Dr. Jessica Lautz, NAR deputy chief economist and vice president of research, outlined seven trends impacting real estate during the recent Realtors® Legislative Meetings in Washington, D.C.
The average number of offers on homes is 3.2. Home prices are down overall in 2023. “There is no universal market at all,” Lautz said. Tight inventory is still the norm across the country. “Don’t expect to see prices fall with limited inventory,” Lautz said.
Longer moves are more common. “NAR’s research shows the distance between home purchased and previous residence has increased from 15 miles to an all-time high of 50 miles,” Lautz said. In addition, buyers are continuing to purchase properties based on virtual tours/showings/open houses only. “This is still 7% of the market,” she added.
Staging and remodeling are important. “Realtors® are now having to tell their sellers they have to fix their properties before they can sell. There are specific expectations for their properties in today’s market,” she said. NAR’s Profile of Home Staging found that 48% of sellers found a decrease in time on the market and 43% found an increase in money offered in stages homes.
Buyers are more aware of green issues. “Realtors® are promoting green in their listings,” she said. “Many buyers are interested in the environmental part and they care about their pocketbooks.” The 2023 Realtors® and Sustainability Report – Residential showed that 63% found energy efficiency promotion in listings was valuable. In addition, agents reported that solar panels increased the perceived value of one-third of homes.
Generational warfare is happening. “There are a lot of young adults entering the market and there’s pent-up demand. The median age of first-time buyers is 36 years old and we’re seeing the largest part of the population is between ages of 26 and 32 years old. First-time buyers are under 30%, when we’d like to see it around 40%. The average age of repeat buyers is 59 years old, which is the highest it’s ever been,” Lautz noted. She said NAR’s Home Buyers and Sellers General Trends research showed there are new trends with senior buyers. Many are following grandbabies, using more technology, embracing green features and moving long distances. Downsizing for seniors is out, finding a new space is in.
The race gap in homeownership has grown. “The gap between white and black homeownership is the widest it’s been in the last decade,” she said. NAR conducted research showing the different in downpayment by race. Forty-six percent of white buyers have savings for their down payment and 39% have past home equity. Only 5% tap into their 401k to use as a downpayment. This compares to Black homebuyers, with 50% using savings, 20% using past home equity and 16% using 401k funds. Asian homebuyers use savings 65% of the time for a downpayment, 27% have past home equity and 5% use 401k funds. Hispanic/Latino buyers use savings 66% of the time, with 24% use past home equity and 8% use 401k.