The real estate industry is constantly changing. To succeed in this sector, you need to know data-based insights into the current state of the real estate market. We have spent hours collecting the latest real estate statistics to help you make profitable decisions.
These real estate stats include key housing market statistics, essential real estate agent statistics, real estate technology trends, and much more.
The Importance of Keeping Up with Real Estate Statistics
Here is how keeping tabs on the latest real estate statistics can help you grow your real estate business.
Data-Driven Decision Making
If you keep up with the latest real estate statistics, you will have valuable information about property values, rental rates, and risks associated with certain real estate investments or decisions. Consequently, you can make data-driven decisions to maximize the success of your real estate business ideas and find the best ways to make money in real estate.
Understanding Market Trends
Knowing the latest real estate statistics can help you identify trends in the market. And then, you can plan your marketing campaigns better.
For example, you own a real estate agency in a bustling city. By regularly studying real estate statistics, you notice a consistent increase in the demand for rental properties in the downtown area. You also observe that most renters in this area are young professionals between the ages of 25 and 35. This information lets you tweak your real estate marketing strategy to cater to your audience.
Key Real Estate Market Statistics
Home Prices
Knowing home prices can help you better serve home buyers. According to Zippia research, the estimated full stock of housing in the US is worth around $43.4 trillion.
The maiden home sales price in the US is $436,800. Are you curious about the most expensive state to buy a house in the US? The answer is Hawaii, where a median home value is $835,000. And the least expensive US state to buy a home is West Virginia, where an average home price is $147,000.
According to Zillow Home Value Index, US typical home value is $346,856.
| Statistics | Value |
|---|---|
| Estimated worth of total US housing stock | $43.4 trillion |
| Maiden home sales price in the US | $436,800 |
| Median home value in Hawaii (most expensive state) | $835,000 |
| Average home price in West Virginia (least expensive state) | $147,000 |
| Typical home value in the US (Zillow Home Value Index) | $346,856 |
Home Sales
In the United States, around 5.95 million homes were sold in 2022, while 4.57 million homes were sold in 2021.
Home sales are increasing. So you can expect more homes will be sold this year. In fact, 6.07 million housing transactions are expected to happen in 2022.
Zillow forecasts 4.2 million existing home sales in 2023. And the home value will grow 5% in 2023.
| Year | Homes Sold | Forecasted Home Sales |
|---|---|---|
| 2021 | 4.57 million | N/A |
| 2022 | 5.95 million | 6.07 million |
| 2023 | N/A | 4.2 million (by Zillow) |
Inventory and Supply
To help you understand the latest inventory data, let’s check the following key points from Realtor.com.
- The number of homes actively available for sale grew by 21.5% in May 2023 compared to last year.
- New homes listed for sale dropped by 22.7% in May 2023 compared to the last year. This means home sellers are less active this time of the month this year as compared to last year.
- The maiden price of homes for sale increased by just 0.9% annually in May 2023.
- In May 2023, a typical home spent 43 days on the market. During the same time in the last year, a typical home spent 29 days on the market.
| May 2023 Statistics | Percentage change |
|---|---|
| Active homes available for sale | Increased by 21.5% |
| New homes listed for sale | Dropped by 22.7% |
| Maiden price of homes for sale | Increased by 0.9% |
| Days on the market (typical home) | Increased (from 29 days to 43 days) |
Essential Real Estate Agent Statistics
Real estate agents and real estate brokers can gain valuable insights from the following statistics.
Number of Real Estate Agents
In May 2023, there were 1,550,720 realtors in the United States. A realtor is someone who has a valid real estate license and is a member of the National Association of Realtors.
Do you want to start your own real estate firm to help people buy or sell commercial and residential properties? Knowing the number of real estate brokerage firms working in the country can give you an idea about the competition you will face.
According to the National Association of Realtors, around 106,548 real estate brokerage firms are operating in the country.
Here are some additional real estate agent statistics you need to know.
- 67% of realtors are licensed as sales agents, and 21% of realtors have broker licenses. 14% of realtors hold broker associate licenses.
- The median real estate experience of all realtors is eight years.
- 66% of realtors are female.
- Most realtors work 35 hours a week.
If you want to know the education qualifications of realtors, here is the breakdown:
- Bachelor’s degree—31%
- Some college—29%
- Graduate degree and above—14%
- Associate degree—14%
The following is how realtors affiliate with real estate businesses.
- Independent contractors—87%
- Employee—5%
- Other—8%
| Aspect | Statistics |
|---|---|
| Number of realtors in the US (May 2023) | 1,550,720 |
| Number of real estate brokerage firms | 106,548 |
| Licensing (Sales Agents/Broker Licenses/Broker Associate Licenses) | 67%/21%/14% |
| Median real estate experience of realtors | 8 years |
| Gender of realtors | 66% female |
| Weekly work hours | 35 hours |
| Education qualifications (Bachelor's/Some College/Graduate or above/Associate) | 31%/29%/14%/14% |
| Affiliation with real estate businesses (Independent contractors/Employee/Other) | 87%/5%/8% |
Agent Performance
The median household income of realtors is around $54,330. As the experience of a realtor increases, the salary grows. Realtors with 16 years or more experience have a median gross income of $85,000.
But Indeed.com has reported a slightly higher salary for a real estate agent. According to the portal, a real estate agent earns, on average, $96,441 annually in the United States.
When it comes to earnings in the real estate industry, long working hours usually mean higher earnings.
According to a survey, real estate agents who work 40 to 50 hours a week can expect to earn an average of $113,054 annually. And those who work around 50 to 59 hours a week can make an average of $143,469 annually.
As your experience grows, your earnings as a real estate agent also increase. A real estate agent in the middle of their career can expect to earn somewhere around the $150,000 range, reports the same survey. Numbers vary among real estate franchises, location, and experience.
| Income Statistics | Value |
|---|---|
| Median household income of realtors | $54,330 |
| Median gross income of realtors with 16+ years of experience | $85,000 |
| Average income of a real estate agent (Indeed.com) | $96,441 |
| Average annual income for 40-50 work hours/week | $113,054 |
| Average annual income for 50-59 work hours/week | $143,469 |
| Average income for a mid-career real estate agent | Around $150,000 |
Client Satisfaction and Reviews
According to NAR research, 86% of recent homebuyers found their real estate agents to be a valuable source of information.
Here are some additional statistics from the same NAR research:
- 86% of home buyers purchased their homes recently with the help of a real estate agent or broker.
- Networking is an excellent way to get more clients. 38% of home buyers take the help of a real estate agent referred to them by a friend, family member, or relative.
- It is imperative to offer top-class support to your clients if you want to have repeat business. This is because 89% of home buyers would use their agent again or recommend their agent to others.
- 85% of home sellers would recommend their real estate agent for future services.
Wondering about how home sellers find real estate agents? Most sellers turn to their friends, family members, or relatives to get a real estate agent. In fact, 63% of home sellers find their real estate agents through a referral from a friend, neighbor, or relative.
Also, a typical seller recommends their real estate agent once since selling their home. And 27% of home sellers recommend their agent four or more times since selling their home.
The time when around 68% of Americans don’t trust their real estate agents, it becomes crucial that you should earn the trust of your clients to earn their referrals.
| Survey Findings | Percentage |
|---|---|
| Homebuyers who found their agents to be valuable | 86% |
| Homebuyers who purchased with the help of an agent or broker | 86% |
| Homebuyers who used a referred agent | 38% |
| Homebuyers who would use their agent again or recommend them | 89% |
| Home sellers who would recommend their agent | 85% |
| Home sellers who found their agent through a referral | 63% |
Technology and the Real Estate Industry
Technology is shaping the real estate industry. Look at the following valuable stats to know it yourself.
Online Property Search
How do home buyers search for properties? Do buyers use online tools to find properties quickly?
Here are some statistics from NAR to answer questions like these:
- The first step to buying a home is to find property for sale and real estate prices online. For 47% of recent home buyers, the first step to buying a home online is to search online for property for sale. And 18% of home buyers contact a real estate agent or broker first.
- 96% of buyers use online tools in their search process.
- Home buyers use both their mobile devices and desktops to search for properties online. In fact, 60% of their search happens on mobile devices and 34% on desktop/laptop devices.
Though home buyers love to search for properties online. But they are not comfortable buying the property online. Only 23% of home buyers are comfortable purchasing a home online. But they would love to use digital tools while shopping and touring. These tools include but are not limited to:
- Doing a 3D virtual tour (79%)
- Viewing a digital floor plan (79%)
- Watching a video tour with an agent (68%)
- Unlocking a home with their phone and touring it on their own time (68%).
- Receiving email notifications from a saved search on a real estate website or app (75%)
Real estate agents are embracing technology enthusiastically. The following finding from a survey proves it.
- The top three tech tools that helped real estate agents generate quality leads during the last 12 months were social media (46%), their local MLS (30%), and customer relationship management (26%).
- 63% of realtors state the main reason why they use social media is to promote real estate listings.
- 35% of respondents say that their brokerages provide them with all the tech tools they need to be successful in their job.
If you want to know which social media platforms realtors use, look at the following data.
- Facebook (89%)
- Instagram (59%)
- LinkedIn (53%)
- YouTube (26%)
The same survey reports that the following tools offered by their brokerage were very valuable:
- eSignature (67%)
- Lockbox/Showing tech (53%)
- transaction management (45%)
- video conference (40%)
As real estate email has become an integral part of our lives, there is no surprise that 95% of realtors use email, and 57% use social media apps daily.
The following are important software tools most often provided or encouraged by real estate firms:
- e-Signature (83%)
- Comparative market analysis (82%)
- Electronic contracts/forms (80%)
- Multiple listing (79%)
| Survey Findings | Percentage |
|---|---|
| Homebuyers who search online for property for sales | 47% |
| Homebuyers who use online tools in their search process | 96% |
| Homebuyers who search for properties on mobile devices | 60% |
| Homebuyers comfortable with purchasing a home online | 23% |
| Realtors who use social media for promotion | 63% |
| Realtors provided with all needed tech tools by their brokerages | 35% |
| Realtors who use email daily | 95% |
| Realtors who use social media apps daily | 57% |
Real Estate Analytics and Big Data
Big Data Market Research offers real estate investors invaluable insights into customer behavior, enabling them to make more informed decisions regarding their property investments.
Investors can comprehensively understand their target market by analyzing buying patterns, preferences, and trends. This allows them to identify emerging opportunities, align their investment strategies with consumer demand, and maximize their returns.
According to a KPMG survey, 97% of respondents say technological innovation will impact their businesses.
However, 66% of respondents don’t have a clear enterprise-wise digital and technological innovation vision and strategy. And 56% of real estate businesses rate them five or below out of 10 in terms of digital and technological innovation maturity.
30% of respondents believe that automation will have the largest impact on real estate in the short term, while 27% say that big data and data analytics will have the largest impact.
How many businesses will utilize big data and data analytics in the short run? According to the KPMG survey, 27% of real estate businesses will likely utilize big data and data analytics in the short run.
Regarding the long-term impact, 17% of businesses believe that big data and data analytics will have the biggest impact on the real estate industry in the long run. And 18% of businesses will likely utilize big data and data analytics in the long run.
| KPMG Survey Findings | Percentage |
|---|---|
| Respondents who believe tech innovation will impact their businesses | 97% |
| Respondents who lack a clear digital and technological innovation vision and strategy | 66% |
| Respondents who rate their businesses 5 or below out of 10 in terms of digital and tech innovation maturity | 56% |
| Respondents who believe automation will have the largest impact in the short term | 30% |
| Respondents who believe big data and data analytics will have the largest impact in the short term | 27% |
| Businesses likely to utilize big data and data analytics in the short run | 27% |
| Businesses who believe big data and data analytics will have the biggest impact in the long run | 17% |
| Businesses likely to utilize big data and data analytics in the long run | 18% |
FAQ – Real Estate Statistics
How do real estate agents use statistics in their daily work?
Real estate agents heavily rely on statistics to make informed decisions about their business. Here’s a deeper look into how they utilize statistics in their daily work:
- Analyzing Market Trends: Agents study statistical data about past and current real estate market trends. This includes variables such as average selling prices, median home values, number of homes sold, and time on the market. This helps agents to understand the market dynamics, make comparisons over time, and offer informed advice to their clients.
- Determining Property Values: Agents use comparative market analysis (CMA), which involves comparing similar properties in the same area that have been sold recently. This analysis helps to set competitive pricing for listings or make appropriate offers on behalf of buyers.
- Identifying Target Demographics: By studying demographic statistics, agents can determine the preferred locations, types of housing, and price ranges of different population groups. This information can help agents to tailor their marketing efforts effectively and find suitable properties for their clients.
- Forecasting Market Conditions: Statistics about economic indicators like unemployment rates, inflation, and interest rates, among others, can help real estate agents predict future market conditions. This knowledge aids in making strategic decisions, such as when to buy or sell properties, when to adjust pricing, and when to target specific types of buyers or sellers.
- Evaluating Marketing Strategies: Agents use statistics to measure the effectiveness of their marketing efforts. This might involve analyzing web traffic, click-through rates, lead conversion rates, and other metrics related to their online and offline marketing strategies.
- Understanding Client Satisfaction: By analyzing reviews, ratings, and survey responses, agents can get a sense of how satisfied their clients are. This can guide them in improving their services and maintaining a positive reputation.
- Leveraging Big Data: Real estate agents can utilize big data analytics for more comprehensive market insights. These can involve studying larger social, economic, and environmental trends to forecast future real estate demands.
- Enhancing Tech Utilization: Usage statistics of different tech tools, platforms, and applications allow agents to understand which technologies are the most beneficial for their work. This helps them make the best choices for tech investments and training.
- Improving Professional Development: Statistics about their performance, such as the number of sales made, average sale price, and time to close a deal, can help agents identify areas for professional growth and set targets for their career progress.
Through the effective use of statistics, real estate agents are able to understand their market better, serve their clients, and optimize their operations.
What are the most important real estate market statistics for homebuyers to consider?
When buying a home, consider the median home price, average days on the market, number of active listings, price per square foot, and percentage of homes with price reductions. These factors can help you make informed decisions about your purchase.
How do real estate statistics help in predicting market trends?
Real estate statistics provide valuable insights into market trends by analyzing sales volume, price trends, and inventory levels. This information helps professionals predict future market conditions and make informed investment decisions, pricing strategies, and marketing efforts.
What role does technology play in the collection and analysis of real estate statistics?
Technology plays a significant role in collecting and analyzing real estate statistics. With the help of advanced software and tools, real estate professionals can now gather and analyze data more efficiently and accurately than ever before.
How can real estate professionals stay up-to-date with the latest industry statistics?
The best way to stay up-to-date with the latest real estate industry statistics is to check leading websites like Small Business Trends, subscribe to newsletters of real estate associations like (NAR), and search the web.
This article, "Real Estate Statistics: Performance and Market Trends" was first published on Small Business Trends
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