Real estate is an exciting, growing business according to the latest report by the National Association of REALTORS®. The latest Member Profile released by NAR indicates that the association saw an increase in new and younger members in 2013 thanks in part to a leap in income and sales volume, making the profession one of the hottest right now.
According to the profile, which garnered results from the nation’s approximate 2 million REALTORS®, years of experience in real estate decreased from 13 in 2012 to 12 years, while the typical tenure at a firm decreased from seven to six years. The average age of the nation’s REALTORS® also dropped slightly from 57 years to 56 years.
Age distribution among REALTORS® was found to have a majority in the 65 and older range, although younger members have been increasing in numbers in the last few years. Three percent were found to be under 30 years of age, 16 percent are between ages 30 and 44 while 24 percent are aged 65 and older.
“REALTORS® bring value to buyers and sellers, help build communities, and encourage responsible homeownership behaviors,” said NAR President Steve Brown. “The fact that the number of members with one year or less of experience rose to 9 percent in 2013 from 5 percent in the year before shows that those agents getting into the field are attracted to the many benefits and business opportunities that come with being a REALTOR®.”
Income and Sales Volume Huge Attraction to Real Estate
In the last year, national home prices jumped an average 11.5 percent, which resulted in a rise in income and sales volume for real estate agents. This factor has become a huge attraction for the new and younger agents who have gotten into the field recently.
Lawrence Yun, NAR chief economst, believes that recovery in the housing market has been a strong aid in the improvement of earnings of real estate professionals.
“Fueled mostly by rising home sales and prices, the median gross income of a REALTOR® increased to $47,700 in 2013 from $43,500 in 2012, marking at 9.6 percent rise and sharp gain from $34,900 in 2011,” Yun said. “Although the median number of transactions or commercial deals remained unchanged from last year at 12, this marked a continued return to pre-recession levels after bottoming out at seven transactions in 2008 and 2009.”
As with any profession, those with more experienced earned significantly more in 2013. NAR members in business for more than 16 years earned an average of $70,200 while those with three-to-five years of experience earned $30,100, less than half the amount of more seasoned members.
There were several factors that deterred agents in completing transactions, the most widely cited of which is low inventory. “The survey indicates that inventory shortages, overly restrictive mortgage lending standards and the rise in home prices and interest rates last year had an impact on REALTORS®’ ability to help their client find the right property,” said Yun.
There are approximately 2 million active real estate licensees in the U.S. About half of that population goes the extra mile in licensing requirements by adhering to a stricter Code of Ethics and continuing education regimen as deemed by the National Association of REALTORS®.