Insights from the 2021 Profile of home Buyers and Sellers
The 2021 Profile of home buyers and Sellers offers a unique look at consumer behavior in real estate, especially as it reflects a full year of the COVID-19 pandemic. This report, compiled from surveys and data, provides key insights into how buyers and sellers are navigating the market. Despite record-low inventory and soaring home prices, demand remains at an all-time high.
Changing Home Buyer Priorities
One of the biggest shifts in the 2021 Profile of home buyers and Sellers is the change in buyer priorities. Traditionally, proximity to work was the top consideration when purchasing a home. However, the latest data shows that buyers are now prioritizing proximity to friends and family over their commute.
Additionally, with remote work becoming the norm, more people are moving to areas where they feel a greater sense of community rather than focusing solely on convenience to the office. Homebuyers are also looking for additional space, as homes now serve multiple functions—offices, schools, and recreational areas.
Home Inventory and Buyer Competition
The real estate market continues to be highly competitive. The report highlights that buyers are entering the market at record levels despite inventory shortages. New construction sales only accounted for 15% of total home purchases in 2021, compared to 29% in 1989, contributing to the housing supply shortage.
In addition to the lack of new builds, investors are purchasing a significant portion of available homes. This reduces the number of homes in circulation, particularly in the entry-level price range. First-time homebuyers accounted for 34% of all home purchases, up from 31% in previous years, showing that demand remains strong despite rising prices.
Seller Trends and Home Values
For home sellers, the 2021 Profile of Home buyers and Sellers revealed that 90% used a real estate agent, reinforcing the ongoing value of professional guidance. Sellers received a median of 100% of their asking price—the highest recorded percentage since 2002.
The median tenure in a home before selling dropped from 10 years to 8 years, marking the largest single-year change in homeownership duration. Many sellers chose to move closer to family or upgrade their space to accommodate new lifestyle changes. The data also shows that 85% of sellers who moved within 10 miles used the same agent to buy and sell their home.
The Role of Real Estate Agents
Real estate agents remain an essential part of the home buying and selling process. According to the report, 88% of buyers and 90% of sellers worked with an agent. Furthermore, 73% of buyers interviewed only one agent before making their decision. This emphasizes the importance of strong client relationships, clear communication, and a strong referral network.
For sellers, pricing strategy and home preparation were among the top reasons for hiring an agent. The report also found that for-sale-by-owner homes sold for a median of $260,000, significantly lower than the $318,000 median sale price of agent-assisted homes. This demonstrates the financial benefit of working with a professional.
Key Takeaways
- The 2021 Profile of home buyers and Sellers highlights the changing priorities of buyers, with proximity to family and lifestyle preferences taking precedence over commute time.
- Inventory shortages and increased investor activity continue to impact the market, making it more competitive for buyers.
- Sellers are benefiting from strong home appreciation, receiving full asking prices and selling quickly.
- The role of real estate agents remains crucial, with the majority of buyers and sellers opting for professional representation.
Understanding these insights from the 2021 Profile of Homebuyers and Sellers can help agents better serve their clients and navigate the ever-changing real estate landscape. By focusing on data-driven strategies, agents can provide real value and guidance in a challenging market.
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