Realtor survey: Limited housing supply put a big damper on home sales
National NAR profile also finds big jump in annual sales volume
If you needed any more evidence of the effects that the persistent housing supply crunch is having on the residential real estate market, a new survey by the National Association of Realtors has some more for you.
According to the annual 2022 Member Profile survey, which was conducted earlier this year, 57% of Realtors cited a lack of inventory as the reason keeping potential clients from completing a transaction. But, the survey notes, housing demand did surge last year, resulting in 6.12 million existing homes sold – the most since 2006, and NAR’s membership increased to 1.56 million at the end of 2021, up from 1.48 million at the end of 2020.
The survey was conducted through an email sent in the spring, before the Federal Reserve initiated its first 0.75 percent increase in the benchmark interest rate, which has a direct effect on mortgage rates.
Other results of the survey found:
- The typical Realtor member had a higher sales volume ($2.6 million vs. $2.1 million) and more transactions (12 vs. 10) in 2021 compared to 2020.
- The typical Realtor earned 16 percent of their business from previous clients and customers, a slight increase from 15 percent a year earlier.
- Seventy-seven percent of Realtors were white, down slightly from 78 percent last year. Hispanics/Latinos accounted for 11 percent of Realtors, followed by Black/African Americans at 8 percent and Asian/Pacific Islanders at 5 percent,
• When compared to more experienced members, new members tended to be more diverse. Among those who had two years or less of experience, 37% were racial minorities, an increase from 34% one year ago.
- Sixty-six percent of Realtors were women, a slight increase from 65 percent a year earlier.
- The median age of Realtors was 56, up from 54 from the previous year. Approximately two out of five members – 41 percent – were over 60 years old and 4 percent were under the age of 30.
- The median gross income for Realtors was $54,300 in 2021, up from $43,330 in 2020. Realtors® with 16 years or more experience had a median gross income of $85,000, an increase from $75,000 the previous year.
- Some 54 percent Realtors worked with an independent company and 87 percent were independent contractors at their firms, both figures nearly identical to the year before.
• Forty-three percent of members worked at a firm with one office and 26% worked at a firm with two to four offices.