Today's Headlines - Realty Times

26% of Realtors® Said Lack of Inventory and Housing Affordability Prevented Clients from Buying Homes in 2023 as Existing-Home Sales Fell to Lowest Level Since 1995

In 2023, when the volume of existing-home sales hit the lowest level since 1995, 26% of Realtors® named lack of inventory and housing affordability as the most important factors limiting potential clients from making a purchase, according to the National Association of Realtors®’ https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-nar-member-profile">2024 Member Profile. This annual report analyzes members’ business activity and demographics from the prior year.

“2023 was a difficult year for Realtors® due to high mortgage rates and low housing inventory, which significantly impacted home sales volume,” said Jessica Lautz, NAR deputy chief economist and vice president of research. “Realtors® faced competition at all angles – not only to represent clients but also to ensure their buyers’ offers were accepted amid tough real estate market conditions.”

Nearly two out of three Realtors® (65%) hold sales agent licenses, while 22% hold broker licenses and 17% hold broker associate licenses. Seventy-four percent of members specialize in residential brokerage. Like 2022, relocation, residential property management and commercial brokerage are members’ most common secondary specialty areas.

Members typically have 10 years of real estate experience, down from 11 years in 2022. Seventy-three percent of members are very certain they will remain in the real estate industry for at least two more years. Brokerage specialists had a lower sales volume ($2.5 million vs. $3.4 million), and the typical agent had fewer transactions (10 vs. 12) in 2023 compared to 2022.

The typical Realtor® earned 20% of their business from previous clients and customers, down from 27% 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 42% in 2023). Similar to 2022, members with two years of experience or less reported no repeat business in 2023. Overall, Realtors® earned a median of 21% of their business from referrals, a decrease from 24% in 2022. Referrals were also more common among members with 16 or more years of experience – a median of 29% – compared to no referrals for those with two years or less of experience.

The typical property manager managed 31 properties in 2023, down notably from 40 properties in 2022. The typical Realtor® worked 35 hours per week in 2023, slightly less than last year.

The median gross income for Realtors® decreased to $55,800 in 2023, down from $56,400 in 2022. Realtors® with 16 years or more experience had a median gross income of $92,500, up from $80,700 in 2022. Realtors®’ total expenses increased to $8,450 in 2023 from $8,210 in 2022.

A majority of Realtors® (53%) worked with an independent company and 88% were independent contractors at their firms – both figures nearly identical to 2022. The typical Realtor® had a median tenure of five years with their current firm, down from a median of six years in 2022. Eight percent of members reported working for a firm that was bought or merged in the past two years, down from 26% in 2022.

“Regardless of market conditions, agents who are Realtors® sought a career where they could be their own boss as an independent contractor, specialize in residential or commercial brokerage, and embrace new technologies to make transactions happen,” said Lautz.

Daily, most Realtors® use a smartphone with wireless email and internet capability (96%) and a laptop or desktop computer (91%). The smartphone features that members use most frequently daily are email (94%), social media apps (60%) and GPS (56%). Sixty-four percent of Realtors® use multiple listings software daily. Text messaging (94%) is the top method of communication for members with their clients, followed by telephone (91%) and email (89%).

More than two-thirds of members (72%) have their own website – 44% of which are provided by the member’s firm. For professional purposes, most members use Facebook (77%), Instagram (57%), and LinkedIn (55%).

Six percent of Realtors® use drones themselves as part of their business, and 46% have hired a professional drone operator. Four percent and 2% of members, respectively, use 3D/virtual tour and virtual staging technology daily. 

Sixty-five percent of all Realtors® were female in 2023, an increase from 62% last year. The median age of Realtors® was 55, down from 60 last year. Thirty-five percent were 60 years or older and 4% were less than 30.

Seventy-nine percent of Realtors® were White in 2023, down from 81% last year. Hispanics/Latinos accounted for 10% of Realtors®, followed by Black/African Americans (6%) and Asian/Pacific Islanders (4%). New members were more diverse than experienced members. Among those who had two years or less of experience, 40% were non-White.

Realtors®’ education level exceeded that of the general public. Ninety-two percent of members had some post-secondary education, with 34% completing a bachelor’s degree as their highest level of education. Seventy percent of members reported volunteering in their community – most commonly among members aged 40 to 49 years.

“Realtors® are hardworking people who advocate for homeownership and property rights in the communities they serve,” said NAR President Kevin Sears, broker-partner of Sears Real Estate/Lamacchia Realty in Springfield, Massachusetts. “Regardless of how you find a property, expert agents who are Realtors® help take the stress out of the homebuying process and navigate the most intricate and significant transaction many will ever complete.”

Survey Methodology

In March 2024, NAR emailed a 98-question survey to a random sample of 157,711 Realtors® and received 6,113 responses. The survey had an adjusted response rate of 3.9%. The confidence interval at a 95% level of confidence is +/- 1.25% based on a population of 1.5 million members. The association weighted responses to be representative of state-level NAR membership. Information about compensation, earnings, sales volume and number of transactions are characteristics of calendar year 2023, while all other data are representative of member characteristics in early 2024.

Posted On Wednesday, 10 July 2024 07:25 Written by
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4th of July is celebrated in recognition of the signing of the Declaration of Independence and the formation of these United States of America from the British Empire. There were many things that led to this occurring and, if dealt with differently, might have led to a completely different result. As throughout history we can look BACK and identify specific things that took the world down one path verses another. Studying history allows us to discuss these choices and outcomes.

American history isn’t the only history we should be looking at today and the long holiday weekend. Our personal and professional history can be very helpful to review from time to time. While personal history is a much deeper topic than I can help you with here, a review of your own professional history can be very valuable.

Today we are at the beginning of the third quarter of this year’s business cycle. However, we also know that we can easily identify our projected production through the third quarter by just looking at our current pipelines. We can quickly compare these numbers against our business plan to check where we are in relation to where we expected ourselves to be. We also know that it is unlikely that any business arriving after November 20th will close and get us paid to count in our 2024 income. That means while we are just past the halfway point in the year, we only have about 109 days left to produce results that will add to our income this year!

The next three days are the start of those last 109 days. What will you do to be sure you have a plan in place to take advantage of each and every day? What calls will you make? What people and places will you visit? Even just one hour of specific effort this weekend can make a huge impact on your bottom line for 2024!

Many of you who read this are not where you want to be in your professional lives. Why not use the Independence Day weekend to help you achieve the professional independence you desire? History will show you if you are on the right path or if you need to make a change. If you need help with that plan for change, please just send me a message and we can talk. This email address is being protected from spambots. You need JavaScript enabled to view it.

Posted On Tuesday, 09 July 2024 00:00 Written by

Right now, we are experiencing technological advancements at an unprecedented rate. From self-driving vehicles to generative AI like ChatGPT, our landscape as both business leaders and consumers is changing exponentially. In fact, I believe that change is too mild a term for the advancements in innovation we are seeing. Technological transformation is far more accurate.

In today’s rapidly evolving world, merely being agile in our approach to innovation is not enough to sustain an organization in any industry. As technology advances exponentially, our strategies for internal and external innovation must also evolve. Staying ahead of the competition requires anticipating future developments.

However, my process must also evolve with the times to help organizations and business leaders turn disruptions into innovative opportunities. For many years, I have used a three-step process to help clients become Anticipatory Organizations, and this approach remains highly relevant in the current climate of digital transformation and exponential change.

1. Always Begin with Certainty

This may sound counterintuitive, as the future often appears to be an ever-changing, unpredictable force, but many aspects of the future are certain. It is not impossible whatsoever to see what is certain about both your future and the future of the world outside your industry. You merely have to be willing to stop being reactionary.

It is that simple, and here is why:

All change moves in patterns, including changes in business. Cyclical change is exactly how it sounds – it occurs in cycles, creating a predictable circle that you can use to anticipate what comes next. For instance, it is inevitable that inflation and interest rates will rise, and recent trends confirm this increase. However, it is equally certain that they will eventually decline after reaching their peak.

On the other hand, Linear change is a pattern that does not repeat. This is an instance that will occur once, often transforming whole industries, and thereafter, time keeps moving forward. An example of this would be Baby Boomers aging out of the job market and Gen Z entering the job market. There will always be older generations retiring and younger generations coming into the workforce, but this specific iteration of it will never happen again.

Netflix began as a temporary movie rental service, but there were already multiple companies that held a large portion of the market – Blockbuster, specifically. So what did Netflix do? They looked at the Hard Trends of the industry, such as consumers pursuing convenience. Consumer convenience will always be a necessity in any industry.

However, how consumers pursue convenience was the Soft Trend. At the time of Netflix’s origins, instead of waiting for a movie to come out on television, consumers went to stores like Blockbuster to acquire rentals. Netflix decided to influence this Soft Trend by mailing DVDs directly to consumers, enhancing customer convenience and cementing themselves as innovators in the industry.

2. Continue to Anticipate

Once you have a firm grasp on Hard Trends and Soft Trends, you can begin to anticipate the future instead of just reacting to it. Today especially, reacting to technological advancements means that you are already behind. And especially with how fast information travels, once the cat is out of the bag so to speak, it moves fast!

Business leaders need to be what I call pre-active – taking action now to positively impact their future from the inside out. Change typically comes from the outside in, where outside circumstances disrupt processes and keep you continuously striving to put out fires. By anticipating these disruptions, business leaders can instead focus on turning those disruptions into opportunities for innovation. They create transformations from the inside out.

Again, let’s look at Netflix. Do you think they thought, “Hey, mailing DVDs to customers is working. They’ll never need anything else”? Of course not! They looked at the current technology of the time – the internet, increasing bandwidth, and the surge of video streaming capabilities – and saw it as a Hard Trend. Netflix concluded that the internet would only increase in bandwidth and processing power, using that observation to launch their own streaming service.

In turn, they became the first streaming platform for movies and TV shows. What Netflix did was become the disruptor in their own industry before someone else had. To this day, they are still one of the largest streaming platforms, and now the potential future disruptions they look to pertain to what type of content they provide customers. Perhaps they will move into the video game industry next? What about music? Could they break into the online education industry?

You cannot just be a crisis manager when it comes to innovation. You have to also be an opportunity manager. Netflix looked to a Hard Trend future certainty and pre-solved a disruption that would have disrupted their whole operation. In turn, they leveraged it to their own advantage. That is the real competitive advantage!

3. Focus on Transformation

It is not enough to simply change how you do things. This is far too slow to keep up with rapidly evolving technology. Much like continuing to anticipate what is to come, you need to continue creating transformations. Whether it is the products you sell, how you service customers, or how you complete internal processes, transformation is the cornerstone of great innovation!

That is not to say that you should completely scrap your current business model. Transformation comes from adjusting current processes to build something never before seen. A caterpillar does not stop being a caterpillar when it enters its cocoon. It uses its current form to morph into something beautiful and new.

Netflix did not completely scrap its business model of providing consumers with convenient access to movies and TV shows. They adjusted how they provided their service, creating a streaming platform where one never before existed. They created transformation, and will continue to do so with future innovations regarding streamed media.

It is up to you as the leader of your organization to:

  1. Anticipate the disruption that technology and the market pose to your industry and use that information to become the disrupter instead of the disrupted.
  2. Anticipate the needs of your customers, but take it to the next level by providing them with products and services they did not know they needed.

To do this, leaders need to let go of their reactionary mindsets and become agents of transformation. Focus on what you are certain of about the future, anticipate disruptions before they occur, and do not create change – transform your industry.

Posted On Tuesday, 09 July 2024 00:00
Posted On Monday, 08 July 2024 18:15

Are you one of those relentless comparers? The one that constantly compares themselves to others? Here's Top #3 from SmartWomen/SmarterChoices to get you off the comparison game!

 

 

Posted On Monday, 08 July 2024 16:38 Written by
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