It’s an age-old question when you’re considering a career as a real estate agent.
Is now a good time to become an agent?
The short answer? Yes! But there are some things to consider if you're planning to start your real estate career in 2023. Keep reading for actionable intelligence that will help you plan your success in the shifting real estate market.
3 Reasons Now is Still a Great Time to Become a Real Estate Agent
It’s a great time to become a real estate agent. Really! This is true even in lieu of the wild real estate market we’ve seen in the past two years, the benefits of being a real estate agent remain steadfast. Here's why.
The Dream of Homeownership Remains True
Homeownership is still a central goal of many Americans and investing in real estate continues to be one of the lowest-risk, highest-return ways to build financial wealth.
Even in volatile markets, there's a demand for housing. Americans continue to purchase homes, sell homes, buy second homes, downsize their homes, and invest in income properties whether it’s a seller’s market, a buyer’s market, or a “nobody’s market,” as 2023 may resemble.
Everyone Can Find Success in the Real Estate Business
Real estate is a career that’s relatively easy to learn—and one where there’s enough success and stability for everyone to thrive. The U.S. real estate market is a trillion-dollar business and a vital sector of the U.S. economy that accounts for nearly 18% of the gross domestic product. In 2022, the complete stock of U.S. housing is valued at $43.4 trillion. With so much of the pie to go around, every agent can make their own success in a myriad of ways working in real estate.
Real Estate Agents Continue to Enjoy High Job Satisfaction
There’s a reason so many American workers change careers and decide to become real estate agents each year. And it’s not just because of the promise of big commission checks.
Agents regularly report feeling more fulfilled day-to-day because they can:
Help people achieve their goals of homeownership
Enjoy a flexible schedule
Have unlimited income potential
Be their own boss
Work in an on-the-go environment
These benefits remain a cornerstone of the real estate career, regardless of the state of the market.
Considerations When Starting a Real Estate Business in 2023
As you’ve probably learned, it’s a unique time to work in real estate.
The 2023 market is expected to undergo a rebalance after two years of listing shortages, bidding wars, historically low mortgage rates, and properties flying under contract in record time. This may seem concerning if you’re just starting down your licensing path. But it doesn’t have to be a deal-breaker.
Keep these factors in mind as you begin your journey into real estate and let them guide your business strategy as a new agent.
There’s a Historically High Number of Real Estate Agents
According to the National Association of Realtors® (NAR), more than 156,000 people became Realtors in 2020 and 2021. This number is 60% higher than the number of Realtors added in the two years prior.
The trend has continued. In November, NAR membership reached 1,598,117 Realtors, a number that hovers around a record high that was met in 2021. When you combine NAR’s figure with the current count of non-NAR-member agents, the U.S. has over 3 million licensed real estate agents. That’s a lot of competition!
This influx of agents may make it harder for new agents to break into the business and find success quickly. It can feel discouraging when you're planning to become an agent.
But it’s also an opportunity. This is where differentiating your business becomes key. If you’re planning to become an agent in 2023, consider specializing in a niche as a way to set yourself apart from the crowd. Strategize ways to market yourself and your business ahead of time within your niche. With a strategy and a specialty worked out from the get-go, you’ll have a better chance at first-year success in the shifting market.
Slower Home Sales, More Inventory May Mean More Seller Competition
The average number of days that homes are on the market is expected to increase. While more housing inventory is ideal for buyer's agents and their buyers, it can often lead to more listing competition among listing agents. If you’re planning to become a listing agent in 2023, developing creative marketing strategies for your business will be necessary to win listing contracts and sellers in a more crowded market.
Get Licensed Now and Launch Your Career in the New Year
Is now a good time to become a real estate agent? Yes! Regardless of market conditions, becoming a successful real estate agent is possible for everyone who enters the business in 2023 (and beyond).
The market will always shift. It’s a given in real estate. That's why developing the core marketing and lead generation skills you need to build and grow your business are so important from the beginning. They’ll carry you through the more challenging markets.