many rookies will drop out.

"There's numbers that people don't like to talk about out there," says Valouche, adding 80 per cent of new licensees quit in their first year and few make it to their third.

"I find that most people just don't seem to understand (the industry) when they're looking to enter real estate.

"They just think because they see some out there driving the Mercedes and the BMWs that we're all making lots of money," says Valouche, who estimates most realtors earn $60,000-$65,000 per year before taxes. It takes five years to build up a client base, he adds.

Both Naphtali and Valouche became realtors after switching careers. Valouche spent nine years as a container-truck driver, hauling goods to Seattle and back every day.

He joined the real estate industry just before his two sons were born, after attending a career fair at the Pacific National Exhibition because he was bored with his trucking job.

"It was just a different path to try, and I liked the independence of it," he says. "I don't like punching a clock. I don't like someone looking over my shoulder watching what I do. I would sink by myself or swim."

He eventually made enough deals to acquire his own company. But his family had to endure some tough times first.

"It doesn't matter who you are," he says. "If you've got a spouse with some kids and you're not bringing in the income, you sure hear it from the other side. I know I did in my first year. But I was so stubborn I stuck with it and became successful at it.

"My first (son) was born three months after me entering real estate. My wife was on maternity leave. I started real estate as a new career - from bringing in a steady cheque from truck driving - and we didn't have money for nine months. I speak from experience."

Six years later, his wife put her foot down and he went into management because he wasn't spending enough time with his young family.

Naphtali entered the industry after a career in food sales. When his employer, an agricultural-food-processing company, was having financial difficulties, he consulted a mentor who advised him to get into real estate.

Both Naphtali and Valouche can be considered proof that those rookies who ride the highs and lows can have success after they pursue their licences.

And, chances are, many will.

(Monte Stewart can be reached at monte@businessedge.ca)