The 2023 National Association of Realtors Member Profile has been released this week. Despite inventories reaching a 23-year low, the average Realtor concluded 2022 on a strong note with a double-digit increase in sales volume and a little increase in gross revenue.
According to survey findings released on Tuesday, nearly a third of Realtor business came from past clients and customers, an increase of 68.75% from the previous year. Those with 16 or more years of sales experience had the most repeat business with 44% coming from previous clients.
For those with less than two years of experience, the path to business growth was more challenging. New members did not see the success that has been seen in the past. It is more difficult than ever to start in the real estate business. It takes longer to become established while also requiring more focused work than ever before.
Members’ median gross income increased somewhat each year by 0.18 percent, or from $54,300 in 2021 to $54,400 in 2022. A 5 percent decrease from 2021, the median gross income for real estate agents with 16 or more years of experience was $80,700. The median gross salary for realtors with two years or fewer on the job was $9,600, an increase of 9% annually.
The average Realtor’s total expenses increased by 31.3 percent annually from $6,250 in 2021 to $8,210 in 2022, cutting into the gross gains from inflation. Many Realtors are growing dependent upon third party lead sources rather than focusing on their database. That is partially what is attributing to the rise in expenses.