The real estate industry is constantly changing, both in terms of residential and commercial. Now add the current state of the Corona Virus and you have an industry that is very unsettled right now. Knowing the latest real estate statistics (as of February 2020) is a great way to better position yourself for success as the industry attempts to get back on its feet sometime in the near future. We’ve searched for statistics from across the real estate industry, covering market data, buyer and seller behaviors, marketing trends, and agent demographics. Here is our opinion on how the Coronavirus Impacts On Real Estate and Statistics that will surprise you.
Real Estate Agent Data
Understanding more about the real estate agent population is important because knowing who is in the industry will help you make better decisions when looking for an agent to hire. The results are pretty clear here—white women in their mid-50s remain the dominant force in the real estate industry. Also, technology is both a challenge for most agents. These stats were from the NAR / National Association of Realtors, REAgent U, and Contactually.
- More than 63% of Realtors are women.
- Only 43% of Realtors have completed a bachelor’s degree or higher.
- Nearly one in nine Realtors in the United States lives in California.
- Since 2000, the number of Realtors in Florida has nearly tripled from 67,000 to more than 180,000.
- The median age for Realtors in the United States is 54.
- The typical Realtor receives upward of 30% of their business from repeat clients or referrals.
- 20% of Realtors have had their license for a year or less.
- 71% of Realtors specialize in residential real estate.
- 45% of brokers report that “keeping up with technology” is the biggest challenge their agents face.
- Realtors earning $100,000 or more in gross commission income are more than twice as likely to use advanced technology tools like a CRM than agents who earn less.
How Much Do Real Estate Agents Make?
Ever wondered how much some agents make versus the industry average? Here is some very interesting data about real estate agents and money. The numbers are clear, agents who put more time and effort into their real estate business get more out of it. Agents working 20-25 hours a week still make some money but just not enough to live on.
- The average income for a real estate agent working between 21 and 39 hours a week is $46,458.
- The average income for real estate agents working 60 hours a week is $145,347.
- The average income of real estate agents who’ve been full-time in the real estate business between four and 10 years is $63,595.
- The average income of real estate agents who’ve been full-time in the real estate business between 11 and 25 years is $101,633.
- The average real estate agent in the United States closes 12 deals a year.
Number of Realtors By State
The NAR keeps a pretty close eye on Realtor numbers across the country. Below are the number of NAR member agents by state. Remember only about 1.35 million of the over 2 million licensed real estate agents in the United States belong to NAR, so there are professionals out there that this table doesn’t account for. NAR Membership Change from January 2019 through January 2020. The major growth in agent population is indicative that we have experienced a bullish market – there’s potential business out there and there is a lot of competition for it. The southern portions of the United States are seeing some of the largest growth, in some cases by more than 5% year-over-year.
California 193770 -0.025
Florida 183739 0.0325
Texas 123950 0.0444
New York 59441 0.0354
New Jersey 54619 0.0125
Arizona 50770 0.0211
Illinois 47411 0.0204
North Carolina 46527 0.0539
Georgia 38115 0.0373
Pennsylvania 34845 0.0189
Virginia 33669 0.002
Ohio 33236 0.0073
Michigan 32174 0.0287
Tennessee 28686 0.0416
Colorado 25778 -0.0028
Maryland 25414 -0.0138
Massachusetts 24857 0.0133
Missouri 22392 0.0073
Washington 22135 0.0171
South Carolina 21376 0.0187
Minnesota 20336 0.0006
Indiana 18396 0.042
Nevada 17977 0.0203
Oregon 17380 0.0051
Connecticut 17222 0.0119
Utah 17218 0.0574
Alabama 15235 0.0518
Wisconsin 15091 -0.0038
Louisiana 14437 -0.0017
Kentucky 11445 0.0235
Oklahoma 11424 0.0433
Idaho 9855 0.0639
Hawaii 9747 0.0114
Kansas 9733 0.0128
Arkansas 8911 0.0496
Iowa 7420 -0.002
New Mexico 6735 0.0134
Mississippi 6404 0.0533
New Hampshire 6111 0.026
Nebraska 5027 0.0537
Montana 4835 0.055
Rhode Island 4833 0.0132
Maine 4832 0.0281
Delaware 3868 -0.0205
Dist. Of Columbia 2978 0.0262
West Virginia 2858 0.0247
Wyoming 2160 -0.0231
South Dakota 1978 0.0071
North Dakota 1951 0.0225
Alaska 1744 0.0259
Vermont 1626 -0.0091
Real Estate Marketing Statistics
- In 2020, it is estimated that more than one out of every five commercial drone shoots will be for real estate purposes.
- 73% of homeowners say they are more likely to list with a Realtor who uses video to sell property.
- On average, the third most viewed page on a real estate agent website is the “About Us” page.
- Americans spend an average of 58 minutes per day on Facebook.
- The average American Facebook user clicks on eight ads per month, 10 ads a month for women.
- 69% of recent home sellers surveyed said that they would gladly write a review for their sales agent if requested.
- Homes with drone photography as a part of the marketing plan sell, on average, 68% faster than those without.
- When asked about the most important trait they look for in an agent, prospective home sellers chose “professional reputation” most often.
- Recent sellers reported only 10% of their agents effectively used video to market their property.
- Facebook Live watch times have, on average, quadrupled in the last 18 months.
Video, video, video. General internet marketers have been insisting for a while now that video is the king of the internet, and it’s becoming crystal clear that this is also the case in the real estate field. If your agent isn’t using video to market your property, you’re missing an opportunity that your competitors aren’t going to miss.
Real Estate Market Statistics
Knowing national trends in the real estate market helps you identify when is a good time to buy or sell in your neighborhood, but also gives an edge when interviewing potential agents and how attuned they are to the market.
- Responding to a continued national trend of an inventory shortfall, list prices year over year in January 2020 are up nearly 4%.
- The Boston metro area continues to lead the nation as the hottest real estate market with a median list price of over $631,000 and a median days-on-market of three. The Boston area has seen their average listing price change year-over-year for January 2020 by 4%.
- June is, on average, the month when homes sell the fastest in the US.
- Home ownership rates in the US have steadily risen since September 2016, coming in at 64.3% in January 2020.
- In 2020, Fannie May and Freddie Mac are projecting that they’ll underwrite approximately 20,000 more mortgages than they did in 2019.
- The Midwest and Southwest regions of the US are expected to have the most reliable growth in terms of sale prices in 2020, around 3% on average.
- National home sales increased steadily month over month in 2019, starting from 555,000 homes sold in December 2018 to 690,000 homes sold in March 2019.
- The number of homes with a sales price of less than $200,000 has fallen steadily since 2012, starting at nearly 1.1 million to a projection of just over 400,000 in 2019.
- Mortgage rates are, on average, 10% lower than they were in 2018, driving a mortgage application increase rate of 8%.
- In 2019, 35% of residential properties sold for between 95% and 99% of their listed price.
Home prices are on the rise, most likely due to increased pressure on inventory. Many people thought that the seller’s market we’ve been experiencing in the last few years was on its way out, but it’s clear that we’re going to see it for a little while longer – until now. With the Corona Virus sweeping the country, it’s anyone’s best guess as to where this is headed. This may seem to conflict with the fact that existing home sales continue to fall, but one explanation for these industry facts could be that home sellers are worried about being able to afford a new home if they decide to sell, pressuring them to stay put. Fellow realtors should take this information as a cue that the prospective buyers and sellers in the market need to be educated so they can make the best choices on the next step in their home journey.
For most new agents, working with buyers is the best way to break into the business. Having a handle on how average buyer operates will help you position yourself to pick up more buyer leads. Here are some homebuyer stats to consider. Millennial homebuyers have picked up steam and are now the most important segment of the buyer population. Why? Working with this segment now will help create a lasting relationship with buyers who don’t plan on being in their first home for long, so they have a great potential of being a lifelong client. Also, given the high volume of first-time homebuyers currently occupying rental housing, targeting lead generation toward rental communities is the best way to build your client base.
- 59% of homebuyers under the age of 29 don’t expect to be in their home for more than 10 years. 28% of them plan on being in their new home less than five years.
- As of 2018, millennials made up 37% of residential buyers.
- One-third of homebuyers in 2019 were first-time homebuyers.
- 18% of homebuyers in 2019 were single females.
- The average millennial household income in 2018 ranged from $71,200 to $101,200.
- In 2019, 84% of homebuyers identified themselves as Caucasian.
- 74% of first-time homebuyers occupy rental housing immediately before purchasing their first home.
- One in six homebuyers in 2019 were willing to compromise on the condition of a home if the price and location were right.
- On average, buyers search on their own for a new home for three weeks before contacting a real estate agent.
- Other than finding the right property, millennials identified “understanding the home buying process and steps” as the most difficult item in the journey.
Home Seller Statistics
Prior to March 2020 seller confidence remained high, maybe a little too high. Home sellers should be confident in the current seller’s market, as evidenced by the shrinking inventory, climbing prices, and the fantastic equity returns they’re getting. However, with price reductions and ultimately the number of incentives that home sellers have to offer buyers, home sellers might be overestimating the actual strength of the market.
- 92% of homes in the US are sold using an agent or a broker.
- 75% of sellers sell their home with the first agent they interview.
- The national median days-on-market for residential real estate in 2019 was 56.
- Existing home sales have remained relatively steady since March 2019 (about 433,000 per month).
- In contrast, new home sales surged in January 2020 to a 12 year high of 764,000 units.
- Baby boomers make up an estimated 43% of the home seller market.
- 41% of listed homes have a price reduction before they get an accepted offer.
- 34% of sellers offer some sort of incentive (closing costs, home warranty, etc.) to entice offers.
- The average home seller cashes in 29% equity in their property when they sell.
- Only 2% of home sales in 2019 could be directly attributed to newspaper advertising.
Real Estate Market Trends by City
After the housing market correction in 2008, the countries biggest cities were often the first to see any sort of recovery, and thus these markets saw growth as people moved there for jobs and opportunity. However, since 2015, growth in New York, Los Angeles, and even Chicago, has slowed to a crawl, each of these cities averaging an annual growth rate of less than a one-quarter percent per year in population. But, the migration to cities hasn’t stopped. Seekers of new opportunity are headed to other cities with lower cost of living to seek their fortunes. Here are the seven cities to keep an eye on as the market recovers from the current Corona Virus pandemic.
- Projected Five Year Population Growth: 1.3%
- Median Resident Age: 33
- Median One Bedroom Rent: $1,029
- Median Single Family Home Sale Price (Greater Metropolitan Area): $224,100
- Year over Year Median Home Sale Price Growth: 9.7%
- Projected Five Year Population Growth: 2.3%
- Median Resident Age: 32
- Median One Bedroom Rent: $1,154
- Median Single Family Home Sale Price (Greater Metropolitan Area): $318,200
- Year over Year Median Home Sale Price Growth: 7.4%
- Projected Five Year Population Growth: 1.6%
- Median Resident Age: 35
- Median One Bedroom Rent: $715
- Median Single Family Home Sale Price (Greater Metropolitan Area): $274,700
- Year over Year Median Home Sale Price Growth: 18.3%
- Projected Five Year Population Growth: 1.5%
- Median Resident Age: 34
- Median One Bedroom Rent: $961
- Median Single Family Home Sale Price (Greater Metropolitan Area): $245,000
- Year over Year Median Home Sale Price Growth: 5.1%
- Projected Five Year Population Growth: 0.8%
- Median Resident Age: 32
- Median One Bedroom Rent: $740
- Median Single Family Home Sale Price (Greater Metropolitan Area): $207,600
- Year over Year Median Home Sale Price Growth: 7.1%
- Projected Five Year Population Growth: 1.3%
- Median Resident Age: 34
- Median One Bedroom Rent: $1,063
- Median Single Family Home Sale Price (Greater Metropolitan Area): $450,100
- Year over Year Median Home Sale Price Growth: 7.7%
Las Vegas, NV
- Projected Five Year Population Growth: 1.4%
- Median Resident Age: 38
- Median One Bedroom Rent: $927
- Median Single Family Home Sale Price (Greater Metropolitan Area): $294,600
- Year over Year Median Home Sale Price Growth: 12.6%
Conclusion and Takeaways
Our normal just a few weeks ago — dozens of potential buyers strolling through a home, checking out the kitchen and bathrooms, peeking into closets — has been flipped upside down in the wake of the coronavirus outbreak here in the country. Concerns about the spread of the virus have led some home sellers to call off planned open houses and area real estate agents to take extra precautions when showing a home.
It’s a challenging time right now an we are in uncharted territory to some extent. Experts are unsure if it’s going to be a couple weeks or a month or more.
The Association of Realtors website issued an alert reminding agents of the prohibition of gatherings involving more than 10 people and on-premises food and alcohol consumption during an open house. For the record, we as a company feel that open houses at a time like this is not only irresponsible, but downright illegal following our Governor’s proclamation of emergency.
We have seen suggestions that include posting a notice on the door stating that entrance will be limited and visitors should wait outside in an organized line that includes enough space for social distancing. … Should you host open houses, be sure to comply with the 25-person maximum capacity, have hand sanitizer available for anyone entering the home and wipe down common surfaces frequently.
But the real estate business hasn’t come to a complete halt, even as residents heed warnings to stay home as much as possible. Business has still been moving along fairly steady. It’s having its adjustments taking it day by day. One issue has been finalizing the purchase of homes which were already under contract.
Meanwhile, some home sellers are waiting until life gets back to normal before proceeding. And buyers are worried about job security and the long-term economic impact of the outbreak.
“We have seen a few people who have decided to hold off listing their homes as this happens. A few people have decided to pull their homes off the market. We’ve also had a couple buyers walk away due to concerns about being laid off.”
How long the slowdown lasts and its lingering effects on the housing markets are certainly unknown at this point, but like many businesses, people in the industry are concerned. In the meantime, industry groups have been lobbying to ensure real estate agents aren’t left out of any federal relief packages. Amid all this, the agents and agency staffers are often working remotely as some offices have all but shut down to protect the health of employees.
As for us? We’re still in the process of taking it day by day. We’ve never had to deal with anything like this. Ever.