The Real Estate Facts thought that buying a home may bring up feelings of stress, excitement, and chaos. Finding the right property is the biggest obstacle for 53% of buyers. Understanding facts about real estate could help you make better investment decisions.
The real estate industry isn’t all doom and gloom. There are plenty of interesting real estate facts that may surprise you. Did you know that open houses used to last 12 hours?
It can be useful to brush up on real estate trends if you buy or sell a home. Here are 15 real estate fun facts that are fascinating and practical to know.
1. The demand for second homes has grown by 99%
Buying a second and third home is becoming a popular choice for home buyers. Since 2015, the demand for second homes has grown by 99%. The estimated total of second homes in America is 7.5 million, which accounts for 5.5% of the total housing stock.
The state with the largest stock of second homes was Florida with 1.1 million properties. South Dakota has the smallest stock of all 50 states with 20,000 second homes on record.
2. 1 in 10 Americans sell their home due to paranormal activity
Many people stated that they thought their house was haunted before they bought it. Don’t worry if you don’t have a gift for the supernatural. State disclosure laws may require that agents disclose spirit residents and hauntings to potential buyers.
A survey conducted by Cinch Home Services revealed that 1 in 10 Americans have sold their home due to a paranormal experience. Half of these encounters occurred in homes with two floors. Many Americans will contact a religious figure to deal with their spooky residents before deciding to sell up and move on.
3. 50% of millennial investors choose to invest in real estate
Millennial investors are choosing real estate over the stock market. 85% of millennials agree that real estate is a good investment. Owning bricks and mortar is a more appealing and stable asset compared to stock market shares.
Millennials are saving 10% of their income, which is more than double what Baby Boomers would have saved. The younger generation is less focused on buying their first home, which means they spend more time saving up for a deposit. Although millennials are becoming more interested in real estate, Baby Boomers are the generation with the most real estate wealth.
4. The average house price in America
The average house price in the US has increased each year for the last four years. The median house price increased by 416% between 1980 and 2020 to $428,700. House prices and income vary from state to state, but the average monthly mortgage payment is $1,230 per month for a 30-year, fixed-rate loan.
Hawaii is the most expensive state to purchase a home with an average house price of $1,038,544.
5. Over 17 million Americans spend half their income on rent
The Joint Center for Housing Studies of Harvard University released a report that showed that 1 in 4 renters spend 50% of their income on housing. Many of these people will be looking at buying a home to reduce their monthly outgoings.
Fannie Mae recently announced that renters who pay on time will increase their chances of qualifying for a mortgage in the future.
6. 34% of buyers were first-time homeowners in 2021
The National Association of Realtors (NAR) showed that the typical age of a first-time buyer was 33 years old. When asked, their main reason for buying a house was to own their home. For most people, buying a home is the biggest financial decision they will ever make.
A first-time buyer is not always someone who is buying their first home. Real Estate Facts Many prospective buyers are single parents who previously owned property with their ex-spouse. A person who has not owned a personal residence in the last three years is also classified as a first-time buyer.
7. 44% of millennials would buy a home based on listing photos
Millennials are more comfortable than older generations when ordering items online. With their finger on the pulse of digital society, Millennials turn to celebrities and influencers to help them make decisions on everything from real estate to furniture.
Buying a house online is a socially distanced and acceptable way to purchase a property in 2023.
Millennials are also buying houses through Facebook and Instagram while applying for their mortgages online. Buying a house through a real estate agent can be less convenient than conducting property searches online at any time of day.
Find more helpful facts about real estate
Fine-tuning your real estate knowledge can be beneficial if you are selling your home. These useful facts about real estate can help you discover what people are looking for when buying a home. If you are thinking of selling your home, getting a price estimation online could be an easy first step.
Do you want to sell your home without the hassle? A trusted iBuying company could make an instant offer for your home in minutes with no obligation. Get in touch with iBuyer to get an instant and accurate estimate for your home.