REALTOR® income nationwide takes a dip as sales slip
Wednesday, June 10, 2015
After gradually climbing for three consecutive years, the decline in existing-home sales in 2014 resulted in a slight reduction in nationwide REALTOR® business activity and income last year, according to the 2015 National Association of REALTORS® Member Profile. The survey also found that REALTORS® are increasingly more comfortable using multiple communication channels, including social media, to connect and interact with their clients.
Lawrence Yun, NAR chief economist, says business activity for a typical REALTOR® was slightly subdued last year because of lower sales and more members. “Existing-home sales didn’t surpass year-over-year levels until October, which is likely the reason the typical member had 11 transactions last year versus 12 in 2013,” he said. “Slightly fewer transactions resulted in the median gross income of a REALTOR® falling to $45,800 from $47,700 in 2013.”
Adds Yun, “Despite the modest setback, median gross income last year was still the second highest since the downturn and up over 5 percent from 2012 ($43,500). Furthermore, NAR membership at the end of 2014 stood at 1.1 million, up 5.5 percent from 2013.”
As expected, median gross income and number of transactions generally increase with experience. Last year, REALTORS® in business for more than 16 years earned $68,200 and made 13 transactions. On the contrary, those with three-to-five years earned less than half that amount ($37,400) and had 10 transactions. Incomes also varied by license type, as members licensed as brokers in 2014 earned $65,300 ($66,300 in 2013), while the median earnings for sales agents decreased $1,100 from the previous year to $33,900.