January 2022 there were 1.599,135 Realtors. This January there are 1,548,058. In Minnesota, there were 22,711 members in January 2022, this year there are 21,950. National membership fell by almost 3% from December 2022.
Some of the Realtors that have left the industry have retired.
The NAR is predicting that there will be fewer home sales in 2023 than there were in 2022 which was down from 2021 and that there will be an uptick in 2024.
It is likely that there will be fewer Realtors before the year is over. At the same time, the low unemployment numbers indicate that there are plenty of jobs.
Not all real estate agents are Realtors. Not all real estate licensees sell real estate nor do all Realtors, yet when we do the math there are more than enough Realtors, yet there is always room for more.
Most real estate agents are independent contractors and work on a 100% commission basis with no benefits. Commissions are not guaranteed and are only paid after the successful closing of a home sale.
A person needs a real estate license to sell real estate for others for a fee but does not need to be a member of the National Association of Realtors.
Realtors, Realtors Everywhere
When I first started selling Boston condos and renting Boston apartments within a year of when I started, I knew all the Boston real estate companies working in downtown Boston. Today, I couldn’t tell you how many Boston Beacon Hill agents are out there.
When I look at pictures of Realtors in advertising I most often see advertising pictures of Realtors they’re usually young men and young women. They are dressed in suits and if there are more than two in the picture, there is a young man and a young woman with darker skin.
Who we really are is a group of the is 66% woman and typically around 56 years of age and probably white. You would never guess that there are more women Realtors than male Realtors. But its true.
Most Boston real estate agents are independent contractors which means they control their own schedule and where they work ad even how many hours they work.
For Boston real estate sales positions there are no glass ceilings. There is some age discrimination but it isn’t as bad on the job as it is in other aspects of life. Real estate sales positions have always attracted an older demographic because there are no benefits, like vacation pay or health insurance.
During times of high unemployment, we see an increase in the number of Realtors. Membership also increases during times when home sales are up as they have been during the last two years. Real estate companies are always “hiring”. Real estate agents should interview a few brokers and choose wisely.
The number of Realtors has increased in the last year by 4.8%. Realtor is not an occupation. It denotes people who belong to the National Association of
Realtors and right now there are 1.45 million of us, which is an all-time high. Not all members are real estate salespeople. Some are in real estate-related careers, some are retired, real estate agents.
Considering that about 4.8 million or maybe 5 million houses/condos will be sold in the US this year it seems possible that right now there are more Realtors than there are houses for sale. I can’t find a number for how many real estate licensees there are in the US.
In the local market, I am sure there are more Boston real estate brokers and agents than there are homes for sale. There are real estate offices that have 50 agents and 20 listings.
Getting a real estate license is fairly easy to do and inexpensive. It takes about six weeks. New agents start out charging the same rates that experienced agents charge.
The failure rate among real estate agents is very high. Everyone knows someone who “tried it out” and then quit. If you plan on working with a real estate agent to sell your home you should be able to negotiate a lower commission. Being a buyer’s agent right now is extra tough because each buyer may need to make an offer on a few houses before one works out.
The current housing market is unique. I feel strongly that we will need to build more housing preferably affordable housing to end what I believe is a housing crisis.
If you were planning on getting a real estate license this year and go into real estate sales expect a lot of competition from experienced and inexperienced agents. Real estate agents are self-employed and without benefits and have bills to pay even when there isn’t any money coming in.
We are approaching the final quarter of 2020 and speeding into the 2021 real estate market with 1.4 million Realtors in tow. Now Realtors are those state licensed real estate agents that are members of the National Association of Realtors, but I’ve never met one that isn’t a member. Realty companies typically make it a requirement for their agents to be Realtors and abide by NAR’s code of ethics.
Number of Real Estate Agents in the U.S.
- 2006 – 1.35 million
- 2007 – 1.33 million ↓
- 2008 – 1.19 million ↓
- 2009 – 1.11 million ↓
- 2010 – 1.06 million ↓
- 2011 – 1.00 million ↓
- 2012 – .99 million ↓
- 2013 – 1.04 million ↑
- 2014 – 1.09 million ↑
- 2015 – 1.16 million ↑
- 2016 – 1.23 million ↑
- 2017 – 1.30 million ↑
- 2018 – 1.35 million ↑
- 2019 – 1.39 million ↑
- 2020 – 1.4 million – record high!
I appreciate Tom’s concern, outlined below, but things aren’t quite so bleak. It’s true that if you do the math, and divide the 65,000 single family homes and condos sold so far this year by the 40,000 licensed real estate agents, you get at the 1.6 houses per agent number he quotes. However, of those 40,000 licensed real estate agents, probably a quarter or more work in real estate part-time, or less.
That shouldn’t detract from the main gist of the story, of course. I agree, there has been a huge number of new agents entering the business over the past year or two (or more). As Tom so eloquently puts it, many of these new agents will be faced with low pay and lots of work, over the first couple of years, and a high percentage will probably give up, if the market should cool.
This will mean less competition for those able to weather the storm.
By Tom Witkowski, Boston Business Journal
A 46.1 percent increase in the number of Realtors in Massachusetts since 2001 means there is now one Realtor for every 1.6 houses sold in the state so far this year. That number is on track to fall far short of the 2.9 houses sold for every one Realtor four years ago.
Many new agents have flocked to real estate sales, attracted by the flexible schedule and potential of financial success. The robust Massachusetts market has also brought soaring home prices, which have translated to skyrocketing commissions for some.
Complete article: Realtor surplus
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