- 📉 Existing-home sales in 2023 were the lowest since 1995.
- 🏡 26% of REALTORS® cited lack of inventory and housing affordability as key issues.
- 🏦 REALTORS® faced challenges due to high mortgage rates and low inventory.
- 👩💼 73% of REALTORS® plan to stay in the industry for at least two more years.
- 🚪 New members are more diverse, with 40% of those with two years or less experience being non-White.
- 💼 The typical REALTOR® earned less in 2023, with median gross income dropping to $55,800.
- 🔄 Experienced members (16+ years) had more repeat business and referrals.
- 📱 Most REALTORS® use smartphones (96%) and laptops/desktops (91%) daily for their work.
- 💻 72% of REALTORS® have their own professional website.
- 🌐 The primary social media platforms used by REALTORS® are Facebook (77%), Instagram (57%), and LinkedIn (55%).
- 📉 The number of properties managed by the typical property manager declined significantly.
- 📊 REALTORS®’ total expenses slightly increased to $8,450 in 2023.
The real estate market in 2023 has presented unprecedented challenges and significant transformations. From plummeting home sales to the resilience of REALTORS®, there are countless insights to be garnered from the latest National Association of REALTORS® (NAR) 2024 Member Profile. In this blog post, we’ll dive deep into the key findings and what they mean for both real estate professionals and homebuyers.
The real estate sector in 2023 encountered a myriad of obstacles—from the lowest existing-home sales since 1995 to a marked decrease in REALTORS®’ incomes. Yet, despite these hurdles, a significant majority of REALTORS® remain optimistic about their careers. Let’s analyze the key takeaways and provide actionable advice for those navigating this complex landscape.
Declining Home Sales: A Record Low Since 1995
Historical Context
In 2023, the volume of existing-home sales reached the lowest level since 1995. This alarming trend highlights the difficulties faced by both buyers and sellers in a market severely constrained by limited inventory and unaffordably high housing prices.
Contributing Factors
- Lack of Inventory (26%): REALTORS® pinpointed the shortage of available homes as a critical factor hindering potential sales.
- Housing Affordability: High prices have kept many would-be buyers out of the market.
- High Mortgage Rates: Elevated rates have further compounded the affordability crisis.
The Resilience of REALTORS®
Adapting to Change
Despite these setbacks, 73% of REALTORS® are committed to staying in the industry for at least the next two years. This resilience speaks volumes about the adaptability and tenacity of real estate professionals.
Diversity Among New Members
New REALTORS® are more diverse than their seasoned counterparts, with 40% of those with two years or less of experience being non-White. This shift towards greater diversity indicates a positive trend for inclusivity within the profession.
Income and Experience
- Median Gross Income: The typical REALTOR® earned $55,800 in 2023, a slight decline from previous years.
- Experienced REALTORS®: Those with 16+ years in the industry saw more repeat business and referrals, further emphasizing the value of experience.
The Role of Technology
Daily Tech Utilization
- Smartphones (96%): Essential for daily operations, especially for email and social media.
- Laptops/Desktops (91%): Crucial for managing transactions and client communications.
Online Presence
- Professional Websites (72%): Most REALTORS® maintain their own websites, a critical tool for branding and client engagement.
- Social Media: Facebook (77%), Instagram (57%), and LinkedIn (55%) are the top platforms used for professional purposes.
Challenges and Opportunities
Property Management
The average property manager oversaw 31 properties in 2023, a notable decline from previous years. This trend could indicate a shift in the real estate management landscape, requiring professionals to adapt swiftly.
Costs and Expenses
REALTORS® faced increased total expenses, rising to $8,450 in 2023. Despite this, experienced REALTORS® (16+ years) saw a notable increase in their median gross income, up to $92,500.
Conclusion
The real estate market in 2023 has been fraught with challenges but also opportunities for growth and adaptation. REALTORS® have shown remarkable resilience and adaptability, leveraging technology and embracing diversity to navigate this turbulent market successfully.
Actionable Advice
- Stay Informed: Keep abreast of market trends and adapt strategies accordingly.
- Leverage Technology: Utilize digital tools for marketing, client communication, and streamlined operations.
- Focus on Relationship Building: Experienced REALTORS® thrive on repeat business and referrals—prioritize building long-term relationships.
- Embrace Diversity: Reflect the changing face of the market by fostering an inclusive workplace.
Key Takeaways for Homebuyers
- Be Prepared: Understand the current market dynamics and prepare for potential challenges in the buying process.
- Work with Experienced REALTORS®: Leverage their market knowledge and expertise to navigate complex transactions.
Final Thoughts
As we move forward, the insights from the NAR 2024 Member Profile serve as a guide for both REALTORS® and homebuyers to navigate the evolving real estate landscape successfully.
