This article is part of a larger series on How to Become a Real Estate Agent.
Real estate statistics give real estate agents, investors, and clients data-based insights into the constantly shifting housing market. This can be helpful when searching for a house, selling a home, listing or searching for a rental home, or representing clients in this market. For the most accurate look at the current real estate market, check out these 20 essential real estate statistics.
1. The average price of newly listed homes has climbed 13.5%
Newly listed home prices have risen 13.5% since March last year and 26.5% compared to March 2020. In large metro areas, such as New York, Chicago, and Dallas/Fort Worth, prices have increased by 9.1%. In March 2022, the median price for active listings was $405,000, representing an 8% increase from the median active listing price in the same month last year.
As a result of the increasing demand, the national inventory of active listings decreased by 18.9%. This real estate statistic indicates that the number of people looking for houses is going up while the supply is going down (also known as a seller’s market), driving prices up and creating a shortage.
2. Interest rates climbed to 4.17% in March 2022
The Federal Reserve cut the federal funds rate at the beginning of the COVID-19 pandemic, which kept interest rates hovering around 3% for 2020 and 2021. Since January 2022, interest rates on 30-year fixed-rate mortgages have increased to around 3.5% and climbed to 4.17% in March 2022.
Although interest rates have been increasing since the pandemic, they are still low compared to rates from 2018 and 2019, which were typically between 4% and 5%. This is an important real estate statistic, explaining why more people have been able to afford a home, and thus why demand has increased.
3. Homebuying power increased 21% in 2021, but could decline in 2022
While house prices have increased, incomes have also increased with inflation. Interest rates are at a low as well. When incomes are high and interest rates are low, buyers can get more home for their money, even if the nominal price of houses has increased significantly.
4. Nearly 80% of senior citizens owned homes going into 2022
Of the overall population, 75.3% of people ages 55 to 64 and 79.4% of people ages 65 and above are homeowners. The lowest homeownership rate was for people under the age of 35, at 38.3%.
For small business owners and real estate agents, knowing this statistic can help you create business strategies aligned with your target audience and their financial status. And in this case, more real estate businesses should target adults, particularly senior citizens and retirees, to see if they are interested in selling.
5. Gen X is the biggest generation of homebuyers
Gen X, those who were born between 1965 and 1979, is the largest proportion of homebuyers in America (24%). They are also the biggest generation of homesellers. Older millennials (1980 to 1989) make up the second-largest group of homebuyers, at 23%.
The older generations are predominantly selling, while the younger generations are more often buying. This is relevant information, hinting at which populations to target as potential clients.
6. The median home price in 2022 is $357,300
House prices rose dramatically through 2021 and into 2022. Between 2019 and 2020, median house prices rose only $20,400, but between 2020 and 2021, they rose $40,200. Then, between January 2021 and January 2022, they rose over $46,700, totaling the median home price to $357,300.
7. Six million houses sold in February 2022 (down 2.46% from last year)
In January 2022, 6,020,000 houses were sold in the U.S., which is a decrease of 2.46% from January 2021. Real estate agent statistics show that as sales numbers have increased, house inventory numbers have not significantly increased. Thus, there are fewer houses on the market than usual and greater competition for the houses on the market. It seems that in 2022, the housing market is starting to return to pre-COVID numbers.
8. Houses are only on the market for 38 days
As of March 2022, the average number of days houses are on the market is only 38. In March of last year, houses stayed on the market for about 49 days. Usually houses sell faster during the spring and summer, represented by the slight bump between November 2021 and January 2022 that brought the total days on market to 61.
However, in February and March 2022, a decrease in days on market begins as we get toward the spring and summer months. This real estate statistic confirms greater demand and competition for houses post-pandemic, and buyers are snapping them up as quickly as possible.
9. The supply of existing homes dropped to 1.6 months
The monthly supply of existing homes measures how many months the current inventory of houses for sale would last. At the current rate of sale, no new houses were built. For most of the 2010s, the monthly house supply was around four to five months, with variations. In 2021, it dropped to an average of 2.3 months, with an extremely low point of 1.7 months in December 2021.
In January 2022, the monthly supply dropped to 1.6 months, but began to climb in February 2022 to 1.7 months. This real estate statistic shows high demand and low supply of houses, making it hard to find houses and driving prices up on the available houses.
10. First-time homebuyers comprised 31% going into 2022
In 2021 and going into 2022, first-time homebuyers only made up 31% of the market, but 82% of buyers were aged 22 to 30 years old. Following them, 22% of first-time homebuyers were between 40 and 54 years old, while the median household income of homebuyers stayed at $96,500.
11. 43% of homebuyers search online before contacting an agent
Many buyers believe that the most common way to find a house is through a real estate agent. The reality is that—according to the National Association of Realtors (NAR)—most people find a new home online and then locate an agent to show them the property.
Forty-three percent of buyers search online first, and only 18% contact an agent first. Ninety-seven percent of homebuyers searched online for homes at some point in the shopping process.
These real estate statistics do not make agents obsolete. In fact, it presents an opportunity to strengthen digital marketing strategies, especially during the pandemic when there is limited mobility.
While there’s an increasing number of buyers who prefer to consult the web first, 87% of homebuyers in 2021 still find their real estate agent to be a useful or very reliable information source. This is not surprising, given the complexity of the homebuying process and all the legal issues that might arise.
12. Tampa is 2022’s most competitive buyer’s market
At the end of 2021 and beginning of 2022, it would be hard to find a housing market that’s not a seller’s market. No matter where you go, buyers are competing for houses, not sellers competing for buyers. However, some areas are more competitive for buyers than others.
As of January 2022, Tampa, Florida, is the most competitive buyer’s market in the U.S., while markets in New York, San Francisco, Milwaukee, Chicago, and San Jose are expected to cool off.
13. Homes listed online from April 10 to 16 sell fastest & highest
Many people do not realize that there are both good and bad times to list your home. Real estate stats show homes listed between April 10 and 16 sell at a higher price than any other time of the year. According to Realtor.com, there is a 29% surge of listings during this week compared to the average week of 2021. Also, asking prices are $39,000 higher at this time compared to the beginning of the year.
This real estate statistic is important for anyone considering listing a house and who wants the best results. Listing a house during this April week means that sellers will get the maximum exposure for their property, sell faster, and get more competitive offers. For additional consumer statistics regarding when homeowners should look to buy and sell, take a look through Best & Worst Time to Buy a House: Month-by-Month Analysis.
14. 82% of millennials have some regrets about homeownership
According to a 2022 study, 82% of millennials have at least some regrets about buying a home. In comparison, only about 40% of boomers have regrets. This does not mean that homeowners regret buying a home overall, but that there is some facet of it that they regret having to deal with. Across all generations, the biggest regret is purchasing in a bad location.
The second-most common regret is a tie between bad neighbors, neighborhood changes, and expensive home upkeep. With the current competitiveness of the housing market right now and the prevalence of virtual tours, it is not a surprise that some homebuyers did not investigate the location as much as they should have prior to purchasing.
15. Finding the right property is the biggest obstacle for 53% of buyers
For 53% of homebuyers, finding the right property is the hardest part of the homebuying process, although many buyers found paperwork, understanding the sales process, and saving for a down payment to be difficult as well.
16. Homebuyers spent 8 weeks looking
The internet has dramatically increased the speed of shopping for homes. Similar to 2020, homebuyers in 2021 and at the start of 2022 spent only eight weeks looking for homes before buying. On average, they looked at a median of nine homes, but buyers aged 31 to 55 viewed a median of 10 homes.
Buyers 56 to 65 years old viewed six homes only online. This real estate statistic shows how much COVID and social distancing affected the homebuying process in 2020 and still continues to affect it today.
17. The highest homeownership rate is in the Midwest at 70.1%
The Midwest has the highest homeownership rate in the United States, at 70.1%. The next biggest region for homeownership is the South, at 67.3%. In the Northeast, 62.4% of people own homes, and in the West, the rate is 60.5%.
18. GenXers purchase the largest homes at 2,100 square feet
Among all generations, GenX buyers purchase the largest homes, with a median of 2,100 square feet. They also buy the most expensive houses, at a median price of $305,000. If you want to market most effectively to get buyers willing to spend the most, this real estate statistic says to market to this demographic.
19. 62% of homebuyers were married couples
The majority of people who bought homes in 2021 were married couples, at 62%. The next biggest relationship-status demographic was single women, at 18%. Single men made up 9% of the market, and another 9% were unmarried couples.
While marketing to these specific audiences is an effective idea for real estate agents to generate leads, make sure not to violate any Fair Housing laws within your marketing materials. Read our article Fair Housing Act in Real Estate: Protect Your License & Clients to ensure you are compliant with the laws and regulations in your state.
20. 1- & 2-bedroom rentals increase by 24.4% & 21.8%
With a booming seller’s market in 2020 and 2021, rental prices are increasing in 2022. In February 2022, one-bedrooms saw a slight decrease of .2% in price (but still increased by 24.4%), while two-bedrooms continue to grow at 21.8%
The hottest rental market for both one- and two-bedroom apartments are in Jersey City, New Jersey, with an average one- and two-bedroom rent of $3,757 and $5,003, respectively. Other hot markets include Boston, San Francisco, Irvine, Glendale, and Oakland.
With rent increasing far more than decreasing, this real estate statistic shows that it is no wonder that more and more people are looking toward homeownership as a more affordable option.
Understanding the real estate statistics of your area can help you make informed decisions about the right property and price—or guide an agent to the right market for the greatest success.
Armed with data about the trends in homeownership, buying, selling, and renting habits, as well as use of technology from these real estate stats, agents and homeowners can make the most of real estate in 2022—and beyond.