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.
I am surprised that nobody talks about the reason of low inventory. All is because of interest rate increase over a very short time. People will not sell when they have 2-3% interest rate to buy with 7% interest rate. Mostly we have estate sales, relocation sales & investors(rehabbers) sales. Other increase in interest rates will kill the real Estate Market.
Prices will not stabilize as long as inventory stays low & everything is selling with multiple offers, over the asking. This is completely out of control & it only hearth in the near future!!!
Correct! same comment but I would add the unrealistic expectation rates will go back to 3% is the problem. Empty nesters don’t worry about rates because they probably will be cash buyers. However the additional unrealistic expectation is prices are going to fall dramatically.
I am a Realtor and can tell you that when the interest rates were low, inventory was very low also. So high interest rates may be a factor now, but were not a factor the past two years.
After a few years of “higher” interest rates, homeowners will get comfortable with a 5-7% interest rate and will be more willing to sell their homes and purchase something else. It is perception more than anything else.
Why are the contractors price gouging? They do not build like they used too. Builders know just like the auto industry if you create a supply the demand goes down. You can thank the lock downs for this. Builders have access to materials. They are all purposely building slower. Even DR horton starts dropping prices if the houses they are building are not sold within 2 months of CO. If these greedy builders would actually build houses your inventory would pick up. The inflation had to come down so start putting the blame where it needs to go. Prices between contractors are way to far apart.
The main.reason the housing inventory is low is there is no affordable housing for the baby boomer’s / senior population . Truth be told, most of the homeowners that are aging can’t afford to sell their home because they can’t live anywhere else cheaper in their retirement years. The options available to them is very limited and much more costly to them on a fixed income.
It’s only when they are unable to live in their homes any longer because of health reasons that they are forced to sell. They are staying in their homes much longer because of the high expense of living somewhere else.
Much better answer. I blame the contractors and most of the monopoly builders. They know exactly what they are doing. We are getting caught up on all materials 3 years later. They all know if they build affordable they will lose money. Greedy builders and contractors.