In 2008, the housing market collapsed and triggered an economic downturn. It’s been a decade since, and to say that the market’s outlook is good would be an understatement. People are bullish in the housing industry so if you’re thinking of investing now, you are not alone.
Before you consider buying properties, take a look at these 25 real estate statistics that you should know.
1. How much is the contribution of the residential housing market to the nation’s GDP?
Investments in residential properties contribute 3 – 5 percent to the GDP on average. This includes revenues generated in construction of new single-family and multi-family homes, remodeling, development of manufactured homes, and brokers’ commissions.
(Source: LinkedIn 2017)
2. Has the housing market recovered from the 2008 crash?
Yes, it has bounced back. Median home prices have climbed from $180,000 in the 4th quarter of 2008 to $200,700 in August, 2017 which is an 11.4 percent spike.
(Source: Capterra 2017)
3. Is housing demand on the rise?
Redfin’s Housing Demand Index is a good indicator of market demand. The Demand Index Value dipped to as low as 83.1 in 2014 before surging to 127 in August, 2017.
(Source: Redfin 2017)
4. How long does it take buyers nowadays to search for homes?
Buyers typically searched for 10 weeks and looked at a median of 10 properties before finding a home to buy.
(Source: Smart With Your Money 2017)
5. Are MLS-listed homes selling quicker today than five years ago?
A home listed in a Multiple Listing System sells significantly faster today than in 2012. Here’s a quick rundown of median days on market of homes listed in March 2012 – 2017:
- March 2012: 91 days
- March 2013: 62 days
- March 2014: 55 days
- March 2015: 52 days
- March 2016: 47 days
- March 2017: 34 days
(Source: The Mortgage Reports 2017)
6. What is the trend of new home construction?
Construction of new homes is on the up and up. There have been 1.163 million new groundbreakings in 2016, which is 5 percent higher than the 1.108 million new homes built in 2015.
(Source: Fortune 2017)
7. What is the latest median listing price?
Sellers across the United States list their homes at a median price of $254,900.
(Source: Zillow 2017)
8. Do sellers usually have to lower their asking price to make a sale?
Not in this market. Now, sellers get 98 percent of the listed price on average.
(Source: Mashvisor 2016)
9. What population segments are predicted to dominate the housing market in the coming years?
Millennials and Boomers are expected to keep the housing market strong in the next decade. This year, Millennials are predicted to represent 33 percent of the buyer pool, followed closely by Boomers at 30 percent.
(Source: Realtor 2017)
10. Where are Millennials living?
In 2016, close to 50 percent of Millennial US homeowners reside in the suburbs while 33 percent in urban areas and 20 percent in rural locations.
(Source: San Diego Union-Tribune 2017)
11. Will buyers prefer to purchase properties in suburban over urban areas in the coming years?
Yes, that’s accurate. John Burns Consulting predicts that 80 percent of residential growth will happen in suburban areas as opposed to only 15 percent in urban locations through 2025.
(Source: Market Watch 2017)
12. Are foreclosure filings increasing or decreasing?
Yes, foreclosure filings plummeted from a high of nearly 3 million in 2010 down to 933,045 in 2016.
(Source: Atom Data 2017)
13. What is the percentage of first-time home buyers this year?
It’s estimated that in 2017, 52 percent of buyers are first-timers while 48 percent are repeat buyers.
(Source: Dart Homes 2016)
14. What percentage of buyers found their home through the Internet?
44 percent of buyers bought a home that they discovered using the Internet.
(Source: Regal Creative 2017)
15. Should sellers list their homes on real estate sites?
Yes, online real estate sites get millions of visitors. For instance, Zillow had 498 million page views in one month and Trulia had 277 million.
(Source: Bruce Clay 2017)
16. Will the real estate industry invest heavily in drone technology?
Yes, it will. It is predicted that real estate will represent 22 percent of commercial drone use by 2020.
(Source: Autel Robotics 2016)
17. Do aerial images captured by drones actually help in selling a home?
Yes, properties with aerial images are sold 68 percent quicker than properties marketed using standard images.
(Source: Record Bee 2017)
18. Do homeowners prefer to list with real estate agents who use videos to market their property?
Yes. 7 out 10 homeowners are more likely to list with real estate agents who use video marketing to advertise their home.
(Source: Ris Media 2016)
19. Are real estate agents harnessing the power of blogs?
Not really because only 11 percent of real estate agents have a blog. 74 percent do not have a blog and 14 percent are planning to have a blog.
20. Where do buyers watch videos to conduct research?
51 percent of home shoppers say that YouTube is their number one video research platform, followed by broker websites at 41 percent, and organic Google results at 37 percent.
(Source: Bold Content Video 2016)
21. Do buyers still contact agents to facilitate home purchase?
Yes, they do. Nearly 9 in 10 Millennials, Gen X, and younger Boomers bought their homes with the help of an agent in 2016.
(Source: Contactually 2017)
22. Should sellers consider investing money to stage their homes?
Sellers should definitely think about it because staged homes spent half the time on the market compared to non-staged homes and sold for more than 6 percent above list price.
(Source: CNBC 2016)
23. How many renters vs homeowners are there in the country?
As of this year, there are 43,837,496 renter-occupied households in the US and 75,022,569 owner-occupied households.
24. How much does a US renter pay on average?
In 2016, the average renter in the country paid $1,001 each month. In contrast, an individual who takes an average home loan of $309,200 would pay $1,494 every month for a 30-year mortgage at 4.1 percent interest.
25. Is the country’s apartment supply increasing?
Yes, apartment supply is growing. It is actually at a 20-year high. This year, estimates show that there will be more than 345,000 apartment constructions, which is a 21 percent climb from 2016 numbers.
(Source: Rent Cafe 2017)
Bottom Line on Real Estate Statistics
In a bullish housing market, you want to get your numbers right to make the most out of your investment. Consider these real estate statistics as you create a plan in purchasing a property.
Do you have other interesting real estate statistics? Feel free to share them in the comments.