National Association of REALTORS® research (2023) shows the following findings about buyers.
- Where do buyers come from
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. (San Francisco, peninsula – San Mateo County, East Bay – Alameda County)
- Where do buyers find Homes
Buyers are finding their homes either online or with their agent most.
- Internet: 52%
- Real estate agent: 28%
- Yard sign/open house sign: 4%
- Friend, relative, or neighbor: 8%
- Home builder or their agent: 6%
- Directly from sellers/Knew the sellers: 3%
- Print newspaper advertisement: less than 1%
Characteristics of Homes Purchased
Summary: Move-in condition without plumbing or electricity problems.
Questions from Buyers at Open Houses of Previously-owned Homes:
- What remodeling and updating projects did the owner in past five years?
- How old are the main appliances: heater, furnace, HAVC, refrigerator, etc.
- 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.
- 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.
Source: 2023 Profile of Home Buyers and Sellers (National Association of REALTORS®)
Top Factors That Influence Neighborhood Choice
- Quality of neighborhood.
- Convenience to job.
- Overall affordability of homes.
- Convenience to friends and family.
- Convenience to shopping.