Profile of Today’s Buyers
As we said in this month’s Market Insights, 2023 is about strategy rather than speed. So who are the buyers and sellers? What are their motivations? This is helpful information your RE/MAX Alliance Agent will use to help you with expectations and negotiations when working with sellers and more. The National Association Of Realtors® recently published their 2022 Highlights From the Profile of Home Buyers and Sellers. Here are a few of the most interesting trends we found in the annual survey.
-
Marriage-before-homeownership is less of a trend. While 61% of buyers were married, 36% were unmarried – the highest on record: single females (17%) and males (9%), and unmarried couples (10%).
-
Relocation, relocation, relocation! On average, buyers purchased their home a whopping 50 miles from their previous location. Between 2018 and 2021, the median was only 15 miles!
-
Seeking their Forever Home. Buyers expected to settle into their homes for a median of 15 years. 28% had no expectations to move…ever. This is likely because of last year’s low-interest rates.
-
Sellers are older, long-term homeowners. The typical age was 60, a significant increase from 2021 (56 years). You could be negotiating with late Gen X/young Boomers. And they’ve owned the home for ten years.
-
Relationships motivate sellers. The number one desire for selling: To be closer to friends and family (21%), retirement (11%), and changing neighborhoods (11%).
88% of buyers believe they made an excellent financial investment.
As for working with a real estate agent, 86% of buyers hired a broker to purchase their home. Almost half (49%) said the primary reason was they needed help finding the right home. And an overwhelming majority (86%) evaluated the experience as very or somewhat helpful for their transaction.
BONUS: FIRST-TIME BUYERS
First-time buyers, we know it’s been a challenging time to purchase. And you’re not alone. 26% of buyers (8% less than in 2021) bought their first home. This is the smallest percentage recorded. And the average age is older: 36 years (2021 was 33 years)—an all-time high.
But people are eager to have their very own homes. It is the #1 reason (62%) of first-time buyers. Their biggest obstacle was the downpayment. Utilizing the numerous lending programs and discounts, the average first-time buyer only had to put down 6% (whereas repeat buyers paid 17%).
Remember, our communities along the Front Range are a softer seller’s market than last year. So buyers have even more negotiating power. Your RE/MAX Alliance Agent will help you set up an effective search, recommend top-notch lenders, and work with you every step of the journey.
Sources: nar.realtor