REALTOR isn’t a job title

REALTOR isn’t an occupation. A REALTOR is someone who belongs to the National Association of Realtors. We are misunderstood but I don’t think anyone has time to read the thousands of words I could write on that topic. Here are some statistics:

REALTOR® Demographics
65% percent of REALTORS® are licensed as sales agents, 21% hold broker licenses, and 15% hold broker associate licenses.
The typical REALTOR® was a 54-year-old white female who attended college and was a homeowner.

67% of all REALTORS® were female, up from 63% last year.

The majority of REALTORS®—84%—owned their primary residence and 38% owned a secondary property.

54% of REALTORS® were affiliated with an independent company.

Nearly 9 in 10 members were independent contractors at their firms.

The median tenure for REALTORS® with their current firm was four years again in 2017.

9% of REALTORS® worked for a firm that was bought or merged in the past two years.

In 2017, 36% of REALTORS® were compensated under a fixed commission split (under 100%), followed by 23%with a graduated commission split (increases with productivity).

REALTORS® with 16 years or more experience had a median gross income of $71,000 compared to REALTORS® with 2 years or less experience that had a median gross income of $9,300.

The largest expense category for most REALTORS® was vehicle expenses, similar to last year, which was $1,370.

[SOURCE National Association of REALTORS]

Members of NAR are held to a code of ethics and standards of practice.

There are generally more REALTORS than there are home sales and even more real estate licensees. It is hard to survive in real estate sales in the Metro area without being a member of NAR. Most of the local real estate companies make joining NAR mandatory.

A couple of the numbers that stand out is the 67% female up 5% from last year and that the median age went up from 53 to 54. The entire population is aging but the median age of REALTORS was going down.

St. Paul Vs. Minneapolis

view of downtowns
View of St. Paul and Minneapolis from Indian Mounds Park in St. Paul

We call them the “Twin Cities”. They are not identical twins that is for sure. For some Minneapolis is the place to go for fun and St. Paul is the place to call home and get a good nights sleep.

The personalities of the two cities are quite different. St. Paul is much more like a small town. I like to use the word parochial.

Minneapolis has fewer hills and is much more bikeable than St. Paul but I have to say as a St. Paulite I am not afraid to climb a hill or two or go over a few bridges. That keeps my legs strong in case I ever have to race someone in Minneapolis.

Both cities have many lovely parks. In fact, a person could just live in the Twin Cities because of the parks.

The picture was taken at Indian Mounds Park in St. Paul. It shows both downtown St. Paul and downtown Minneapolis. Minneapolis is off to the right.

Often the two cities get lumped together. I am never surprised when I find out that the actual location of a Minneapolis event could be in St. Paul or in Bloomington.

Even though each of the twins has it’s own downtown, when someone refers to downtown they almost always mean Minneapolis. . . unless they are from St. Paul.

The median asking price for a home in Minneapolis is $349,900 and the median asking price for a home in St. Paul is $274,750. The prices are as of yesterday.

Moving into the dumpster

I can understand how it happens. People have to move in a hurry, or maybe they got evicted. For whatever reason, they decide not to move their stuff and throw it in the dumpster instead.

Towards the beginning of every month, I see dumpsters filled with furniture and household items. Those items won’t be recycled or re-used, they will end up in a landfill.

It costs money to move. Stuff costs money. Having space for stuff costs money.

There are many, many organizations that accept used household items. Some organizations will even come and pick up your reusable furniture. I have occasionally pulled furniture from the alley behind my house and donated it to the local thrift shop.

There has to be a better way. A more environmentally friendly way and a way to get these household items back to their owners or get them in the hands of someone who can use them.

Cats are invasive

cat
House cat – in the house

I was so surprised when our veterinarian asked if our kitten was going to be an indoor cat or an outdoor cat. As if there is an option and it is alright for cats to roam free. Sure the cat wants to go outside but I keep her inside.

Cats roam free in my neighborhood and they make little cats too. There are people who believe that it is alright to let their cat roam as long as it has been spayed or neutered.

It isn’t illegal in St. Paul to let your cat roam free:

“You have the right to own a cat. In addition, your neighbor has the right to have a garden or sandbox. You are responsible for keeping your cat away from your neighbor’s property. City ordinances require that all cats must wear an anti-rabies tag when outdoors. Rabies vaccinations must be current. [From the St. Paul dot gov web site]

Just because something is legal doesn’t make it right.

The house cat has long been listed among the 100 most dangerous invasive species. They kill millions of birds and other small animals each year to the point of extinction. A cat is a pet when kept inside but once when outside it is a heartless killer.

“If we extrapolate the results of this study across the country and include feral cats, we find that cats are killing more than 4 billion animals per year, including at least 500 million birds. Cat predation is one of the reasons why one in three American bird species are in decline,” said Dr. George Fenwick, President of American Bird Conservancy [wildlife management institute]

There was a study that shows that they only bring home about 25% of what they kill. They eat some of what they kill but they leave a lot of it where they killed it.

Being a free-range cat in St. Paul is not good for the cat either. Here are some statistics:

200 cats are killed annually in traffic

Life expectancy of a cat allowed to roam is only three to four years

Confined cats can live beyond 14 years

Over 1,200 cats are picked up each year by St. Paul animal control

Roaming cats may be a nuisance by urinating and defecating in sandboxes and gardens

Outdoor cats are susceptible to injury or death from other predatory animals

Outdoor cats are predators to wildlife such as birds

Please be a good neighbor and keep your cat inside, or on a leash.

Sell off predictions may be premature

For years I have been reading about the “great real estate sell off”. Experts were predicting that starting in the year 2020, which is now less than a year away, baby boomers would start selling their houses.

I wouldn’t count on it. The oldest baby boomers will turn 73 this year. At the same time, the fastest growing segment of the workforce is those who are over 65.

There are baby boomers in their 60’s who have their 25 to 35-year-old children living with them and are helping them financially.

There were predictions that the great sell-off would result in a glut of houses on the market. Some even opined that real estate values would go down because of the sell-off.  I don’t see how that prediction can come true considering how large the Millennial generation is.

I am going to go out on a limb and predict that the number of homes put up for sale will rise slowly and that in 2032 we may see a sell-off because those who were born at the beginning of the baby boom and who are still alive today will live another 13 years on average. The oldest Millennials will be 51 by then.

People who are 65 and older have the highest rate of homeownership. I know my math isn’t exact but it isn’t any better or worse than anyone else’s.

U.S. census bureau and homeownership

 

How is the real estate market?

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Pending home sales 2019

In the Twin Cities there is a 2.2 month supply of houses and in St. Paul we have a 1.8 month supply. The number of houses on the market is up slightly from last this time last year but we need to keep in mind that last year we broke records.

We are in a strong seller’s market with few sellers. The forces of supply and demand continue to drive prices up. The national market is showing some signs of becoming more balanced between buyers and sellers but we are not seeing any signs of that in the metro area.