The market for buying and selling houses is always changing and right now it may look even more uncertain than years prior. With the interest rates, inventory levels and pressure to get homes sold quickly it may seem unclear what the best move is. Fortunately, as this year draws to a close, things are looking up for home buyers.
In this article we will walk through some of the surprising statistics found when working in this housing market to help you get a fairer perspective while you navigate these unusual times.
1. Active went up 36%
Great news for buyers, as of October 2022 homes listed on the Multiple Listing Service (MLS) as active went up 36% compared to 2021. Why is this great news for buyers? This means that houses are staying on the market for a longer period of time, therefore buyers can take their time while looking for their perfect home. In recent years buyers have been scrambling to get into a house, pressured to offer much more than the asking price and do it quickly. Panic buying is real, luckily buyers can now breathe, think through this huge decision and avoid buyer’s remorse.
2. 31% were first-time home buyers
31% of the buyers in 2021 were first-time home buyers, this is great news for the economy. What’s even better news for these buyers is that the average down payment percentage for first timers has stayed pretty much the same since 2018. In a world where everything is becoming more and more expensive, daily it seems, these buyers have been consistently putting down 6-7% of the homes purchase price for the last 4 years.
3. Looked for average of 10 weeks
Home buyers in the current market looked for a home for an average of 10 weeks. In 2020 and 2021 the average home search took around 8 weeks. The 2 week increase for this year is a sign that the market is calming down, which gives home buyers a greater chance to find the home of their dreams.
4. 43% Millennial Buyers
The largest demographic of home buyers over the past few years has been Millennials and 2021 was no different. With a staggering 43% of all home sales being with a Millennial buyer it is clear that this generation has the most buying power in the market and they’re not afraid to use it!
5. Buyers paid the entire asking price
Home buyers in 2022 on average paid the entire asking price of the house they wrote an offer on, with 28% paying over asking price. This is a promising decline from the 2021 peak of 39% of homes sold for over asking. Homes are becoming more affordable for buyers.
6. Median price decreased 1.3%
June 2022 was shown to be the peak of home sale prices in the United States. A new all-time high record for median home price hit at $450,000, compared to the median in June of 2021 at a little over $380,000. Since June, the Case-Shiller Index indicted that as of August 2022 the median has decreased 1.3% and if predictions are correct, they will continue to lower giving more buyers opportunities to get into a new home.
7. Median income of first-time home buyers
In 2021 the NAR showed that the median household income of first-time home buyers was $86,500. This is great news; this means that more of the middle class is making moves to become financially stable long-term by investing in equitable assets.
8. April with a 29% increase in listings
If you are feeling nervous about the sale of your home, know that April is the most active month to sell your home. Realtor.com shows that there is a 29% increase in listings during the month of April and on average homes sell for more money. Keep this in mind when you are looking to sell your home and buy your next one.
9. 67% of sellers appeased their buyers
In an article from Realtor.com a survey of home sellers showed that within the last year the percentage of sellers willing to do repairs for the buyer doubled. With only 31% of sellers willing to put in the time, money and work for their buyers last year, while this year shows that nearly 67% of sellers appeased their buyers request to remedy. Knowing this, home buyers should consider what to settle for and what to negotiate when it comes to repairs. You miss 100% of the shots you don’t take as Michael Jordan says.
10. Average cost of a home has increased by $46,700
Good news for Sellers, the average cost of a home has increased by $46,700. Meaning, though the percentage of homes selling for over asking price has decreased in this past year your home is innately worth more. The median home price in 2022 is now $357,300.
11. Most typical houses sold
Are you concerned that your house isn’t large enough or too old for desire on the market? Think again, according to recent homes sales the most typical houses sold were 3 beds, 2 baths, 1,900 sq ft and built in 1993.
12. Ohio; #1 most affordable
Ohio has been getting a lot of flak on social media recently, people wondering how they ended up here or why they stay. Here’s the scoop; based on the cost of living and affordability of housing, Ohio is the #1 most affordable state to live in. Oklahoma came in 2nd place to Ohio while Alaska, California, Hawaii, Massachusetts and Oregon were deemed the least affordable states. So take that, non-ohioans!
13. Median listing price 13% increase
Since last year the median listing price of homes has increased by 13% which is great for sellers but not so great for buyers. Don’t worry though, signs show that this increase is plateauing, so don’t be afraid that you’ve missed the boat on affordable housing.
14. 18% of all home buyers were female
Going over the demographics of home buyers in the year 2021, it showed that 18% of all home buyers in that year were single females. Talk about women empowerment!
15. 29% agree saving was the hardest part
First-time home buyers are making their way through this market. When asked what the most difficult aspect of buying a home is, 29% of people said that it was saving for the down payment. If you are struggling with trying to save money for a down payment, give your agent a call. With plenty of avenues to take to become a homeowner there are a good number of workarounds and loans that will lower the amount of money you need to bring to the table for a down payment.
16. Projected decline of 7.6% in home prices
Still feeling reserved when it comes to purchasing a house? If so, this last statistic will be music to your ears! According to research done by the analysts at Goldman Sachs, they are predicting that home prices are going to drop here shortly. They are expecting a 5%-10% drop with their official forecast model projecting a decline of 7.6% in home prices. As a buyer, if you have been waiting for your time to buy, your patience is soon going to pay off.
We will continue to look for statistics that are interesting and helpful for buyers and sellers as we navigate the unprecedented aftermath of the COVID-19 pandemic. Overall, the housing market seems to be evening itself out for both sellers and buyers; Housing prices are coming down to reasonable rates while still maintaining equity growth. Here in 2023, with the NAR reports of 2022, we will be able to further inspect the impacts of the economy on the housing market and will be reporting how buyers and sellers can use this novel information for their own benefits.
Whether you are buying or selling a home, the realtors here at Sell for 1 Percent are always on the cutting edge of market trends and have proficiency of beneficial information to help you save money by keeping it in your own pockets. If any of these statistics surprised you, intrigued you or even if you just want to talk, please feel free to give us a call!
