Real Estate Research Report

***Draft: Do Not Distribute*** Merced College Program Investigation: Real Estate Spring 2014

Program Overview

In accordance with Title 5, Section 51022, “…College districts are required by current regulation and statute to develop a process for program discontinuance and minimum criteria for the discontinuance of occupational programs.” A program is defined as “…an organized sequence of courses leading to a defined objective, a degree, a certificate, a diploma, a license, or transfer to another institution of higher learning” (Title 5, Section 55000).

The President of the Merced College Academic Senate asked the Office of Grants and Institutional Research (OGIR) to identify some quantitative statistics for the Real Estate Program to further inform a discussion on program discontinuance.

The Merced College Real Estate Program was first approved by the California Community Colleges Chancellor’s Office (CCCCO) in 1966. According to the Merced College Catalog 2013-2014 (p. 239), this program prepares students for the examinations for the California Real Estate Salesman’s and Broker’s licenses. The program covers real estate principles, real estate practices, legal aspects of real estate, real estate finance, real estate appraisal, real property management, and escrow procedure. Both an Associate of Arts (AA) and a Certificate in Real Estate are currently offered.

Core courses for the Real Estate Program for the both AA and the certificate include the following:

• ACTG-04A: Fundamentals of Financial Accounting –or- • ACTG-51: Applied Accounting • BUS-18A: Business Law • CPSC-30: Computer Applications • REAL-42: Real Estate Principles • REAL-43: Real Estate Practices • REAL-45: Real Estate Finance • REAL-46: Real Estate Appraisal • REAL-48: Real Property Management • REAL-49: Escrow Procedure

According to the Merced College Catalog 2013-2014, ACTG-04A “…provides the student with the knowledge of corporate financial statement reporting and the ability to analyze the reports of a corporation.”

ACTG-51 emphasizes “…a preparer approach using manual accounting methods, and comparing them to current computerized accounting.”

BUS-18A studies “…legal principles that govern the conduct of business.”

CPSC-30 provides “…an introduction to application software used in the workplace with emphasis on business situations.”

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REAL-42 studies the “…principles of real estate in California, history of California real estate, property, contracts, agency, listings, real estate financing, deeds, liens and encumbrances, escrows and title insurance, land descriptions, real estate mathematics, and real estate licensing and state regulations.”

REAL-43 analyzes “…problems related to establishing and conducting a real estate business…”

REAL-45 is “…a practical applied study and analysis of money markets, interest rates, and real estate financing.”

REAL-46 “…explains methods and techniques for analyzing data used in the valuation of real property.”

REAL-48 “…provides a practical approach to management of developed real estate.”

REAL-49 “…covers the principles and procedures involved in the process of opening and closing real estate escrow transactions.”

Methodology

Quantitative statistics analyzed in this report were: 1. Productivity a. Full Time Equivalent Faculty (FTEF) b. Full Time Equivalent Student (FTES) 2. Enrollment a. Enrollment b. Completion c. Success d. Persistence e. Frequency of Course Offerings 3. Student Demographics a. Age b. Ethnicity c. Gender 4. Program Interest, Graduates, and Transfers 5. Comparable Programs 6. Labor Market 7. State and National Examinations, Credentials, and Certifications 8. State and National Associations

For the purpose of this report, enrollment in any of the aforementioned Real Estate (REAL) courses was analyzed as though the student’s educational goal was to obtain a Real Estate degree. It should be noted that enrollment in any of these courses does not necessarily define the student’s educational goal. Courses outside the Real Estate department (i.e. ACTG, BUS, CPSC) were not included in this analysis as they may fulfill requirements for other degrees or breadth requirements.

The requested timeframe was Fall 2003 to Spring 2013. REAL courses were not offered in the summer during the reporting period, so only primary terms were included. Only students who received a grade were included in this report. Students who dropped from a course and did not receive a course grade were not included in this report. Page 2 3/6/2014 2:42:38 PM

FTEF and FTES

The average FTEF for Real Estate classes was .65. FTEF for Real Estate classes in total ranged from .2 in Fall 2010 and Fall 2011 to 1.2 in Spring 2006. In general, each class had an FTEF of .2 each semester, with the exceptions of REAL-42 in Spring 2005, Fall 2005, Spring 2006, and Spring 2007, REAL-43 in Spring 2006, and REAL-45 in Fall 2006, all of which had an FTEF of .4.

Table 1: Real Estate-FTEF Term REAL-42 REAL-43 REAL-45 REAL-46 REAL-48 REAL-49 Total Fall 2003 .2 - .2 - .2 - .6 Spring 2004 .2 .2 - .2 - - .6 Fall 2004 .2 .2 .2 - .2 - .8 Spring 2005 .4 .2 - .2 - .2 1.0 Fall 2005 .2 .2 .2 - .2 - 1.0 Spring 2006 .4 .4 - .2 - .2 1.2 Fall 2006 .2 .2 .4 - .2 - 1.0 Spring 2007 .4 .2 - .2 - .2 1.0 Fall 2007 .2 .2 .2 - - - .6 Spring 2008 .2 .2 - .2 - .2 .8 Fall 2008 .2 - - - .2 - .4 Spring 2009 .2 .2 - - - - .4 Fall 2009 .2 - .2 - - - .4 Spring 2010 .2 .2 - .2 - - .6 Fall 2010 .2 - - - - - .2 Spring 2011 .2 .2 - - .2 - .6 Fall 2011 .2 - - - - - .2 Spring 2012 .2 .2 .2 - - - .6 Fall 2012 .2 - - - .2 - .4 Spring 2013 .2 .2 .2 - - - .6 Average .24 .21 .23 .2 .2 .2 .65 Source: MCCD Class Counts

The average FTES for Real Estate classes was 8.83. Total FTES ranged from 2.0 in Fall 2010 to 20.8 in Fall 2005. REAL-42 (3.9) had the highest average FTES, and REAL-48 had the lowest (2.1). However, REAL-42 was offered more frequently, and FTES ranged from .8 in Spring 2013 to 9.5 in Fall 2005.

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Table 2: Real Estate-FTES Term REAL-42 REAL-43 REAL-45 REAL-46 REAL-48 REAL-49 Total Fall 2003 6.0 - 3.5 - 1.9 - 11.4 Spring 2004 5.8 4.7 - 3.5 - - 14.0 Fall 2004 7.6 2.3 4.0 - 2.3 - 16.2 Spring 2005 7.6 4.7 - 4.0 - 3.4 19.7 Fall 2005 9.5 4.8 3.9 - 2.6 - 20.8 Spring 2006 5.9 3.8 - 3.7 - 3 16.4 Fall 2006 5.3 2.7 5.0 - 2.8 - 15.8 Spring 2007 5.8 2.4 - 3.9 - 2.2 14.3 Fall 2007 2.4 1.2 1.1 - 1.1 - 4.7 Spring 2008 2.4 .8 - 1.3 - 1.1 5.6 Fall 2008 1.8 - - - - - 2.9 Spring 2009 1.4 1.2 - - - - 2.6 Fall 2009 2.6 - 1.7 - - - 4.3 Spring 2010 1.6 2.4 - 1.5 - - 5.5 Fall 2010 2.0 - - - - - 2.0 Spring 2011 2.5 2.7 - - 2.5 - 7.7 Fall 2011 2.3 - - - - - 2.3 Spring 2012 2.2 1.2 .9 - - - 4.3 Fall 2012 2.3 - - - 1.3 - 3.6 Spring 2013 .8 .9 .8 - - - 2.5 Average 3.9 2.6 2.6 3.0 2.1 2.4 8.83 Source: MCCD Class Counts

Enrollment

Enrollment consisted of students who registered for a Real Estate course (REAL-42, REAL-43, REAL-45, REAL- 46, REAL-48, and/or REAL-49) and received a letter grade A, B, C, D, F, P, NP, I, W, FW, MW during Fall 2003 to Spring 2013.

There were 2147 total enrollments in REAL classes from Fall 2003 to Spring 2013, representing 1183 unique students. Overall, the average enrollment per term was 107. REAL-42 had the highest total enrollment (1032, average 52) and REAL-49 had the lowest total enrollment (103, average 26). Fall 2005 (267) had the highest enrollment of any term, and Fall 2011 (27) had the lowest.

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Table 2: Real Estate-Enrollment (Headcount) Term REAL-42 REAL-43 REAL-45 REAL-46 REAL-48 REAL-49 Total Fall 2003 84 - 44 - 26 - 154 Spring 2004 83 58 - 39 - - 180 Fall 2004 94 28 42 - 27 - 191 Spring 2005 102 48 - 45 - 36 231 Fall 2005 144 50 40 - 33 - 267 Spring 2006 84 41 - 40 - 31 196 Fall 2006 65 28 66 - 30 - 189 Spring 2007 76 36 - 46 - 25 183 Fall 2007 29 12 11 - - - 52 Spring 2008 27 9 - 14 - 11 61 Fall 2008 22 - - - 14 - 36 Spring 2009 16 12 - - - - 28 Fall 2009 27 - 18 - - - 45 Spring 2010 22 27 - 15 - - 64 Fall 2010 23 - - - - - 23 Spring 2011 38 29 - - 26 - 93 Fall 2011 27 - - - - - 27 Spring 2012 29 13 9 - - - 51 Fall 2012 27 - - - 17 - 44 Spring 2013 13 11 8 - - - 32 Total 1032 402 238 199 173 103 2147 Average 52 29 30 33 25 26 107 Source: Ellucian

Completion A student completed a course if the student earned a letter grade A, B, C, P, D, F, NP, or I. The course completion rate (CCR) is the percent of students who completed a course.

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Table 4: Real Estate-Course Completion (Headcount) Term REAL-42 REAL-43 REAL-45 REAL-46 REAL-48 REAL-49 Total Fall 2003 75.00% - 54.55% - 73.08% - 68.83% Spring 2004 80.72% 74.14% - 82.45% - - 78.89% Fall 2004 79.79% 82.14% 80.95% - 77.78% - 80.10% Spring 2005 67.65% 64.58% - 75.56% - 63.89% 67.97% Fall 2005 77.08% 74.00% 85.00% - 87.88% - 79.03% Spring 2006 77.38% 63.41% - 85.00% - 83.87% 77.04% Fall 2006 66.15% 85.71% 63.64% - 76.67% - 69.84% Spring 2007 76.32% 83.33% - 84.78% - 84.00% 80.87% Fall 2007 79.31% 83.33% 81.82% - - - 80.77% Spring 2008 81.48% 100.00% - 92.86% - 100.00% 90.16% Fall 2008 86.36% - - - 78.57% - 83.33% Spring 2009 87.50% 83.33% - - - - 85.71% Fall 2009 66.67% - 94.44% - - - 77.78% Spring 2010 72.73% 92.59% - 93.33% - - 85.94% Fall 2010 86.96% - - - - - 86.96% Spring 2011 76.32% 86.21% - - 80.77% - 80.65% Fall 2011 74.07% - - - - - 74.07% Spring 2012 75.86% 76.92% 88.89% - - - 78.43% Fall 2012 92.59% - - - 70.59% - 84.09% Spring 2013 61.54% 90.91% 100.00% - - - 81.25% Total 76.26% 77.86% 73.95% 83.42% 78.61% 78.64% 77.27% Source: Ellucian

Success A student earned a successful grade in a course if the student received a letter grade A, B, C, or P. The course success rate (CSR) is the percent of students who were successful in the course. Overall, about two-thirds (66.60%) of students who enrolled in a Real Estate class succeeded. REAL-46 (71.36%) had the highest CSR, and REAL-42 (64.44%) had the lowest. Among the terms, Spring 2008 (83.61%) had the highest CSR, and Spring 2005 (55.84%) had the lowest.

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Table 5: Real Estate-Course Success (Headcount) Term REAL-42 REAL-43 REAL-45 REAL-46 REAL-48 REAL-49 Total Fall 2003 60.71% - 50.00% - 69.23% - 59.09% Spring 2004 65.06% 62.07% - 61.54% - - 63.33% Fall 2004 71.28% 75.00% 66.67% - 51.85% - 68.06% Spring 2005 50.98% 54.17% - 64.44% - 61.11% 55.84% Fall 2005 65.97% 72.00% 77.50% - 78.79% - 70.41% Spring 2006 65.48% 60.98% - 72.50% - 61.29% 65.31% Fall 2006 55.38% 75.00% 57.58% - 70.00% - 61.38% Spring 2007 68.42% 77.78% - 73.91% - 68.00% 71.58% Fall 2007 65.52% 66.67% 72.73% - - - 67.31% Spring 2008 74.07% 77.78% - 92.86% - 100.00% 83.61% Fall 2008 72.73% - - - 78.57% - 75.00% Spring 2009 68.75% 83.33% - - - - 75.00% Fall 2009 51.85% - 83.33% - - - 64.44% Spring 2010 68.18% 81.48% - 86.67% - - 78.13% Fall 2010 78.26% - - - - - 78.26% Spring 2011 71.05% 75.86% - - 69.23% - 72.04% Fall 2011 62.96% - - - - - 62.96% Spring 2012 62.07% 69.23% 77.78% - - - 66.67% Fall 2012 81.48% - - - 58.82% - 72.73% Spring 2013 46.15% 81.82% 87.50% - - - 68.75% Total 64.44% 69.65% 65.55% 71.36% 68.21% 66.99% 66.60% Source: Ellucian

Program Persistence

As mentioned at the beginning of this report, a program is defined as “an organized sequence of courses leading to a defined objective, a degree, a certificate, a diploma, a license, or transfer to another institution of higher learning” (Title 5, Section 55000). For the purpose of this report, the sequence of courses (REAL courses) is intended to lead students towards obtaining an Associate in Arts Degree and/or a Certificate in Real Estate.

To see how many program core courses were taken by students, enrollment patterns were analyzed for the reporting time period of Fall 2003 to Spring 2013. The students reflected here may have enrolled in additional REAL courses before Fall 2003 and/or after Spring 2013 but were not included in this report as they fell outside of the research request time period.

In total, 30 of the 1183 students (2.54%) who enrolled in any REAL course during the reporting period enrolled in all six courses. About 60% (60.78%, N=716) enrolled in only one course. Of those, 80.11% (N=573) enrolled only in REAL-42.

Frequency of Course Offerings

The availability of program course offerings was analyzed to understand the historical pattern of student enrollment.

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Other courses were offered with less regularity. Courses were offered occasionally at the Los Baños site (LB), but not with any regularity. See Table 5 for details. Eight sections were cancelled over the reporting period due to low enrollment (3 REAL-43, 2 REAL-45, 1 REAL-46, 1 REAL-48, 1 REAL-49). No courses have been cancelled during the reporting period since Fall 2010.

Table 5: Real Estate-Frequency of Course Offerings Term REAL-42 REAL-43 REAL-45 REAL-46 REAL-48 REAL-49 Total Fall 2003 1 MC - 1 MC - 1 MC - 3 MC Spring 2004 1 MC 1 MC - 1 MC - - 3 MC Fall 2004 1 MC 1 MC 1 MC - 1 MC - 4 MC Spring 2005 2 MC 1 MC - 1 MC - 1 MC 5 MC Fall 2005 1 MC, 1 LB 1 MC 1 MC - 1 MC - 4 MC, 1 LB Spring 2006 2 MC 1 MC, 1 LB - 1 MC - 1 MC 5 MC, 1 LB Fall 2006 1 MC 1 MC 1 MC, 1 LB - 1 MC - 4 MC, 1 LB Spring 2007 1 MC, 1 LB 1 MC - 1 MC - 1 MC 4 MC, 1 LB Fall 2007 1 MC 1 MC 1 MC - - - 3 MC Spring 2008 1 MC 1 LB - 1 MC - 1 MC 3 MC, 1 LB Fall 2008 1 MC - - - 1 MC - 2 MC Spring 2009 1 MC 1 MC - - - - 2 MC Fall 2009 1 MC - 1 MC - - - 2MC Spring 2010 1 MC 1 MC - 1 MC - - 3 MC Fall 2010 1 MC - - - - - 1 MC Spring 2011 1 MC 1 MC - - 1 MC - 3 MC Fall 2011 1 MC - - - - - 1 MC Spring 2012 1 MC 1 MC 1 MC - - - 3 MC Fall 2012 1 MC - - - 1 MC - 2 MC Spring 2013 1 MC 1 MC 1 MC - - - 3 MC Total 22 MC, 2 LB 13 MC, 2 LB 8 MC, 1 LB 6 MC 7 MC 4MC 60 MC, 4 LB Source: MCCD/SharePoint –Office of Grants and Institutional Research, Merced College Schedule, Class Counts

Student Demographics

Of the 2147 students enrolled in Real Estate courses (duplicated headcount), 21.43% were 19 or younger and 20.73% were 20-24.

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Graph 1: Real Estate-Age (N=2,147)

50 or over 11.36% 19 or under 21.43% 40-49 15.79%

35-39 20-24 7.59% 20.73%

30-34 8.94% 25-29 14.16%

Source: MCCD Ellucian

Of the students enrolled in Real Estate courses, 47.32% were Hispanic.

Graph 2: Real Estate-Ethnicity (N=2,147) Unknown African-American 7.22% 6.80% American Indian/Alaskan Native Asian 0.65% 8.76%

White, Non- Hispanic 27.76%

Hispanic Pacific Islander 47.32% 0.75% Multi-ethnic 0.75%

Source: MCCD Ellucian

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Just over half (52.41%) of those enrolled in Real Estate courses were female.

Graph 3: Real Estate-Gender (N=2,147)

Male 47.59% Female 52.41%

Source: MCCD/SharePoint –Office of Grants and Institutional Research

Program Interest, Graduates, and Transfers

According to the CCCCO, 13 degrees and certificates in Real Estate were awarded to from 2003-2004 to 2012- 2013, 10 AAs and 3 certificates.

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Graph 4: Real Estate-Awards

AA CT

3 3 2 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0

Source: CCCCO

Of the 1183 unique students who enrolled in a Real Estate course from Fall 2003 through Spring 2013, a total of 115 students earned 150 degrees and certificates (124 Associate’s degrees, 26 certificates) (some students received multiple degrees and/or certificates) in 42 disciplines1. General Studies was the most common degree awarded (18), followed by Paralegal Studies (16), Business Administration (15), and Real Estate (13).

According to MCCD Ellucian, 511 students declared an interest in Real Estate during the reporting period as of February 6, 20142. Of these, 50 declared an interest during the 2012-2013 academic year. Of the 511 students declaring an interest in Real Estate, 16 subsequently received a degree from Merced College. Of these, four were in Real Estate and four were in Business. Other interests declared by students receiving Real Estate degrees included Vocational Nursing, Engineering, and CSU General Education Breadth. Please note those declaring an interest in Real Estate on their application may not have subsequently attended Merced College.

1 MCCD Ellucian 2 Per MCCD application Page 11 3/6/2014 2:42:38 PM

Comparable Programs

According to the CCCCO, seven of the 14 colleges in the Central Valley area3 offer Real Estate degrees (Bakersfield College, Fresno City College, Merced College, Modesto Junior College, College of the Sequoias, San Joaquin Delta College, and Solano Community College). From 2003-2004 to 2012-2013 these colleges awarded 246 Real Estate degrees and certificates (108 Associate’s degrees and 138 certificates). During the same time period, 4,664 Real Estate degrees and certificates in total were awarded by California Community Colleges (1,574 Associate’s degrees, 2,722 certificates, and 368 other awards). The Central Valley accounted for 5.27% of all degrees awarded in the state. Merced College accounted for 13 of these degrees.

Graph 5: Real Estate Degrees-Central Valley 2003-2004 to 2012-2013 160 Associate's degrees Certificates 138 140

120 108

100

59 60

40 34 33 30 25 19 20 15 10 10 6 3 0 2 0 0 Bakersfield College of the Fresno City Merced Modesto San Joaquin Solano Total College Sequoias College College Junior College Delta College Community College

Labor Market

The following occupations were examined:

• Real Estate Appraisers and Assessors (Standard Occupational Code (SOC) 13-2021): People in this occupation “…Appraise real property to determine its fair value. May assess taxes in accordance with prescribed schedules.”4 • Real Estate Brokers (SOC 41-9021): People in this occupation “…Operate real estate office, or work for commercial real estate firm, overseeing real estate transactions.”

3 As defined by the CCCCO 4 EDD Page 12 3/6/2014 2:42:38 PM

• Real Estate Sales Agents (SOC 41-9022): People in this occupation “…Rent, buy, or sell property for clients. Perform duties, such as study property listings, interview prospective clients, accompany clients to property site, discuss conditions of sale, and draw up real estate contracts. • Property and Community Association Managers (SOC 11-9141): People in this occupation “…Plan, direct, or coordinate selling, buying, leasing, or governance activities of commercial, industrial, or residential real estate properties. Include managers of homeowner and condominium associations, rented or leased housing units, buildings, or land (including rights-of-way).

According to the Bureau of Labor Statistics (BLS), California ranks first as the state with the highest employment of appraisers and assessors and property and community association managers, second for real estate brokers, and fourth for real estate agents as of May 2012. According to the California Employment Development Department (EDD), employment in California is expected to increase 9.7% by 2020 for appraisers and assessors, 15.6% for real estate brokers, 18.0% for real estate agents, and 4.6% for property and community association managers. Employment trends for Fresno, Stockton, Merced, and Modesto Metropolitan Statistical Areas (MSAs) were also examined. Employment for appraisers and assessors in Merced MSA (33.3%) and Stockton MSA (28.6%) is expected to grow much faster than the state (9.7%) while employment in Fresno MSA is expected to remain flat. Employment for real estate brokers in Stockton MSA is expected to remain flat. Employment for real estate agents in Modesto MSA (9.1%) is expected to grow slower than the state (18.0%) while employment in Merced MSA is expected to remain flat. Employment for property and community association managers in Fresno MSA (9.0%), Merced MSA (14.3%), and Stockton MSA (13.3%) is expected to grow faster than the state (4.6%).

Graph 6: Projected Employment Growth 2010-2020 California Fresno MSA Merced MSA Modesto MSA Stockton MSA 35.0% 33.3%

30.0% 28.6%

25.0% 20.9% 20.0% 20.0% 18.0% 17.6% 15.6% 14.3% 15.0% 13.3% 11.1% 11.1% 9.7% 10.0% 9.1% 9.0%

4.6% 4.8% 5.0%

0.0% N/A 0.0% 0.0% 0.0% Real Estate Appraisers and Real Estate Brokers Real Estate Sales Agents Property and Community Assessors Association Managers

Source: EDD Page 13 3/6/2014 2:42:38 PM

According to the BLS and the EDD, nationally and in California, brokers had the highest average annual salaries, and real estate agents had the lowest. Salaries for all occupations except real estate agents were higher in California than nationally; salaries for real estate agents were comparable. Appraisers and assessors in Merced MSA ($54,475) had lower annual salaries than the state ($69,618), but very similar to nationally ($55,180). Real estate brokers in California ($100,714) and Modesto MSA ($113,859) had higher average salaries than nationally ($80,220). Salaries for real estate brokers in Fresno MSA ($82,846) were lower than the state ($100,714) while salaries for Modesto MSA ($113,859) were higher. Salaries for real estate agents in Merced MSA ($37,274) were lower than in California ($52,645) and nationally ($51,930). Salaries for property and community association managers in Modesto MSA ($54,933) were lower than in California ($77.376) and nationally ($63,570). According to the CCCCO, the media wage two years after receiving an Associate’s degree in real estate was $34,385 and $31,135 two years after receiving a certificate. Data for Merced College were not available.

Graph 7: Average Annual Salary

National California Fresno MSA Merced MSA Modesto MSA Stockton MSA $120,000 $113,859

$100,714 $100,000

$82,846 $80,220 $77,376 $80,000 $72,030 $73,944 $71,885 $69,618.00

$62,213 $63,570 $60,000 $55,180 $54,475 $52,645 $54,080 $54,933 $51,930 $52,312 $50,502

$40,000 $37,274

$20,000

N/A N/A N/A N/A $0 Real Estate Appraisers and Real Estate Brokers Real Estate Sales Agents Property and Community Assessors Association Managers

Source: BLS, EDD

Housing Market

According to Trulia.com, housing sales in Merced have declined since 2009. Projected sales for 2014 are similar to sales in 2000.

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Source: Trulia.com

The median sales price for homes in Merced, according to Trulia.com, has declined since 2006, but is starting to recover slightly.

Source: Trulia.com

State and National Examinations, Credentials, and Certifications

The California Bureau of Real Estate requires a written exam and license for real estate agents and brokers, but there is no minimum level of education required. The California Bureau of Equalization requires an exam and license for real estate appraisers and assessors. This license requires a combined total of four years postsecondary education and experience. A property manager must possess a California broker’s license or be working under a person with a broker’s license.

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State and National Associations

The National Association of Realtors (NAR) is involved in all aspects of the commercial and residential real estate industries. The California Association of Realtors promotes the advancement of professionalism in real estate.

The National Association of Real Estate Appraisers (NAREA) provides the latest updates on guidelines, regulations, and trends.

The National Association of Residential Property Managers (NARPM) provides a learning environment for owners of property management companies and their employees. There is a California state chapter.

Summary and Conclusions

The average FTES for Real Estate classes was 8.83. Total FTES ranged from 2.0 in Fall 2010 to 20.8 in Fall 2005. REAL-42 (3.9) had the highest FTES, and REAL-48 had the lowest (2.1). However, REAL-42 was offered more frequently, and FTES ranged from .8 in Spring 2013 to 9.5 in Fall 2005. FTES for all Real Estate classes dropped precipitously after Spring 2007. The reasons are unknown.

There were 2147 total enrollments in REAL classes from Fall 2003 to Spring 2013, representing 1183 unique students. Overall, the average enrollment was 107. REAL-42 (1032) had the highest total enrollment (average 52) and REAL-49 (103) had the lowest total enrollment (average 26). Fall 2005 (267) had the highest enrollment of any term, and Fall 2011 (27) had the lowest. Four REAL courses were offered in Fall 2005, but only one was offered in Fall 2011. Consistent with FTES, enrollment dropped sharply after Spring 2007. However, REAL-48 had the lowest FTES while REAL-49 had the lowest enrollment. It is important to note that FTES is not equal to enrollment.

Real Estate courses had an overall CCR of 77.27%. REAL-46 (83.42%) had the highest CCR, and REAL-45 (73.95%) had the lowest. Spring 2008 (90.16%) had the highest CCR, and Spring 2005 (67.97%) had the lowest. The course completion rate for Merced College as a whole for Spring 2013 was 82.90%. The completion rate for Real Estate classes was lower than Merced College as a whole.

Overall, about two-thirds (66.60%) of students who enrolled in a Real Estate class succeeded. REAL-46 (71.36%) had the highest CSR, and REAL-42 (64.44%) had the lowest. Among the terms, Spring 2008 (83.61%) had the highest CSR, and Spring 2005 (55.84%) had the lowest. The CSR for Merced College as a whole was 67.22% in Spring 2013. The CSR for Real Estate was comparable to that of the college as a whole. In total, 30 of the 1183 students (2.54%) who enrolled in any REAL course during the reporting period enrolled in all six courses. Of these, 13 (43.33%) received a degree or certificate in Real Estate. This may suggest that students enrolling in a REAL course are not necessarily interested in obtaining a degree or certificate. Even those who do complete all courses do not necessarily obtain a degree or certificate in Real Estate, although a substantial portion do. About 60% (60.78%) of those enrolling in a REAL course enrolled in only one course. Of those, 80.11% enrolled only in REAL-42. REAL-42 was a requirement for a Paralegal degree or certificate, but

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that program has been discontinued. REAL courses do not meet any breadth requirements. One possibility is that REAL courses meet professional development requirements. Other explanations are possible.

REAL-42 was offered each term at the Merced site (MC). REAL-43 was offered each term at the Merced site from Spring 2004-Fall 2007. From Spring 2009-Spring 2013, one section was offered each Spring at the Merced site. Other courses were offered with less regularity. Courses were offered occasionally at the Los Baños site (LB), but not with any regularity. See Table 5 for details. Eight sections were cancelled over the reporting period due to low enrollment (3 REAL-43, 2 REAL-45, 1 REAL-46, 1 REAL-48, 1 REAL-49). No courses have been cancelled during the reporting period since Fall 2010. With the exception of REAL-42 and REAL-43, Real Estate classes were not offered regularly in recent terms. REAL-49 has not been offered since Spring 2008, and REAL-46 has not been offered since Spring 2010. This suggests that students wishing to obtain a Real Estate degree may have difficulty completing the requirements because classes are not being offered. While some sections were cancelled due to low enrollment, this did not occur on a regular basis.

Students enrolled in Real Estate classes were most likely to be 19 or younger (21.43%), Hispanic (47.32%), and female (52.41%). In Spring 2013, Merced College students as a whole were most likely to be 20-24 (40.55%), Hispanic (53.02%), and female (55.73%). In terms of ethnicity and gender, Real Estate students were similar to the college as a whole. However, in terms of age, a greater proportion of Real Estate students were older.

Thirteen degrees and certificates in Real Estate were awarded from 2003-2004 to 2012-2013, 10 AAs and 3 certificates. This represents 1.10% of students who enrolled in a Real Estate class. As previously mentioned, this suggests that students are enrolling in REAL classes for other reasons, such as fulfilling a requirement for another degree, a breadth requirement, or a professional development requirement. Other explanations are possible.

Of the 1183 unique students who enrolled in a Real Estate course from Fall 2003 through Spring 2013, a total of 115 students earned 150 degrees and certificates (124 Associate’s degrees, 26 certificates) (some students received multiple degrees and/or certificates) in 42 disciplines5. General Studies was the most common degree awarded (18), followed by Paralegal Studies (16), Business Administration (15), and Real Estate (13). This suggests that while students taking Real Estate classes may not have been interested in pursuing a Real Estate degree, a number had an interest in other aspects of business.

According to the National Student Clearinghouse, 7.35% if students enrolled in Real Estate courses at Merced College earned a degree from a four-year institution. None were in Real Estate, but 23 received degrees in Business Administration. This suggests that students may be using Real Estate classes at Merced College as a foundation for further business studies. Other explanations are possible.

According to MCCD Ellucian, 511 students declared an interest in Real Estate during the reporting period. Of these, 50 declared an interest during the 2012-2013 academic year. Of the 511 students declaring an interest in Real Estate, 16 subsequently received a degree from Merced College. Of these, four were in Real Estate and four were in Business. This suggests that students declaring an interest in Real Estate who subsequently received a degree from Merced College may very well have received a degree in Real Estate or in another aspect of business. Other interests declared by students receiving Real Estate degrees included Vocational Nursing,

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Engineering, and CSU General Education Breadth. Please note those declaring an interest in Real Estate on their application may not have subsequently attended Merced College.

According to the CCCCO, seven of the 14 colleges in the Central Valley area6 offer Real Estate degrees. Several of these colleges are in reasonably close proximity to Merced College. From 2003-2004 to 2012-2013 these colleges awarded 246 Real Estate degrees (108 Associate’s degrees and 138 certificates). During the same time period, 4,664 Real Estate degrees in total were awarded by California Community Colleges (1,574 Associate’s degrees, 2,722 certificates, and 368 other awards). The Central Valley accounted for 5.27% of all degrees awarded in the state. Merced College accounted for 13 of these degrees.

According to Trulia.com, housing sales in Merced have declined since 2009. Projected sales for 2014 are similar to sales in 2000. Combined with the anticipated flat employment growth of real estate agents in Merced MSA, this suggests that employment opportunities for agents and brokers may be limited.

The median sales price for homes in Merced, according to Trulia.com, has declined since 2006, but is starting to recover slightly.

The California Bureau of Real Estate requires a written exam and license for real estate agents and brokers. The California Bureau of Equalization requires an exam and license for real estate appraisers and assessors. A property manager must possess a California broker’s license or be working under a person with a broker’s license. While additional credentials may be required for employment in the real estate industry, the description of the Merced College program specifically states that one of its purposes is to prepare students for the real estate agent and broker exams. However, a certificate or degree is not required to take the exams.

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The National Association of Real Estate Appraisers (NAREA) provides the latest updates on guidelines, regulations, and trends.

The National Association of Residential Property Managers (NARPM) provides a learning environment for owners of property management companies and their employees. There is a California state chapter.

Alternatives

Per AP 4021, “. . .There are three potential outcomes of the Program Discontinuance process. A program may be recommended to continue, to continue with qualification, or to discontinue” (emphasis added). Discussion of program discontinuance must include all parties potentially affected by the decision.

Pursuant to AP4021, the OGIR offers the following data addressing each of the potential outcomes:

1. Continue: The program is producing graduates, and enrollment in REAL-42 is consistently strong.

2. Continue with Qualification: The program could be modified to attract more interest. Comparable programs from other colleges such as Modesto Junior College or Fresno City College could be used as models.

3. Discontinue: Faculty resources for Real Estate courses are scarce, with courses primarily taught by adjunct professors. In addition, many classes are offered irregularly and/or have not been offered in recent terms.

A disproportional impact study was not included in this report, but may be included with the amended report after consultation with the area dean, the Vice President of Instruction, and the Academic Senate President.

The final determination as to the viability of the Real Estate Program at Merced College lies with the Program Investigation committee.

The Office of Grants and Institutional Research will be available for any follow-up as needed.

Prepared by: Andrea Hall-Cuccia Research Analyst Merced College [email protected] March 6, 2014

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