To truly understand the real estate market, you need to have a firm grasp on the numbers. Without them, you'll be navigating blind through an ever-changing industry. So, let's dive into some captivating real estate statistics that will provide you with valuable insights into market trends, agent demographics, marketing strategies, and more.
Homebuying Statistics
Before we delve into the details, let's explore why these stats matter. The way Americans work has dramatically changed the dynamics of homebuying. As remote work becomes more prevalent, homebuyers now have greater flexibility in choosing where they live. This shift has allowed them to prioritize their wants and needs over their employer's demands, resulting in a significant change in homebuying behavior.
Additionally, rising home prices and mortgage rates have caused buyers to be more cautious, leading to longer consideration periods. On the other hand, move-up buyers and investors have maintained a steady pace, exacerbating the already limited inventory.
Now, let's take a look at some intriguing homebuying statistics:
- Pending home sales decreased by 5.2% in March 2023 compared to February 2023.
- Housing starts in March 2023 dropped by 17.2% compared to the same period last year.
- 78% of homebuyers purchased their homes using a mortgage.
- Only 26% of home purchases in 2022 were made by first-time homebuyers, the lowest percentage on record.
- The median age of a first-time homebuyer in the United States in 2022 was 36.
- 61% of recent buyers were married couples, the highest percentage of unmarried couples on record.
- 18% of first-time buyers were unmarried couples, the highest ever recorded.
These statistics shed light on the current state of the market, revealing important trends and patterns that can guide both buyers and sellers during their real estate journey.
Homeselling Statistics
Now, let's shift our focus to homeselling statistics and explore why they matter. Home prices have appreciated significantly in recent years, reducing the purchasing power of buyers, particularly first-timers. However, sellers are reaping the benefits of these soaring prices, allowing them to upgrade their existing homes or relocate closer to family and friends.
Here are some fascinating homeselling statistics:
- The most commonly cited reasons for selling a home in 2022 were the desire to move closer to friends and family, retirement, and the neighborhood becoming less desirable.
- The typical homeseller in 2022 was 60 years old.
- Recently sold homes in 2022 spent a median of two weeks on the market, up from one week the previous year.
- The number of homes for sale in March 2023 increased by 59.9% compared to March 2022.
- Homes spent an average of 54 days on the market in March 2023, 18 days longer than the previous year.
- The median price of homes for sale in March 2023 increased by 6.3% annually.
- FSBO (For Sale By Owner) homes sold at a median price of $225,000, significantly lower than agent-assisted homes at $345,000.
- 10% of recent home sales in 2022 were FSBO sales, up from 7% the previous year.
- The typical homeseller had owned their home for 10 years.
These statistics provide valuable insights into the selling process, enabling sellers to make informed decisions and maximize their profits.
Southern Market Migration Patterns
The real estate market in the southern states has seen a significant surge in migration, particularly in Florida and Texas. As more people flock to these regions, the number of real estate professionals has also increased, presenting vast opportunities for realtors to thrive.
Let's take a closer look at the numbers:
- More than 40% of all Realtors in the U.S. are located in Florida, California, Texas, and New York.
- Southern and Western states experienced the most significant population growth in 2022, with Florida leading the pack at 1.87%.
- Texas dominated the list of fastest-growing counties, with six out of the top ten counties experiencing the most significant population growth.
- Other fast-growing counties were located in Florida, Georgia, and North Carolina.
These statistics highlight the booming real estate markets in the southern states and emphasize the potential for growth in these regions.
Today's Market Shifts
The real estate market has experienced significant shifts due to the ongoing pandemic. Urban centers have witnessed an exodus of residents, creating housing voids in densely populated areas. However, there are still markets with high demand and eager buyers ready to make their move.
Consider these insightful statistics:
- Counties with populations below 10,000 saw more population loss than gains, while larger counties experienced population increases.
- 17 million Americans identified as digital nomads in 2022, a remarkable 131% increase compared to 2019.
- The five most expensive states to buy a home are Hawaii, California, Washington, D.C., Washington, and Massachusetts.
- The five most affordable states to live in are Mississippi, Kansas, Alabama, Oklahoma, and Georgia.
- As of 2021, there were approximately 128 million occupied housing units in the United States.
- The median asking rent for vacant units was $1,937 in March 2023.
- 86% of homes sold in the U.S. in 2022 were represented by agents or brokers.
- The median sales price of new houses sold in March 2023 was $449,800.
- The average rate on a 30-year fixed-rate mortgage was 6.27% as of April 2023.
These statistics highlight the ever-evolving real estate landscape and provide valuable insights into current market conditions.
Real Estate Business & Income Statistics
Now, let's shift our focus to the business and income side of real estate. These statistics provide a comprehensive view of the industry, allowing real estate professionals to gauge their progress and set realistic goals.
Consider the following statistics:
- 67% of all Realtors are licensed as sales agents, 21% hold broker licenses, and 14% hold broker associate licenses.
- The median experience level of licensed professionals in the real estate industry is eight years.
- In 2022, 79% of agents expressed certainty in remaining in the industry for at least two more years.
- The median gross commission income for all Realtors in 2021 was $54,300.
- Realtors working 20 to 39 hours per week had a median gross commission income of $39,500.
- Realtors working 40 to 59 hours per week earned a median gross commission income of $85,400.
- Realtors working more than 60 hours a week had a median gross commission income of $144,400.
- Realtors with 16 years of experience or more had a median gross income of $85,000.
- The median number of annual transactions for a licensed real estate agent in 2021 was 12.
- 71% of Realtors specialize in residential real estate.
- Realtors earning $100,000 or more in gross commission income are more likely to use advanced technology tools like customer relationship managers (CRMs).
These statistics offer a comprehensive view of the real estate industry, illustrating the income potential and various career trajectories within the field.
Real Estate Social Media Marketing Statistics
In today's digital age, social media has become a vital platform for real estate professionals to market their services and connect with potential clients. These statistics shed light on the significance of social media in the real estate industry.
Consider the following social media marketing statistics:
- Zillow was the most popular real estate website in the United States throughout 2022.
- 72% of Realtors use Facebook, 55% use LinkedIn, and 45% use Instagram for business purposes.
- More than 30% of Realtors reported closing at least one transaction per year as a direct result of their use of social media.
- Americans spend an average of 90 minutes per day on Facebook and Facebook-connected platforms.
- The average American Facebook user clicks on 11 ads per month.
- 96% of Facebook visits are made on smartphones.
- 94% of Realtors communicate with clients via text messaging most often.
These statistics emphasize the importance of establishing a robust social media presence to effectively market real estate services and connect with potential clients.
Real Estate Emerging Tech in Marketing Statistics
Emerging technologies are revolutionizing the real estate industry, providing realtors with innovative tools to streamline their businesses and reach a broader audience. Understanding these emerging technologies is crucial for staying ahead in this dynamic field.
Consider the following statistics on real estate technology:
- Nearly 80% of active listing agents use drone photography and videography to market their listings.
- One out of every five commercial drone shoots is now done for real estate purposes.
- Home listings with 3D virtual walk-through videos close 31% faster and sell for up to 9% more.
- Homes with drone photography sell 68% faster than those without.
- 36% of Realtors spend $50 to $250 monthly on technology, while 23% spend more than $500.
- The most impactful emerging technologies in the next two years, according to agents, include cybersecurity, 5G, drones, artificial intelligence, and virtual reality.
- There were over 8.58 billion mobile subscriptions in use worldwide in 2022, surpassing the global population.
These statistics highlight the vast potential of emerging technologies in enhancing the real estate industry and optimizing marketing strategies.
Stats About Real Estate Referrals
Referrals continue to be the lifeblood of the real estate industry. Understanding where referrals come from and how crucial they are in generating business is essential for real estate professionals.
Consider the following statistics on real estate referrals:
- 63% of homesellers found their agent through a referral from friends or family.
- The typical homeseller recommended their agent at least once since selling their home.
- Realtors earned 16% of their business from repeat clients and 20% from referrals from past clients.
- 68% of licensed real estate professionals have their own website.
- The "about us" page is the third-most viewed section on a real estate agent's website.
- 69% of homesellers surveyed in 2021 expressed willingness to write a review for their sales agent.
- "Professional reputation" is the most crucial trait prospective homesellers look for in an agent.
These statistics underscore the importance of building strong relationships with clients and leveraging referrals to drive business growth.
Real Estate Brokerage Statistics
Lastly, let's explore some real estate brokerage statistics. Understanding the advantages of holding a broker license and the trends within the brokerage industry is essential for real estate professionals considering venturing into this field.
Consider the following real estate brokerage statistics:
- Over 107,000 brokerages are currently operating in the United States.
- Brokers or associate brokers hold 32% of all real estate licenses in the United States.
- A typical real estate agent stays at a brokerage for five years.
- Real estate brokers and associate brokers close a median of 14 annual transactions.
- 45% of brokers report that "keeping up with technology" is the biggest challenge for their agents.
- The software tools most often provided or encouraged by firms include e-signature platforms, comparative market analysis software, electronic contracts or forms, and multiple listing technology.
These statistics shed light on the brokerage landscape, highlighting the advantages of obtaining a broker license and the challenges faced by real estate professionals in the industry.
How Many Realtors Are There in Each State in 2023?
While we haven't provided specific statistics on the number of Realtors in each state for 2023, understanding the broader industry landscape is crucial for real estate professionals. The diversity of real estate professionals across different states contributes to the vibrancy and competitiveness of the industry.
In conclusion, these 88 shocking real estate statistics provide valuable insights into the ever-changing dynamics of the real estate industry. By understanding these trends and patterns, you can navigate the market with confidence, make informed decisions, and ultimately thrive in this exciting field.
