It’s that time again to look at the trends and statistics of buyers, sellers and real estate professionals in 2020. The great resource from N.A.R. is for our real estate profession and providing incredible data for more than 35 years that helps REALTORS© track, measure and predict our business better every year. Again we take time to look at the trends and profiles of today’s real estate consumer and reflect on how we can better serve, attract and engage our customers in 2020 and 2021. So let’s have a look at what the data is saying!!
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 pnce 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
So there we have it the road map of who we are looking for and what they are doing. Take the time to develop a strategic strategy with your business and stop aiming for nothing and hitting it with amazing accuracy. Instead be strategic and intentional with your marketing approach this year using this incredible resource and watch your business go to another level.
Strength and courage,
Wade
