29 Amazing Stats about Homebuying
June is National Homeownership Month, when we celebrate all the wonderful things about owning a home. Inspired by all of the people we’ve helped realize their dream of homeownership, we dug into the stats and trends that shape the home purchase process today.
Some of these facts may surprise you, as the who, the what, the where and the why of buying a home has changed a lot over the last few years. And if you’re in the middle of the house hunting process, or if you’re thinking of selling, they may give you a better idea of who the typical buyer is and what they’re looking for.
First-timers are a force
First-time homebuyers make up a huge chunk of buyers in the market. Even though the type of home they’re looking for is changing, understanding this group goes a long way to understanding what’s driving the real-estate market in your area.
- According to the National Association of Realtors®, 52% of buyers between the ages of 29 to 38 were first-time buyers.
- First-time buyers made up 33% of all home buyers, which has held steady over the last two years.
- Most buyers under the age of 40 are first timers. 52% of buyers 30 to 39 years and 88% of buyers 29 years and younger were first-time home buyers.
- Many of them are parents—61% percent of buyers between 30 to 39 years had at least one child under the age of 18 residing in the home.
Who’s doing the buying these days
You may be surprised to find out what demographics are best represented on the home purchase front these days. The typical image, perhaps inspired by all of those home shopping shows on cable, is of a young couple with a kid and another on the way. But the numbers don’t exactly bear that out.
- Millennials make up the largest share of home buyers at 38%.
- Buyers 40 to 54 (Gen Xers) consisted of 23% of recent home buyers.
- 61% were married couples, 17% were single females, 9% were single males and 9% were unmarried couples.
- Single, female buyers accounted for 19% of the homes purchased in 2020.
- Single women comprised 19% of first-time home buyers and 17% of repeat home buyers.
- The median age of these single, female, first time homebuyers is 33, while the median age of single, female repeat buyers is 59.
- Single men comprised 11% of first-time home buyers and 9% of repeat buyers.
What types are being purchased – and for how much?
What about the homes that these buyers are looking for? Here are some of the latest trends we’re seeing with the types of homes purchased, for how much.
- Buyers typically purchased their homes for 99% of the asking price.
- Single homebuyers, both male and female, were more likely to have purchased a townhouse or row house, over any other household type.
- Detached, single-family homes were the most popular type of home purchased among all buyers.
- These days, the typical home purchased averaged 1,900 square feet of interior space, with three bedrooms and two bathrooms.
- Home prices were up a little bit this year to a median of $272,500.
How we’re finding homes now
There’s a perception that the entire house hunting process, all the way though to the sale, is happening entirely online due to the pandemic and the shopping habits of most of the buyers out there. And while it’s true that many buyers are starting there, they haven’t given up the in-person shopping experience completely. In fact, many still rely heavily on a real estate agent to help them find the home of their dreams.
- 43% of buyers started the home buying process online, looking at properties for sale on an MLS or listing site, while 18% of buyers ﬁrst contacted a real estate agent.
- It takes buyers about eight weeks typically, to find their home. On average, they looked at a median of 9 homes and viewed 5 of these homes only online.
- 88% of buyers bought their home through a real estate agent or broker, while 6% purchased directly from the builder or builder’s agent.
- 51% said that the reason they chose to work with an agent was to help them ﬁnd the right home.
- 73% of buyers interviewed only one real estate agent before starting their home search.
- Good news for customer service! 91% of buyers would use their agent again or recommend their agent to others.
Paying for the purchase
For many, if not most, people, their home purchase will be the largest financial decision they ever make. So, it’s instructive to see where a recent homebuyers are finding the funds to make this decision.
- 87% of buyers got a loan to buy their home, and of those who did, they typically ﬁnanced 88% of the loan, meaning they provided 12% of the purchase price on their own.
- First-time buyers typically borrowed 93% of the price of their home, compared to repeat buyers at who get a mortgage to cover 84% of the price on average.
- 58% of buyers were able to tap into their savings for their down payment. 38% percent of buyers used the proceeds from the sale of their previous home.
- 86% of homebuyers financed their home purchase by securing a loan. As the buyer gets older, we’ve seen the percentage who get a mortgage goes down.
What about the sellers?
We can’t forget about the sellers—after all, you can’t buy a home unless someone is willing to sell. So why are sellers selling, and how are they doing it?
- The most commonly cited reasons for selling their home were because they wanted to move closer to friends and family (15%), that their current home was too small (14%), and that they’d had a change in family situation (12%).
- 89% of home sellers worked with a real estate agent to help them sell their home.
- 46% of all sellers offered incentives to attract buyers and sell their home faster.
Taken together, these facts offer a snapshot of what is happening in the real estate market right now. Armed with this information, you can be more prepared for some of the competition that you’ll see out there, and hopefully it will help you find the home of your dreams.
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