Table of Contents
The U.S housing market has been one of the most difficult industries to follow in recent years, with nothing being able to keep up with its rise and fall. Now that 2022 is finally here, we’re getting a better idea on what the future holds for this industry as it continues to grow at an alarming rate over the next few years.
Real estate statistics provide data-driven insights into the ever-changing housing market for real estate brokers, investors, and customers. When looking for a home, selling a property, listing or searching for a rental home, or representing consumers in this market, this might be beneficial. Check out these 20 vital real estate statistics for the most up-to-date information on the current real estate market.
1. Newly listed house prices have increased by 32.6 percent on average.
Since the start of the epidemic in 2020, new house prices have increased by 32.6 percent. Prices have risen by 43 percent in major urban regions such as New York, Chicago, and Dallas/Fort Worth. The median price for active listings in April 2021 was $375,000, up 17.2 percent from the same month the previous year.
The nationwide inventory of active listings reduced by 53% as a consequence of the increased demand. This real estate statistic suggests that the number of individuals seeking for homes is increasing while supply is decreasing (also known as a seller’s market), causing prices to rise and a shortage.
2. The ability to purchase a home has improved by 21%.
While property prices have risen in tandem with inflation, earnings have risen as well. In addition, interest rates are at an all-time low. Even though the nominal price of homes has climbed dramatically, purchasers may receive more home for their money when salaries are high and mortgage rates are low. The ability to own a house grew by 21% between 2020 and 2021.
3. Since COVID, interest rates have been hovering around 3%.
At the start of the COVID-19 epidemic, the Federal Reserve reduced the federal funds rate in an effort to keep consumer interest rates low—and it succeeded. Interest rates on 30-year fixed-rate mortgages have been hovering at 3% since March 2020, frequently falling below 3% and never exceeding 3.11 percent since July 2020.
Interest rates fell to an all-time record low of 2.68 percent in December 2020. This is an essential real estate statistic since it explains why more individuals can now afford a house and hence why demand has risen so dramatically.
4. In the first quarter of 2021, about 80% of older persons owned a house.
76 percent of those aged 55 to 64 and 79 percent of people aged 65 and over are homeowners in the general population. Knowing this figure might assist small company owners build business plans that are connected with their target audience and financial situation. In this instance, more real estate companies should reach out to individuals, especially elderly folks and retirees, to see if they are interested in selling.
5. The largest generation of homebuyers is Generation X.
Generation X, or those born between 1965 and 1979, account for the majority of homebuyers in the United States (24 percent ). They are also the largest home-selling generation. At 23%, older millennials (those born between 1980 and 1989) are the second-largest category of homebuyers.
The elder generations are more likely to sell, whilst the younger generations are more likely to purchase. This is useful information since it indicates which demographics should be targeted as possible customers.
6. In 2021, the median house price will be $350,300.
House prices are expected to rise considerably in 2020 and 2021. COVID-19 created a housing shortage since individuals were forced to remain at home, and homes were significantly more appealing as shelter-in-place options than apartments. Between 2018 and 2019, median home prices increased by just $13,000, then increased by $25,000 between 2019 and 2020, and then by $66,000 between May 2020 and May 2021.
In May 2021, 7. 5.8 million residences were sold (up 44.6 percent from last year)
In May 2021, 5,800,000 residences were sold in the United States, a roughly 45 percent increase over May 2020. According to real estate agent data, although sales numbers have climbed, housing inventory levels have not increased considerably, resulting in fewer properties on the market than typical and more competition for those that are available.
8. Houses only last 37 days on the market.
The median number of days properties are on the market is merely 37 as of June 2021. Houses sat on the market for an average of 71 days in June of last year.
Between March and May 2020, there is a modest increase that deviates from the usual norm. The impact of lockdown may be seen in this bump. Normally, houses sell quicker in the spring and summer, but social alienation made it more difficult to acquire and sell homes from March to May 2020. As a consequence, residences remained on the market for extended periods of time.
Properties usually stay on the market longer in the winter and sell quicker in the summer, but in the summer of 2021, houses are flying off the market faster than ever. This number demonstrates that post-pandemic, there is more demand and competition for residences, and purchasers are snatching them up as fast as they can.
9. The current house supply fell to 1.9 months (winter 2020-21)
The existing home monthly supply is a measure of how long the present inventory of houses for sale will endure. There were no new residences created at the present pace of selling.
The monthly home supply was approximately four to five months for the most of the 2010s, with some deviations. It fell to an average of 3.1 months in 2020, with an all-time low of 1.9 months between December 2020 and January 2021.
This real estate data demonstrates that there is a strong demand for houses and a limited supply, making it difficult to locate homes and pushing up prices on those that are available.
10. In 2020, first-time homeowners made up 31% of the market.
In 2019, first-time homebuyers made up 33% of the market, with the average age being 47. In 2020, just 31% of the market will be made up of first-time purchasers. In 2020, the average homebuyer’s age stayed at 47, but the median household income of homebuyers increased to $96,500.
Before calling a real estate agent, 11.43 percent of homebuyers do research online.
Many buyers feel that using a real estate agent is the most popular approach to locate a home. According to the National Association of Realtors (NAR), most individuals start their search for a new home online and then select an agent to tour them around.
Only 18% of buyers contact an agent before searching online, according to 43 percent of purchasers. At some point throughout the buying process, 97 percent of homebuyers looked for houses online.
Agents are not rendered obsolete by these real estate data. Indeed, it provides a chance to boost digital marketing techniques, particularly during the epidemic when mobility is constrained.
Despite the fact that a rising number of purchasers choose to consult the internet first, 91 percent of homebuyers in 2020 still consider their real estate agent to be a helpful or very credible source of information. Given the complexities of the homebuying process and the potential for legal challenges, this is unsurprising.
12. The most competitive buyer’s market in 2022 is San Jose.
It will be difficult to locate a property market that is not a seller’s market in 2021. Wherever you go, buyers compete for homes rather than sellers competing for purchasers. Some places, however, are more competitive than others for buyers.
Based on the number of loan requests submitted by LendingTree, San Jose, California, has the most competitive buyer’s market in the United States, while Virginia Beach has the least.
13. Homes advertised online on Thursday sell the quickest and for the most money.
Many individuals are unaware that there are certain days when it is best to sell their property. According to real estate statistics, properties listed on Thursday sell for $3,000 more than the asking price on average than any other day of the week.
According to a 2019 survey, homes posted on Thursday sell six days quicker on average. This real estate statistic is crucial for anybody thinking about selling a home and wants the greatest possible outcomes. When a home is listed on Thursday, buyers are given advance notice of any weekend open houses they may wish to attend, which means greater exposure and, perhaps, speedier and more competitive bids.
14. 66% of millennials have some regrets about owning a property.
According to a Bankrate report from 2021, 66% of millennials had at least some regrets about purchasing a property. Only 33% of baby boomers, on the other hand, have regrets. This does not imply that homeowners regret owning a property in general, but rather that they regret dealing with a particular aspect of it. The most common regret across all generations is the high cost of maintenance fees and charges.
The second-most prevalent millennial regret is a tie between overpaying for a home and having an excessively high mortgage payment. With the present competition of the property market, it’s not surprising that some purchasers believe they overpaid.
15. The largest stumbling block for 11 percent is the down payment.
Saving for a down payment is the most difficult component of the homebuying process for 11% of purchasers. Student debts hampered saving for 47 percent of individuals who struggled to save for a down payment, high rent or mortgage payments hampered saving for 43 percent, and credit card debt hampered saving for 36 percent. These figures sum up to more than 100%, indicating that there is a large level of overlap between these financial concerns.
16. Homebuyers in 2021 spent an average of 8 weeks searching for a home.
The internet has greatly accelerated the pace at which people shop for houses. In 2021, homebuyers spend just eight weeks searching for a property before making a purchase. They looked at nine properties on average, but only viewed four in person. They just saw the other five on the internet. Shelter-in-place and social alienation had a significant impact on the homebuying process in 2021, according to this real estate data.
17. The Midwest has the greatest homeownership rate, at 70.3 percent.
At 70.3 percent, the Midwest has the highest homeownership rate in the country. The South, with a homeownership rate of 67.4 percent, is the second most populous area. In the Northeast, 63.1 percent of residents own a house, whereas in the West, 59.7% own a home.
18. With 2,100 square feet, Gen Xers buy the biggest houses.
With a median of 2,100 square feet, GenX purchasers purchase the biggest houses of all generations. At a median price of $305,000, they also purchase the most costly homes. This real estate data suggests that you appeal to this group if you want to acquire buyers who are prepared to spend the greatest money.
In 2020, married couples made up 19.62% of homebuyers.
In 2020, married couples made up the bulk of house buyers. With 19 percent, unmarried women were the second most common relationship status group. Unmarried couples accounted for 9% of the market, while single males made up 9%.
20. In 2021, the cost of renting rose in 26 states.
Year-over-year pricing comparisons show that rent increased in 26 states between May 2020 and May 2021, with a highest rise of 38%. (in Louisiana). Only 15 states had rent decreases, according to published statistics. Illinois saw the highest rent drop, at 9.61 percent.
This real estate data reveals that rent is growing much more than it is falling, so it’s no surprise that more individuals are turning to owning as a more affordable choice.
Conclusion
Understanding your area’s real estate data may help you make educated selections about the correct home and price—or point an agent in the right direction for the best results.
Agents and homeowners can make the most of real estate in 2022—and beyond—if they have data about homeownership, buying, selling, and renting patterns, as well as technology usage, from these real estate statistics.
