One of the things that gives me an advantage as a Realtor is my affinity with knowing and understanding the data surrounding the real estate market. I update myself constantly on things like current mortgage rates and future forecasts, where inventory is at, what is happening with the overall market activity (think median sales price, days on the market, homes sold, etc.), to what the latest trends are in home design. This way, when it comes time to help my clients buy or sell, I can confidently advise them on how to best go about their process to achieve their goals. One of the reports I’ve found interesting to review is the annual survey conducted by the NATIONAL ASSOCIATION OF REALTORS® of recent home buyers as of 2023. Keeping in mind this is national, and being that San Diego, La Jolla specifically, is one of the top markets in the nation, this information will vary slightly, but still gives us an idea of what is happening. Take a look below to get an understanding of who is buying, and who is selling.

Characteristics of Home Buyers

First-time buyers made up 32%, up from last year's 26%. This increase is still below the 38% average seen since 1981.
The typical first-time buyer was 35 years old this year, slightly down from 36 last year, while the typical repeat buyer age fell to 58 years from an all-time high of 59 years.
59% of recent buyers were married couples, 19% were single females, 10% were single males, and 9% were unmarried couples. This is the lowest share of married couples since 2010.
70% of recent buyers did not have a child under the age of 18 in their home. This is the highest share recorded. In 1985, 42% of households did not have a child under the age of 18.
14% of home buyers purchased a multigenerational home, to take care of aging parents, because of children or relatives over the age of 18 moving back home, and for cost-savings.
81% of buyers were White/Caucasian, 7% were Hispanic/Latino, 7% were Black/African-American, 6% were Asian/Pacific Islander, and 6% identified as some other race.
88% of recent home buyers identified as heterosexual, 3% as gay or lesbian, 2% as bisexual, 1% prefer to self-describe, and 6% preferred not to answer.
16% of recent home buyers were veterans and 2% were active-duty service members.
At 26%, the primary reason for purchasing a home was the desire to own a home of their own. For first-time buyers, this number jumps to 60%.

Characteristics of Homes Purchased

13% of buyers purchased a new home, and 87% of buyers purchased a previously-owned home.
Most recent buyers who purchased new homes were looking to avoid renovations and problems with plumbing or electricity at 45%. Buyers who purchased previously-owned homes were most often considering better price at 38%.
Detached single-family homes continued to be the most common home type for recent buyers at 79%, followed by townhouses or row houses at 8%.
Senior-related housing increased this year to 19% from 7% last year (for buyers over the age of 60), with 17% of buyers typically purchasing condos and 12% purchasing a townhouse or row house.
The median distance between the home that recent buyers purchased and the home they moved from was 20 miles. This is a decline from 50 miles last year, but is a reversion back towards the previously held norm of 15 miles.
For buyers, 60% cited quality of the neighborhood as the most important factor determining the location. Convenience to friends and family and overall affordability of homes were cited at 45% and 39%.
Buyers typically purchased their homes for 100% of the asking price, with 25% purchasing for more than asking price.
The typical home that was recently purchased was 1,860 square feet, had three bedrooms and two bathrooms, and was built in 1985.
Overall, buyers expected to live in their homes for a median of 15 years, while 22% said that they were never moving.

The Home Search Process

For 41% of recent buyers, the first step that they took in the home buying process was to look online at properties for sale, while 20% of buyers first contacted a real estate agent.
90% of recent buyers found their real estate agent to be a very or somewhat useful information source.
Buyers typically searched for 10 weeks and looked at a median of 7 homes, and viewed 4 homes only online. The number of weeks searching is unchanged from the 2022 report.
All home buyers used the internet to search for a home. The most valuable content on websites were photos, detailed information about properties for sale, floor plans, and the real estate agent contact information.
92% of recent buyers were at least somewhat satisfied with their recent home buying process.

Home Buying and Real Estate Professionals

89% of buyers recently purchased their home through a real estate agent or broker, and 6% purchased directly through the previous owner.
Having an agent to help them find the right home was what buyers wanted most when choosing an agent at 50%.
43% of buyers used an agent that was referred to them by a friend, neighbor, or relative, 13% used an agent that they had worked with in the past to buy or sell a home, 7% found their agent when inquiring about a specific property found online, and 7% found their agentthrough a website without a specific reference.
71% of buyers interviewed only one real estate agent during their home search.
90% of buyers would use their agent again or recommend their agent to others.

Financing the Home Purchase

80% of recent buyers financed their home purchase, up slightly from 78% last year, but still down from 87% in 2021.
The typical downpayment for first-time buyers was 8%, while the typical downpayment for repeat buyers was 19%.
For 54% of buyers, the source of the downpayment came from their savings. 53% of repeat buyers cited using the proceeds from the sale of a primary residence, while 23% of first-time buyers used a gift or loan from friends or family for the downpayment.
For first-time home buyers, 38% said saving for a downpayment was the most difficult step in the process.
The majority of first-time buyers did make financial sacrifices to purchase a home. For those who did, the most common sacrifices buyers reported were cutting spending on luxury goods, entertainment, and clothes.
Buyers continue to see purchasing a home as a good financial investment. 82% reported they view a home purchase as a good investment.

Home Sellers and Their Selling Experience

The typical home seller was 60 years old, unchanged from last year.
For all sellers, the most commonly cited reason for selling their home was the desire to move closer to friends and family (23%), because the home is too small (13%), or a change in the family situation such as marriage, divorce, or new child (10%).
Sellers typically lived in their home for 10 years before selling. Among seven of the last 10 years, the typical tenure has been 10 years.
39% of sellers traded up to a larger home and 33% purchased a smaller home.
89% of home sellers worked with a real estate agent to sell their home, 7% sold via FSBO, and less than 1% sold via iBuyer.
For recently sold homes, the final sales price was a median of 100% of the final listing price, maintaining last year’s highest recorded since 2002.
Recently sold homes were on the market for a median of two weeks, unchanged from last year.
92% of sellers were at least somewhat satisfied with the selling process.

Home Selling and Real Estate Professionals

65% of sellers found their agent through a referral from a friend, neighbor, or relative or used an agent they had worked with before to buy or sell a home.
81% of recent sellers contacted only one agent before finding the right agent they worked with to sell their home.
46% of sellers used the same agent to purchase a home as to sell their home. This share rises to 84% for sellers who purchased a new home within 10 miles.
75% of sellers reported that they provided the agent’s compensation.
The typical seller has recommended their agent once since selling their home. 20% of sellers recommended their agent four or more times since selling their home.
87% said that they would definitely (73%) or probably (14%)recommend their agent for future services.

For-Sale-by-Owner (FSBO) Sellers

7% of recent home sales were FSBO sales this year. This is an all-time low and matches the share seen in 2021.
The majority of FSBO sellers, 57%, knew the buyer of the home.
Within rural areas 14% sold via FSBO compared to 3% of sellers in urban areas.
FSBOs typically sell for less than the selling price of other homes; FSBO homes sold at a median of $310,000 last year, significantly lower than the median of agent-assisted homes at $405,000.

If you’re looking to sell, and are unsure of how to begin, let’s connect, and I can be your resource to get you to your goals, in the most enjoyable way possible.

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