Home News Nearly Three Out of Five REALTORS® Say Limited Inventory Prevented Clients from Buying Homes in 2021

Nearly Three Out of Five REALTORS® Say Limited Inventory Prevented Clients from Buying Homes in 2021

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Washington (July 11, 2021) – 57% of REALTORS® are in stock as the main reason to limit potential customers from completing transactions, according to the National REALTORS® Association, as housing supply continues to be tight. I mentioned the shortage of. 2022 member profile, An annual report that analyzes the business activities and demographics of members from the previous year. However, due to the surge in housing demand last year and the sale of 6.12 million existing homes (the highest since 2006), NAR membership increased from 1.48 million at the end of 2020 to 1.56 million at the end of 2021. ..

“Last year, REALTORS® continued to navigate difficult housing markets, saying that the biggest obstacle to the housing market was tight inventory,” said Jessica, Vice President of Demographics and Behavioral Insights at NAR. Lautz says. “As buyers moved across the pandemic, affordable housing and supply shortages became a hurdle for agents and brokers to find ways to overcome them.”

REALTORS® Business Characteristics

Two-thirds – 67% – of REALTORS® hold distributor licenses, 21% hold broker licenses, and 14% hold broker associate licenses. 71% of members specialize in housing brokerage. Relocation, home wealth management and commercial brokerage are members’ most common secondary disciplines.

Members usually have 8 years of real estate experience, the same as a year ago. Eighteen percent of those surveyed have less than a year of experience, the same as last year, while 18% of REALTORS® have more than 25 years of experience, from 15% in 2020. Distributors, on the other hand, were usually the newest in the field with six years of experience. Consistent with a recent survey, nearly four (79%) of the five members were convinced that they would stay in the real estate industry for at least another two years.

REALTORS® business activities

Typical NAR members had more sales in 2021 ($ 2.6 million vs. $ 2.1 million) and more transactions (12:10) than in 2020.

A typical REALTOR® has gained 16% of business from previous clients and customers, a slight increase from 15% last year. The most experienced members (members with more than 16 years of experience) reported a high percentage of repeat business from clients or referrals (median 2021 44% vs. median 2020 37%). .. Members with less than two years of experience reported that there was no repeat business. Overall, REALTORS® gained a median business of 20% from referrals, a slight increase from 19% in 2020. Referrals were more common among experienced members, with a median of 31% for members over 16 years. Experience compared to no referrals for people with less than 2 years of experience.

Demographic characteristics of REALTORS®

77% of REALTORS® is white, a slight decrease from 78% last year. Hispanics / Latin Americans accounted for 11% of REALTORS®, followed by Black / African Americans at 8% and Asian / Pacific Islanders at 5%. New members tended to be more diverse when compared to more experienced members. Of those with less than two years of experience, 37% are racial minorities, up from 34% a year ago.

“The real estate industry is becoming more and more racially diversified, attracting new entrants who are likely to be women,” Lautz added. “The dynamic nature of real estate facilitates a variety of business models, strong relationships, and business activities.”

66% of REALTORS® are women, a slight increase from 65% last year. The median age of REALTORS® was 56, an increase from 54 in the previous year. About two (41%) of the five members were over 60 years old and 4% were under 30 years old.

More than 9 out of 10 members (93%) have a higher education, 31% have a bachelor’s degree, 6% have a graduate education, and 14% have a graduate school.

Two out of three members (67%) reported volunteering in the community. Volunteering was the most common among members between the ages of 40 and 49.

Leslie Rudasmith, President of NAR, REALTOR® in Plano, Texas and Broker Associate of Dave Perry-Miller Real Estate in Dallas, said: “In a highly competitive and ever-changing market situation, REALTORS® demonstrates professionalism, strong work ethic, and credible knowledge in guiding consumers through the complex process of achieving real estate ownership. “

REALTORS® Income and Expenses

Median total revenue for REALTORS® was $ 54,300 in 2021, up from $ 43,330 in 2020. With over 16 years of experience, REALTORS® had a median total revenue of $ 85,000, an increase from $ 75,000 in the previous year as the revenue was commensurate with normal experience. The median total project cost for members was $ 6,250 in 2021, up from $ 5,330 in 2020.

Technology and REALTORS®

On a daily basis, the majority of REALTORS® use smartphones (96%) with wireless email and internet capabilities, as well as laptops or desktop computers (91%). The smartphone features that members use most often on a daily basis are email (94%) and social media and GPS apps, both at 53%. Text messaging (94%) is the most common means of communication between members and clients, followed by telephone (92%) and email (90%). Nearly 7 out of 10 members (68%) have their own website. 6% of REALTORS® use drones as part of their business and 37% employ professional drone operators. 4% and 2% of members use 3D / virtual tours and virtual staging technology on a daily basis, respectively.

REALTORS® office and company partnerships

A small majority (54%) of REALTORS® worked for an independent company, and 87% were independent contractors for that company. Both numbers are about the same as they were a year ago. Forty-three percent of the members worked for a company with one office, and 26% worked for a company with two to four offices. The median tenure of a typical REALTOR® was five years for the current company, similar to 2020. 8% of members reported working for a company that they acquired or merged in the last two years. Negligence insurance is the most common benefit offered by member companies.

Survey method

In March 2022, NAR emailed a survey of 97 questions to 176,494 REALTORS® random samples. Using this method, a total of 9,220 responses were received. The adjusted response rate for the survey was 5.2%. The confidence interval at the 95% confidence level is +/- 1.02% based on a population of 1.5 million members. Survey responses are weighted to represent state-level NAR membership. Information on rewards, revenue, sales volume, and transaction count is characteristic of 2021, and all other data is characteristic of members in early 2022.

For more information on NAR’s 2022 member profile, please visit: https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-nar-member-profile..

The National REALTORS® Association is America’s largest industry association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industry.

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Information about NAR is available at nar.realtor. This news release and other news releases can be found in the newsroom at nar.realtor/newsroom. Statistical data for this release, as well as other tables and surveys, can be found on the Surveys and Statistics tab.

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