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Today’s average Real Estate Agent is earning peanuts.
Here’s why… Today’s Realtor is working harder than ever. It is a rare Buyer that is successful securing a signed Agreement of Sale on their first try. The National Association of Realtors (NAR) now has nearly 1.6 million Realtors. A record 100,876 new members became Realtors in 2021. Active home inventory dropped below 1 million in December 2021. NAR’s data shows that a staggering 6.12 million existing homes changed hands in 2021, the most since 2006. That translates to an annual rate of 3.92 sales for every Realtor (in 2006 it was 4.63 sales).
Meanwhile competition over a dwindling number of property listings, drive prices higher - bringing the number of “active” listings to its lowest level on record. Active home inventory dropped below 1 million in December 2021, nearly 41 percent lower than inventory levels two years earlier, according to the latest market report from Zillow.
Buyers get frustrated and often angry in the process of trying to secure a home. Worse yet, many make ill-advised purchases as a result of poor/no advise. Oftentimes Sellers short-change themselves choosing Agents or companies that already have “the perfect Buyer”. This is a dynamic point in time to transact real estate. A good experienced Agent is more important than ever.