NAR survey reports rise in Realtor® income, sales volume

Realtor® incomes are up for the third year in a row, according to the 2014 National Association of Realtors® (NAR) Member Profile.

The survey indicates that income and sales volume among NAR’s members has “jumped” for the third year in a row, a reflection in part of the 11.5 percent rise in home prices over the last year.

Lawrence Yun, NAR chief economist, said recovery in the housing market since the downturn continues to improve the earnings of real estate professionals. “Fueled mostly by rising home sales and prices, the median gross income of a Realtor^® increased to $47,700 in 2013 from $43,500 in 2012, marking a 9.6 percent rise and a sharp gain from $34,900 in 2011,” he said.

Income increased with experience and those NAR members who had been in the business for more than 16 years earned $70,200 from 15 transactions while those with three to five years of experience had a median income of $30,100 from 10 transactions.  Brokers earned $66,300 while licensed sales agents earned $35,000.

Last year also brought an increase of new and younger members to NAR. Years of experience in real estate decreased to 12 years from 13 years in 2012; the typical tenure at a firm decreased to six years from seven; and the age of members decreased to 56 years from 57 years. Three percent of all Realtors® are under 30 years of age, 16 percent are between ages 30 and 44, and 24 percent are 65 and older.

“Realtors^® bring value to buyers and sellers, help build communities, and encourage responsible homeownership behaviors,” said NAR President Steve Brown. “The fact that the number of members with one year or less of experience rose to 9 percent in 2013 from 5 percent the year before shows that those agents getting into the field are attracted to the many benefits and business opportunities that come with being a Realtor^®.”

Regarding business practices of Realtors®:

• More than two-thirds have a personal website which has been operational for eight years and 12 percent have a blog
• Ninety-one percent report their firm has an on-line presence
• Sixty-one percent of respondents use social or professional networking sites, up from 56 percent
• Nearly all respondents (94 percent) use email to communicate with customers, following by telephone (90 percent) and text messaging (80 percent)
• Repeat business accounted for 21 percent of business activity but for those in the business for more than 16 years 42 percent. Referrals accounted for 21 percent.

The 2014 Member Profile is based on a survey of 95,340 members. The study can be ordered online or by calling 800-874-6500.