Whether you’re an individual homebuyer, seller, or a professional realtor, when it comes to buying and selling homes (or any property), you need to be aware of and keep an eye on the latest real estate market trends in order to position your property better and secure a good deal.
To help make things a little easier for you, we’ve gathered some of the major real estate statistics from the U.S. market.
It doesn’t matter whether you are a buyer or a realtor, or you wish to invest in real estate, or you just love browsing for private property. On our journey through NAR 1National Association of Realtorsstatistics today, we will make a few stops that will show us what has been happening in the world of real estate in the past five years.
As we’ll talk about sellers and buyers, we need to establish something in advance. Nowadays, there’s a lot of differentiation between the generations. Do you know what the term “silent generation” designates? Exactly. We want to give you the full picture of real estate statistics, and we’ll start by clearing up the generation thing early on:
Did you find yourself somewhere on this list? Good. Now that we have the road cleaned up ahead of us, we can move onto the hottest real estate statistics.
Real estate is a huge industry. Listing all the real estate trends of 2020 is beyond the scope of this article. Therefore, we will share some of the major real estate statistics from different sectors of the industry to give you an overview.
Let’s start with a one-on-one comparison of the US housing market in 2019 and 2020.
(Source: World Property Journal)
The U.S. housing market has been struggling to regain its lost position for a decade. However, it has reached new heights of growth in early 2020. According to the latest research, the US real estate market experienced a growth of $11.3 trillion (more than 50%) and now stands at $33.6 trillion, which is equal to the combined GDP of the U.S. and China, the two largest economies of the world.
(Source: United States Census Bureau)
According to the latest quarterly residential vacancies and homeownership report issued by the United States Census Bureau, the homeownership rate in the United States increased to 67.9% in the second quarter of 2020. This is 2.6% higher than that of the first quarter of 2020 and 3.8% higher than the homeownership rate in the second quarter of 2019.
The Internet plays a huge role in the world of real estate nowadays. Almost every buyer starts their research online. It’s the world we live in! And both buyers and realtors need to adjust.
If you think about it – real estate is everywhere. Since the beginning of humanity, people have strived to perfect the inside of their homes. In the beginning, it was just caves – but even in the caves there used to be a campfire (at some point) and a couple of designated areas for sleep.
It can be said that our environment is so based on real estate that it is almost invisible.
Realtor statistics will help us “read” what is happening in the world of real estate these days. For the purposes of our research today, we selected statistics from the period 2016-2019. So, what happened in real estate in the last three years?
We are here to find out. Let’s see:
In 2019, things look like this:
(Image: US Realty Records)
Now, if you are interested in buying:
Before you start house hunting, which will hopefully lead you to the steps of your new home with a key in one hand and a champagne glass in the other, make sure you research the market well. To get you going, we have made a list for you with some of the best real estate websites:
And there are so many others you can visit! The thing is – start online before you contact a broker. There are also the for-sale-by-owner websites you can check out.
According to real estate sales statistics:
(Source: Dave Ramsey)
Investing in real estate is what some people do for a living. In fact, there are many millionaires that have made fortunes that way. In order to invest, you need a strategy. And in 2019, people are turning their heads towards millennials.
That’s right. The majority of home buyers nowadays are millennials. Pleasing this crowd is not a piece of cake, though. They are all mobile and great with research. Bottom line: use as much technology as you can master if you want millennials as your clients.
90% of the world’s billionaires have become rich through real estate investments.
Not everyone who invests in real estate becomes a billionaire, of course. The point is that real estate offers a great way to develop significant wealth. There are a lot of forms of investments in real estate. If you wish to do so, make sure you consult with experts before you start.
Moving on now:
(Source: The Close)
Real estate agent statistics are amazing, aren’t they? Stay where you are, there’s more to come.
How long do homebuyers search? Where do they get insights from? Virtual tours? Find all the answers below.
Let’s see some stats from the US housing market in 2018. The average US home sold in 2018 reached the record price of $385,000.
According to real estate statistics 2018, the younger generations prefer renting instead of buying. In 2016, most US citizens owned their property, but we’ll get to that in a minute.
(Source: The Close)
Investing in real estate is not what it used to be 100 years ago…
Now is the time to check out what’s happening at the top of the real estate market in the US. Home buying statistics will lead the way.
For the sake of our research, we’ll narrow things down to three of the most popular real estate destinations in the US. Can you guess which ones they are?
Here is contestant number one:
There is a good reason why California is our number one stop. (Spoiler alert: San Francisco is currently the most expensive place to rent in the US!) The California housing market will give us some hot real estate stats today.
Here we go:
According to Los Angeles real estate statistics, the number of homes sold in LA in 2018 reached 74,500. (Compared to 5,500 in San Francisco – that’s quite the number!)
Awesome, I know! Now, we move to another real estate giant:
Here are some 2018 real estate statistics for New York. Let’s bring ourselves up to speed, shall we:
Now, when it comes to renting in the US:
In 2016, the percentage of homeowners in the US was a lot higher than of renters. Nevertheless, that does not apply to New York. Obviously! The rent for a single person apartment in Downtown Manhattan is around $9,666/mo. Ouch!
Moving south on the east coast now:
The overall value of real estate in the state of Florida rose by 4,7% in 2019. The housing market is increasing, and homes are selling in less than three months.
The 2018 real estate trends confirm that the prices of real estate are on the rise. Also, the number of sold brand new homes is increasing, and women are getting more involved in real estate.
Let’s have a closer look:
Keeping up with national trends is crucial when it comes to real estate. It’s not enough to know the market. You also need to know the buyers, the sellers, the financial state of the country, and to follow the hottest real estate news and trends. Yes, it sounds like a lot of work.
How many homes are sold in the US each year?
How about some real estate demographics? They are going to surprise you!
Even though the real estate industry saw a boom at the beginning of 2020, Relator.com’s 2020 Housing Market Forecast, issued in May 2020, predicts that the overall average home sales would go down by 15% during 2020 when compared with 2019.
(Source: The Close)
Young millennials are soon going to reach an age when they will consider purchasing a home. Keeping that in mind, the increase in home building in 2019 is easily explained.
And last but not least:
According to the July 2020 market summary report issued by realtor.com, the current median list price of houses in the United States is $349,000, which is 8% higher than what it was around this time last year.
What are the market projections? Suburbs or rural areas? Let’s look at the numbers.
(Source: Churchill Mortgage)
An increasing number of millennials are now choosing to buy homes. Since their requirements and preferences are different from those of the Baby Boomers, they are playing a major role in reshaping the real estate market trends. In addition to preferring bigger homes in suburban areas, many millennials also keep their pets’ needs at the top of their priority list when making a home buying decision.
Acquiring the assets with the biggest potential is what we all want. NAR statistics showed us the facts and trends that every buyer and realtor need in 2019. And now, it’s time to summarize:
That’s all for now, guys. Our selection of real estate statistics was an eye-opener, wasn’t it?
Good job, guys.
You deserve a coffee break.
See you around.