Each year, the National Association of Realtors (NAR) takes a look at who makes up buyers and sellers in that year’s real estate market through surveys of recent homebuyers and sellers. The organization then publishes its annual Profile of Home Buyers and Sellers report, sharing the data and information discovered from the surveys. Here are the key highlights from the NAR 2021 Profile of Home Buyers and Sellers.
- Sellers were motivated by space and location. A majority of sellers in 2021 moved to be closer to family and friends, to have more space or a combination of both. “During the pandemic, buyers and sellers have been driven by the desire to be close to family and friends, as well as the need for a larger home,” says Jessica Lautz, vice president of demographics and behavioral insights at NAR.
- Homes sold at a record pace. Homes sold in an average of one week, according to the report, and it took buyers on average eight weeks to find a home and put in an offer. “Buyers moving quickly during the pandemic, coupled with all-time-low inventory, led to a decline in time on market to the shortest ever recorded, which was just one week,” Lautz says.
- Tenure in a home had its largest drop ever. Historically, homeowners have stayed in their homes for six to seven years. After the Great Recession, that number increased to nine to 10 years. The report found that tenure in home dropped to eight years, the biggest year-over-year drop ever. “Home sellers have historically moved when something in their lives changed—a new baby, a marriage, a divorce or a new job,” Lautz says. “The pandemic has impacted everyone, and for many this became an impetus to sell and make a housing trade.”
- Most homes sold for asking price. The report found that homebuyers typically bought their homes for 100 percent of the seller’s asking price, with another 35 percent purchasing their home for above the asking price.