NAR Stats Show Money Invested in Technology Not Helping Real Estate

Patricia Eisenhauer's picture
National Association of Realtors

The National Association of Realtors (NAR) released the latest (10/02/2014) statistics on recent real estate activity in our nation. After ten years of internet intervention, web sites, gizmos and gadgets we discover the following.

  • 35% of sales come from past client referrals.
  • 30% are repeat business (past clients)
  • We are talking 65% friends
  • 10% of our sales are generated by web sites
  • 05% suggest the social media as a source.

This means that all of the money you invested in the wonders of communication has done little to increase your real estate business. I do not know how much longer Real Estate will remain a “people business.” Most likely it will depend upon where the money is. Remember the movie; “follow the money”? When the millennium generation, as they are described, finally pay off their college loans, and decide to settle for a home and family, perhaps they will turn to the social media for a realtor. Then again, it is extremely possible that a mother, aunt or close family friend is a licensed realtor.

Now the article also quoted expectations. It is anticipated that competition will increase next year in this manner:

  • 48% of new business will come from non- traditional market participants.
  • 42% from virtual firms
  • 16% expect competition from what they refer to as traditional firms.

I don’t know about you; but I don’t build my business plans on expectations.

The most startling statistic to me was that today 81% of all real estate brokerages consist of 1 office with 2 full time realtors.

7% of the offices are franchised with 92 full time associates. *In the marketplace, those large offices are highly competitive in-house. (My experience).

The final statement in this article really got my attention. The statement was; that pending home sales fell slightly while contract signings were at the second highest level in over a year! What happened between signing and closing?

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