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NAR: Median Income for Realtors Recovering with Housing Market

As the housing market improves, so has the income for Realtors, according to a report from the ""National Association of Realtors"":http://www.realtor.org/ (NAR).

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Median gross income for Realtors increased 25 percent to $43,500 in 2012, up from $34,900 in 2011, the association reported.

""To put that in perspective, the median Realtor® income had fallen by 35 percent during the housing downturn, but with the help of sustained increases in both home sales and prices, it's recovered to the highest level since 2006,"" said Paul Bishop, NAR VP of research.

Members who are licensed as brokers brought in about $54,900 in 2012, while the median for sales associates was $34,000.

For NAR members with 16 years of experience or more, median income was $57,300. About one in five members earn a six-figure income.

The findings are from the _2013 National Association of Realtors Member Profile_, which surveyed 58,068 NAR members.

Although income has gone up, NAR President Gary Thomas says Realtors still have a way to go compared to the peak income recorded in 2002.

""Interestingly, the peak wasn't during the bubble years because there were way too many people in the business,"" he added.

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Most NAR members (56 percent) are licensed as sales agents, 27 percent are brokers, 18 percent are broker associates, and 4 percent are appraisers. NAR also noted some members hold more than one license.

A large majority, or eight out of 10 NAR members, focus on residential sales, while 18 percent of those who specialize in residential properties also offer commercial property management.
Other common secondary specialties include relocation services (17 percent) and commercial brokerage (15 percent).

Thirty-nine percent of Realtors pursued at least one out of six certifications in some type of specialized training. Due to the elevated level of distressed homes over the years, the most popular area of training is the Short Sales and Foreclosures Resource Certification (SFR), which was held by 23 percent of Realtors, the NAR reported.

Repeat business accounted for a significant portion of business activity, representing a median of 21 percent of activity in 2012. For Realtors who have been in the industry for 16 years or more, repeat business accounted for 40 percent of activity.

When it comes to completing transactions, 29 percent of respondents said the biggest roadblock was difficulty in obtaining a mortgage, while 25 percent said it was difficulty in finding the right property.

Transaction sides or commercial deals handled in 2012 improved to 12, up from 10 transaction sides in 2011, the NAR stated.

Nine out of 10 Realtors are also homeowners themselves, and 36 percent invest in real estate and own a home outside of their primary residence.

On average, NAR Realtors hold 13 years of experience, work 40 hours a week, and the majority (57 percent) are women. The typical Realtor is 57 years old, with only 2 percent who are under 30, 4 percent are 30 to 34, and 25 percent are 65 or older.

About Author: Esther Cho

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