17 Most Crucial Real Estate Statistics Going Into 2024
14 Aug 2023Real estate statistics provide data-based insights to agents, brokers, investors, and clients. These figures are beneficial to know when selling or buying a property, listing a rental property, or assisting clients in the present market. To give the most realistic picture of the current real estate market trends, we researched various national real estate statistics, including median home sale prices, mortgage and homeownership rates, existing home sales, and rent prices.
1. U.S. homeownership rate is at 65.9% as of July 2023
In the third quarter of 2023, the homeownership rate in the U.S. dipped slightly to 65.9% from 66% in the first quarter. Based on projections from analysts and global macro models at Trading Economics, the homeownership rate in the U.S. is projected to continue to decrease by the end of the fourth quarter of 2023.
Key takeaway: The overall homeownership rate shows that many individuals and families currently struggle to afford homes. Real estate professionals and homesellers should consider these national real estate statistics to identify optimal opportunities.
2. The highest homeownership rate is in the Midwest at 70.2%
In the second quarter of 2023, the Midwest had the highest homeownership rate in the United States, at 70.2%. The next biggest region for homeownership is the South, at 67.5%. In the Northeast, 62.5% of people own homes; in the West, the rate is 61.7%.
Key takeaway: This U.S. real estate statistic reveals that Midwest states like Michigan, Iowa, and South Dakota are ideal locations for agents to start and establish a real estate career. Having higher rates of owner-occupied homes indicates a higher possibility of homeownership in the future, which presents opportunities for new construction and listings and an increased need for buyer’s agents.
3. 78.9% of those aged 65 & over owned homes in the 2nd quarter of 2023
According to the U.S. Census Bureau, of the overall population, 75.5% of people ages 55 to 64 and 78.9% of people ages 65 and above are homeowners. The lowest homeownership rate was for people under 35 years old, at 38.5%.
Key takeaway: For small business owners and real estate agents, knowing these housing market stats enables you to create business strategies aligned with your target audience and their financial status. And in this case, numbers tell us that more real estate businesses should target adults, particularly senior citizens and retirees, to see if they are interested in selling.
4. First-time homebuyers made up 26% of the market
Based on the National Association of Realtors (NAR) report, in 2023, first-time homebuyers made up 26% of the real estate market, less than last year’s 34% market share. Seventy percent of Younger Millennials (24 to 32 years old) and 46% of Older Millennials (33 to 42 years old) were first-time homebuyers. Behind these groups, 21% of Gen Xers (43 to 57 years old) were also first-time homebuyers.
Key takeaway: While marketing to these specific audiences is a compelling idea for real estate agents to generate leads, make sure not to violate Fair Housing laws in your marketing materials. A clear example of a violation based on age is adding extra procedures to the application process or judging a person’s suitability to buy a home. The opportunity to apply for a living space must be equal for everyone.
5. 47% 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. However, according to the NAR 2023 report, 47% of recent buyers look online at properties for sale first, while 18% of buyers contacted a real estate agent as their first step in the homebuying process.
While an increasing number of homebuyers prefer to consult the web first, 86% of recent buyers still found their real estate agent to be a very or somewhat useful information source. This is not surprising, given the complexity of the homebuying process and all the legal issues that might arise.
Key takeaway: For agents, these real estate statistics prove that agents are still relevant. It presents an opportunity to strengthen digital marketing strategies to gain more exposure for real estate services. If you are a home seeker, read our article, The Best & Worst Times to Buy a House, to know which time of the year is best for you to purchase your dream home.
6. 21% of homesellers sell their homes to move closer to friends & family
According to NAR’s research, the desire to move closer to friends and family (21%) was the most reported reason for homesellers to sell their properties. Retirement-related relocation (11%) and a loss in neighborhood appeal (11%) came after it.
Younger Boomers (58 to 67 years old) made up the largest shares of homesellers at 30%, had a median income of $89,500, and had resided in their homes for 10 years before selling. In addition, 86% of housesellers used a real estate agent to sell their property, and 10% sold it themselves.
Key takeaway: You must be aware of the seasonal trends and data affecting house sales if you are a homeowner looking to sell your properties or a real estate professional working on behalf of a seller. Weather, days on the market, home prices, and market competitiveness all impact the best and worst times to sell a house.
7. In September 2023, there were 4% fewer houses for sale than last year
There were 4% fewer homes actively for sale in September 2023 compared to the same time in 2022. This means that there were 30,460 more homes available in September 2022 than this year. However, the gap between this year and last year’s active listings is shrinking as the inventory of homes for sale in September grew by 4.9% over August.
Active listing count in September 2023 (Source: Realtor.com)
Key takeaway: The decrease in home inventory could distress homebuyers since the supply-demand gap is increasing. This also means homebuyers get fewer choices and have to make many compromises. In addition, as home inventory decreases, it could drive home sale prices gradually up toward more expensive levels.
8. U.S. existing home sales fell by 0.7% in August 2023
During August 2023, existing home sales in the U.S. decreased by 0.7% to a seasonally adjusted annual rate of 4.04 million, the lowest since February. The total number of housing units registered at the end of August was 1.1 million, which was 0.9% down from July.
Key takeaway: To identify the ideal time for profitable transactions, real estate professionals and homebuyers and sellers should evaluate critical housing market indicators, such as affordability and days on the market. However, rising interest rates and property prices favor homesellers who can profit from higher prices for sold properties.
9. 482,157 homes sold in August 2023
The number of homes sold was down 13.3% year-over-year (Y-o-Y), and there were 482,157 homes sold in August 2023, down from 555,999 homes sold in August 2022.
Key takeaway: These real estate stats indicate that the housing market is currently not very active or strong. In today’s highly competitive real estate market, agents must stand out and find new ways to attract and generate real estate leads and increase sales. Getting involved in your community, creating a stellar website, and improving your listing photography and videos are some sales strategies you can use to help you increase your home sales.
10. As of August 2023, the median sale price is $420,284
Prices are higher today than they were in the past despite a housing market that is declining. In August 2023, U.S. home prices were up 2.9% compared to last year, selling for a median price of $420,284. The month of June also has the highest record sale price for the entire year at $425,300 (-0.81% year-over-year).
Key takeaway: These real estate statistics indicate that following the pandemic, supply remained historically low while demand increased, resulting in a severe housing scarcity and price boom that persisted through 2021 and peaked in the middle of 2023. Aside from these, mortgage rates increased from May 2023 to August 2023 to offset rising inflation, which caused housing market statistics to change.
11. Median sale price of single-family homes was $402,600 in 2023 Q2
The median sale price of single-family homes in the U.S. was $402,600 in Q2 2023, up 8.5% compared to the previous quarter. Also this quarter, monthly mortgage payments on a single-family home increased to $2,051 compared to $1,837 from a year ago. The effective 30-year fixed mortgage rate increased to 6.57% in the second quarter of 2023 compared to 5.32% one year ago.
Key takeaway: In Q2 2023, the lack of inventory and high mortgage rates continued to challenge homebuyers. As a result, home sales declined continuously, with month-over-month declines seen in three U.S. regions.
12. Homes are sold in a median of 32 days in September 2023
Homes stayed on the market for a median of 32 days in September 2023, which is three days up from July 2023. Furthermore, February had the highest median days on the market of the year, at 52 days.
Key takeaway: These real estate numbers reveal that, as the economy slowed at the end of Q2 2023, many homebuyers delayed their home search due to affordability, high mortgages, and inflation rates, contributing to the sharp decline in home sales.
13. Alexandria, VA, has the fastest-growing sales price at 22%
Homes in Alexandria, Virginia, received three offers on average and sold in around 29 days. The average Alexandria home sale price was $611,000 in September 2023, up 22.2% since last year.
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Top 5 Cities
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Sales Price Rate
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22.0%
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21.6%
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20.1%
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19.4%
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19.4%
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Fastest-growing sales price in U.S. metros (Source: Redfin)
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Additionally, Alexandria’s average sale price per square foot is $399, which is 11.1% higher than in 2022. Furthermore, from July to September 2023, 19% of Alexandria homebuyers searched to move out of Alexandria, while 81% looked to stay within the metropolitan area.
Key takeaway: Research the location where a client is planning to sell a home because the growing home sale prices and low inventory may decrease your client’s purchasing power or increase their selling power. Having a financial plan beforehand will help prepare for the intended market.
14. San Jose, CA, is the most competitive city in the U.S.
The San Jose, California, housing market is very competitive. Homes in San Jose sold for a median price of $1,370,000 in September 2023, an increase of 10% over the same month the previous year.
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Rank
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Top 5 Cities
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1
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2
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3
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4
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5
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Most competitive cities in the U.S. (Source: Redfin)
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San Jose homes typically receive six offers on average and sell in around 11 days (-18 Y-o-Y). However, compared to 633 sales in September 2022, only 446 properties were sold in the same month of 2023, which is 29.5% lower.
Key takeaway: Selling or buying a home in a competitive market will produce high homebuyer demand and leverage for sellers. Also, expect high asking prices, bidding wars, and rejected offers before succeeding in getting a deal.
15. Mortgage rates rose to 7.49% (30-year FRM) & 6.78% (15-year FRM) in October 2023
According to a Freddie Mac report, mortgage rates for 30-year fixed-rate mortgages (FRM) have risen from 7.12% on September 6, 2023 to 7.49% as of October 4, 2023, and for 15-year fixed-rate mortgages, from 6.52% to 6.78%.
2023 mortgage rates (Source: Freddie Mac)
Key takeaway: Mortgage rates increased once again this month as inflation grew. Rates are at their highest point since the start of the year, which has decreased demand from homebuyers and homebuilders’ outlook. The housing market is receiving a much-needed drop from increasing rates, but the availability of homes continues to be a constant issue.
16. In September 2023, 33.2% of homes sold above list price
In September 2023, 33.2% of homes in the U.S. sold above list price, up 1.1% Y-o-Y, but it is 6.4% down from June 2023, at 39.6%.
Key takeaway: Homes that sold for more than their asking price were more likely to have gotten multiple offers. Bidding wars are more frequent in a competitive housing market, which is indicated by a high or growing percentage of homes selling for more than the listing price.
17. In September 2023, the median rent price rose to $2,011
The median rent prices in the United States grew by 0.4% in September 2023 ($2,011)—the sixth straight month in which rents were little changed from a year earlier.
National median rent price 2023 (Source: Redfin)
Key takeaway: Rent prices have flattened as a recent surge in apartment construction has flooded the market with supply. But since many units are still being built and will eventually enter the market, rents are unlikely to increase significantly in the short-to-medium term. However, there has been a slowdown in construction, which could eventually fuel an increase in rental prices.
Bottom Line
Understanding the real estate investment statistics of your area empowers you to 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 the use of technology from these real estate stats, agents and homeowners can make the most of real estate in 2024—and beyond.
