There are now more realtors than there are properties on the market, and this glut of property agents may be leading to worse outcomes for both sellers and buyers.

The property market is currently thin, with just 1.04 million homes on the market in January. That's a roughly 26% decrease from 2020 and the lowest number on record since 1982.

Despite this, according to data from the National Association of Realtors (NAR), realtor memberships have been increasing since 2012, with January 2021 seeing 1.45 million members, nearly 5% more than the year before it.

For context, there are now 40% more realtors than there are homes for sale today.

According to NAR, the number of active real estate agents usually goes up and down with the housing market, but since 2012 it has been steadily increasing.

Virtually everyone agrees on why this is: becoming a licensed realtor is relatively easy, and workers in other professions are often attracted by realtors' fixed commissions. With the pandemic putting countless Americans out of work, it's unsurprising that many of those people turned to real estate as a solution.

However, these new agents will soon find themselves facing a shrinking market in a pandemic. Landing deals in this kind of market with in-person visits limited would likely be difficult even for an established realtor.

Unfortunately, an influx of inexperienced realtors is far from a good thing for the market. According to recent research by Sonia Gilbukh and Paul Goldsmith-Pinkham, houses listed by inexperienced realtors are less likely to sell, and when they do sell, they often sell for less.

Still, with homes for sale in such low supply, sellers are likely to be in a good position. However, they will still need to either make sure that their agent knows what they're doing, or do a for sale by owner (FBSO). An FBSO is a good option for those looking to maximize the cash they'll get from a sale, assuming they have the skills to make that sale happen.

Buyers, on the other hand, are not on strong footing. A thin market means that buyers would be facing limited options either way, but having to sift through a wave of inexperienced real estate agents doesn't help. If you're looking to buy in today's market, make sure you find an agent who will scour the market for the right property for you.