Understanding the 2024 NAR Member Profile: Insights and Implications for Real Estate Professionals

The 2024 NAR Member Profile offers a comprehensive look at the state of the real estate industry, highlighting the characteristics, business activities, and demographics of REALTORS? across the United States. This data-rich report not only provides a snapshot of the current market conditions but also offers valuable insights that real estate and mortgage professionals can leverage to navigate the evolving landscape. Here are the key takeaways from the report:

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Business Characteristics of REALTORS?

1. Licensing and Experience: 65% of REALTORS? were licensed sales agents, 22% held broker licenses, and 17% held broker associate licenses. The typical REALTOR? has 10 years of experience, with new entrants contributing to a slight increase in members with 2 years or less experience (18%).
2. Specialty and Commitment: 74% of REALTORS? specialized in residential brokerage. 73% are very certain they will remain active in the industry for the next two years, demonstrating a strong commitment despite market challenges.

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Business Activity of REALTORS?

1. Transactions and Sales Volume: The typical agent had 10 transactions in 2023, down from 12 in 2022. Median sales volume decreased to $2.5 million from $3.4 million in 2022, reflecting the impact of the challenging market conditions.
2. Client Challenges: The main factors limiting clients from making purchases were lack of inventory (26%), housing affordability (26%), and difficulty finding the right property (9%).

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Income and Expenses of REALTORS?

1. Income Distribution: Median gross income for REALTORS? decreased slightly to $55,800 in 2023 from $56,400 in 2022. There is a significant income disparity based on experience: REALTORS? with 16+ years of experience had a median income of $92,500, while those with 2 years or less had a median income of $8,100.
2. Expenses: Total median business expenses increased to $8,450 in 2023 from $8,210 in 2022, with vehicle expenses being the largest category.

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Office and Firm Affiliation of REALTORS?

1. Firm Affiliation: 53% of REALTORS? are affiliated with an independent company, and 88% work as independent contractors. The median tenure with their current firm is 5 years, indicating a relatively stable professional environment.

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Technology and REALTORS?

1. Technology Usage: 96% of REALTORS? use a smartphone with email and internet capabilities daily. 72% have a website for business use, which typically includes property listings and information about the buying and selling process.
2. Social Media: REALTORS? are most active on Facebook, LinkedIn, and Instagram for professional use.

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Demographic Characteristics of REALTORS?

1. Demographics: The typical REALTOR? is a 55-year-old white female with a college education and a homeowner. 65% of REALTORS? are female, up from 62% last year. The median age of REALTORS? is 55, with 48% aged between 40 to 59.
2. Career Background: 16% had a previous career in sales or retail, and 16% in management, business, or finance. 59% of REALTORS? said real estate is their only occupation now, compared to pre-COVID times.

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Implications and Advice for Real Estate and Mortgage Professionals

The data from the NAR Member Profile highlights the resilience and adaptability of REALTORS? in a challenging market. Here are some key implications and advice:

1. Leveraging Technology: With the high usage of smartphones and social media, professionals should continue to enhance their digital presence. Investing in a robust online presence can help in reaching more clients and providing them with the necessary information.
2. Addressing Client Challenges: REALTORS? need to focus on creative solutions to address inventory shortages and affordability issues. This might include working with builders on new construction projects or exploring alternative financing options for buyers.
3. Continuing Education and Specialization: Given the income disparities based on experience, newer REALTORS? should consider investing in continuing education and consider specializing in niche markets to differentiate themselves and increase their earning potential.
4. Networking and Referrals: With a significant portion of business coming from repeat clients and referrals, building and maintaining strong relationships is crucial. REALTORS? should master client retention technology, prioritize client satisfaction and stay connected with past clients.
5. Staying Adaptable: The changing market conditions require professionals to stay adaptable and informed about industry trends. Regularly reviewing reports and attending industry events can provide valuable insights and help in making informed business decisions.

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By understanding and leveraging the insights from the NAR Member Profile, real estate professionals can better understand their position in the marketplace and gain encouragement on their situation compared to their peers. Conversely, these same insights can help mortgage professionals better understand the conditions their Realtor partners are experiencing which should help mortgage professionals better serve these partners.

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For more detailed information, you can access the full 2024 National Association of REALTORS? Member Profile here.

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Conclusion

Despite the challenging market conditions, the resilience and dedication of REALTORS? remain evident. By leveraging technology, addressing client challenges, continuing education, and maintaining strong client relationships, real estate professionals can navigate these times effectively. Let's stay committed to helping Americans achieve the dream of homeowners and help them create wealth through real estate.