2016 NAR PROFILE OF HOME BUYERS AND SELLERS
This summer, the National Association of Realtors (NAR) surveyed 5,465 home buyers and sellers for the 2016 National Association of Realtors® Profile of Home Buyers and Sellers. The study shows that in the past five years, affordability has tightened, and the time spent home shopping has fallen.
Taking a look at the equity of homes sold this year and how long homeowners expect to stay put paints a fascinating picture. Let’s dig a bit deeper.
How many buyers say they’ll never move?
The median time a home seller spent in their home is 10 years in 2016, up from 9.0 years just five years ago. Not only are consumers spending more time in their homes, their plans for the future are extended as well.
Repeat buyers say they intend on spending 15 years in their home (unchanged from 2011), first time buyers intend on spending 12 years in their home (up from 10 years five years ago).
Most fascinating? Fully 18 percent of buyers say that they never intend on moving.
Median equity of homes sold in 2016? $43,000
The median equity of homes sold in 2016 is a whopping $43,000, but it appears that homeowners selling this year that have owned their home for 8 to 10 years are in for the lowest amount of equity gains. So who is earning the most and least equity?
Median equity earned in homes sold in 2016, by tenure in home:
- 1 year or less: $11,300
- 2 to 3 years: $30,000
- 4 to 5 years: $45,000
- 6 to 7 years: $31,200
- 8 to 10 years: $5,000
- 11 to 15 years: $30,500
- 16 to 20 years: $108,700
- 21+ years: $127,600
The takeaway
Knowing national trends on median equity and expected tenure in homes can be a tremendous asset for your own messaging. While trends locally are still the most relevant to any broker or agent’s career, knowing the national trends can help pinpoint adjustments that should be made locally, or affirm decisions already being made.
The practice of real estate is changing given these rapidly altered circumstances surrounding home buyers and sellers, and it is important to be informed!
Click here for hundreds of other stats from this report.
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