Tag Archives: home sales

technology and the realtor

2020 Saw Highest Number of Home Sales Since 2006 Says REALTOR® Annual Survey

Realtors® cited a lack of inventory as the leading reason limiting potential clients from completing a transaction, according to the National Association of Realtors®’ (NAR) 2021 Member Profile, an annual report analyzing members’ business activity and demographics from the prior year. However, in spite of a global pandemic, its drastic impacts on how business was conducted, and a dwindling housing supply, 2020 saw the highest number of homes sold since 2006 (5.64 million) and NAR’s membership increased from the previous year (1.48 million at the end of 2020, up from 1.4 million at the end of 2019).

“Realtors® continued to serve clients’ needs despite the challenges 2020 brought to the real estate market,” said Jessica Lautz, NAR vice president of demographics and behavioral insights. “Economic lockdowns and historically-low inventory coupled with surging home buying demand only showed the resilience of our members and industry.”

Key Survey Takeaways

real estate business

(c) Can Stock Photo / ferli

Business Characteristics

The majority of Realtors® – 68% – hold sales agent licenses, which is up from 65% last year. Twenty percent hold broker licenses and 13% hold broker associate licenses. Seventy-three percent of members specialize in residential brokerage. Relocation, residential property management and commercial brokerage are members’ most common secondary specialty areas.

Members typically have eight years of real estate experience, down from nine years in 2019. Eighteen percent of those surveyed have one year or less experience – nearly identical to 17% last year – while 15% of Realtors® have more than 25 years of experience, down from 17% a year ago. Appraisers, broker-owners, and managers had the most experience, while sales agents were typically the newest to the field with five years of experience. Consistent with recent surveys, nearly four out of five members – 79% – were certain they’ll remain in the real estate industry for at least two more years.

Business Activity

The typical member had a slightly lower sales volume ($2.1 million vs. $2.3 million) and fewer transactions (10 vs. 12) in 2020 compared to 2019.

The typical Realtor® earned 15% of their business from previous clients and customers, unchanged from last year. The most experienced members – those with 16 or more years of experience – reported a greater share of repeat business from clients or referrals (a median of 37%), compared to no repeat business for those with two years of experience or less. Overall, Realtors® earned a median of 19% of their business from referrals, a slight drop from 20% in 2019. Referrals were also more common among members with more experience, with a median of 27% for those with 16 or more years of experience compared to no referrals for those with two years of experience or less.

Income and Expenses

The median gross income for Realtors® was $43,330 in 2020, down from $49,700 in 2019. Realtors® with 16 years or more experience had a median gross income of $75,000, a decrease from $86,500 last year, as income was typically commensurate with experience. One out of four Realtors® earned $100,000 or more. Total median business expenses for members were $5,330 in 2020, a decline from $6,290 in 2019.

Realtor demographics

(c) Can Stock Photo

Demographic Characteristics

Seventy-eight percent of Realtors® were White, down slightly from 80% last year. Hispanics/Latinos accounted for 9% of Realtors®, followed by Black/African Americans (7%) and Asian/Pacific Islanders (6%). New members tended to be more diverse than experienced members. Among those who had two years or less of experience, 34% were minorities.

Sixty-five percent of Realtors® were women, a minor increase from 64% last year. The median age of Realtors® was 54, down slightly from 55 last year. A third of members were over 60 years old and 5% were age 30 or younger.

More than nine in 10 members – 93% – had some post-secondary education, with a third completing a bachelor’s degree, 6% having some graduate school education, and 13% completing a graduate degree.

The marital status of Realtors® remained nearly unchanged from 2019. Sixty-nine percent of Realtors® were married, 15% were divorced, and 11% were single or never married. The typical Realtor® household had two adults and no children.

Two-thirds of members – 66% – reported volunteering in their community. Volunteering was most common among members aged 40 to 49 years.

“Realtors® come from all walks of life and serve as pillars in their respective communities,” said NAR President Charlie Oppler, a Realtor® from Franklin Lakes, N.J., and the CEO of Prominent Properties Sotheby’s International Realty. “As champions for consumers, Realtors® combine hard work, dedication and trusted expertise to help individuals and families achieve the dream of property ownership.”

technology and the realtor

(c) Can Stock Photo

Technology and Realtors®

The coronavirus pandemic has forced businesses of all types to rely heavily on technology for communicating with consumers and remaining competitive in the marketplace. On a daily basis, the strong majority of Realtors® use a smartphone with wireless email and internet capability (96%) and a laptop or desktop computer (92%). The smartphone features that members use most frequently on a daily basis are email (95%) and social media apps (57%). Text messaging (93%) is the top method of communication for members with their clients, followed by phone calls (90%) and email (89%). Nearly seven in 10 members – 69% – have their own website.

“Realtors® used emerging technologies in 2020 to bridge the gap when pandemic precautions were in place,” Lautz said. “Members have now pivoted and embraced these tools to showcase listings and help buyers strategically find and secure the limited number of properties available.”

 

© Can Stock Photo / EyeMark

Office and Firm Affiliation

Despite an ever-changing housing market, Realtor® office and firm affiliation remained stable compared to a year ago. A slight majority of Realtors® – 53% – worked with an independent company and 88% were independent contractors at their firms. Forty-two percent of members worked at a firm with one office and 26% worked at a firm with two to four offices. The typical Realtor® had a median tenure of five years with their current firm, up from a median of four years in 2019. Eight percent of members reported working for a firm that was bought or merged. Errors and omissions insurance is the most common benefit provided by members’ firms.

Survey Methodology

In March 2021, NAR emailed a 93-question survey to a random sample of 161,155 Realtors®. Using this method, a total of 10,643 responses were received. The survey had an adjusted response rate of 6.6%. The confidence interval at a 95% level of confidence is +/- 0.95% based on a population of 1.4 million members. Survey responses were weighted to be representative of state level NAR membership. Information about compensation, earnings, sales volume and number of transactions are characteristics of calendar year 2020, while all other data are representative of member characteristics in early 2021.

For more information from NAR’s 2021 Member Profile, visit https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-nar-member-profile.

The National Association of Realtors® is America’s largest trade association, representing more than 1.4 million members involved in all aspects of the residential and commercial real estate industries.

[Source: NAR’s 2021 Member Profile, visit https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-nar-member-profile.]

 

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Existing Home Sales Slip Again in July

Year-over-year price gains hit 77 months in a row

By Jeff Sorg, OnlineEd Blog

(August 23, 2018)

(PORTLAND, Ore.) – Existing-home sales fell in July 2018 to their slowest pace since February 2016, according to a report by the National Association of Realtors®(NAR). Also according to the report, the West was the only major region with an increase in sales last month.

The median price for all housing types was up 4.5% in July to $269,900 marking the 77th month in a row of year-over-year price gains but July also marked the fourth straight month for falling home sales

Lawrence Yun, NAR chief economist, says the continuous solid gains in home prices have now steadily reduced demand. “Led by a notable decrease in closings in the Northeast, existing home sales trailed off again last month, sliding to their slowest pace since February 2016 at 5.21 million,” he said. “Too many would-be buyers are either being priced out or are deciding to postpone their search until more homes in their price range come onto the market.”

Average market time reported by NAR sits at just 27 days, which is up from 26 days in June 2018 but down 30 days from 2017.

To read the complete NAR report, please visit their National Association of REALTORS Newsroom.

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HUD Reports Home Sales Rise 26.6 Percent (±16.6 percent)

Median Sale Price Hits $377,100

By Jeff Sorg, OnlineEd Blog

(December 22, 2017)

hud(WASHINGTON, D.C. – HUD) Sales of new single-family houses in November 2017 were at a seasonally adjusted annual rate of 733,000. This is 17.5 percent (±10.4 percent) above the revised October rate of 624,000 and is 26.6 percent (±16.6 percent) above the November 2016 estimate of 579,000.

The median sales price of new houses sold in November 2017 was $318,700. The average sales price was $377,100.

The seasonally adjusted estimate of new houses for sale at the end of November was 283,000. This represents a supply of 4.6 months at the current sales rate.

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For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers visit www.OnlineEd.com.

All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained from third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

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Existing Home Sales to Finish Year at a Pace of 5.30 Million – the Highest Since 2006

Unless sizeable supply gains occur for new and existing homes, prices and rents will continue to exceed wages

By Jeff Sorg, OnlineEd Blog

man holding up graph line(December 1, 2015) – Lawrence Yun, chief economist for National Association of REALTORS®, buyers struggling to overcome a scant number of available homes for sale and prices that are rising too fast in some markets are causing sales to level off. “Contract signings in October made the most strides in the Northeast, which hasn’t seen much of the drastic price appreciation and supply constraints that are occurring in other parts of the country,” he said. “In the most competitive metro areas – particularly those in the South and West – affordability concerns remain heightened as low inventory continues to drive up prices.”

Yun presented his 2016 economic outlook and housing forecast at the 2015 REALTORS® Conference & Expo in San Diego. He forecasts existing-home sales to finish 2015 at a pace of 5.30 million – the highest since 2006.

“Unless sizeable supply gains occur for new and existing homes, prices and rents will continue to exceed wages into next year and hamstring a large pool of potential buyers trying to buy a home,” says Yun.

The Pending Home Sales Index in the Northeast rose 4.5 percent to 93.6 in October, and is now 6.8 percent above a year ago. In the Midwest the index declined 1.0 percent to 103.9 in October, but remains 3.3 percent above October 2014. Pending home sales in the South decreased 1.7 percent to an index of 118.1 in October and are now 0.3 percent below last October. The index in the West climbed 1.7 percent in October to 106.2, and is 10.4 percent above a year ago.

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For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers, visit www.OnlineEd.com.

 All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained by third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

Inventory Down Year-Over-Year for Fifth Straight Month

Inventory of all homes for sale nationwide fell 6.5 percent year-over-year

By Jeff Sorg, OnlineEd Blog

forsale family at signSEATTLE, Wash. (July 30, 2015)  – There were fewer homes for sale in June than there were a year ago, increasing competition for potential buyers this home shopping season. Most of these declines were among the lowest-valued homes sought by first-time homebuyers, according to the first quarter Zillow® Real Estate Market Report.

In the lowest-priced third of homes for sale, the inventory homes on the market fell year-over-year in 28 of the nation’s 35 largest metro areas. By comparison, among the highest-priced homes, inventory fell year-over-year in only 10 of the nation’s largest metro areas.

The total number of homes listed for sale on Zillow in June was down 6.5 percent year-over-year but was up 2.1 percent on a monthly basis. Large metros where inventory has increased the most annually include Austin (up 30.3 percent), Atlanta (22.4 percent) and Washington, DC (18.9 percent).

“Historically low mortgage rates continue to keep overall ownership affordability very good by historical standards, making it a great time to buy a home, especially with rent becoming increasingly unaffordable,” said Zillow Chief Economist Stan Humphries. “Finding a house is the last hurdle for many buyers who have saved a down payment and gotten pre-approved for a mortgage. But low inventory levels like those we’re seeing across the country can bring the home-buying process to a screeching halt. In many markets, there just isn’t a lot to choose from in terms of homes on the market.”

Overall, home values in the United States rose 3.3 percent from June 2014, and 0.3 percent from May to a Zillow Home Value Index of $180,100. As home values continue to rise, buyers are faced with more challenges in a tighter market, especially in hot markets like Denver, which saw the highest home value appreciation from last year, surpassing even San Jose and San Francisco.

Rents have also continued to rise in the second quarter, up 4.3 percent from this time last year to a Zillow Rent Index of $1,369.

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 All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained by third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

HUD and Census Bureau Report New Residential Sales in June

Home supply at just 5.8% months

By Jeff Sorg, OnlineEd Blog, July 28, 2015

WASHINGTON, D.C. – Sales of new single-family houses in June 2015 were at a seasonally adjusted annual rate of 482,000 uints, according to estimates released jointly today by the U.S. Department of Housing and Urban Development (HUD) and the Census Bureau. This is 6.8 percent (±12.5%)* below the revised May rate of 517,000 units and is 18.1 percent (±18.1%) above the June 2014 estimate of 408,000 units.

The median sales price of new houses sold in June 2015 was $281,800; the average sales price was $328,700. The seasonally adjusted estimate of new houses for sale at the end of June was 215,000 units. This represents a supply of 5.4 months at the current sales rate.

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For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers, visit www.OnlineEd.com.

 All information contained in this posting is deemed correct as of the date of publication, but is not guaranteed by the author and may have been obtained by third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

Sellers Remain for All-Time-High of 10 Years Before Selling, Says NAR Survey

(Jeff Sorg, OnlineEd) —Pending home sales declined in October but remained at a healthy level of activity and are above year-over-year levels for the second straight month, according to the National Association of Realtors®.

“In addition to low interest rates, buyers entering the market this autumn are being lured by the increase in homes for sale and less competition from investors paying in cash,” said Lawrence Yun, NAR Chief Economist. “Demand is holding steady but would be more robust if it weren’t for lagging wage growth and tight credit conditions that continue to hamper those individuals looking for relief from rising rents,” he added.

The median existing-home price for all housing types in October 20147 was $208,300, which is 5.5 percent above October 2013. Monthly median price growth has averaged 5.8 percent in 2014 (through October) after averaging 11.5 percent last year.

“The increase in median prices for existing-homes has leveled off, representing a healthier pace that has kept affordability in-check for buyers in many parts of the country while giving more previously stuck homeowners with little or no equity the ability to sell,” says Yun.

Yun says evidence of rising home prices allowing more willing homeowners the ability to sell can be found in NAR’s annual survey released earlier this month, which revealed that the typical seller over the past year was in their home for 10 years before selling—an all-time survey high for tenure of home.

NAR also recently released its economic and housing forecast for 2015 and 2016. Yun is forecasting existing-home sales this year to fall slightly below 2013 (5.1 million) to 4.9 million, and then increase to 5.3 million next year and 5.4 million in 2016. Yun expects the national median existing-home price to rise 4 percent both next year and in 2016.

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 For more information about OnlineEd and their education for real estate brokers, principal brokers, property managers, and mortgage brokers, visit www.OnlineEd.com.

  This article was published on December 2, 2014. All information contained in this posting is deemed correct and current as of this date, but is not guaranteed by the author and may have been obtained by third-party sources. Due to the fluid nature of the subject matter, regulations, requirements and laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.

 

Existing home sales fall to lowest level in nearly a year

arrow, grey, downWASHINGTON (Reuters) – U.S. home resales fell sharply in November to their lowest level in nearly a year, hurt by a rise in interest rates since the spring and ongoing price increases that have shut some home buyers out of the market.

The National Association of Realtors (NAR) said on Thursday that sales of previously owned homes dropped 4.3 percent last month, the third monthly fall in a row, to an annual rate of 4.90 million units.

That was the lowest annual rate since December 2012, and well below the median forecast in a Reuters poll of a 5.03 million unit pace.

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This article was published on December 19, 2013.  All information contained in this posting is deemed correct and current as of this date, but is not guaranteed by the author. Due to the fluid nature of the subject matter, regulations, requirements, laws, prices and all other information may or may not be correct in the future and should be verified if cited, shared or otherwise republished.