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Whether you’re an individual homebuyer, seller, or professional realtor, when it comes to buying and selling homes (or any property), you need to be aware of and monitor current real estate market trends to position your property more effectively and secure a fair bargain.
To assist you, we’ve compiled a list of some of the craziest and mind-blowing real estate statistics from the United States market.
Real Estate Statistics: Editor’s Top Picks & What You Need to Know
- 51% of buyers found their homes on the internet.
- Six million existing homes were sold in 2021.
- Millennials make up 37% of all home buyers.
- The average house price rose almost 5% in 2021.
- Sales of existing homes will fall 1.7% in 2022.
- The cost of renting has gone up by almost 18%.
- 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
#1. 41% of home buyers choose a real estate agent based on a recommendation.
When it comes to picking a realtor, over half of all prospective purchasers rely on recommendations from friends, neighbors, or relatives. According to NAR statistics, only 12% of buyers prefer to work with agents they’ve previously worked with. Is this because they have more faith in other people’s judgments, or is it a result of negative experiences?
#2. More than 63% of realtors are women
According to real estate agent statistics, the majority (63 percent) of realtors in the United States are women. Female real estate agents formed their own ‘Women’s Council of Realtors’ in 1938 after being barred from all real estate boards. This council now has around 12,000 members and still counting.
#3. 45% of brokers report that “keeping up with technology” is their agents’ biggest challenge.
According to a National Association of Realtors survey, 94 percent of realtors prefer to communicate with their clients via email, while 90 percent prefer to communicate via text messaging. Even though realtors use accessible technology, it remains the most difficult task for brokers.
#4. According to the latest realtor statistics, real estate agents assisted 89% of sellers during the sale.
When it comes to selling their homes, most homeowners rely on their real estate brokers. Agents assisted approximately 89 percent of sellers during the closing process. A closer examination of the data by NAR revealed that 41 percent of sellers found those agents through referrals from friends and family.
#5. 90% of sellers use the services of a broker to sell their homes
Even with online selling methods, 90% of sellers will still prefer to work with a broker or an agent as their first choice. Meanwhile, 7 percent of sellers opted for sale-by-owner, and less than 1% of properties are sold through an iBuyer.
#6. In 2021, realtors’ median business expenses were $6,290
Realtors need to stay mobile to get sales and meet clients’ needs. Because of that, the biggest chunk of their operating expenses goes to vehicle expenses – $1,400, according to US national real estate statistics. This is a lot when you consider the fact that agents earn a median gross income of $49,700.
>> More: Mortgage Statistics
Real Estate Market Statistics
#7. In 2021, the average house price in the US was $408,800.
After plateauing between 2017 and 2019, real estate prices in the US increased in 2020 and 2021. The average sales price of a new home in 2020 was $389,400, and in 2021, it rose 4.7% to $408,800. Before you think there’s no way you could afford that, note that the median house prices hovered around $272,500.
#8. Single-family homes were the most south-after, accounting for 81% of all purchases.
Detached single-family homes reigned in the preferences of buyers among all generations. Property statistics further show that the typical home recently purchased was 1,900 square feet, three bedrooms, two bathrooms, and was built in 1993.
#9. Newly built houses accounted for 25-30% of all home sales in 2021.
According to recent real estate market figures, the share of new construction homes sold in the United States in 2021 was much higher than in prior years. According to experts, this trend could be explained by fewer people putting their homes on the market during the COVID-19 pandemic.
#10. 6 million existing homes were sold in 2021.
For the entire year, there were 6.12 million units sold in 2021, the most since 2006 and up 8.5% from the prior year when activity was fueled by pent-up demand from COVID-19 lockdowns, according to the NAR. However, newly built homes accounted for a sizeable chunk of the homes sold in 2021.
#11. First-time house buyers increased from 32% in January 2020 to 34% in 2021.
Amid more intense buyer competition, rising prices, and higher credit qualifications, the share of first-time buyers continued to increase. First-time home buyers made up 34% of all home buyers, increasing from last year’s 31%. The typical first-time buyer was 33 years old this year, while the typical repeat-buyer age rose to an all-time high of 56 years old.
#12. The average fixed mortgage rate in January 2020 is 3.62%.
Compared to the rate in January 2019, we see a decrease of almost 1%. While that may seem good for potential buyers, the increase in house prices still excludes a lot of people who want to buy a house from the market. Despite that, NAR reports an increase in first-time house buyers in this period.
#13. 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. While there is no assurance that you may get $85,000 in profit from your home sale, the rise in home appreciation rates has been in favor of home sellers in recent times.
#14. 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. 402,000 new homes were sold during the same month, up from 392,000 units in October.
#15. Homes are selling at their fastest rate since the 1990s.
According to a new report from the National Association of Realtors, homes are selling at a rate not seen since the late 1990s, with the average listing finding a buyer in just one week. The research, which looks at home sales between July 2020 and June 2021, also shows that most sellers could receive their full asking price—with 35% of them getting more than they asked.
Online Real Estate Statistics
#16. 43% of homebuyers find 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. Apps like Zoom, Skype, and other home virtual tour dedicated apps have been at the forefront of this transformation.
#17. 82% of agents want to improve their social media presence
Today, real estate trends are increasingly moving toward technology, and social media appears to be leading the way. According to a survey of real estate agents, most agents wish to boost their social media presence in 2021. This strategy has a valid reason. According to the data, 44 percent of agents gained new clients the previous year due to their social media posts.
#18. 76% of realtors use Facebook for their work.
According to real estate agent statistics, most licensed agents rely on Facebook for real estate marketing. It makes sense, given that it is one of the world’s largest social networks, with over 2.79 billion active users globally. Furthermore, more than half of the realtors (60%) studied by NAR utilize LinkedIn to promote their job, while 70% have their own website.
#19. 73% of homeowners prefer to list their properties with agents who use videos for advertising property.
One of the real estate technology trends is drone photography, which appears to be an effective home-selling tool. The eye-catching images enable agents to exhibit houses in a way that was not possible a few years ago. According to research, properties with aerial photographs sell 68 percent faster than those with ordinary images.
#20. 97% of home buyers use the internet to search for homes.
Property listing sites have clearly made a big difference in how we buy houses. The percentage of buyers who look online for homes is rising every year. In 2021, this reached 97%. Even older generations adopt this modern approach, with 87% of those aged 75-95 looking for homes online.
#21. More than 30% of realtors report closing at least one transaction a year due to their use of social media.
More than one-third of realtors reported closing at least one transaction each year due to their social media activity. Furthermore, 60 percent of polled agents believe that social media is more significant than a website. If social media isn’t already part of your marketing strategy, it should be.
Real Estate Broker Statistics
#22. There are over two million real estate agents in the United States.
This includes both licensed NAR REALTORS® and the real estate agents outside the association. Of course, the situation is not the same across the country. For example, real estate statistics by the city report that Los Angeles has a record-breaking number of 39,307 active real estate agents. Chicago, Houston, and Phoenix are near the top, with over twenty thousand working real estate agents.
#23. According to 2020 statistics, an average US realtor has nine years of experience.
NAR research states that the number has risen by a year since 2018. Although younger, inexperienced agents keep joining the market, turnover is dropping slightly. It is essential to mention that this is not an average number but a median: The latter can provide more accurate information without letting extreme values affect the score.
#24. Real estate brokers and agents earn approximately $82,447.
The latest data on real estate agents’ salaries shows that brokers and agents earn $82,447. The data also shows a substantial gap between the average income of male and female real estate agents. Records show that men earn $103,470 on average, while women make only $64,643.
Commercial Real Estate Statistics
#25. In 2019, the average commercial real estate sale was $1.2 million
Currently, the highest-yielding forms of commercial real estate are mobile home parks, self-storage facilities, and RV parks. These asset classes all trade for around a 10% cap rate.
#26. Office rental vacancy rate rose to 15% in 2020.
The COVID-19 pandemic changed the way many local offices operate, and the shift in the market is reflected in higher vacancy rates.
#27. Properties of 10,000 square feet or less make up 72% of all commercial buildings
CBECS estimates that 5.9 million U.S. commercial buildings contained a total of 97 billion square feet as of 2018. Boston, San Francisco, and Los Angeles have most office space among all central cities.
Home Buying Statistics
#28. Among home buyers aged 29-38, 33% decided to buy their homes to take care of their parents.
This is the older generation of millennials, the age group that is also the most active in-home purchases. At this age, people already have steady jobs or hints of a career so that they can think about their loved ones. Another 30% of older millennials agree that taking care of family is the most important reason to buy a home.
#29. 31% of people who buy a home in the USA are first-time buyers.
In 2019, first-time homebuyers made up 33% of the market, and most homebuyers were 47 years old. In 2020, first-time homebuyers only made up 31% of the market. The age of the typical homebuyer remained at 47 years old in 2020, while the median household income of homebuyers rose to $96,500.
>> More: Welfare Statistics
#30. 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.
#31. 44% of people buying a new home do so to avoid renovations.
Among the reasons for buying a new home, wanting to avoid home renovations was one of the key factors and avoiding critical problems such as issues with plumbing or electricity.
#32. On average, home buyers spend 10 weeks searching for a new home.
They spend about three weeks searching for a home on their own before contacting a professional real estate agent to help them out. Throughout the process, buyers typically visit an average of 10 homes. If you’re in the market for a new house, this is what you have to deal with.
Frequently Asked Questions
How Many Realtors Are There in the United States?
As of October 2021, there are 1,564,537 Realtors in the United States, a record high, with an estimated 2,000,000 or more licensed real estate agents. Florida has more Realtors than any other state in the United States, with 212,772 compared to California’s 212,279.
What Is the Average Salary of a Realtor?
The average annual salary for a real estate agent in the United States is $94,031.
How Much Does a Real Estate Agent Make a Year?
The average annual salary for a real estate agent in the United States is $94,031. Per month, they earn $6,658, on average. However, the money a real estate agent makes is highly dependent on their commission structure, several hours worked, and the level of their career.
Is Being a Real Estate Agent a Dying Career?
Real estate isn’t a dying profession. There are more real estate agents in 2021 than ever before. With the introduction of online marketing, VR and virtual tours, and simple online paperwork, the field is changing dramatically. To compete in this new world, real estate agents must innovate.
Bottom Line: Real Estate Statistics
As our real estate statistics show, the real estate industry continues to provide significant investment opportunities for people worldwide. Despite rising rental and purchase prices impacting the home buying decision for thousands of Americans, the market in the United States shows no indications of slowing down.
Last but not least, the purpose of these statistics is to serve as an insight into the US real estate market and how it can influence your home buying decision.