The National Association of Realtors (NAR)® said today that members of the trade association who were recently surveyed on their business activity had reported a 12% increase in income and sales volume.
Despite the lack of housing inventory and industry challenges, transactions jumped to 12 per agent which was the highest number of transactions since 2014 when the typical agent had 11.
Realtors reported their median sales volume increased from $1.8 million in 2015 to $1.9 million in 2016 and their median income was also on the rise from $39,200 in 2015 to $42,500 in 2016.
The median gross income of Realtors® climbed 8% in 2016 from $98,300 in 2015 to $111,400 last year.
According to the NAR survey, 24% of members make under $10,000, and 24% earn more than $100,000. Realtors with more experience reported that their median gross income and the number of transactions generally increased with experience; Realtors® in business for more than 16 years earned a median income of $78,850 (up from $73,400 in 2015) and had 15 transactions, the same number as 2015. Realtors® with 2 years or less experience had a median gross income of $8,930, an increase from $7,400 in 2015, and had 4 transactions.
Lawrence Yun, NAR chief economist, had said this about current Realtor business activity, “The return of pre-recession market levels and rising home sales and prices have led to increased business activity among Realtors® and an increase in Realtor® membership. It is a highly entrepreneurial business, with some members earning six-figure incomes while others were barely scratching out less than $10,000.”
Housing inventory continues to be the top problem for some Realtors who report that it limits potential clients in completing transactions. The top reason cited by Realtors® was difficulty finding the right property (36 percent), housing affordability (16 percent), and difficulty in obtaining mortgage financing (14 percent), according to the NAR.
“Limited inventory and rising prices were large factors affecting the real estate market across the country over the last year, so it is no surprise that these same market conditions were cited in the survey as having the largest impact on Realtors®’ ability to help their client complete a transaction.” said Yun.
Repeat business and referrals continue to be important sources of income for Realtors®, especially those with more experience. Realtors® with 16 or more years of experience reported 61 percent of business was from repeat customers or referrals.
Read more from the NAR at this link.