Summary of the key points from the NATIONAL ASSOCIATION OF REALTORS® Profile of Home Buyers and Sellers report.
Introduction:
The report is an annual survey of recent home buyers and sellers from July 2022 to June 2023.
The 2023 report reflects changes in the housing market due to increased mortgage interest rates and the end of the COVID-19 pandemic-induced housing boom.
Buyers:
The typical home buyer had a household income of $107,000, up from $88,000 the previous year.
Twenty percent of home buyers paid cash for their homes, up from 13 percent in 2021.
Down payments increased for both first-time and repeat buyers.
Buyers were motivated by the desire for homeownership, proximity to friends and family, and the need for larger homes.
The age of first-time buyers was 35, while repeat buyers had a median age of 58.
Minority home buyers increased, with 81 percent of buyers being White/Caucasian.
Homes Purchased:
Thirteen percent of buyers purchased new homes, and 87 percent bought previously owned homes.
Detached single-family homes were the most common type.
Senior-related housing increased to 19 percent.
The median distance between the new and old homes was 20 miles.
Quality of the neighborhood, convenience to friends and family, and affordability were key factors in location choice.
Buyers typically purchase homes for 100 percent of the asking price.
Home Search Process:
Most buyers started their search online, with 41 percent looking at properties for sale.
Buyers typically searched for 10 weeks and viewed a median of seven homes.
Finding the right home was the most challenging aspect of the process.
Photos, property information, floor plans, and agent contact information were valuable website content.
Overall, 92 percent of buyers were satisfied with the buying process.
Real Estate Professionals:
Eighty-nine percent of buyers used a real estate agent to purchase a home.
The top reason buyers wanted from their agent was help finding the right home.
Agents helped buyers understand the process, identify property features, and negotiate contract terms.
Eighty-nine percent of sellers used an agent to sell their homes.
For-sale-by-owner (FSBO) sales decreased to 7 percent.
Most FSBO sellers knew the buyers of their homes.
Financing the Home Purchase:
Eighty percent of buyers financed their home purchase.
Down payments increased, with first-time buyers at 8 percent and repeat buyers at 19 percent.
The source of down payments included savings, proceeds from the sale of a primary residence, gifts or loans from family, and financial assets.
Most first-time buyers found saving for a down payment to be the most challenging step.
Home Sellers:
The typical home seller was 60 years old.
Sixty-three percent of sellers moved within the same state, with a median distance of 35 miles.
Reasons for selling included moving closer to friends and family, homes being too small, and changes in family situations.
Sellers typically lived in their homes for 10 years.
Sellers sold their homes for a median of 100 percent of the asking price.
