The necessity for a bigger residence and need to maneuver nearer to family and friends through the COVID-19 pandemic coupled with low stock and mortgage rates of interest has spurred a record tempo for residence gross sales over the past yr, a brand new survey by the Nationwide Affiliation of Realtors reveals.
In accordance with NAR, U.S. houses listed between July 2020 and June 2021 sometimes offered inside one week, a record low. House consumers through the interval sometimes purchased their residence for 100% of the vendor’s asking price, the very best median recorded since 2002, and roughly 35% of survey respondents bought their residence past the asking price. Sellers reported promoting their houses for a median of $85,000 greater than their buy costs, a bounce from $66,000 final yr.
Roughly 46% of respondents bought a bigger residence, whereas 28% bought a same-size residence.
MOUNT VERNON ESTATE ON FIRST PRESIDENT’S FORMER PROPERTY SELLS, SETS RECORD PRICE IN DC
On common, consumers stated the method of discovering a house to buy took eight weeks, unchanged from final yr. Roughly 41% of residence consumers initially appeared on-line for properties as a primary step, whereas one other 19% stated step one concerned contacting an agent.
Roughly 87% of consumers bought their residence by an agent or dealer, whereas 7% purchased instantly from a builder or builder’s agent. Amongst residence sellers, 90% of respondents labored with an agent to sell their houses, in comparison with 7% which had been for-sale-by-owner sellers and fewer than 1% offered by way of an iBuyer, or instantaneous purchaser.
About 29% of first-time residence consumers stated that saving for a down cost proved to be essentially the most troublesome step in all the shopping for course of. Roughly 28% of first-time residence consumers surveyed reported utilizing a present or mortgage from associates or household so as to make a down cost. For repeat consumers, 56% stated they used fairness generated from the sale of a major residence towards their down cost.
The everyday down cost was 7% for first-time residence consumers and 17% amongst repeat consumers.
House consumers seeking to make the transfer this yr had been additionally discovered to have had a shorter occupancy within the present residence than the earlier yr, with tenure within the residence dropping from 10 to eight years, the biggest single yr change since NAR started gathering such information.
Basically, consumers stated they anticipated to reside of their houses for a median of 12 years, whereas 18% stated that they had been by no means transferring. Traditionally, tenure within the residence has been six to seven years, however skilled a rise to 9 to 10 years following the Nice Recession.
This yr, the everyday first-time purchaser was 33 years outdated, equal to the earlier yr, whereas the everyday repeat purchaser age climbed to an all-time excessive of 56 years outdated. Roughly 60% of latest consumers through the interval had been married, down from a excessive of 81% in 1985. Nonetheless, the share of single girls consumers rose to 19% from a low of 15% in 2014. The shares of single males and single consumers remained at 9%, respectively.