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Despite a wave of downtown revitalization efforts and the glamour of city life, buyers are still clamoring for less exciting detached, single-family homes in the suburbs. The median home price was $250,000 this year, up nearly 6.4% from $235,000 last year. Buyers are plunking down the largest down payments in more than a decade—a median 13% of the purchase price, compared with 10% a year earlier. This is an increase from eight years in last year’s report, but reverts back to the same tenure seen in 2019 and 2020. Overall, buyers expected to live in their homes for a median of 15 years, while 28% said that they were never moving. 88% of buyers were White/Caucasian, 8% were Hispanic/Latino, 3% were Black/African-American, 2% were Asian/Pacific Islander, and 3% identified as other.
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Highlights From the Profile of Home Buyers and Sellers
But today’s buyers said they planned to stay in their abodes for a median of 15 years. Buyers paid a median $257,000 for their properties, forking over 98% of the asking price. And the overwhelming majority of them, 86%, needed financing (i.e., mortgages) to make that happen.
Forty percent of buyers’ agents cited that home staging had an effect on most buyers’ view of the home. Eighty-three percent of buyers’ agents said staging a home made it easier for a... About half of all buyers headed to the burbs, where larger homes with multiple bedrooms and yards abound. Just 13% chose urban areas—the same percentage that opted for rural areas—and 22% preferred small-town living.
NAR Profile of Home Buyers and Sellers Highlights
Lautz noted that several reasons were behind the decisions among last year's buyers to seek homes farther distances away from their previous residences. At just 26%, the share of first-time buyers was the lowest since NAR began tracking the data. The typical first-time buyer was 36 years old – an all-time high. Folks stayed in their properties for a median 10 years before moving on.
Having an agent to help them find the right home was what buyers wanted most when choosing an agent at 51%. 64% of recent buyers were very satisfied with their recent home buying process. 18% of recent home buyers were veterans and 2% were active-duty service members.
Education
90 percent of home buyers used the Internet in their home search. More than half of homes purchased were in the suburbs, 18% in urban areas, and 17% in small towns. "Family support systems still prevailed as a motivating factor when moving and in neighborhood choice," Lautz said.
Despite the high prices making it harder for young people to become homeowners, they’re finding a way to do it. These homes tended to fly off the market, going under contract within a median three weeks. And the owners made bank on the sales, with a median $55,500 profit over what they originally paid for their homes. 63% of sellers found their agent through a referral from a friend, neighbor, or relative or used an agent they had worked with before to buy or sell a home. 91% of sellers were at least somewhat satisfied with the selling process.
39% of sellers used the same agent to purchase a home, as sell their home. A share which rises to 85% for sellers who purchased a new home within 10 miles. The average first-time buyer was 33 years old, and first-time buyers made up 31 percent of all buyers, down from 33 percent in 2019 and the lowest percentage since 1987.
86% of home sellers worked with a real estate agent to sell their home, 10% sold via FSBO, and less than 1% sold via iBuyer. For 47% of buyers, the source of the downpayment came from their savings. 38% of repeat buyers cited using the proceeds from the sale of a primary residence, while 22% of first-time buyers used a gift or loan from friends or family for the downpayment. 67% of buyers interviewed only one real estate agent during their home search. Due to a growing interest in having more space, as well as added privacy, buyers who purchased after March were likely to relocate to the suburbs and pay more for that home. On average, buyers who purchased before April spent $270,000 on a property.
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The median distance between the home that recent buyers purchased and the home they moved from was 50 miles. This is a significant increase in distance moved, as the distance between 2018 and 2021 was a median of 15 miles. In terms of searching and the purchasing process, starting online has continued to grow in popularity. According to NAR, 97 percent of buyers searched for their home online—the highest percentage and up from last year’s 93 percent. On average, buyers looked at nine homes in person and an additional five homes via online virtual tour.
Seventy-eight percent of recent buyers financed their home purchase, down from 87% last year and driven by the increased share of repeat buyers who paid all cash. The typical down payments for first-time and repeat buyers were 6% and 17%, respectively. The median distance between the home that recent buyers purchased and the home from which they moved was 50 miles, the highest ever recorded.
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Home buyers typically purchased their homes for 100% of the asking price, with 28% purchasing for more than asking price. The coronavirus pandemic changed many things, buying and selling trends among them. Home sellers tended to be a lot older—and wealthier—than buyers. They were a median 57 years old with slighter higher household incomes of $102,900. And they’re more likely to be empty nesters or to have no children.
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