David Weekley Homeowners Kellie & Mike Jackson with Zonie, Bergen, Ivy, Easton & Jones
8 Annual Income Needed to Buy the MedianPriced Home in Salt Lake County Rises to $178,510
Report Highlights Challenges Realtors® Faced in 2023
The National Association of Realtors®
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Salt Lake Realtor® Magazine is self-supporting. The advertisers in this magazine pay for all production and distribution costs. Help support this magazine by advertising. For advertising rates, please contact Mills Publishing at 801.467.9419. The paper used in Salt Lake Realtor® Magazine comes from trees in managed timberlands. These trees are planted and grown specifically to make paper and do not come from parks or wilderness areas. In addition, a portion of this magazine is printed from recycled paper.
President Dawn Stevens Real Broker
First Vice President Claire Larson
Woodside Homes of Utah LLC
Second Vice President
Jodie Osofsky
Summit Sotheby's
Treasurer Amy Gibbons
KW South Valley Keller Williams
Past President
Rob Ockey Berkshire Hathaway
CEO Curtis Bullock
DIRECTORS
Janice Smith
CB Realty (Union Heights)
Laura Fidler
Summit Sotheby's (Draper)
Jenni Barber Berkshire Hathaway
J. Scott Colemere Colemere Realty Assoc.
Chris Anderson Windermere Real Estate - Utah
Morelza Boratzuk RealtyPath (South Valley)
Michael Rowe CB Realty (SL-Sugarhouse)
Eric Santistevan Engel & Volkers (Holladay)
Hannah Cutler
CB Realty (Union Heights)
Michael (Mo) Aller Equity RE (Advantage)
Linda Mascher Realtypath LLC (Advisors)
Advertising information may be obtained by calling (801) 467-9419 or by visiting www.millspub.com
Managing Editor Dave Anderton
Publisher Mills Publishing, Inc. www.millspub.com
President Dan Miller
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Graphic Design
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Patrick Witmer
Office Administrator Cynthia Bell Snow
Sales Staff Paula Bell Dan Miller
Salt Lake Board: (801) 542-8840
e-mail: dave@saltlakeboard.com Web Site: www.slrealtors.com
Are You Ready for Aug. 17?
On Aug. 17, practice changes impacting home sellers and broker commissions will be implemented nationwide, some of which Utah has already been practicing (like buyer agency). The settlement prohibits compensation offers on Multiple Listing Services (MLSs) but allows these negotiations to continue off-MLS with real estate professionals.
For homebuyers, this means:
• Sig ning a written agreement with your agent before home tours.
• Ensur ing the agreement reflects your negotiated terms and clearly outlines the services, value provided, and cost.
• The agreement must include: A clear disclosure of your agent’s compensation amount or rate, objective compensation terms (e.g., specific flat fee or percentage), a clause preventing compensation beyond the agreed amount, a statement affirming that broker fees and commissions are negotiable and not fixed by law.
For home sellers:
• You can still offer compensation to buyer brokers as a marketing strategy.
• Your agent must clearly disclose and obtain your approval for any payment to buyer brokers.
• This disclosure must specify the payment amount or rate and be provided in writing before any commitments are made.
• O ffers of seller concessions can still be made on an MLS, although direct broker compensation cannot.
These changes comply with the class-action settlement. As we approach the implementation date of Aug. 17, Utah Realtors® are well positioned to navigate these industry changes and help their clients achieve the dream of homeownership.
Dawn Stevens President
Salt Lake REALTOR as well as to any writers and photographers whose names appear with the articles and photographs. While unsolicited original manuscripts and photographs related to the real estate profession are welcome, no payment is made for their use in the publication.
Views and opinions expressed in the editorial and advertising content of the The Salt Lake REALTOR are not necessarily endorsed by the Salt Lake Board of REALTORS . However, advertisers do make publication of this magazine possible, so consideration of products and services listed is greatly appreciated.
OFFICIAL PUBLICATION OF THE SALT LAKE BOARD OF REALTORS ®
REALTOR
Happenings In the News
Home Sales, Prices Continue to Rise
Home sales climbed in the first six months of 2024 in Salt Lake County, up 5% compared to the same period in 2023, according to UtahRealEstate.com. Singlefamily home prices reached $609,000 in the January through June period, up 5% from $580,000 a year earlier. Meanwhile, multi-family home prices inched up 1% to $424,000. The typical home was on the market for 27 days, up from 24 days a year ago.
Salt Lake County’s single-family home prices are nearing the record high of $650,000, which was set in May 2022 during the Covid housing frenzy.
The Right Time to Buy a Home
The Salt Lake Board of Realtors® was featured in a sponsored article on KSL.com on July 24 emphasizing why now is the right time for potential home buyers to close a deal on a house. According to Lawrence Yun, chief economist of the National Association of Realtors, mortgage rates around 6% will soon become the new norm. Prospective buyers should consider purchasing now to avoid a potential buying frenzy when rates drop further. “The mortgage rate will not go down to 3 percent, 4 percent, or even 5 percent,” Yun said during a recent CNBC appearance. “The new normal will be around 6 percent.” For those waiting for home prices to fall, the wait will likely continue. In Utah, there have been only two periods of price declines over the past 50 years: the 1980s and the Great Recession (2008-2011), according to a report commissioned in 2024 by the Salt Lake Board of Realtors® and the Kem C. Gardner Institute at the University of Utah.
NAR Opposes Rent Control Plan
National Association of Realtors® President Kevin Sears issued the following statement in response to the Biden Administration’s rent control plan:
“NAR opposes misguided attempts to cap or control rental rates. Price controls may seem appealing, but they have backfired on local governments and harmed the people we need to help the most. Developers are reluctant to build in areas where the government imposes rent controls on new buildings, and these policies actually decrease the supply of low- to mid-range housing units. We can protect the most vulnerable by supporting targeted assistance to renters and housing providers when there is a gap between rising wages and rising rent. But the long-term solution remains increasing supply. We need more than 328,000 new apartment units each year just to keep up with demand — that’s 4.3 million units by 2035.
Sears went on to say that rent control is a rare instance where the research is fairly conclusive: It doesn’t work. “These measures fail to improve most renters’ financial situation and shift the burden of economic difficulties, inflation, and other costs onto the housing provider with no counterbalance,” he added. “The only way to keep cities affordable for working-class families is to ensure that the supply of housing keeps pace with the growing demand.”
New Reality TV Show
The Deseret News recently reported a new reality television series featuring Salt Lake City real estate agents will premiere this winter.
“According to a source close to the production, the star of the new series is Jennifer Yeo, CEO and founder of Presidio Real Estate. Five other agents from Presidio will star alongside her in the series set to premiere this winter,” the article said. “Viewers can also expect to see the best of Utah real estate showcased along with the local community of wealthy self-starters.”
Production has been underway for the last two years and Yeo and her castmates are now six weeks into filming a 12-week season.
Income Needed to Buy the Median-Priced Home in Salt Lake County Rises to $178,510
There are six municipalities in Salt Lake County where a salary of $200,000 could not afford the median single-family priced home.
By Matthew Clewett
In the second quarter of 2024, Salt Lake County continued to see increases in both single-family and multi-family sales prices. For single-family homes, the median sales price rose to $625,000, marking a 5.93% increase from the first quarter of 2024 and a 5.04% increase from the same period last year. Multi-family homes also saw an uptick, with the median sales price reaching $434,900, reflecting a 5.05% increase from the first quarter and a 3.57% rise from the second quarter of 2023.
While price increases are frequently discussed and published, the income needed to afford these median-
priced homes is often overlooked. As our members are painfully aware, a $625,000 home today is far less affordable than it was just a few years ago. Elected officials are often presented with the overall home price average in their municipality; however, the true cost of home affordability seems to be elusive. This lack of understanding can lead to policy decisions that fail to address the impact on average constituents. This is where the Municipal Affordability Tracking Report steps in.
The report was developed in 2024 by the Salt Lake Board of Realtors Government Affairs and Public Policy department to help our elected officials conceptualize
in familiar terms the daunting affordability and attainability crisis our county is currently in. It highlights the median income, the affordable housing unit cost for that income, the actual current sales data for both single-family and multi-family homes, and, most importantly, the income needed to afford these median-priced homes in each major municipality throughout the county and the county as a whole.
Affordability Data:
For a clearer picture, below are details illustrating the situation in Salt Lake County and three key municipalities: Draper, West Jordan, and Salt Lake City:
Salt Lake County: The income required to afford a median-priced single-family home in Salt Lake County has risen to $178,510, a staggering 9.09% increase from the first quarter of 2024. For multi-family homes, the required income now stands at $129,194, reflecting a 7.54% increase from the previous quarter.
Draper: Draper remains one of the most expensive municipalities in Salt Lake County. The income needed to afford a median-priced single-family home in Draper has soared to $276,040, making it the highest in the county. For multi-family homes, the required income is also significant at $140,635. Draper is also the first
municipality to hit a quarterly median sales price of over $1 million.
West Jordan: In West Jordan, the median sales price for single-family homes necessitates an income of $165,539, which, while lower than Draper, still represents a substantial financial requirement for families. For multi-family homes, the income required is $117,287.
Salt Lake City: Salt Lake City, the county’s urban heart, requires an income of $186,034 to afford a medianpriced single-family home. For multi-family homes, the required income is $126,367. These figures reflect the broader trend of increasing unaffordability, even in more densely populated urban areas where one might expect more affordable housing options.
These municipalities illustrate a widespread problem: families earning median incomes cannot afford medianpriced homes, highlighting a county-wide crisis. To drive home this point, consider these findings:
• There are no cities in Salt Lake County where an income of less than $100,000 could afford the median multi-family home
• There are six municipalities where $200,000 or less could not afford the median single-family home
Affordability Decline and What Can Be Done
There is not a single cause for why affordability has declined; rather, it is a combination of elements that have come together over the past decade to create the “perfect storm.” The key elements in this equation are interest rate increases, severe housing stock shortages, and increased housing price costs due to supply/ demand pressure and government regulation. These have led to the most unaffordable housing market in Utah’s history.
While our local officials can’t control the interest rates, they do have a substantial impact on both the supply of housing in their communities and the regulations imposed on homebuilders. According to recent studies by the National Association of Home Builders (NAHB) and the National Multifamily Housing Council (NMHC), regulations account for 23.8% of the final price of a new single-family home and 40.6% of total development costs for multi-family housing projects.
By reevaluating impact fees and other regulations in the application process, cities can cut significant costs off the new home construction process. Likewise, cities can establish innovative new policies that permit more infill development, smaller-lot subdivisions, and creative zoning adaptations to allow for housing types that currently would not comply with city codes, enabling developers to address the supply problem. Changes imposed at the municipal level could provide the necessary impact to allow the construction of new
affordable units for families making the median income in their communities.
To this extent, The National League of Cities and the American Planning Association, in collaboration with the National Association of Home Builders, the National Association of Realtors®, and the Mortgage Bankers Association, released the Housing Supply Accelerator Playbook: Solutions, Systems, Partnerships in 2024. This playbook is a practical guide with over 40 strategies that empower municipalities to address their own unique needs. Nearly every strategy is paired with a real-world example, offering a detailed explanation of how a community has successfully implemented it. Our Municipal Affordability Tracking Report provides a reference to the playbook for policymakers to utilize in their decision-making process.
Our goal in providing this report is to better inform our elected officials of the on-the-ground challenges their constituents face when attempting to achieve the ‘American Dream’ of homeownership. The data presented in this report outlines a stark reality: homeownership is slipping away for many in Salt Lake County due to unprecedented affordability challenges. This crisis demands urgent and innovative policy interventions. If we fail to act, the gap between income and housing costs will continue to widen, leaving homeownership an unattainable dream for most residents. For a detailed overview of this report, please scan the QR code.
Matthew Clewett is the Vice President of Public Policy & Advocacy at the Salt Lake Board of Realtors®. He serves as the chief advocate for private property rights and housingrelated issues. He holds a master’s degree in Business Administration from the University of Utah. You can contact Matthew at matt@slrealtors.com.
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UAR Advertising Campaign Emphasizes the Value of Using a Utah Realtor®
Videos of real client stories to air starting in August.
By Deanna Devey
One couple saved $150,000. Another received $20,000 in homebuyer assistance. One avoided costly due diligence mistakes. And another won a multiple-offer situation on a tight deadline.
These are stories from four sets of buyers featured in the new Utah Association of Realtors® My Realtor® Story ad campaign now running in Utah. The experiences highlight the incredible value buyers receive when they hire a Realtor®.
In the videos, the four couples tell personal stories about how working with a Realtor® saved them money and made homeownership possible:
• Jenny and Ken saved $150,000 because their Realtor® helped them avoid a home with costly repairs and found them a similar new home for much less.
• Scott and Erica avoided costly mistakes because their Realtor® provided them with information about city ordinances, easements and construction requirements.
• Emma and Jeremy’s Realtor® helped them beat a tight deadline and win the house as they negotiated a multiple-offer situation from across the country.
• Tim and Hannah didn’t think they could buy a single-family home, but their Realtor® helped make it possible by introducing them to the First-time Homebuyer Assistance Grant and another program that helped them get a lower interest rate.
These video stories air August through October and again in the spring. The segments are part of a multi-
channel campaign that will target Utah homebuyers. Ads will air on digital media, social media, internet radio, traditional radio, streaming and digital TV, and traditional TV.
Additionally, UAR is partnering with KSL on sponsored content articles that will explain the lawsuit settlement changes and the benefits of Realtor® representation. The Association is also working to provide local media outlets with accurate information about the national settlement and what it means in Utah.
The campaign updates a previous ad campaign that highlighted stories from buyers and sellers about how a Realtor’s® expertise helps consumers navigate the risks, pitfalls and complexities of buying and selling property.
New UAR Forms Comply with Settlement Changes Forms
revisions facilitate national settlement changes.
By Utah Association of Realtors®
With new changes resulting from the National Association of Realtors® settlement, the Utah Association of Realtors® has revised its forms library to comply with these settlement requirements:
1. The removal of offers of compensation from the MLS.
2. The requirement that Realtors® sign a written agreement with their buyer before touring a home.
The following is a list of the forms affected by the settlement and a summary of the key features and changes. Each of these forms is available for review in the Forms Library at UtahRealtors.com.
Exclusive Buyer-Broker Agreement and Agency Disclosure
While the form is very similar to the previous version, UAR has updated it to comply with the terms of the settlement and provide flexibility between the buyer
and the buyer’s brokerage. Realtors® should discuss the terms of the agreement with their buyers and ask if the buyer has entered into any other agreements.
This form is effective upon signing and continues to protect the public by establishing a fiduciary relationship with the buyer’s brokerage. Having this form signed prior to showing a property satisfies the requirement for a written agreement in the settlement.
Key features:
• Allows for flexibility for brokerage and buyer to negotiate terms.
• Allows the agreement to be for one day, six months or any time period negotiated.
• States the amount of compensation the buyer is obligated to pay. This is not open-ended.
• Allows the buyer’s financial obligation to be offset by a third party.
• Emphasizes that brokerage fees are fully negotiable.
• Adds an end date to clearly state when the agreement ends.
• Clarifies that the agreement is either county-specific or property-specific, not both.
• States that the brokerage may not accept compensation from any source greater than what is agreed to in the Buyer-Broker Agreement.
• Adds a section to specify any properties excluded from the agreement because of a representation agreement with another brokerage.
Exclusive Right to Sell Listing Agreement and Agency Disclosure
The main changes to this form are in sections 2.1, 2.2 and 2.3 and address compensation sharing. Instead of having the listing and buyer-brokerage fees rolled into one, this form separates them. This clearly delineates how much the seller will pay the listing brokerage and, if applicable, how much the seller authorizes the listing brokerage to compensate to the buyer’s brokerage. This form accounts for the fact that the amount and method of buyer agent compensation is not known at the time the listing agreement is signed.
Key features:
• Allows for flexibility for listing brokerage and seller to negotiate terms.
• Emphasizes that brokerage fees are fully negotiable.
• Adds an end date to clearly state when the agreement ends.
• Specifies in Section 2.1 the amount of compensation for the listing brokerage only.
• Authorizes in Section 2.2 the listing broker to advertise and pay compensation up to a certain amount to a buyer’s brokerage.
• Uses Section 2.3 to authorize the Section 2.2 buyerbroker compensation to be added to the brokerage fee if a written brokerage compensation agreement is established.
Updated Form: Real Estate Brokerage Payment Addendum
This form allows a buyer to request as part of the Real Estate Purchase Contract that a seller help pay the buyer-broker fee. This form may be used less frequently should the state change Section 4.3 of the Real Estate Purchase Contract to allow the buyer to ask the seller to compensate the buyer’s brokerage directly in the REPC without an addendum.
Key features:
• Allows a buyer to ask a seller to pay the buyer’s brokerage fee.
• Clarifies that the seller’s payment is in addition to any compensation sharing agreed to between the listing broker and buyer’s broker.
• Authorizes the escrow/ closing office to withhold the amount specified from the seller’s proceeds.
• Adds a section for additional terms to provide flexibility for various transactions.
New Replacement Form: Real Estate Brokerage Compensation Agreement
Under the NAR settlement, a listing brokerage may compensate a buyer’s brokerage. Because the compensation agreement is now removed from the MLS, this form creates a compensation agreement between the brokerages. This is a replacement to the previous escrow instructions form.
Key features:
Addendum to Exclusive Buyer-Broker Agreement
This addendum modifies an Exclusive BuyerBroker Agreement executed prior to settlement implementation.
Key features:
• This form is between brokerages.
• For transparency, clients acknowledge the agreement.
• The payment offsets the buyer’s obligation to their brokerage.
• Payment is conditioned upon the successful closing of a transaction.
• Requires brokers to arbitrate if there is a dispute.
us today, and we’ll help you with your plumbing needs.
Updates the previous Exclusive Buyer-Broker Agreement to make it compliant with the settlement.
· Replaces the language in sections 2.2 and 2.3 of the previous Exclusive Buyer-Broker Agreement. This form is not needed for clients who sign the newly revised Exclusive Buyer-Broker Agreement.
Addendum to Exclusive Right to Sell Listing Agreement
This addendum modifies an Exclusive Right to Sell Listing Agreement executed prior to settlement implementation.
Key features:
• Updates the previous Exclusive Right to Sell Listing Agreement to make it compliant with the settlement.
• Replaces the language in Section 2 of the previous Exclusive Right to Sell Listing Agreement.
• This form will not be needed for clients who sign the newly revised Exclusive Right to Sell Listing Agreement.
If you have any questions about the new and updated forms, please call the UAR Legal Hotline at (801) 6765211.
Diving
Right In Kevin Sears is springing into the future with unbridled optimism.
By Stacey Moncrieff
When Kevin Sears was competing in high-school and college diving events, one of his most challenging dives was the gainer, a tricky move in which the diver moves quickly toward the front of the board, takes a big bounce, and then rotates backwards from a forward-facing position. Successfully executing the gainer requires preparation and self-confidence. Those are two qualities Sears demonstrates in abundance as president of the National Association of Realtors®. You might say he’s been preparing for the job since 1994, when he became a licensed real estate professional and
a Realtor® and began saying yes to volunteer roles. For Sears, a broker with Lamacchia Realty/Sears Real Estate in Springfield, Mass., each committee appointment was an opportunity to give back to a business he’d grown up around and loved from an early age.
Sears’ decades of active involvement lean heavily toward advocacy. At the national level, before joining the Leadership Team, Sears served 25 years as NAR’s Federal Political Coordinator to U.S. Rep. Richie Neal of the first district of Massachusetts. Twice, he chaired the Realtors® Political Action Committee Trustees.
And he was part of the presidential advisory group that reshaped NAR’s advocacy operations in 2010 to ensure they remained effective after the Citizens United Supreme Court decision.
“Kevin is great at meeting people and picking up the phone to call people. That’s why he’s done well in real estate. You treat people the way you want to be treated, and you give back. Those are the things our parents instilled in us.”
Brian Sears, Kevin’s brother
“My passion for advocacy . . . it’s just recognizing how important it is to have the conversations with the government decision makers—whether legislative or regulatory—about the importance of allowing people to freely buy, sell, lease and transfer real property,” he said. “Really, the mantra is ‘do no harm,’ especially when we represent nearly 20% of the GDP. And recognizing that there are advocates on the opposite side, we need to have good people advocating for our issues.”
Mike McDonagh, general counsel for Lamacchia Realty, is a former Massachusetts Association of Realtors®’ general counsel and government affairs director. He said Sears was “never just on the committee because he got appointed to the committee. He was always about the substance. He cared about it, and he wanted to make a difference.”
Several years ago, for example, when Massachusetts was considering an energy-rating system for homes, Sears was there to talk with the state secretary of energy about why it would be detrimental to existinghome owners. When the state didn’t include real estate brokerage as an essential service during the March 2020 COVID-19 shutdown, he was on the phone with the lieutenant governor at the time, Karyn Polito, to say, “We need to be explicitly included. Right now, we have $7.4 billion of real estate sales pending in the Commonwealth. If you don’t deem us essential, that will vanish.”
MAR CEO Theresa Hatton, RCE, met Sears back in 2010 when she was serving as CEO of the Greenwich Association of Realtors® in Connecticut. Even then, he had the makings of a national leader, she said. “He was very good at breaking down complex issues [and] helping members understand the different perspectives upon which policy decisions were made.”
Meeting Members Where They Are
As NAR president, Sears is putting those communication skills to the test. Since taking office Jan. 8, he has zigzagged the country to speak at industry meetings, make podcast appearances, and record unscripted video updates for members he can’t reach face-to-face. He took a few days off in early March to spend time with his ailing father (“my first mentor, in life and business,” he said). Paul Sears passed away March 5 at age 86, just 10 days before NAR announced a proposed $418 million
settlement agreement to end long-running class action litigation. By the time the settlement announcement came, on March 15, Sears was back on the job— explaining the settlement to members and the media and expressing optimism about the industry’s future.
“He has big shoulders,” said Molly, his wife of 27 years. “He’s also a steady presence to help lead Realtors® through this very challenging time.”
Sears has earned props for the open way he addresses questions ranging from what’s happening with NAR’s culture transformation to why NAR went down the settlement path to “how are you promoting Realtor® value?”
“The reason Kevin is so effective as a leader is he listens before he reacts,” said Ron Phipps, ABR, CRS, a Warwick, R.I., broker and NAR’s 2011 president. “Too many people already know what they’re going to say before they’ve even heard the question.”
And Sears is a straight shooter, said Dawn Ruffini, AHWD, RENE, a broker-owner from Wilbraham, Mass. When she was 2022 president of MAR, she said, “I knew I could call on Kevin and get a straight answer—not sugar-coated, just ‘this is what it is.’”
He doesn’t shy away from tough questions about the association’s past or its future. In fact, he’s known for asking tough questions himself. “If people are asking, that’s a good thing,” Sears said. “They’re giving you the opportunity to have the conversation.”
Along with the rest of the Leadership Team, he’s staying focused on keeping an open dialogue with members and addressing the priorities in front of NAR now:
• Giving Realtors® the resources they need to successfully navigate the settlement-mandated practice changes that take effect Aug. 17.
• Keeping the association on track as the Nov. 26 hearing on final approval of the settlement approaches.
• Envisioning a leaner post-settlement NAR that continues to provide the tools, resources and advocacy that members need and expect.
He’s going to make sure we don’t get sidetracked,” Hatton said. “The most important project [of the NAR presidency] at this moment is to carry on the work of the association, make sure we stay focused on priorities, and help members succeed in today’s business environment. And he will not back down. He will communicate clearly on the strategies our members need to know most.”
A Very Early Start
Sears jokes that he was born into real estate and politics. His father started Sears Real Estate in 1971. It was November of that year—Election Day, to be precise— when his mother, Josephine, went into labor with the fourth of their six children. Paul, who happened to be running for re-election to the Springfield City Council, rushed home from the campaign trail to drive her to the hospital. “Did you vote?” he asked. She hadn’t, and so they made an extra stop. “To this day,” Sears said with a laugh, “no one knows whether my mom actually voted for my dad.”
One of Sears’ earliest real estate memories is accompanying his father door to door as he collected rent payments. Inevitably, they’d be invited in to chat with the tenants. Sears, who shares Paul’s gregarious nature and ability to bond with all types of people, knew he’d like nothing better than to follow in his father’s footsteps.
In school, Sears excelled in sports, especially diving, which he started in sixth grade when his brother Patrick joined the high school diving team.
“When you compete on a team, you realize there’s something bigger than your-self. Bill Belichick’s ‘Do your job’—I really believe in that,” he said. “The success of any team is determined by the collective of each individual’s effort.”
“He would practice and practice,” recalled his younger brother, Brian. “My father used to take him down to New Haven, Conn., for extra practice. In his very first [high school] meet, he beat our older brother Pat’s high school record.” Eventually, Sears became a state champion and went on to compete as a Division I diver at Providence College.
Lessons in Humility
Once Sears obtained his real estate license, his father instructed him to go straight to the local association, Realtor® Association of Pioneer Valley, and join three committees. Sears chose government affairs, education and community service.
“Government affairs quenched the thirst for political involvement,” he said, “but the community service committee gave me the opportunity to work shoulderto-shoulder with other members in the soup kitchen or doing a Habitat build.” The work taught him humility, helped him build ties with other members that have served him well throughout his business, and honored his parents’ values.
“One thing my siblings and I learned from our parents was making sure that we give back,” said Sears, “whether it’s the neighborhood, the community, the school, our church or our industry.
Sears and his siblings—Josephine, Patrick, Paul, Brian, and Katie—had no better role models than mom and dad, whose marriage started with a major act of service.
Sears’ mom had attended Boston College, earning a degree in nursing. But her call to serve others was so strong, she chose a different path after graduation, traveling to rural New Mexico to volunteer for the newly formed Society of Our Lady of the Most Holy Trinity mission. She contemplated becoming a nun, but in 1962, when her father was diagnosed with cancer, she returned to Springfield to care for him.
“After her father passed away, she intended to return to New Mexico,” Sears said. “My mother didn’t plan to fall in love.”
But a former elementary school classmate invited her to the state fair (the same place where Kevin and Molly met 25 years later). The rest, as they say, is history.
Sears’ dad—a graduate of Providence College with a master’s degree from Yale—had intended a career in chemistry. Instead, he followed his wife’s dream. The couple spent two years together teaching in New Mexico. Then they lived briefly in Kansas City, where their first child, Josephine, was born. When they returned to Springfield, Paul Sears took a position managing a new nonprofit, Micah Corporation, dedicated to expanding homeownership. Sears calls it “Habitat [for Humanity] before there was Habitat.”
Acclimating to Change
If there are three values that underpin Sears’ life, they
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are family, service and the Golden Rule. All three are woven into the company founded by Paul Sears.
“My father always impressed upon the agents in our office what it means to take care of your client,” Sears said. “It’s the REALTOR® Code of Ethics.”
The culture of care extended to agents and employees, too. “The longevity of our agents is a testament to the culture of the company. When they join us, they join for a reason: the family environment,” Sears said.
“It has always been an atmosphere that felt more like family than work,” said bookkeeper Laura Ogoley, who joined Sears Real Estate in 2002 after 22 years in banking. “That’s how they treat people. That’s how we all treat each other.”
Yet, as in his diving days, Sears is ever preparing for the challenges that lie ahead.
In December, for the first time, he asked a buyer client to sign a written representation agreement: “I explained all the services that we provided and how much I was looking to get paid. At the end, the client said, ‘Kevin, that makes perfect sense.’” Sears talked over the experience with his partners—Brian and brother-in-law Dan Rodriguez—and in January, the company decided to begin requiring written buyer agreements. (NAR has long recommended getting written agreements with buyers, but it’s not required by Massachusetts law, he said. It becomes an NAR requirement Aug. 17.)
An even bigger change came in April, when Sears and his partners announced the sale of their two-office brokerage to Lamacchia Realty, a company with offices in Massachusetts, New Hampshire, Rhode Island, Connecticut, Maine and Florida. Sears, who has known broker-owner Anthony Lamacchia for about 15 years, said the acquisition will give Sears Real Estate the systems and technology it needs to thrive and grow. The sale also gives him more freedom to focus on what is essentially a two-year presidency. He turns over the reins to his successor, Kevin Brown of Oakland, Calif., in November 2025.
It’s a pivotal time as NAR and its members implement practices changes, seek final approval of the settlement, consider expected recommendations of the Culture Transformation Commission, select a new CEO— NAR’s Interim CEO Nykia Wright has agreed to stay on through the end of 2024—and continue to map out the association’s future. Sears views these challenges collectively as a kind of passage that will lead to a new era of strength for the organization and its members. “One thing I know about Realtors® is that we’re resilient. There’s no challenge we can’t overcome together.”
Stacey is executive editor of publications for the National Association of Realtors® and editor in chief of REALTOR® Magazine.
Report Highlights Challenges Realtors® Faced
in 2023
The median gross income for Realtors® decreased to $55,800 in 2023, down from $56,400 in 2022.
By The National Association of Realtors®
In 2023, when the volume of existing-home sales hit the lowest level since 1995, 26% of Realtors® named lack of inventory and housing affordability as the most important factors limiting potential clients from making a purchase, according to the National Association of Realtors®› 2024 Member Profile. This annual report analyzes members’ business activity and demographics from the prior year.
“2023 was a difficult year for Realtors® due to high mortgage rates and low housing inventory, which significantly impacted home sales volume,” said Jessica Lautz, NAR deputy chief economist and vice president of research. “REALTORS® faced competition at all angles – not only to represent clients but also to ensure their buyers’ offers were accepted amid tough real estate market conditions.”
Nearly two out of three Realtors® (65%) hold sales agent licenses, while 22% hold broker licenses and 17% hold broker associate licenses. Seventy-four percent of members specialize in residential brokerage. Like 2022, relocation, residential property management and commercial brokerage are members’ most common secondary specialty areas.
Members typically have 10 years of real estate experience, down from 11 years in 2022. Seventy-three percent of members are very certain they will remain in the real estate industry for at least two more years. Brokerage specialists had a lower sales volume ($2.5 million vs. $3.4 million), and the typical agent had fewer transactions (10 vs. 12) in 2023 compared to 2022.
The typical Realtor® earned 20% of their business from previous clients and customers, down from 27% last
year. The most experienced members – those with 16 or more years of experience – reported a greater share of repeat business from clients or referrals (a median of 42% in 2023). Like 2022, members with two years of experience or less reported no repeat business in 2023. Overall, Realtors® earned a median of 21% of their business from referrals, a decrease from 24% in 2022. Referrals were also more common among members with 16 or more years of experience – a median of 29% – compared to no referrals for those with two years or less of experience.
The typical property manager managed 31 properties in 2023, down notably from 40 properties in 2022. The typical Realtor® worked 35 hours per week in 2023, slightly less than last year.
The median gross income for Realtors® decreased to $55,800 in 2023, down from $56,400 in 2022. Realtors® with 16 years or more experience had a median gross income of $92,500, up from $80,700 in 2022. Realtors®’ total expenses increased to $8,450 in 2023 from $8,210 in 2022.
A majority of Realtors® (53%) worked with an independent company and 88% were independent contractors at their firms – both figures nearly identical to 2022. The typical Realtor® had a median tenure of five years with their current firm, down from a median of six years in 2022. Eight percent of members reported
working for a firm that was bought or merged in the past two years, down from 26% in 2022.
“Regardless of market conditions, agents who are Realtors® sought a career where they could be their own boss as an independent contractor, specialize in residential or commercial brokerage, and embrace new technologies to make transactions happen,” said Lautz. Daily, most Realtors® use a smartphone with wireless email and internet capability (96%) and a laptop or desktop computer (91%). The smartphone features that members use most frequently daily are email (94%), social media apps (60%) and GPS (56%). Sixtyfour percent of Realtors® use multiple listings software daily. Text messaging (94%) is the top method of communication for members with their clients, followed by telephone (91%) and email (89%).
More than two-thirds of members (72%) have their own website – 44% of which are provided by the member’s firm. For professional purposes, most members use Facebook (77%), Instagram (57%), and LinkedIn (55%).
Six percent of Realtors® use drones themselves as part of their business, and 46% have hired a professional drone operator. Four percent and 2% of members, respectively, use 3D/virtual tour and virtual staging technology daily.
Sixty-five percent of all Realtors® were female in 2023, an increase from 62% last year. The median age of Realtors®
was 55, down from 60 last year. Thirty-five percent were 60 years or older and 4% were less than 30.
Seventy-nine percent of Realtors® were White in 2023, down from 81% last year. Hispanics/Latinos accounted for 10% of Realtors®, followed by Black/ African Americans (6%) and Asian/Pacific Islanders (4%). New members were more diverse than experienced members. Among those who had two years or less of experience, 40% were non-White.
Realtors®’ education level exceeded that of the general public. Ninety-two percent of members had some postsecondary education, with 34% completing a bachelor’s degree as their highest level of education. Seventy percent of members reported volunteering in their community – most commonly among members aged 40 to 49 years.
“Realtors® are hardworking people who advocate for homeownership and property rights in the communities they serve,” said NAR President Kevin Sears, broker-partner of Sears Real Estate/Lamacchia Realty in Springfield, Massachusetts. “Regardless of how you find a property, expert agents who are Realtors® help take the stress out of the homebuying process and navigate the most intricate and significant transaction many will ever complete.”
Survey Methodology
In March 2024, NAR emailed a 98-question survey to a random sample of 157,711 Realtors® and received 6,113 responses. The survey had an adjusted response rate of 3.9%. The confidence interval at a 95% level of confidence is +/- 1.25% based on a population of 1.5 million members. The association weighted responses to be representative of state-level NAR membership. Information about compensation, earnings, sales volume and number of transactions are characteristics of calendar year 2023, while all other data are representative of member characteristics in early 2024.
For more information from NAR’s 2024 Member Profile, visit https://www.nar.realtor/research-and-statistics/ research-reports/highlights-from-the-nar-member-profile.
About the National Association of REALTORS®
The National Association of Realtors® is America›s largest trade association, representing more than 1.5 million members involved in all aspects of the residential and commercial real estate industries. The term Realtor® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of Realtors® and subscribes to its strict Code of Ethics
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Trends in Multigenerational Living
Right now, the United States is not ready to meet the demand of multigenerational living; individual communities, lawmakers, and builders will need to come together.
By Barbara Ballinger
Multigenerational living continues to gain popularity in the United States. Preservation of cultural traditions, burden of expenses and caregiving, and warding off loneliness all serve as reasons for the increase in this particular living arrangement. Aging in place maintains its appeal amongst the population, especially as people live longer.
In March 2021, there were 59.7 million U.S. residents who lived with multiple generations under one roof, compared with 58.4 million in 2019, according to a Pew Research Center analysis of census data.
Different Options for Different Needs
Personal needs vary, which means multigenerational living looks different from one family to the next. A bedroom and private bath might work well for one household, while a freestanding accessory dwelling unit (ADU) might work best for another. But there’s a common denominator of what matters most: proximity to family members.
Despite the need for homes that can accommodate more than one generation, Jennifer Molinsky, director of the Housing an Aging Society program at Harvard
Joint Center for Housing Studies, said only a small percentage of America’s housing is accessible for those who have ambulatory difficulties, a need not limited to age. Needs outside of mobility—features that compensate for such factors as poor eyesight, hearing loss and mental challenges, among others—are also in short supply. The bottom line: One housing typology will not serve all, Molinsky said.
Architect Bob Zuber, AIA, partner at Morgante Wilson Architects in Evanston, Ill., agrees, adding that more of his clients are asking for some type of multigenerational housing due to different needs.
Associate broker Shannon Diiorio, with Compass in Ardmore, Pa., had a client—a retired widow—who sold her home and used the proceeds to build an addition onto her daughter’s family home. “It’s the equivalent of an apartment with a door to the outside and a door to the home. [The space] includes a living-dining room, small kitchen, bedroom and bathroom,” said Diiorio, AHWD, EPRO. “They all have a good relationship, but it also works because she travels and loves returning home to her family and grandkids.” Diiorio has other clients who have made or are planning similar changes, she said.
A Denver-area homeowner whose son and granddaughters wanted her and her husband closer to the family found that a walk-out basement did the trick. The space offers the right balance of proximity and privacy, says Marian Anderfuren. The grandparents
retrofitted the house’s basement into an apartment that “doesn’t feel like a dungeon but is also far enough away so the generations don’t feel they’re on top of one another,” Anderfuren adds. Her husband and son transformed the space with universal design features like a microwave at countertop height, white cabinets, and insulation with sheetrock to block each generation’s noise. “The home that resulted is less of a factor in our happiness than with whom we’re living, and we love that we can help out with our granddaughters,” Anderfuren says.
A Case for ADUs
Author Sheri Koones’ recent book, ADUs: The Perfect Housing, includes examples of why accessory dwelling units work well for multigenerational living. A big factor: Being customizable, they can meet myriad needs based on available land, building codes, budget and other familial criteria. In one case, grandparents can help with babysitting and may someday benefit from help from their grown children. “It’s a way for many older people to avoid having to go into an expensive assisted living or other facility as they age or stay in their own home, which may be too expensive or impossible to care for,” she said. As a result, everyone enjoys their time together while still having privacy. The grandparents’ space has, for example, their grandchildren’s train set, so they have a chance to enjoy quality time together. A porch between the house and ADU is a great place for all to meet.
In another case, a family wanted an addition that preserved a heritage tree in the backyard. They came up with what Koones calls a hybrid plan for an ADU that met local zoning laws. There’s also a self-sufficient accessory apartment on the lower level of the house and a bedroom suite on the upper level that serves as a guest room or office for the apartment or the house. The separate addition is linked to the house by a bridge built atop piers, so it doesn’t disturb the tree’s roots. In this case, the ADU was built for the owners’ father and his wife.
In a third example, additional living quarters were built above the garage. After a fire that ruined the original garage, the couple decided to rebuild it with an ADU to bring their parents closer. Since the stairs could be difficult for the parents, the couple installed an elevator. The ADU was built with many amenities to make it easier to live there, from easy handles on kitchen cabinets to a barrier-free shower in the bathroom.
In still other cases, when a family member can’t live
independently, an extra bedroom and bathroom in the house may be the best option. This is what salesperson Lisa Rhodes, with Keller Williams Cedar Creek Lake Properties near Dallas, did for her mother-in-law. “We had her come live with us when she was 87, and we remodeled our first-floor bedroom suite for her and built another on the opposite side of the house,” she said.
Though ADUs are gaining popularity in municipalities across the country, the specifics vary greatly, and in many communities, residents balk at the idea of ADUs altoghter, said Jean-Marie Minton, SRES, a broker associate with Keller Williams Realty Evolution in Beverly, Mass. Some builders, however, are catching onto the trend.
Built-In Solutions
More builders are developing new plans or adjusting existing ones to offer solutions from the ground up, so homeowners don’t have to retrofit their quarters,
Rhodes said. This can add to resale potential as the numbers of these households grow, she said.
For example, Cruz Companies, a family-owned construction, development and management business near Boston, is adding three- and four-bedroom homes in a new development in the Roxbury, Mass., neighborhood where it constructed affordable rental townhouses. “Some will be multigenerational homes, and down the road we will add condos to fill this need, too,” said Justin Cruz, the company’s COO.
In Glenview, Ill., Lexington Homes recently sold out a luxury single-family community where some of the units had been designed for multigenerational living. The homes include one or more bedrooms on the main level and more bedrooms upstairs, so the layout could work for several generations to live together, said principal Jeff Benach. At the company’s newest townhome community, Metro on Main in Morton Grove, Ill., the builder is offering a new home design with an optional private fourth bedroom and third bath on the lower level, and many buyers purchased the plan for this feature, says Benach.
To be sure that any designs labeled as multigenerational really are and will work, real estate professionals and homeowners should verify that they include a
good number of universal design features, said Nikki Buckelew, founder and CEO of Seniors Real Estate Institute in Oklahoma City. If space is converted to meet a family’s multigenerational needs, the family should have some idea of how they will use it going forward, since grown children move away and elderly parents pass on, said architect Diana Melichar, president of Melichar Architects in Lake Forest, Ill.
Before a solution is finalized, full approval must be in place to construct or remodel it, Koones said. Though more communities have approved ADUs, regulations vary, and there are still many areas that balk at the idea of accessory dwellings, said Minton.
To encourage more communities to get on board with solutions, Minton said, the profession should become involved in their local associations and governmental affairs committees. They should talk with builders, lawmakers and universal design experts to know what options might work best. “We need to find more solutions, especially affordable, accessible rentals for long-time homeowners,” she said. “The standards are higher than for an ordinary investment rental.”
Barbara Ballinger is a freelance writer and the author of several books on real estate, architecture, and remodeling.
JUNE 2024
Slow Shift from a Seller’s Market to a Buyer’s Market
Home sales dipped slightly in June to 1,079 units sold in Salt Lake County, down 3.05% from the same month a year earlier, according to UtahRealEstate.com. While sales fell, home prices continued to rise, increasing to $555,000 for all housing types sold, up 7.14% from $518,000 in June 2023.
Salt Lake County’s single-family home prices are nearing the record high of $650,000, which was set in May 2022 during the Covid housing frenzy. In June, the median single-family home price climbed to $630,000, up 5% from $600,000 last year.
Nationally, the median existing-home price for all housing types in June was $426,900, an all-time high and an increase of 4.1% from one year ago ($410,100). All four U.S. regions registered price gains.
“We’re seeing a slow shift from a seller’s market to a buyer’s market,” said NAR Chief Economist Lawrence Yun. “Homes are sitting on the market a bit longer, and sellers are receiving fewer offers. More buyers are insisting on home inspections and appraisals, and inventory is definitively rising on a national basis.”
The typical Salt Lake home was on the market for 28 days in June, up from 19 days in June 2023. Under-contract listings in the county increased to 1,492, up from 1,486 a year ago.
Across the U.S., first-time buyers accounted for 29% of sales in June, down from 31% in May but up from 27% in June 2023. NAR’s 2023 Profile of Home Buyers and Sellers, released in November 2023, found that the annual share of first-time buyers was 32%. All-cash sales accounted for 28% of transactions in June, unchanged from May and up from 26% one year ago.
Individual investors or second-home buyers, who make up many cash sales, purchased 16% of homes in June, identical to May and down from 18% in June 2023.
Distressed sales – foreclosures and short sales – represented 2% of sales in June, unchanged from last month and the previous year.
According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.77% as of July 18. That’s down from 6.89% one week ago and 6.78% one year ago.
“We’re seeing a slow shift from a seller’s market to a buyer’s market.”
Lawrence Yun
Chief Economist National Association of Realtors®
Salt Lake County
Pamela Abbott
Barton Allan
Judy Allen
Suzanne Allred
George Anastasopoulos
Brent Anderson
Clay Anderson
Diane Anderson
Kay Ashton
Sue Avalos
Margaret Averett
Laurence Bailess
Les Bailey
Brent Barnum
Veda Barrie-Weatherbee
Edward Belka
Ken Bell
Raymond Bennett
Richard C. Bennion
Steven Benton
Michael Black
Gregg Bohling
Russell Booth
Virginia Bostrum
Robert Bowles
Mary Ann Brady
Janet Brennan
Steve Brown
Stephen Bryant
Barbara Burt
Hedy Calabrese
Gregory Call
Tracey Cannon
Julie Carli
Carol Cetraro
Scott Chapman
Garn Christensen
Brian De Haan
Babs De Lay
Lynn Despain
Jerard Dinkelman
Darlene Dipo
Sally Domichel
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James Dunn
Randy Eagar
Carol Edgmon
Douglas Edmunds
Michael Evertsen
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Alan Ferguson
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Jackson Jensen
Kevin Jensen
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Steve Judd
David Kenney
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Peggy Knight
Wayne Knudsen
Karl Koenig
Randall Krantz
Leah Krueger
Kathryn Kunkel
Gary Larson
Teresa Larson
Vann Larson
Michael Lawrence
Clark Layton
Shauna Leake
Kaye LeCheminant
Daniel Lindberg
Michael Lindsay
Martin Lingwall
Mildred Llewelyn
Don Louie
Ted Makris
Margaret Malherbe
Al Mansell
David Mansell
Dennis Marchant
Susan Mark-Lunde
Paul Markosian
Margene Wrigley
Henry Youngstrom
Elizabeth Memmott
Uwe Michel
Gordon Milar
Kyle Miller
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Gary Monk
H.Craig Moody
Randal Moore
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Robyn Nielson
Van Nielson
Victor Oishi
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Sherrill Wood
HOMETOWN:
WHAT DO YOU LOVE MOST ABOUT D.R. HORTON?
(Ben) D.R.
Another thing I
Ben (pictured left) is the Assistant Controller for D.R. Horton, Utah Division, and is excited and proud to have family members (Cayden, pictured center and Ian, far right) working alongside him at a company where family is first.
