The real estate market is known to fluctuate very often. Most of these fluctuations result from current events, changing seasons, and shift in supply and demand.
Such volatility makes it difficult for buyers and sellers to determine the price during negotiations. When this happens, buyers, sellers, and agents rely on real estate statistics to gain insights into the real estate industry and make predictions.
Informative Statistics on Real Estate (Editor’s Choice)
- The value of US homes reached $36.2 trillion in 2020.
- The national median price for homes in March 2021 reached $370,000
- The bottom 20% of earners spend 40.3% of their income on housing
- Only 8% of homeowners regret buying a home instead of just renting
- 64% of realtors are women
- Only 38.5% of people under 35 are homeowners
Real Estate Prices
The real estate market is just like any other market. Prices fluctuate based on supply and demand. When the demand is high, and the supply is low, prices are bound to rise and vice versa. When the demand is low and the supply is high, prices will drop. Below are some of the latest real estate price trends in the country. These statistics can help us understand consumer behavior and the real estate market as a whole.
1. The value of US homes reached $36.2 trillion in 2020.
(Zillow)
The US’s real estate industry has been growing exponentially in the past decade, after the biggest housing downturn in the country’s history. In fact, the most recent real estate industry statistics show that the value of all homes combined reached $36.2 trillion in 2020, marking a $2.5 trillion increase in value in 2020 only.
According to Zillow, the growth in real estate’s value results from people reevaluating housing options because of remote work during the pandemic.
2. The average sale price of luxury homes climbed by 1.6% year-over-year to reach $1.63 million in Q4 of 2019.
(PR Newswire)
The luxury housing prices statistics show that this increase marked the highest gain since Q3 of 2018. Still, despite this increase is an improvement from the 4% drop in Q1 of 2019, it still hasn’t returned to the growth recorded in recent years.
3. The average interest rate for a 15-year fixed-rate mortgage dropped to 2.22% toward the end of 2020.
(Freddie Mac)
The year 2020 saw a downward trend in average interest rate for 15-year fixed-rate mortgages in the US. According to real estate market statistics, the average interest rate dropped to 2.22% toward the end of the year. This is one of the lowest interest rates recorded in the past 30 years.
4. The national median price for homes in March 2021 reached $370,000.
(Norada Real Estate)
In March 2021, the national median price for housing increased by 15.6% compared to the previous year’s median price. The increase in prices is the result of tight inventory and growing demand among millennials. However, keep in mind that the median price may vary per state. It’s vital to check out the real estate statistics by zip code when deciding to purchase real estate. For example, San Jose, California’s real estate prices grew by 10.8%, whereas Harrisburg, Pennsylvania only saw a 3.8% growth in prices.
5. The bottom 20% of earners spend 40.3% of their income on housing.
(BLS)
Research shows that low earners in the US spend most of their income on housing. In fact, according to real estate statistics, they spend as much as 40.3% of their salary on housing. This is a massive chunk of the household income. Furthermore, they spend 31.2% of their income on food and transportation, 2.5% on personal insurance and pension, 9.6% on healthcare, and 2.6% on apparel and services.
On the other hand, top earners spend less on housing. More precisely, this income group spends 29.7% of the household income on rental fees or mortgages.
Real Estate Demographics
Understanding real estate buyers’ demographics is crucial. By doing research, we obtain vital information on potential buyers like age, gender, income, and other preferences. We get to answer what percentage of buyers belong to the working class or what percentage might buy a vacation home.
All this additional information can help sellers and agents gain insights into consumer buying behavior in the real estate industry. Furthermore, it shows agents the current real estate trends, allowing them to close deals faster. Below are some latest statistics on buyers’ demographics.
6. Only 38.5% of people under 35 are homeowners.
(Statista)
The more older people get, the more concerned they become about having a property to their name. Only 38.5% of people under 35 are homeowners. On the other hand, 61% of people aged 35–44 and 69.8% aged 45–54 own houses. The biggest percentage of homeowners are people over 65, standing at 80.2%.
7. US real estate stats show that 38% of homeowners purchase new homes to avoid renovations.
(NAR)
The National Association of Realtors Research Group published in its report the reasons why homeowners purchase new homes. About 38% of all new homeowners bought their new homes to avoid the cost of renovations and any possible issues with plumbing or electricity. This is the most predominant reason for buying a new house, followed by designing the house (31% of buyers) and amenities (21% of buyers).
8. 29% of young buyers regret rushing the process of purchasing a house, according to US home buying statistics.
(Forbes)
The process of buying a house is often tedious and stressful. There are many details to consider, like mortgage payment and interest rates. Because of the overwhelming amount of information, many young buyers make the mistake of rushing the buying process. Making an overnight decision about spending that much money without thinking the whole thing through is seldom the right choice. Statistics even show that 29% of young homeowners eventually regret their purchase decision.
Real Estate Trends
Following real estate trends is essential to buyers, sellers, and agents for many reasons. For example, these trends allow buyers to identify the perfect time to purchase properties. On the other hand, it gives sellers information about their target market or potential buyers’ preferences. Also, trends help agents and realtors find properties for lease or sale according to the customers’ needs and emerging trends in real estate.
9. There was a 5.6% increase in US real estate sales from 2019 to 2020.
(Norada Real Estate)
Despite the pandemic that affected multiple industries in the US, the real estate industry ended the year 2020 strong. There was a 5.6% increase in overall sales in 2020, which translates to 5.64 million sold homes and properties.
10. The homeownership rate in Q2 of 2020 was 67.9%, which was the highest rate since 2008.
(Housing Wire)
Real estate statistics show that the homeownership rate increased to 67.9% in Q2 of 2020 from 65.3% in the previous quarter. This growth resulted from low interest rates that allowed more Americans to qualify for mortgages. That enabled Americans to buy more houses than in the past 13 years.
11. 50% of all buyers found the home they purchased on the internet, according to housing market statistics.
(NAR)
The first step in the buying process in real estate nowadays is to look for properties through different channels. Looking for properties online allows buyers to get a glimpse of the homes they consider purchasing. As such, it’s crucial for websites showcasing properties to have high-resolution photos to entice buyers. This proves to be an effective way to close deals since 50% of homeowners found their homes on the internet.
12. Based on current trends in real estate, closing on a house for first-time buyers takes about 35 to 50 days.
(The Balance)
Homebuyers who receive loan pre-approval tend to close on a house faster than usual. The closing time for those with pre-approval depends on the underwriting process, but this usually takes a week. However, for those who take the regular route, closing on a house happens within 30 days. And for first-time homebuyers with a loan application for a down payment, approval can take anywhere between 35 and 50 days.
13. The latest home buying statistics show an 8.2% increase in houses sold in February 2021 compared to the previous year’s figures.
(US Census Bureau)
A joint report from the US Census Bureau and the US Department of Housing and Urban Development shows that approximately 775,000 houses were sold in February 2021. Although this marks an 18.2% decline from January’s sales, it’s still higher than the previous year’s sales for the same period.
14. Older millennials are more inclined to use websites for house-hunting.
(NAR)
According to real estate statistics in 2019, 98% of older millennials use online websites to search for homes. By contrast, only 72% of the silent generation use websites for home search. Furthermore, data shows that 73% of potential buyers use mobile websites or apps for their search.
15. Only 8% of homeowners regretted buying a home instead of just renting.
(Forbes)
A survey on homeowners regarding their real estate purchase shows that a very few regret buying their current homes. In fact, housing market stats indicate that only 8% of buyers wish they were renting houses instead. Of those who were disappointed with their purchase, the most common reason for dissatisfaction is the costs incurred in repairing all the damages. If renters encounter a problem with the property, they can simply report it to their landlords to have it fixed.
16. The California real estate market accounts for 21.4% of the nation’s housing value.
(Zillow)
Real estate statistics by state clearly show California’s contribution to the market. Apparently, 21.4% of the country’s real estate value comes from California. That means that homes in this US state have a cumulative value of $7.8 trillion. This amount equals the British and European stock exchanges’ market cap combined.
17. Approximately 44% of buyers use the internet first when they start looking for houses.
(NAR)
The real estate market trends of the past are entirely different from the trends of today. Back then, homebuyers would go through the ads in newspapers to find listed homes. The way we look for houses has changed over time because buyers can now find everything they need by tapping on their phone screens or clicking the mouse button. Today, about 44% of buyers check listed properties online first when looking for new homes.
18. Current US real estate trends show that homes sell faster than in previous years.
(Zillow)
According to Zillow, homes spent about 25 days on the market in 2020 before they went under contract, down from 30 days the previous year. Once the seller accepts the offer for the property, the closing period usually takes 30 to 45 days. Overall, it takes 55 to 70 days to sell real estate in the US.
19. According to real estate sales statistics, 88% of buyers find websites helpful in looking for properties.
(Properties Online)
Most buyers consider online sites the most helpful resource in searching for homes. In fact, 88% of buyers deem websites very helpful in providing information about real estate. The second most beneficial source of information for buyers is the real estate agent, with 79% of buyers appreciating agents’ assistance.
Real Estate Agent Statistics 2019 and 2020
Realtors and agents are essential to closing a sale in real estate. They serve as a bridge between sellers and potential buyers. For that reason, agents have access to both buyers and sellers, which means working with them will speed up the whole process of buying a property.
Most agents are also skilled in negotiating the terms and conditions of a contract so that buyers and sellers can get what they expect after closing the sale. Here are some of the latest real estate agent statistics.
20. 64% of realtors are women.
(NAR)
NAR’s latest report shows that as of 2020, the association has 1,451,031 members. Of that number, more than half, or 64%, are women. According to NAR, the median age of realtors is 55 years old, so your realtor is likely a 55-year-old woman who is a homeowner and has a college degree.
21. Real estate agent stats indicate that 41% of all buyers found their real estate agent through referrals.
(NAR)
Most buyers find their real estate agents through referrals. Buyers who are satisfied with their agents recommend them to their relatives, friends, or neighbors. NAR reports that 41% of home buyers found their real estate agents through referrals. Only 5% of buyers met their agents during an open house visit, and only 3% met them through personal contact by the agent using email and telephone.
22. About 90% of buyers are willing to recommend their agents to others.
(Pipedrive)
According to real estate agent sales data, the referral rate is one of the most critical aspects of a real estate career. Fortunately, most buyers are comfortable with recommending agents to their friends and family. In fact, 90% of buyers say they would either use their agents again or recommend them to other buyers. This shows the importance of providing a seamless sales experience where both buyers and sellers have confidence in their real estate agents. When this happens, a single sale can turn into multiple selling opportunities.
23. Real estate agent turnover rate in the country is 88%.
(Realty Times)
It’s difficult to know for sure what the turnover rate is for real estate agents, but it currently stands at around 88%. Many agents debate over the possible explanations for this high and troubling number. But some of the most common reasons are stiff competition and lack of mentors for new agents.
24. According to the latest realtor statistics, real estate agents assisted 89% of sellers during the sale.
(NAR)
It appears that the majority of home sellers depend on their real estate agents when selling their homes. Agents assisted approximately 89% of sellers during the closing process. A closer inspection of the data by NAR found that 41% of sellers found those agents through friends’ and family’s referrals.
25. Real estate brokers and agents earn approximately $82,447, according to national real estate statistics.
(Data USA)
The latest data on real estate agents’ salaries shows that brokers and agents earn $82,447 on average. The data also shows a substantial gap between the average income of male and female real estate agents. Records show that men earn $103,470 on average, while women make only $64,643.
26. 48% of firms think they will have difficulty keeping up with technological advances in the next two years.
(NAR)
Real estate marketing statistics are used to identify the top tools firms use for their leads generation. These tools are social media platforms, multiple listing service sites, brokerage websites, and listing aggregator sites. Despite the advantage real estate companies can gain by using these tools, 48% still believe they will have difficulties keeping up with technology.
27. 73% of homeowners prefer to list their properties with agents who use videos for advertising property.
(Record-Bee)
Drone photography, one of the real estate technology trends, seems to be an effective home-selling tool. The striking visuals allow agents to showcase homes differently from how they advertised several years ago. Apparently, properties with aerial shots tend to sell 68% faster than those with regular images. This is why 73% of homeowners say they prefer agents who take advantage of digital video technology.
28. 82% of agents want to improve their social media presence.
(Social Media Today)
Today, real estate trends are leaning more and more toward technology, and social media seems to be leading the pack. A survey conducted among real estate agents shows that most agents want to improve their social media presence in 2021. There’s a good reason for this strategy. Apparently, 44% of agents attracted new clients the year before because of their social media posts.
Real Estate Statistics 2020 and 2021 Trends
Real estate predictions are among the most crucial aspects agents and investors need to consider in the real estate business. These predictions are based on many factors, such as trends, technology, consumer needs, and help real estate agents adjust their strategy accordingly. Let’s see what 2021 will bring.
29. Home prices increased by 11.2% by January 2021.
(Wall Street Journal)
According to real estate statistics by city, even small cities like Bridgeport in Connecticut will see high prices unlike any realtor has seen in about 15 years. According to the S&P CoreLogic Case-Shiller Index, the national price growth was 11.2% towards the end of the year that ended in January. This widespread price growth implies fierce competition among buyers for the limited supply of homes.
30. Researchers predict a 2.7% increase in home prices for 2021.
(PR Newswire)
Researchers expect US real estate statistics to report increasing figures for home prices in 2021. The new estimates are now at 2.7%, which is a significant increase from the 0.9% experts initially predicted for 2021. This is by far the most optimistic forecast from experts since the first quarter of 2018.
Conclusion
Real estate prices often fluctuate. Several factors affect the price change, but the most common reason is supply and demand.
Change isn’t limited to prices; we can see from real estate data how the buying and selling process has also changed over the years. What was once a popular way of doing things is now obsolete. Case in point, the internet has made newspaper ads for real estate marketing a thing of the past. Now, realtors and agents turn to social media and websites for advertising.
The ever-evolving market of real estate is the reason why agents, sellers, and buyers need to know the latest statistics. By understanding the current trends, all parties get the most out of every closed sale.
People Also Ask
Real estate was once a male-dominated industry; we rarely saw women in this line of work. When NAR was founded in 1908, the association designed the policies so that membership was limited to men. But times are changing, and more women are entering the world of real estate. In fact, NAR reports that around 64% of realtors in the US are women.
Many online resources provide data and information on real estate agents and realtors. Some examples are Realtor.com, Zillow, and Trulia. Typically, sites like these have search bars where you can type in the realtor’s name and location. Once you do that, the sites will give you a list of all profiles that match the name. When you click on a profile, the site will provide you with relevant real estate agent facts and information.
The problem with these sites is that they don’t include all licensed and practicing real estate agents. Some don’t even have accounts and profiles on the mentioned sites. So, if the realtor you’re looking for doesn’t seem to have an online account, the best way to find them is to contact them personally. Another option is to ask the people they have worked with previously.
Realtors don’t earn salaries; their compensation comes from their commissions after selling properties. While the commission they receive varies because it usually depends on the property’s location and type, it’s typically at 5% to 6% of the home’s selling price. The good thing about this is that some realtors only charge their clients when the deal is closed, which is only good for the client.
Based on expert analysis, it’s unlikely that real estate prices will go down this 2021. On the contrary, data suggests that home prices will continue to increase during the year. In fact, the latest statistics show that the median sales price rose to 16% year-over-year. Furthermore, some regions like the West will see as much as a 21% surge in prices.
The previous year saw record-breaking lows in mortgage rates, but 2021 will be different. According to experts, we will see rising mortgage and refinance rates in the next couple of months. As the overall economic outlook is positive because of people going back to work, long-term bonds, which are vital indicators for mortgage rates, will become higher. Based on recent real estate statistics, mortgage rates already increased by 0.5% at the start of the year, and we can only expect them to go higher. But this doesn’t necessarily mean the increases will be drastic.
