NAR: Strength in Numbers

BOSTON — Membership in the National Association of Realtors® remains near its all-time high.

Reporting at the association’s Nov. 11 Board of Directors meeting, NAR Treasurer Greg Hrabcak said membership stood at 1,526,631 as of Oct. 31. That’s higher than the number Hrabcak reported May 9 — the last time the board met. NAR is on track to end 2024 with the fourth highest number of members in its 116-year history, roughly 2% below the 2023 year-end number.

Shifts in NAR membership generally lag the market by one to two years. Tight inventory and rising interest rates beginning in 2022 led NAR leaders to project membership declines for 2023 and 2024. “When there are fewer market opportunities, some people leave the business. It’s as simple as that,” NAR Chief Economist Lawrence Yun said back in May.

But the number, while fluctuating from month to month, has remained in the 1.5 million range, above NAR’s forecast. “What we’re seeing is that our members are resilient,” Yun says. “They’re small business owners and they understand the ups and downs of the business.”

Continued strong job creation and home-price growth have kept real estate professionals active in the market. “Inventories are rising, and more members are busy putting up signs and preparing for a sale,” Yun says.

As 2024 comes to a close, many markets have seen market activity pick up. Sentrilock, a wholly owned subsidiary of NAR, says the number of lockbox openings was up 5% in September versus a year ago.

“Closed sales have remained low throughout the year — at a seasonally adjusted annual rate of around 4 million for the past 12 months — but pending contracts rose by 7.4% in September,” Yun says. “If history is guide, then home sales are likely to get an additional post-election boost.”

NAR reported that existing-home inventory is getting nearer to a balanced market. In September, for example, there was a 4.3-month supply, up from 3.4 months in September 2023. Months’ supply indicates how long it would take to sell the current inventory at the current sales pace. Generally, a 6-month supply is considered a balanced market.

“Today, there are more inventory choices for consumers, lower mortgage rates than a year ago and continued job additions to the economy,” Yun says.

Still, NAR leaders remain conservative in their budgeting — they’re forecasting an 8% decline in 2025, to 1.4 million members — and say they’re determined to make sure the value of members’ investment is abundantly clear.

“Our members recognize the importance of having a strong national association to advocate for their interests in Washington and a strong network working on their behalf in statehouses and municipal buildings around the country,” says President Kevin Sears. “We also want them to appreciate that no one can beat the package of benefits we offer. In the coming year, we’re working to reinforce and strengthen our value and what we deliver for our members. Our priority is to ensure that real estate professionals continue to choose the National Association of Realtors®.”

© 2024 National Association of Realtors® (NAR)