23 Jun REALTORS® Growing in Numbers
As home prices increase and the housing market continues to stabilize, benefits to REALTORS® are becoming more apparent and are attracting more members every year. According to the latest National Association of REALTORS® Members Profile, the association has seen an influx of new members in younger age groups in 2013.
The nation’s REALTORS® represent about half of the approximately 2 million active real estate licensees in the U.S. REALTORS® extend beyond typical licensing practices by adhering to a stricter Code of Ethics and Standards of Practice as outlined by NAR. These tighter regulations enable REALTORS® to maintain access to professional resources that help them meet clients’ needs in a better and more efficient manner.
According to the survey, members of the association are being rewarded for their hard work and adherence to policies as the recovery in the housing market is helping to improve the earnings of real estate professionals.
Lawrence Yun, NAR chief economist says, “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 a 9.6 percent rise and a sharp gain from $34,900 in 2011.”
On the national level, the real estate market has been plagued by lower sales volumes due to tight inventory across the board, however with gains in home prices, agents are finding that they’re getting a richer piece of the pie when a sale is made.
“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,” Yun continues.
REALTOR® Income Gains Help Attract More to Profession
The survey found that experienced NAR members that were in business for more than 16 years earned $70,200 through 15 transactions, while those with less experience made less than half that amount. Of agents who had three-to-five years experience, earnings per year totaled $30,100 over the course of 10 transactions completed in one year.
The great potential that the real estate profession holds for those who stick with it has been a great factor in attracting new and young members. Years of experience in real estate decreased from 13 years to 12 years while the average age of members decreased from 57 years to 56 years.
When broken down by age bracket, three percent of REALTORS® were found to be under 30 years of age, 16 percent are between ages 30 and 44 while a majority of 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 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®.”
As the housing market continues to look up, it looks like this is an industry that will garner much respect in the years to come.