Providing further evidence that the national housing market is making real progress in its ongoing recovery, real estate agents have been reporting heightened levels of business activity and increased income levels. As consumers take advantage of low mortgage rates, lenders may be experiencing a newfound sense of safety and soundness.
NationalMortgageProfessional.com recently announced Realtors are experiencing improved conditions for the second straight year, after seeing declining incomes and decreased activity for nine years. Using information disseminated by the National Association of Realtors, the organization explained licensed real estate brokers earned $54,900 on average last year, while sales agents made $34,000.
"The median gross income of a Realtor rose to $43,500 in 2012 from $34,900 in 2011, which is only the second gain in the past 10 years," said Paul Bishop, vice president of research for NAR. "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."
Typically, the longer a Realtor has been in business, the more money they receive each fiscal year. According to the recent report, licensed real estate brokers who have been working at least 16 years earned $57,300 last year, while those who worked more than 60 hours each week earned $85,700. Additionally, a reported 21 percent of all Realtors earned a six-figure income.
As list of improving market increases, so does Realtor workloads
While a significant number of licensed real estate agents reported increased business activity during 2012, this year may also see gains in their client lists and transaction histories.
The National Association of Home Builders recently released its Improving Markets Index, outlining the 258 residential sectors across the country which have been exhibiting considerable bolstering. Using public property records, the organization determined which markets would be included on the list - which points toward real growth by foreshadows possible financial obstacles in the future.
"The fact that over 70 percent of all U.S. metros are holding onto their spots on the improving list is definitely good news, and representative of the generally brightening outlook for housing markets nationwide," said Rick Judson, chairman of the NAHB. "That said, our industry's progress on the road to recovery is being slowed by rising challenges related to the availability of credit, building materials, labor and lots for development."
As the construction industry looks for solutions to the rising cost of operation, Realtors may find themselves even busier than last year, as consumer demand has continuously been seen increasing.