For real estate agents, experience matters a lot in a difficult real estate market.
Here’s What the 2024 Member Profile Survey Takes national association of realtors (NAR), which shows a huge difference in earnings when comparing experienced agents to their less experienced colleagues.
Median gross earnings for real estate agents with at least 16 years of experience will rise from $80,700 in 2022 to $92,500 in 2023. $55,800 per year.
“2023 is going to be a tough year for real estate agents as high mortgage rates and low housing inventory severely impact home sales,” Jessica Lautz, deputy chief economist and vice president of research at NAR, said in a statement. volume. “Real estate agents face competition from all angles, not only to represent clients but also to ensure buyers’ offers are accepted in tough real estate market conditions. “
More experienced agents benefit from repeat business. By 2023, the typical real estate agent will receive 20% of their business from repeat clients, down from 27% in 2022.
The NAR report showed that brokerage firms reported a significant drop in sales, from $3.4 million per agent in 2022 to $2.5 million in 2023, while the typical number of transactions for an agent dropped from 12 to 10. Grim, but 73% of members said they were “very sure” they would stay in the industry for at least another two years.
The demographics of real estate agents are diversifying as the agent workforce becomes younger. By 2023, the number of white agents will drop 2 percentage points to 79%.
Unfortunately for buyers, sellers, and agents, inventory and affordability issues continue into 2024. It’s up, but still at historic lows.
Realtors probably don’t need to take a poll to know why they think existing home sales in 2023 will fall to their lowest level since 1995.
But NAR’s 2024 Membership Profile reveals just how much of an impact it will have on the market, as 26% of real estate agents said these two factors were preventing their clients from buying a home in 2023.
