With a rise in sales and home prices, Realtors are seeing a boost to their incomes. The median gross income of a Realtors rose 9.6 percent in 2013, averaging $47,700 in 2013 compared to $43,500 in 2012.
It marked a big gain from $34,900 in 2011, according to the newly released 2014 National Association of Realtors Member Profile, a survey reflecting responses from nearly 6,500 members of NAR.
Lawrence Yun, NAR’s chief economist, says the increase in income was “fueled mostly by rising home sales and prices.” Prices grew by 11.5 percent last year.
Incomes grew while the number of transactions or commercial deals remained unchanged from last year at 12 – an average that also reflects pre-recession levels.
Median gross income and number of transactions often rise with experience, NAR notes in the report. In 2013, NAR members in business for more than 16 years earned $70,200 and completed 15 transactions. In comparison, NAR members with three to five years earned less than half that amount -- $30,100 – and averaged 10 transactions, the report shows.
A growing number of new and younger members are being drawn to the real estate business. The years of experience in real estate dropped to 12 years in 2013 from 13 years in 2012, while the age of members fell from 57 years old to 56. The number of members with one year or less of experience rose to 9 percent in 2013 compared to 5 percent the year earlier.
Three percent of Realtors are under 30 years of age; 16 percent are between 30 and 44; and 24 percent are 65 and older, according to the report. Realtors held a typical tenure at a firm for six years in 2013, compared to seven years in 2012.