Why is NAR’s annual Member Profile a reputable yard stick of how the real estate profession is performing? The reason is because Realtors® make up around half of all real estate agents, but do about 90% of all business activity.
The typical Realtor had 11 transactions in 2014 versus 12 in 2013. As a result, slightly fewer transactions led to the median gross income of a Realtor® falling to $45,800 from $47,700 in 2013.
According to NAR chief economist Lawrence Yun, the slight decline in business activity and income was because of lower existing-home sales and more members joining NAR last year.
Said Yun, “The median gross income last year was still the second highest since the downturn and up over 5 percent from 2012 ($43,500). Furthermore, NAR membership at the end of 2014 stood at 1.1 million, up 5.5 percent from 2013.”
What else did the Member Profile discover this year? Watch Lawrence Yun’s video (above) and read some of the key findings below.
Finding the right property (33%) followed by obtaining a mortgage (26%) were the two biggest challenges limiting potential clients’ ability to complete a transaction
Median transactions – 11 (12 in 2013)
Median gross income – 16 years+ experience: $68,200, 13 transactions; 3-5 years’ experience – $37,400, 10 transactions
Online presence – 91% (firm); 66% personal website; 65% social media (increase of 4% from last year)
Realtor® communication methods – 93% email; 91% phone; 85% text messaging (increase from 40% in 2010)
Demographics – 58% women; median 57 years old (56 last year); 85% own a home; 71% married; 50% bachelor’s degree or higher; 48% of those fluent in other language speak Spanish (41% last year)
Experience – median of 12 years; 17% two years or less (13% last year)
Occupation – 77% real estate full-time; 5% started career in real estate