Episode Details

NAR Profile of Home Buyers and Sellers 2023

Every year, this is one of our most listened-to episodes. And every year, Alissa says she doesn't want to prepare for it. And every year, once she starts reading, she finds it fascinating.

Katy is a self-described data nerd. She got the sticker to prove it at the Census booth at NAR NXT. Alissa now also has one on her computer.

This is our third time covering the NAR Profile of Home Buyers and Sellers, and this one covers transactions between July 2022 and June 2023 — a very unusual time period that spans from the frenzy to the freeze. Keep that in mind as you listen, because next year's report is going to look dramatically different.

Fair warning: they also cover member stats and the NAR leadership situation, because it's January 2024 and things are already happening.

Here's what we cover in this episode:

- A quick NAR update: Tracy Casper stepped down in January 2024 — only two months after being installed as president — due to a blackmail and extortion situation, and what that means for the report and the organization - The report costs about $20 for NAR members and it covers responses from approximately 20,000 recent homebuyers and sellers who answered 129 questions - The typical first-time homebuyer was 35 years old — down from 36 — the first drop in years - 59% of buyers were married couples — the lowest share since 2010; 19% were single females, 10% single males - 70% of recent buyers did not have a child under 18 in the home — up from 42% in 1985 (your "families with children" content is missing most of the market) - 14% of buyers purchased a multi-generational home — and Alissa is seeing this trend accelerate - 16% of buyers were veterans, 2% were active duty (go back and listen to Episode 223!) - 100% of buyers purchased at the asking price — with 25% paying over asking (these numbers will look very different next year) - Buyers typically looked for 10 weeks and toured 7 homes (4 in person) - 100% of buyers used the internet in their home search — use this in your listing presentations - Most valuable online content: photos, detailed property information, floor plans, and agent contact info - 90% of buyers found their agent very or somewhat useful as a source of information - 89% of buyers purchased through an agent; 43% were referred by a friend, neighbor, or relative - 71% of buyers interviewed only one agent — if you show up, you probably have the job - 90% would use their agent again - The typical household income of a buyer was $107,000 — up from $88,000 the prior year - 80% financed their purchase; typical down payment was 8% for first-time buyers (highest since 1997) - Top reasons buyers were buying: be closer to friends and family, desire to own, need a larger home - 92% of buyers were at least somewhat satisfied with the home-buying process - Sellers lived in their home a median of 10 years before selling - The typical seller was 60 years old; 63% moved within the same state - Top reasons sellers were moving: desire to be closer to friends and family, too small, change in family situation (and Glinda Baker's five D's: diapers, death, divorce, diamonds, debt) - Sellers buying bigger homes — not smaller. The downsizing narrative is not matching the data. - 65% of sellers found their agent through referral or repeat use - 81% of sellers contacted only one agent before listing — again, if you show up, you probably have the job - 92% of sellers were at least somewhat satisfied with their selling experience - The typical seller recommended their agent once — 20% recommended them four or more times - 7% of sales were FSBO — an all-time low; FSBO homes sold at a median of $310,000, agent-assisted at $405,000 - NAR member stats: 1.58 million members in 2022 (peak); 12 transactions was the typical production; median gross income was $56,400; 52% of agents with less than two years of experience made less than $10,000; 49% of agents