Commercial Property Find A Home
RSS Feed

December 20, 2023

A Look at Housing Transactions Over the Past Year

REALTORS absolutely love data. If you don’t believe me,  just ask us. Neighborhood reports, comparative market analysis, market statistics; we can produce those in the blink of an eye. Data is how we measure where we’ve been, and helps us look forward to where we might be heading. Looking at the recent past, people with even a basic understanding of the real estate market are aware that the last 12-18 months have been a challenge at times. Inflation, and as a result rising mortgage interest rates, have thrown a curve ball for people looking to purchase and sell property, not to mention those of us who assist in real estate transactions.

A few weeks ago, the National Association of REALTORS® (NAR) released one of their most anticipated reports of the year, the 2023 Profile of Home Buyers and Sellers. This report covers real estate transactions over the past year (July 2022 through  June 2023) and really gathers some interesting data points.

Here are some key takeaways I found from this report:

  • The median household income for home buyers jumped to $107,000 from $88,000 from the previous year. This shows how the entry into homeownership has increased this past year.
  • First-time homebuyers made up 32% of all home buyers, up from last year’s historic low of 26%, but still below the average of 38% since 1981.
  • The typical down payments for first-time buyers (8%) and repeat buyers (19%) were the highest since 1997 and 2005, respectively.
  • 70% of recent buyers did not have a child under the age of 18 in their home, the highest share recorded. By comparison, in 1985, 42% of households did not have a child under the age of 18.

This report clearly has a lot of data, but what does it mean? What’s something that the general public can use in their lives? I think this data point is most crucial: This report shows that 89% of both buyers and sellers used a REALTOR®, up from 86% and 87% in the last two years. This statistic shows that even in times when the market is shifting, the need for a trusted expert is absolutely crucial. Our knowledge can help guide clients through the ups and downs of our housing market, and help get the most out of your investment. That’s Who We R®.