NAR Released the Profile of Buyers and Sellers report for 2023, check out my Summary

Summary of 2023 Profile of Home Buyers and Sellers

Introduction: The National Association of Realtors (NAR) annual survey provides insights into home buying and selling behavior. In 2023, it reflects a housing market shift after the COVID-19 boom, with increased mortgage rates affecting trends.

Characteristics of Home Buyers:

• First-time buyers increased to 32%, up from 26%.
• Typical first-time buyer age: 35, repeat buyer age: 58.
• 59% were married couples (lowest since 2010), 70% without a child under 18.
• 14% purchased multi-generational homes.
• 81% White/Caucasian, growing diversity.
• 16% were veterans, 2% active-duty service members.
• Primary reason for buying: 26% desired own home, 60% for first-time buyers.

Characteristics of Homes Purchased:

• 13% bought new homes, 87% previously-owned.
• Quality of neighborhood (60%) most important factor.
• Median home size: 1,860 sq ft, 3 bedrooms, 2 bathrooms, built in 1985.
• Expected to live in homes for a median of 15 years.

Home Search Process:

• 41% started online, 20% contacted a real estate agent first.
• Buyers searched for 10 weeks, viewed a median of 7 homes.
• Difficulty finding the right home: 59%.
• 92% satisfied with the buying process.

Home Buying and Real Estate Professionals:

• 89% used an agent, 50% wanted help finding the right home.
• 43% found agents through referrals, 71% interviewed only one agent.
• 90% would use their agent again or recommend.

Financing the Home Purchase:

• 80% financed home purchase, with a slight increase from last year.
• Typical downpayment: 8% for first-time buyers, 19% for repeat buyers.
• Sources of downpayment: savings (54%), sale of previous residence (53%).

Home Sellers and Their Selling Experience:

• Typical seller age: 60.
• 63% moved within the same state, median distance: 35 miles.
• Reasons for selling: 23% to be closer to friends/family, 13% due to home size.
• 89% worked with a real estate agent, 7% sold FSBO.
• Median final sales price: 100% of listing price.
• 92% satisfied with the selling process.

Home Selling and Real Estate Professionals:

• 65% found agents through referrals, 81% contacted only one agent.
• 85% used an agent providing a broad range of services.
• 75% reported providing the agent's compensation.
• 87% would recommend their agent for future services.

For-Sale-by-Owner (FSBO) Sellers:

• 7% of recent sales were FSBO, an all-time low.
• Majority knew the buyer (57%), rural areas saw more FSBO sales.
• Median FSBO sale price: $310,000, lower than agent-assisted homes.

Methodology Among Recent Buyers and Sellers:

• Survey conducted with 6,817 recent home buyers, adjusted response rate of 3.6%.
• Data representative of primary residence home buyers in the 12-month period ending June 2023.
• Median used as the primary statistical measure, and the survey includes comparisons with previous years.

Conclusion: The NAR's Profile offers a comprehensive understanding of the home buying and selling landscape, highlighting trends, buyer demographics, and the role of real estate professionals in the market.

Source: 2023-profile-of-home-buyers-and-sellers-highlights-11-13-2023.pdf (nar.realtor)