Real Estate Statistics can give us insight into the real estate world and make us realize the worth of tools that somebody can use in order to have better results on buying or selling a house.
Indeed, Real Estate is a rapidly evolving market with trends that evolve daily. It requires a huge understanding in order to make smart investing decisions or generally understand what is happening. Obviously, we can analyze the market in different ways but let the numbers speak for themselves.
From the Buyer’s view:
1) How Long Buyers Take to Look for a Home (realtrends.com)
- 5% spent 0 to 15 minutes viewing the home they bought
- 16% spent 16 to 30 minutes
- 17% spent 31 to 45 minutes
- 24% spent 46 to 60 minutes
- 28% spent 61 to 120 minutes
- 5% spent 121 minutes to 240 minutes
- 5% spent 240 + minutes viewing the home they bought.
Keep in mind, not all of these minutes were spent on one visit:
- 10% of buyers made only 1 visit to the home they finally bought
- 23% made 2 visits
- 30% made 3 visits
- 20% made 4 visits
- 9% made 5 visits
2) Younger Buyers Spend More Time (realtrends)
Turns out younger buyers spend more time viewing a property before pulling the trigger to buy.
- Buyers aged 21 to 29, saw a place 3 to 4 times before putting in an offer
- Buyers aged 30 to 39 saw a place only twice before putting in an offer
- 1% of respondents bought a home sight unseen — (using online listings and photos)
3) What did these home shoppers end up buying? (realtrends)
- More than half (52%) bought a single-family detached home
- 8% bought a semi-detached
- 11% bought a townhouse
- 8% bought a condo-apartment
- The remaining buyers bought either a row-house (1%), cottage/vacation property (4%), or investment property with multiple units (4 units or less – 10%; 5 units or more – 6%).
The findings of the Zolo Homebuyers’ Survey 2019 are based on an online survey conducted by Zolo between February 27 and March 27, 2019, of 1,854 survey respondents who live in North America. The estimated margin of error is +/- 2.28 percentage points, 19 times out of 20.
Adding a floor plan to a real estate listing can increase click-throughs from buyers by 52% (Rightmove).
1 in 10 buyers said that they would never arrange view a property if they had not seen a floorplan first, with many more indicating that they would be less likely to view (Rightmove).
From the seller’s view:
4) Some 41% of listed homes have a price reduction before they get an accepted offer.
5) The average home seller cashes in 29% equity in their property when they sell.
6) The typical home seller in 2017 was 55 years of age, had a median household income of $98,800, and lived in their home for 9 years.
7) The typical home sold was on the market for 3 weeks.
8) Almost 39% of sellers who used a real estate agent found their agents through a referral by friends or family, and 24% used the agent they previously worked with to buy or sell a home.
Statistics courtesy of the National Association of Realtors, and PropertiesOnline. (theclose)
Real Estate Agent statistics:
9) Nearly the 20% of America’s real agents live in California.
10) The typical real estate agent receives upward of 30% of their business from repeat clients or referrals.
11) Additionally, the median age for real estate agents in the United States is 54 years old.
12) Around 71% of real estate agents specialize in residential real estate.
13) Real estate agents earning $100,000 or more in gross commission income are more than twice as likely to use advanced technology tools like a customer relationship management tool (CRM) than agents who earn less.
Real Estate Marketing statistics:
14) Particularly, some 73% of homeowners say they are more likely to list with a real estate agent who uses video to sell property.
15) On average, the third most viewed page on real estate agent website is the “About us” page.
16) Around 69% of recent home sellers surveyed said that they would gladly write a review for their real estate agent if requested.
17) Recent sellers reported only 10% of their real estate agents effectively used video to market their property.
18) Homes with drone photography as a part of the marketing plan sell, on average, 68% faster than those without.
Most Wanted Home features :
- According to the latest What Home Buyers Really Want (2019 edition) survey from the National Association of Home Builders (NAHB).
Photo by Outsite Co on Unsplash
19) First of all, laundry rooms and energy-saving features such as Energy Star appliances, energy-efficient windows, and whole-house green certification are among the most wanted home features.
20) The top 10 features also included home storage needs, such as garage storage and walk-in pantries, plus hardwood flooring, a patio, and exterior lighting.
21) Nevertheless, in the kitchen, open floor plans still reign supreme. 86% of home buyers prefer their kitchen and dining room to be completely or partially open. Top finishes include stainless steel appliances (67%), granite or natural stone kitchen countertops (57%), and white kitchen cabinetry (32%).
Buyers are also selecting smaller homes, a result of higher home prices and tightening affordability.
Also, the NAHB noted a continued decline in the average home size since 2016 and decreased demand for upscale features such as three-plus-car garages.
22) In 2018, according to information from the U.S. Census Bureau, the average new-construction home declined to 2,576 square feet—down from its peak at 2,689 square feet in 2015—driven in part by increased production in townhouses, which comprised 14% of new home starts.
23) The location also matters to buyers. According to the report, suburbs are the most desirable home location (64%), followed by a rural setting (24%) and the central city (11%). Millennials are the most likely to want to buy a home in an urban hub (23%), compared to Gen X buyers (11%), baby boomers (8%) or seniors (3%).
General Real Estate statistics
24) Certainly, the youngest homebuyers in the market are millennials, aging from 22-37 years old. While young, they are slowly taking over a majority of the real estate market. They make up 35% of the home market. Over 50% prefer attached housing due to location. (rehabfinancial).
25) Baby Boomers rank 2nd in the proportion of the buyer’s market today. These homebuyers’ ages range from 52-70 years old. Standing at 30% of the population seems like 40% of them will be moving in the next 5 years.
26) The smallest portion of the buyer’s market is made up of Generation X and the Silent Generation. Generation X includes homebuyers in the age range of 36 to 51 years old but they only make up 26% of the market. Last but not least, the Silent Generation holds the smallest percentage of the market at 9%, with ages ranging from 71 to 88 years old.
(The statistics are taken before the Pandemic of Coronavirus)
As the coronavirus pandemic threatens financial markets and sends the economy into a potential recession, those who lead mortgage firms must take swift action to prepare for the worst. The last time the financial markets suffered such a precipitous drop was during the 2008 Great Financial Crisis. “The decline in confidence related to the direction of the economy coupled with the unprecedented measures taken to combat the spread of COVID-19, including major social distancing efforts nationwide, are naturally bringing an abundance of caution among buyers and sellers,” said Lawrence Yun, chief economist for the NAR in a release. “With fewer listings in what’s already a housing shortage environment, home prices are likely to hold steady.
Yes, home sellers can use technology tools and practices to show the house to their potential home buyer. They can show the house by video 360-view, make a skype call or even better use a digital 2D or 3D floor plan to help the buyer understand the space and interior of the house.
Statistics courtesy of the National Association of Realtors, Real Estate Agent U, and Contactually. Also, builderonline.