Membership in the National Association of REALTORS® (NAR)—which, for agents and brokers, denotes higher standards than what is required by their respective states—has increased in the last year, from 1.22 million to 1.3 million, according to the 2018 NAR Member Profile. Entrants to the industry prompted the rise, with 29 percent of members having less than two years of experience in real estate, up from 28 percent last year.
The average REALTOR®:
Experience and incomes are linked: REALTORS® with 16 years or more in the business earned $78,850, while those with two years or less in the industry made $8,330—the latter $600 less than in 2016.
“While inventory shortages continue and home prices remain high, NAR has seen a whopping 6 percent increase in membership over the last year,” says Lawrence Yun, chief economist at NAR. “Younger Americans are seeking business opportunities that working in real estate provides, but the overall trend is a slightly older age profile.”
Activity was challenged by inventory, the Profile shows. According to NAR, existing-home inventory in May was down 6.1 percent year-over-year; the average REALTOR® did 11 transactions in 2017, which is one less than in 2016, and a brokerage’s sales volume, typically, was $1.8 million, a dip from $1.9 million.
“A familiar story lingers from last year, as limited inventory continues to plague many housing markets across the country,” Yun says. “For the fifth year in a row, the difficulty finding the right property has surpassed the difficulty in obtaining a mortgage as the most cited reason limiting potential homebuyers.”
More from the Profile:
- 80 percent of members are “certain” they will continue in the industry for two more years; 5 percent were “uncertain” whether they will stay
- 65 percent of members are licensed sales agents; 21 percent have broker licenses; 15 percent have broker associate licenses
- 35 percent of members are compensated under a fixed commission split (under 100 percent); 25 percent are compensated under a graduated commission split (increases in productivity)
- 25 percent of members new to the organization (two years’ experience or less) were minorities, up from 22 percent last year
- 68 percent of members have their own website
- 71 percent of members are on Facebook for professional use; 59 percent are on LinkedIn
- 44 percent of members are at a one-office firm; 25 percent are at a firm with 2-4 offices
There are 1.3 million REALTORS®.
For more information, please visit www.nar.realtor.
Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at email@example.com. For the latest real estate news and trends, bookmark RISMedia.com.