The typical Realtor in 2023

On Monday I wrote about the typical home buyer and on Tuesday I wrote about the typical home seller. Today I am writing about the typical Realtor using statistics from the National Association of Realtors.

In advertising and in the media Realtors are often portrayed as men in suites or as young women. Neither is accurate.

Here are some demographics:

  • Sixty-four percent of REALTORS® were licensed sales agents, 20 percent held broker licenses, and 18 percent held broker associate licenses.
  • The typical REALTOR® is a 60-year-old white female who attended college and is a homeowner.
  • 62% of all REALTORS® are female, and the median age of all REALTORS® is 60.
  • Real-estate experience of all REALTORS® (median): 11 years
  • Median tenure at present firm (all REALTORS®): 6 years
  • Most REALTORS® worked 30 hours per week in 2022.
  • The median gross income of REALTORS®—income earned from real estate activities—was $56,400 in 2022, an increase from $54,300 in 2021.
  • Median number of transaction sides in 2022:
    • Residential sides for all REALTORS®: 12
    • Residential sides for residential specialist broker/broker associates only: 14
    • Residential sides for residential specialists only: 10
    • Residential sides for commercial specialists only: 4
    • Commercial sides for commercial specialists only: 5
  • Formal education of REALTORS®:
    • Some college: 30%
    • Bachelor’s degree: 31%
    • Graduate degree and above: 12%
    • Associate degree: 12%
    • Some graduate school: 6%
    • High-school graduate: 8%
  • REALTOR® affiliation with firms:
    • Independent contractor: 89%
    • Employee: 4%
    • Other: 7%

When you think of Realtors picture older women who are independent contractors.

The typical home seller this year

I was surprised to learn that the national average age of home sellers in 2023 was 60. I would have guessed younger. Here are some numbers from the National Association of Realtors seller profile for the last year:

  • The typical home seller was 60 years old, unchanged from last year.
  • For all sellers, the most commonly cited reason for selling their home was the desire to move closer to friends and family (23%), because the home is too small (13%), or a change in the family situation such as marriage, divorce, or new child (10%).
  • Sellers typically lived in their home for 10 years before selling. Among seven of the last 10 years, the typical tenure has been 10 years.
  • 39% of sellers traded up to a larger home and 33% purchased a smaller home.
  • 89% of home sellers worked with a real estate agent to sell their home, 7% sold via FSBO, and less than 1% sold via iBuyer.
  • For recently sold homes, the final sales price was a median of 100% of the final listing price, maintaining last year’s highest recorded since 2002.
  • Recently sold homes were on the market for a median of two weeks, unchanged from last year.
  • 92% of sellers were at least somewhat satisfied with the selling process.
blue house
small house

Home buyers love to ask why the house is on the market and why the owners are moving. The answer is almost always about some kind of a change in their circumstances rather than some big problem with the house.

May 2024 Housing Report

Infographic Minnesota home sales
Minnesota Home Sales May 2024

Minnesota May 2024 housing report from the Minnesota Realtors:

Supply levels are on the rise as home prices continue their ascent

Seller activity was flat while buyers were less active compared to May of 2023. Supply levels are up for the tenth consecutive month as home prices continue increasing.

Many consumers and real estate professionals were expecting fixed mortgage rates to be lower by now, which has caused some buyers to postpone purchase decisions due to declining affordability levels.

Even as closed sales and inventory increased, new listings and pending sales fell compared to last May, an indication that the market has been slightly cooler this spring.

“Despite the slowdown in new listings in May, anytime we see inventory levels rise overall, it’s a good sign,” said 2024 MNR President Geri Theis. “Both buyers and sellers can find opportunities in this market by working with a trusted local Realtor®.”

May Year-Over-Year Summary of Key Market Indicators:

  • Closed sales: 6,575 (up 10.0%)
  • Median sales price: $350,000 (up 2.9%)
  • Average sales price: $411,949 (up 5.2%)
  • New listings: 9,996 (down 1.7%)
  • Pending sales: 6,912 (down 5.7%)
  • Days on the market: 37 (up 5.7%)
  • Homes for sale: 13,910 (up 16.3%)

Mortgage payments way up.

House payments, or mortgage payments as I like to call them reached a new high last week in the US. The median U.S. monthly housing payment set a record high at $2,894 during the four weeks ending May 5, up 14% from one year earlier, according to new data from Redfin (NASDAQ:RDFN).

At the same time, the first quarter of 2024 ended with 45.8% of mortgaged residential properties considered equity-rich, according to new data from ATTOM. This is down from 46.1% in the fourth quarter of 2023, marking the third straight quarterly decline, and it is also down from 47.2% in the first quarter of 2023, hitting the lowest point in two years. [WRENews]

Local data shows that home buyers are on average paying more than the asking price for the homes they buy which indicates that prices are still going up.

I read a lot of news each day. I try to sort through the crap and find the facts.

Despite the hype over homeownership, I can’t see an upside to paying high interest rates on a mortgage for an overpriced house.  In other news, the New York Times just launched a new “Rent Vs. Buy” calculator, and under some scenarios, people save $130,000 by renting rather than owning.

Sure there is a tax deduction for mortgage interest paid on a home loan but that is only for people who can itemize.

Don’t get me wrong. I am strongly in favor of homeownership but not at any cost. Please buy responsibly and consider more affordable options when available.

Pending home sales up in March month over month

From the National Association of Realtors:

Pending Home Sales Ascended 3.4% in March

Key Highlights

Pending home sales increased 3.4% in March.
Month over month, contract signings rose in the Northeast, South and West but dropped in the Midwest.
Compared to one year ago, pending home sales declined in the Northeast and South while the Midwest and West improved.

WASHINGTON (April 25, 2024) – Pending home sales in March climbed 3.4%, according to the National Association of Realtors®. The Northeast, South and West posted monthly gains in transactions while the Midwest recorded a loss. Year-over-year, the Northeast and South registered decreases but the Midwest and West improved.

Quarterly U.S. Economic Forecast

NAR forecasts that existing-home sales will rise by 9% in 2024 to 4.46 million (from 4.09 million 2023) and another 13.2% in 2025 to 5.05 million (from 2024). Housing starts are expected to rise by 1.2% in 2024 to 1.43 million (from 1.413 million in 2023) and 4.9% to 1.5 million in 2025 (from 2024).

“Home sales have lingered at 30-year lows, and since 70 million more Americans live in the country now compared to three decades ago, it’s inevitable that sales will rise in coming years,” explained Yun. “Inventory will grow steadily from more home construction, and various life-changing events will require people to trade up, trade down or move to another location.”

Pending home sales for the US by regionnationalty by regio
Pending home sales by region