You must know that the real estate industry is an ever-changing niche.
Whether you’re a person who wants to buy/rent a condo or a business owner, you have to be aware of the most recent trends to make the best decision.
This is especially important in the age of COVID-19 because all the markets are fluctuating and the real estate industry is no exception.
That’s why we gathered essential stats and trends of this industry to let businesses and individuals decide better.
Choosing agents based on recommendations
According to the US National Association of Realtors, over 40 percent of people choose their realtors based on a recommendation. Only 12% of them work with the agents they’ve collaborated with before.
Not choosing the neighborhood based on agents’ suggestions
NAR reports that 52% of people have already done research about the neighborhood, and they only want agents to negotiate the terms of the deal.
So if you’re an agent, you should not waste your time by talking the clients into choosing a neighborhood.
Real estate apps and sites are on the rise
The internet has revolutionized every aspect of our lives, and the real estate industry is no exception. You must have heard of online services such as Zillow that allow you to easily browse a long list of homes that are for sale.
Many other useful online tools offer different features to help you buy, sell, rent, or invest in the real estate industry across the world.
Here are several top real estate apps in 2021:
And here are various services these apps provide you with:
- Third-party buying/selling
- Offering “Virtual” agents
- Mobile or online closings
The US vs. Canada: the main differences
Based on the Canadian Real Estate Association, more than 100,000 real estate brokers, agents, and salespeople are working in Canada’s real estate industry.
On the other hand, HomeLight’s data indicates that there are more than 2 million active real estate agents in the U.S.
As you can see, this is a huge difference between two neighbors and can be a significant factor in choosing a good place to invest in.
Of course, you have to consider many other differences between the two countries’ real estate industries to make a prudent decision.
Women comprise the majority of realtors
Based on NAR, a whopping 64% of all the realtors in the U.S. are female. Another important stat is that this percentage is still increasing, which is an important sign for job seekers to choose their career better.
Also, one should note that the average age of realtors is 55, with an average experience of 9 years in this industry.
Choosing the first option
Another important stat reported by the National Association of Realtors in the U.S. is that most buyers choose to close the deal with the first agent.
In fact, more than ? of people are not willing to go for the second interview with other real estate agents.
So if you’re a real estate agent, you’ve to make a concerted effort to succeed in the interview and encourage the buyer to accept you.
Top social media platforms for realtors
Social media is a great place for marketing, especially in the age of the global pandemic. Real estate agents are also active on social networking sites.
Of course, top platforms like Facebook (2.5 billion users) and Instagram (1 billion users) are their first priority for marketing their business. More than 70% of realtors are active on Facebook to reach out to more prospects.
Social platforms like LinkedIn and Twitter are also great for real estate agents. Despite Facebook and Instagram that are suitable for reaching out to the public, LinkedIn and Twitter are great for communicating with other niche experts. This way, realtors can build an online brand identity and appear like thought leaders.
Realtors’ average income
The average income of real estate agents in Canada is around 100,000 CAD per year and 51.28 CAD per hour. Also, realtors’ income starts at 50,000 CAD per year for entry-level positions, while seasoned agents earn up to 175,000 CAD per year.
It’s good to compare this salary with the income of a person working as a realtor in the United States. A typical real estate agent in the U.S. earns around 86,400 USD per year. Overall, salaries are different from 44,900 USD (entry-level) to 132,000 USD (experienced).
Of course, you should consider the prices in two countries to be able to compare which one earns more.
Are you purchasing a home directly from the owner?
It’s proven that less than 10% of all buyers prefer buying a home from the owner. Condoly has reported that when it comes to buying a condo, most people decide to buy a home from a real estate agent.
According to NAR, almost half of the buyers who buy from the owners have already known them. So if you don’t know anyone who wants to sell their condos, you’d better turn to real estate agents.
The homeownership rate
The homeownership rate is the occupied households that are occupied by the owners divided by the total number of houses. This is one of the most important numbers in the real estate industry.
The homeownership in the USA in 2020 was 65.8%, and this rate has jumped to 67.9% in 2021. This is the highest rate since 2008’s 3rd quarter, based on the Census Bureau.
This rate has also increased in Canada in the last five years. The ownership rate has reached 70% in 2021, while it was around 67% in 2018.
The real estate industry is one of the most sought-after markets for both individuals and investors. Whether you want to buy a condo or investing in this industry, you have to be up-to-date to make the best decision. The mentioned items are some of the most important statistics and trends in the current year, and therefore, you need to pay careful attention to them.