It’s been quite a tumultuous year for the housing market, and the 2022 Profile of Home Buyers and Sellers from the National Association of Realtors (NAR) reflects some very interesting trends. I’ll summarize some of the key points below, but please check out the linked PDF below for all the details.
Characteristics of Home Buyers
- First-time buyers made up 26%, down from last year’s 34%, and the lowest percentage on record.
- The typical first-time buyer was 36 years old and 61% of recent buyers were married couples.
- 88% of buyers were White/Caucasian.
- At 22%, the primary reason for purchasing a home was the desire to own a home of their own. For first-time buyers, this number jumps to 62%.
Characteristics of Homes Purchased
- 12% of buyers purchased a new home, and 88% of buyers purchased a previously owned home.
- Detached single-family homes continued to be the most common home type.
- The median distance between the home that recent buyers purchased and the home they moved from was 50 miles. This is a significant increase in distance moved, as the distance between 2018 and 2021 was a median of 15 miles.
- Buyers typically purchased their homes for 100% of the asking price, with 28% purchasing for more than asking price.
- Overall, buyers expected to live in their homes for a median of 15 years.
The Home Search Process
- For 47% of buyers, their first step was to search for properties online.
- Buyers typically searched for 10 weeks and looked at a median of 5 homes.
- Nearly all buyers used online tools in the search process at 96%.
Financing the Home Purchase
- 78% percent financed their home purchase, down from 87% in the 2021 report.
- The typical down payment for first-time buyers was 6%.
- 88% of buyers reported they view a home purchase as a good investment.
Home Sellers and Their Selling Experience
- The typical home seller was 60 years old, an increase from 56 last year.
- For all sellers, the most commonly cited reason for selling their home was the desire to move closer to friends and family.
- For recently sold homes, the final sales price was a median of 100% of the final listing price, the highest recorded since 2002.
- Recently sold homes were on the market for a median of two weeks, an increase from one week last year.
- Only 20% of sellers offered incentives to attract buyers, a drop from 26 percent of all sellers last year.
