The NAR (National Association of Realtors) recently released their 2020 Profile of Home Buyers and Sellers. This report looks at the characteristics of home buyers and sellers, the home buying and selling experience, and the impact of COVID-19 on the housing market. Here are a few of the highlights.

HOME BUYERS

The typical home buyer in 2020 was 47 years old and had a median household income of $96,500, up from the previous year at $93,200. First-time homebuyers were lower than last year at 31% (compared to 33%).

43% of buyers looked for their homes online as their first-step, emphasizing the importance of online marketing in 2020. Home buyers searched for their home for an average 8 weeks, down from 10 last year, and looked at a median of 9 homes, equal to the previous year.

88% of buyers used a real estate agent or broker, and 91% would use their agent again or recommend them to others.

Home prices were up among all buyers to a median average of $272,500, compared to last year at $257,000. Buyers paid 99% of the asking price. The typical home was 1,900 sq. ft with 3 bedrooms, 2 bathrooms, and was built in 1993.

HOME SELLERS

The most popular reasons for selling a home in 2020 were: sellers wanted to be closer to friends or family, sellers’ current home was too small, and a change in family situation. 89% of sellers worked with a real estate agent to sell their homes. 77% of those who used an agent to sell their home only contacted one agent.

For homes not sold by agents, for sale by owner (FSBO) homes were quicker to sell than those listed through an agent. The average time frame was 2 weeks, which NAR attributes to a majority of FSBO homes being sold to person (s) the seller knows. The average age of a home sold by its owner was 57 years old. FSBO homes FSBO homes sold at a median of $217,900, but still sell for lower than the median of agent-assisted homes which were at a median of $242,300.

PANDEMIC’S IMPACT ON BUYERS

The ongoing pandemic and shutdowns had an impact on homebuyers. 12% of homes purchased were multi-generational homes, buyers after March were more likely to purchase a multi-generational home compared to those who purchased prior to April (11% prior to April, compared to 15% during March on.) Buyers who purchased in March or later also expected to stay at their current homes for less time. Prior to March, buyers expected to stay in their homes for 15 years, while buyers who purchased after March expect to be in their homes for about 10 years.

Pre-pandemic buyers also spent less money on their homes. Those who purchased prior to March spent $270,000, while buyers who purchased in the pandemic spent $339,400.

The pandemic also affected how buyers viewed their homes. While the average number of homes looked at remained the same, a whopping 5 of those 9 homes were reviewed ONLY online. Those who primarily used the internet for their home search went to an all-time high of 97%.

PANDEMIC’S IMPACT ON SELLERS

Sellers’ reason for selling changed following the pandemic. While the most common reason to sell prior to March was to be closer to friends and family, most respondents after April stated their home was too small as their reason to sell. 46% of sellers stated their home sale was urgent, compared to the 39% that said that prior to March. Those who sold after March were also more likely to use technology to market their home. 27% used virtual tours after March, compared to the 16% that used this tool prior (pre-April). Those selling after March also saw a bump in sale price: those who sold Pre-April sold at $270,000, while those after March saw a sale price of $300,000.

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Due to the ongoing pandemic and current market conditions, the home buying and selling experience has been both unique and challenging in 2020. If you need help navigating the market for buying or selling in the new year, please be sure to contact one of our knowledgeable sales professionals today.