Real Estate Trends

The data is in! Let’s take this week to look at the trends of 2020 for North America (this is from NAR) and learn something from it. So let’s see what the data is telling us. What does the bold red text say to you?

Home Buyers

  • 31% First time buyers in N. America
  • 47 Years of age
  • Average income annually $96,500
  • 62% Married couples
  • 11% Bought multi-generational homes with parents
  • 31% Desired to own their own home

Home Purchased

  • 15% Bought new 85% Bought used homes
  • 82% Detached single family purchased
  • 19% Senior related housing purchased
  • 15 Mile average between last home and new home purchased
  • Average price $372,500 and paid 99% of asking price
  • 1,900 Square foot, 3 bed, 2 bath built in 1993
  • Expect to stay 12 years in their home

Home Purchase Process

  • 43% Began looking online, 18% Began calling an agent
  • Looked 8 weeks and 8 homes
  • 87% Property photos most important to them
  • 64% Had a satisfactory experience

Home Purchase Agent

  • 88% Used an agent to buy
  • 6% Direct from builder
  • 40% Agent referred by friend
  • 91% Would use their agent again

Financing Purchase

  • 87% Financed their purchase
  • 88% typical loan to value ratio
  • 58% Down payment from savings
  • 46% saved down payment in 6 months or less
  • 83% Purchased because it is a good investment

Home Sellers

  • 56 Years of age
  • Median household income $107,100 annually
  • 14% Home to small, 15% closer to family, 12% work reasons
  • Lived in home 10 years on average
  • 89% sold with an agent
  • Sold 99% of their asking price
  • 3 weeks on the market
  • 44% offered incentives to buyers
  • Sold for $66,000 more than they paid on average
  • 69% were happy with sales process

How Sellers & Agents

  • 67% found their agent through a referral
  • 77% only contacted one agent when selling
  • 91% listed on MLS
  • 77% paid the agent’s fees
  • Typical seller recommend their agent since selling
  • 88% would use agent again, 77% probably, 15% would not

Private By Owner

  • 8% sold by owner
  • 57 years of age
  • Average FSBO sale price $185,000
  • Average agents assisted sale price $245,000
  • 66% sold in less than 2 weeks
  • 70% sold to someone they knew 55% knew their buyer

COVID 19 Buying & Selling

  • #1 reason was to move closer to family
  • Urgency rose 7% when covid hit
  • 27% increase virtual tour viewings
  • Home sellers years owned dropped from 16 years to 11 years in 2020
  • Average price jumped post covid to $300,000 average vs $270,100
  • Finding a property biggest challenge

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