Real estate is one of the most fascinating industries out there. Ranked as one of the best sales jobs available, real estate brings a lot of job satisfaction. It’s even an area of interest for those who don’t work in the industry – you’ve only got to look at the number of property-based reality shows to see that.
Understanding key real estate statistics can give you a better insight into the market. Interesting Real Estate Market Facts Whether you work in real estate or you’re a buyer or seller, the following stats can tell you everything you need to know about the world of real estate today.
Key Real Estate Stats for 2024 – Editor’s Picks
- Homes are selling at their fastest rate since 1990, with the average listing finding a buyer within a week.
- 87% of buyers hired an agent or broker to buy their home, with 90% of sellers hiring an agent to sell their property.
- The length of tenure in property has dropped from 10 to eight years, the largest year-on-year decline.
- The median profit on a home in 2021 was $85,000, up 29% from 2020.
- Real estate agents earn a median rate of $49,040.
- The share of first-time buyers has jumped from 31% in 2017 to 34% in 2021.
Real Estate Agent Statistics
The US has over 2 million active estate agents.
More than 1.5 million real estate agents are classed as Realtors, which means they are licensed by and registered with the National Association of Realtors.
87% of buyers in 2021 hired an agent or broker to buy their home.
The vast majority of buyers hire a real estate agent to find their home, with 19% contacting an agent in the first instance when looking for a new home.
90% of sellers use the services of a broker to sell their homes.
Even with online selling methods, 90% of sellers will still choose a broker or an agent as their first choice. Meanwhile, 7% of sellers chose the for-sale-by-owner option, and less than 1% of homes get sold via an iBuyer.
47% of homebuyers hired a real estate agent based on a recommendation.
Homebuyers mostly rely on recommendations from friends and family to help them choose an agent. Thirteen percent of buyers hired an agent they’d worked with previously, while 90% said they would go to their agent for a future transaction or would recommend them to others.
65% of Realtors are women.
The newest Realtor statistics indicate that a typical Realtor is a 52-year-old white female who is a homeowner and has attended college.
73% of homebuyers only needed to interview one agent before deciding to hire them.
Securing the first interview is an important step for an agent or broker. If they can impress during the initial interview, they stand a strong chance of securing a client.
68% of sellers choose an agent based on a referral or a previous transaction.
Recommendations are a popular choice for finding an agent or a broker, and 82% of sellers go with the first agent they interview to sell their property.
Buyers take about eight weeks to find a home to buy.
Finding the right home is one of the most difficult elements of buying a property, but most buyers find a home within eight weeks.
Real Estate Market Statistics
Homes are selling at their fastest rate since the 1990s.
Most listings for homes secure a seller within a week of going on the market. Most sellers are receiving the full asking price for their properties, with 35% receiving above the asking price.
The median profit on a home is $85,000.
Sellers are selling their homes for significantly more than their original purchase price. The median profit from selling one’s home in 2021 increased by $19,000 from 2020.
People aged 65-plus are the age group most likely to own their homes.
Nearly 80% of people aged 65 or older own their homes. The rate is almost half for those under 35, with only 37.8% of people in this age group owning their homes.
There were 744,000 houses sold in November 2021.
Housing market statistics show that the median sales price for homes sold in November 2021 was $416,900. During the same month, 402,000 new homes were put up for sale.
Real Estate Income Statistics
The median salary for a real estate broker stands at $60,370 as of May 2020.
The lowest 10% of real estate brokers earn less than $25,460, while the highest 10% receive up to $174,120.
Real estate agents earn a median rate of $49,040.
Real estate agents don’t need to be registered, but it helps if they are. The lowest-earning agents have a yearly income of $25,100, while the higher earners earn up to $112,410.
Home Buyer Statistics
The average down payment on a house is 12%.
Most people believe that the amount you need for a down payment is 20%. However, the average is closer to 12%. For those under 30, the average down payment drops to 6%. The amount needed for a down payment will vary depending on the type of home loan being applied for, as well as the criteria of the bank providing the loan.
The homeownership rate in the US is 65.4%.
As of the third quarter of 2021, homeownership sits at 65.4%, a figure that has remained largely unchanged throughout the year.
The average home tenure is eight years.
This has dropped from 10 years in 2020, a significant decrease, with many citing the pandemic as the key reason to move. People decide to move to be nearer to their friends and family. The need for a bigger home is another important factor in reducing the average home tenure.
Neighborhood quality is an essential factor for 62% of buyers.
Sixty-two percent of buyers place neighborhood quality as one of the major influences on their buying choice. Among younger age groups, convenience to job location was also important, influencing 74% of buyers aged 22 to 30, compared to just 7% in the 66 to 74 age range.
44% of people buying a new home do so to avoid renovations.
Among the reasons for buying a new home, wanting to avoid renovations was one of the key factors, as well as avoiding critical problems such as issues with plumbing or electricity.
The share of first-time buyers has jumped from 31% in 2017 to 34% in 2021.
First-time buyers make up roughly one-third of homebuyers. This is despite some of the challenges faced by first-time buyers to save for deposits amid soaring rent prices and rising student debts.
The average age of a first-time homebuyer is 33.
The age of first-time buyers continues to increase, while the average repeat buyer age has also increased – to 56. First-time buyers face a lot of challenges, meaning they’re not in a strong enough financial position to buy until they reach their 30s.
A gift or loan from a family or friend helps 28% of first-time homebuyers make their down payment.
Saving for the initial down payment is one of the biggest challenges faced by first-time homebuyers today. For repeat buyers, the situation is drastically different since equity from their existing home helps them purchase the next one.
46% of homebuyers purchased a larger home in 2021.
Wanting a larger home is one of the biggest reasons for selling up and buying a new home, according to real estate statistics from 2021. Meanwhile, 28% of people bought a home that was the same size as their existing home.
The Future of Real Estate Business in a Digital Age
43% of homebuyers find both virtual tours and online listings useful when looking for a house.
VR home tours have become increasingly popular due to the pandemic, with more and more people viewing such tours when buying a property.
97% of people use an online search to help them find their home.
In 2020, the majority of people used the internet in their home search. This has become an increasingly popular method of browsing since the global COVID-19 pandemic.
30% of Realtors believe that VR is the technology that’ll have the most profound impact on their business.
Other technologies listed include drones at 37% and cybersecurity at 34%.
56% of Realtors use drones.
The use of drone photography can help a Realtor or agent sell a property more quickly, so it comes as no surprise that in addition to 56% of Realtors who already use drones, 12% plan to do so in the future.
Real estate will make up $2.6 billion of the VR market by 2025.
The VR market is expected to be worth approximately $80 billion by 2025, with $2.6 billion coming from real estate. The global pandemic has led to an increase in popularity for VR tours, but buyers and Realtors are seeing the value from saving time and resources by taking a look at properties online.