Understanding Real Estate Challenges in 2024 by Looking at the Past

Original Source NAR

In 2023, the real estate market faced its most challenging conditions in decades. According to the National Association of REALTORS® (NAR), existing-home sales dropped to their lowest levels since 1995. Notably, 26% of REALTORS® cited a lack of inventory and housing affordability as the primary obstacles preventing potential clients from securing homes.

Insights from the NAR 2024 Member Profile

The NAR's annual 2024 Member Profile provided a deep dive into the issues impacting real estate professionals. Jessica Lautz, NAR’s Deputy Chief Economist, highlighted, "The combination of high mortgage rates and low housing inventory significantly impeded home sales." This challenging market spurred intense competition among REALTORS®, who had to navigate these conditions to represent clients effectively and close deals.

Key Findings on REALTORS®' Performance and Plans

The report revealed a decrease in both sales volume and the number of transactions per agent in 2023 compared to the previous year. Despite these hurdles, a strong majority of REALTORS® (73%) are committed to remaining in the industry for at least two more years. The industry is also seeing increased diversity, particularly among newer members, with 40% of those with less than two years of experience being non-White.

Shifts in Business Sources and Income

2023 saw a decline in business derived from previous clients and referrals, particularly among newer agents who reported no repeat business. However, seasoned REALTORS® managed to maintain a robust network, securing significant business through referrals. The overall median gross income for REALTORS® slightly decreased, highlighting the economic pressures on the profession.

Technological Adoption and Demographic Changes

REALTORS® are increasingly relying on technology to enhance their operational efficiency. Daily use of smartphones, laptops, and specialized software like MLS platforms is widespread. Additionally, the demographic makeup of REALTORS® is shifting, with an increase in female participation and a noticeable decrease in the median age, reflecting broader societal changes.

Commitment to Community and Professionalism

REALTORS® are not just business-focused; they are also community-oriented. Kevin Sears, NAR President, noted, "Our members are advocates for homeownership and dedicated to supporting their communities." This dual role underscores the value REALTORS® bring to both their clients and the regions they serve.

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