REALTORS: LACK OF HOUSING INVENTORY IS MAIN REASON BUYERS ARE NOT BUYING

WRE News July 23, 2023

Buyer

REALTORS: LACK OF HOUSING INVENTORY IS MAIN REASON BUYERS ARE NOT BUYING

The absence of housing inventory was the most significant factor that prevented potential buyers from making home purchases in 2022, according to a new survey by the National Association of Realtors (NAR) of its membership.

Roughly one-third (32%) of realtors cited the lack of inventory as the primary reason buyers could not acquire property last year – NAR noted housing inventory is at its lowest recorded level since 1999. But despite the limited inventory on the market, the typical NAR member had a higher sales volume ($3.4 million versus $2.6 million) and the same number of transactions (12) in 2022 compared to 2021.

The typical realtor in 2022 earned 27% of their business from previous clients and customers, an increase from 16% one year earlier. Realtors earned a median of 24% of their business from referrals, an increase from 20% in 2021, and referrals were also more common among members with more experience, with a median of 30% for those with 16 or more years of experience compared to 4% for those with two years or less of experience.

The median gross income for realtors increased to $56,400 in 2022, up from $54,300 in 2021 – and realtors with 16 years or more experience had a median gross income of $80,700, down from $85,000 in 2021. Realtors with two years or less experience had a median gross income of $9,600, an increase from $8,800 in 2021.

NAR’s membership grew to 1.58 million at the end of 2022, up from 1.56 million at the end of 2021, and the new study found about three-quarters of realtors (76%) were certain they will remain in the real estate industry for at least two more years.

The NAR study was conducted in March and is based on a 98-question survey to a random sample of 146,624 realtors, from which NAR received 6,902 total responses.


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