Home Buyers With Equity Enjoy Advantages

New survey reveals “those who have housing equity hold the cards.”

“Those who have housing equity hold the cards and they’ve fared very well in the current real estate market,” says Jessica Lautz, vice president of demographics and behavioral insights at the National Association of Realtors® in a recent press release.  “First-time buyers are older as a result of saving for down payments for longer periods of time or relying on a generational transfer of wealth to propel them into homeownership.”

NAR released its 2022 Profile of Home Buyers and Sellers in early November—an annual report conducted since 1981 that marks several interesting trends from the last year for buyers and sellers alike.

Lautz says the share of first-time buyers “shrank to the lowest level ever recorded,” this due to low inventory, high price tags, and rising interest rates.

First time buyers, according to the survey, accounted for only 26% of all buyers—down from 34% last year.

Other interesting facts:

·        86% of buyers worked with a real estate agent or broker, as did 87% of sellers;

·        Recent buyers bought their next home a median 50 miles from their existing home—the furthest on record;

·        29% bought homes in small towns and 19% in rural areas—more record highs;

·        Buyers in suburban areas (39%) and urban areas (10%) both declined from the prior year;

·        Buyers shopped for a median 10 weeks, up from 2020 and 2021’s eight weeks; and

·        Home buyers mostly bought their home at purchase price, while 28% paid above it.

Both buyers and sellers appreciated the skills of their agents and their ability to lead them successfully through transactions, particularly during the challenges of the recent housing market.  Eighty-nine percent of buyers would recommend their agent, and 85% of sellers said the same.

Post authored by Lora Bray.

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