🇺🇸❤️🇮🇹 Real Estate Tech with AI
Incomes are rising for experienced Realtors but falling for younger ones. In today’s tough housing market, experience truly matters.
That’s the finding of the 2024 Member Profile poll from the National Association of Realtors (NAR), which highlights a significant income gap between seasoned agents and their newer counterparts.
The Value of Experience
For Realtors with at least 16 years of experience, the median gross income jumped from $80,700 in 2022 to $92,500 in 2023. Meanwhile, for Realtors overall, the median gross income dipped slightly from $56,400 in 2022 to $55,800 in 2023.
“2023 was a challenging year for Realtors due to high mortgage rates and low housing inventory, which significantly impacted home sales volume,” explained Jessica Lautz, NAR’s deputy chief economist and vice president of research. “Realtors faced competition at every turn, not only to represent clients but also to ensure their buyers’ offers were accepted amid tough real estate market conditions.”
The Power of Repeat Business
Experienced agents reap the benefits of repeat clients. In 2023, the typical Realtor got 20% of their business from repeat clients, down from 27% in 2022. However, those with at least 16 years of experience saw 42% of their business coming from repeat clients in 2023.
Despite a tough market, 73% of members are optimistic about their future in the industry, feeling “very certain” they will remain in the field for at least two more years. This confidence underscores the resilience and adaptability of Realtors.
Navigating a Changing Market
The demographic profile of Realtors is shifting, with a younger and more diverse group joining the field. The number of white agents fell by 2 percentage points to 79% in 2023, and among agents with two years of experience or less, 40% were non-white. This growing diversity is essential for the industry’s continued growth and relevance.
However, inventory and affordability issues have persisted into 2024. NAR’s existing-home sales report for May showed a 2.8% year-over-year decline in sales volume, a 5.8% increase in median prices, and historically low inventory levels, despite a slight increase.
Insights for Buyers and Sellers
For buyers and sellers navigating this challenging market, practical advice and actionable insights are crucial:
- Leverage Technology: Embrace AI and real estate tech to streamline processes, enhance client interactions, and gain a competitive edge.
- Build Relationships: Experienced agents thrive on repeat business. Cultivating long-term relationships with clients can provide stability and consistent income.
- Stay Informed: Keep up with market trends and economic factors affecting real estate. Knowledge is power, and staying informed can help you make better decisions.
- Adapt and Innovate: Be open to new strategies and technologies that can help you adapt to changing market conditions.
A Hopeful Future
Despite the challenges, the future of real estate is bright, driven by innovation and resilience. By embracing new technologies and adapting to market shifts, we can navigate these turbulent times with confidence and optimism.