The National Association of REALTORS® has released reports on who members are and the business they are conducting dating back more than five decades. Each year the report is released in varying and unique circumstances.
While the report provides timelines of how experiences and transactions have changed, it is also important to remember it is a snapshot of that period of time. The last year, 2022, was a divided year in the real estate market.
At the beginning of 2022, inventory levels dropped to the lowest recorded since 1999 as home buyers entered the market at a frenzied pace to lock in historically low interest rates. By Autumn of 2022, mortgage interest rates topped seven percent, putting a damper on real estate sales activity. Home buyers who had searched for a home in Spring and were outbid, were suddenly pushed to the sidelines due to housing affordability concerns.
Despite the rise in mortgage interest rates, home prices continued to rise, pricing out even more potential consumers. While there has been a slight increase in housing inventory, at affordable price points buyers have struggled to find a home. This years’ report reflects the experience of REALTORS® through a roller coaster of a year and into a more balanced market in 2023.
In 2022, the rise of new members in the National Association of REALTORS® continued to increase. Membership grew from 1.56 million at the end of 2021 to 1.58 million at the end of 2022. The median years of experience in real estate increased to 11 years. Those with two years of experience declined from 25 percent to 17 percent, while those with 16 years or more experience increased to 42 percent from 39 percent. Despite the churn and unique real estate market conditions, looking forward, 76 percent of REALTORS® are very certain they will remain in the market for two more years. Limited inventory continues to plague many housing markets in the U.S. Thirty-two percent of members who practice as brokerage specialists cited the lack of housing inventory was holding back clients from completing a transaction, while 18 percent cited housing affordability.
Due to the strong demand for housing in the first half of 2022, the typical member had 12 transaction sides. This is the same number as in 2021. The typical sales volume increased from $2.6 million to $3.4 million in 2022 as home prices increased throughout 2022. The median gross income of REALTORS® increased to $56,400 from $54,300 in 2021. New members entering the field can be noted by the differences in income by experience and function. Fifty-two percent of members who have two years or less experience made less than $10,000 in 2022 compared to 42 percent of members with more than 16 years of experience who made more than $100,000 in the same time period. REALTORS® with 16 years of experience or more had a median gross income of $80,700 compared to REALTORS® with 2 years of experience or less that had a median gross income of $9,600. REALTORS® have been impacted by higher inflation in the last year as total expenses increased to $8,210 from $6,250 in 2021. The typical member was an independent contractor affiliated with an independent company catering to local markets.
REALTORS® frequently have had careers in other fields prior to real estate, the most common being in sales and retail, followed by management, business, and financial professions. Only six percent indicated that real estate is their first career. The majority of members were women homeowners with a college education. The median age of REALTORS® was 60 in the 2023 survey.
REALTORS® consistently are ahead of the curve when it comes to technology. It is clear technology can assist home buyers when inventory is limited and buyers are moving further distances. While there are older technologies that are embraced on a daily basis, like e-mail, social media, and GPS there are also new emerging technologies such as Photofy and the use of drones. The majority of members have their own website where they promote their own property listings, but many also post information about the buying and selling process to help consumers who may just be in the research part of the process.
The National Association of Realtors® (NAR) has released reports on who members are and the business they are conducting dating back more than five decades. Each year the report is released in varying and unique circumstances. While the report provides timelines of how experiences and transactions have changed, it is also important to remember it is a snapshot of that period of time. Read More
