31 Real Estate Stats Your Homebuyers Will Want to Know in 2023
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31 Real Estate Stats Your Homebuyers Will Want To Know In 2023
It’s true, the housing market is shifting, and things seem a little uncertain. But as we come to the end of 2022, things may be looking better for your homebuyer clients. We here at The Close are dedicated to helping you navigate through the changes when working with your real estate clients. So, we’ve compiled a list of real estate stats you can share with your homebuyer clients that will give them a more balanced view of the market.
Be sure to share these real estate stats in your conversations with your homebuyers so they have a better understanding of their leverage, as well as obstacles to overcome, during their home search.
Real Estate Stats Your Homebuyers Should Know
1. In today’s market, homebuyers searched an average of 10 weeks for a home. That’s an increase from eight weeks during 2020 and 2021, an indication that the market is cooling slightly, giving homebuyers a better shot at getting into a home they love.
2. In 2022, homebuyers typically purchased their homes for 100% of the asking price, with 28% purchasing for more than the asking price.
3. April is the most competitive month of the year for homebuyers. According to Realtor.com, there is a 29% surge of listings during April, and homes typically sell for higher during that month, as well.
4. The median home price in 2022 is $357,300. That’s a $46,700 increase from January 2021 to January 2022.
5. Typical recent home purchases were 1,900 square feet with three bedrooms and two bathrooms, and built in 1993.
6. Ohio is the most affordable state based on the cost of living and housing affordability. Oklahoma comes in second-most affordable, while the least affordable states are Oregon, Alaska, Massachusetts, California, and Hawaii.
7. The median listing price grew by 13.0% over last year. But signs show that home price growth is moderating.
8. More than 20% of homebuyers in 2021 were single females.
9. The median household income for a first-time homebuyer in the United States in 2021 was $86,500.
10. Twenty-nine percent of first-time homebuyers cite “saving for a down payment” as the most challenging part of the homebuying process.
11. Millennial buyers continue to make up the largest (and growing) share of homebuyers at 43%.
12. According to a Realtor.com seller survey, 67% of homeowners who sold in August 2022 negotiated with buyers who wanted repairs done (in comparison with 31% in the previous six to 12 months).
13. As of October 2022, active inventory continued to grow, increasing 36% above one year ago, a clear indication that homes are staying on the market longer.
14. Researchers at Goldman Sachs expect U.S. home prices to decline between 5% and 10%, with their official forecast model predicting a 7.6% drop.
15. Since 2018, the average down payment for first-time homebuyers has consistently ranged between 6% and 7 percent.
16. As of August, the Case-Shiller Index showed U.S. home prices had fallen 1.3% from their June 2022 peak.
17. According to a Bankrate survey, 64% of millennial homeowners have regrets about purchasing their homes, with maintenance and hidden costs being the biggest culprits.
18. In 2021, 28% of first-time homebuyers used a gift or loan from family or friends toward their down payment.
19. Among homebuyers aged 23 to 41, the most common reason for a mortgage denial was an insufficient debt-to-income (DTI) ratio, followed by a low credit score.
20. Fourteen percent of Millennial homeowners (aged 25-40) feel they purchased too big of a house.
21. Gen X (77%) and Baby Boomers (88%) were more likely to consider homeownership as part of the “American Dream” than younger generations (57% of Gen Z (ages 18-24) and 62% of Millennials).
22. Thirty-one percent of all buyers had children under 18 living at home. Fifty-nine percent of older Millennials had at least one child under 18 living at home.
23. Mortgage rates are expected to keep rising, albeit slowly, after new indicators showed that inflation rose 7.7% year-over-year in October, according to a Bureau of Labor Statistics report.
24. Median monthly mortgage payments are now about 81% higher than they were a year ago, according to a Realtor.com® analysis.
25. A record 29% of single-family homes for sale in the third quarter were newly constructed, climbing from 25% in the same period last year and 18% in 2020.
26. In September 2022, the number of completed new homes for sale was up 19% from the prior month.
27. A strong rebound is projected for housing in 2024, with a 10% jump in home sales and a 5% increase in the national median home price.
28. Eleven percent of homebuyers in 2021 purchased a multi-generational home with considerations for caring for aging parents, young adult children moving back home, and cost-saving.
29. Fifty-four percent of American renters don’t believe they will ever be able to afford to buy a home.
30. Thirty-eight percent of people who utilized BNPLs (Buy Now Pay Later) report they had fallen behind on payments at least once. Almost three-quarters of people with a late BNPL payment say they have seen their credit scores drop.
31. For potential buyers, the increase in mortgage rates to 7%-plus means the monthly payment on a median-priced home, with a 20% down payment, is now close to $1,000 higher than in January 2022.
The Close Takeaways
The past few months brought about a turnaround in the housing market, with higher mortgage rates halting home sales since the summer. For homebuyers, the road ahead creates anxiety and uncertainty. But the outlook for the coming year may offer some reprieve and new opportunities.
As a professional, you have the chance to shine in the eyes of your clients. Use these real estate homebuyer stats to educate your buyers and prepare them for a smooth transaction.
New construction will be looking for buyers to alleviate their low-demand woes, which could be a light for your homebuyers. Home prices overall are expected to retreat, but not as much as before the pandemic.
Educate your buyers to protect their credit scores, save plenty of money, and be prepared to spend more per month on their mortgage payments. Knowing what to expect will help them feel better prepared for the path forward.
Representing homebuyers means being a guide through a sometimes difficult or tricky situation. Knowing the latest real estate statistics your homebuyers can use will help you be the rock star you know you are. Stay on top of your local real estate stats to provide your buyers with the latest information to help them make the best decisions for themselves and their families.
Author: Jodie Cordell
Should I Wait For Housing To Crash Further Before I Buy A House? 3 Reasons The End of 2022 Could Be The Very Best Time To Jump In
Prices falling in expensive cities
In two-thirds of major regional housing markets — 98 out of 148 — prices continue to drop, especially in more expensive locations.
We may see expensive markets fall further, which if that happens sooner than later, would make it an excellent time to buy into an expensive market. This wouldn’t have registered as a possibility even a few months back.
It’s difficult to predict if this will happen. And if so, whether falling prices become offset by the federal interest rate hikes practically certain to arrive in the coming months.
The only way to know for sure is to wait until the latest rate hike sets in.
Meanwhile, keep in mind that — as with any investment — it’s best time to buy is usually when prices are low.
With mortgage rates dropping and fee changes in the pipeline, now may be the time to buy that home Do you like this Article ? Sign up HERE for your FREE M&M Account to receive more Real Estate related information and news and THIS article. M&M Membership...
The days of waiving contingencies such as appraisals and forgoing inspections are fading into the rearview mirror. Still, contract activity remains slightly competitive depending on your location.
At least 24% of buyers waived the inspection contingency in December 2022, according to the National Association of Realtors confidence survey, up from 16% a month prior and 19% one year ago. An additional 24% of buyers waived an appraisal contingency in December, up slightly from 16% in November and 21% a year ago.
Home inspection contingencies are particularly important because it can let you know if there’s a deal-breaking issue with the property before a purchase occurs. It can also help you negotiate repairs with the seller, which is becoming increasingly common in today’s market.
“If buyers have this short window to buy where they can get incentives to purchase, [they] would rather buy where they have an opportunity to really think about it, get an inspection, a financing contingency and not feel rushed,” Jeff Reynolds, broker at Compass and founder of UrbanCondoSpaces.com, told Yahoo Finance.