Interesting Real Estate Stats
Super interesting real estate stats with Shana Acquisto, real estate broker.
If they’re super interesting, but I think they’re things to just kind of ponder on and understand.
So what we’re going to do is go over where you could use them, how they’re applicable. You know, what clients would would like about them, how they can be dropped as like fun facts or just random stats or whatever they are, like stats.
And I think all of our agents have, you know, also expressed that they like them as well.
So it kind of shows your knowledge of the topic, right and your true professionalism, and you’ll find applications for them. Sure. So let’s kind of hit some. We have a link and Omkar is going to chat that and these
Are just mine. I mean, there’s random facts out there, everywhere. In fact, you had one that I wanted to start with from a while ago that I thought was super interesting. So this is where to go, Mike.
Well, I think the stat that you’re talking about, Shana in particular, is that the average real estate agent?
No, sorry, it was 86% of realtors do six or less transactions a year.
86% of realtors transact six transactions a year, or less or less. So if you’re above that number, you’re in the top 14%, you’re in the top 13%.
Yeah. So you’re in the top 13, you guys
And then you can like, have that badge. Imagine the badge that’s pinned on you. I’m in the top 13 percent. And you still you transacted seven properties. So yeah, celebrate that today on on a Friday top 13 percent.
If that’s you, that’s work. All right, let’s start. So this is something from Zillow, like we’re starting out with Zillow. Zillow predicts this is from Fortune magazine.
Zillow predicts home prices will increase by double digits in twenty twenty two, driven by a perfect storm of the pandemic. Demographics and supply and demand and inflation. What home prices will increase by double digits?
Ok, so more so more than nine point nine percent. Yeah, that home prices would go up by that. So if you want to put this into play, OK, then there’s a bunch of stats that you could run off of this one.
So if they predict double digit growth or 10 percent or higher growth, then you could say the average home in Frisco is scheduled to appreciate by blank. If you know the average price or right, you could say the person who buys a seven hundred thousand home is likely to have a seventy thousand price appreciation this year. Yeah. And there’s all these different numbers and kind of play into that.
So your stats sound interesting. Yes, places you might put this would be like on maybe on social media, maybe with your client, maybe specifically talk about that during the listing presentation.
I know Katie had one on yesterday from Megan, had talked about it in her agent meeting, but it was, you know, it’s good stuff. Use it, OK, but think about how you can use it. Like you said, since twenty sixteen home values in the United States have increased by 50 or 50 percent fifty point seven percent.
Wow. So like, all right, let’s roll that back and think about yourself. You know, often it helps to to gain some perspective. So think about what your personal home or place that you’re residing in is currently worth on the open market and then roll it back. Ok. And well, divide it in half in. And is that what it was probably worth in twenty sixteen and just kind of think through it? Yeah.
Right. So that’s interesting. So that was in. So it’s twenty twenty two. That was six years. Mm hmm. Right. That it had increased by that amount. Typical home appreciation rate is the rate of inflation. Yeah. So if you were to look at it over a super long time frame, your house basically goes up by the rate of inflation. Yeah, yeah. So all right, what else? We see some more stats.
I thought this was interesting. First time homebuyers comprised thirty one percent of the market, so we say that all these first-time homebuyers can’t, they can’t purchase and they can’t do certain things and there their struggles there, but that they made up thirty one percent of the market, I thought was pretty high.
Well, I guess if you think about how many homes a person buys over the course of your life, right? And maybe they have a starter home, maybe they have a middle home and then a home that they have later on. Right. So I don’t know what is the average person really have three homes in their life? So does it make sense that about a third of the homes are new homebuyers?
Yeah, that’s one of the stats I want to see if I can find think we’re going to get to all of these.
But that’s those are this is really good stuff. Yeah, I’m impressed with it, Shana. Yeah. So very good. Well, let’s just hit the next one. And which is we get a couple if we can throw a few in every day if you want. So the next one was first time homebuyers. Oh, we have that one.
Thirty three percent of the market and most home buyers were forty seven years old. So that’s. So when I think of a first time homebuyer, I’m thinking of young, right? This is the first time home buyers made up thirty three percent of the market in 19. And most home buyers were forty seven years old.
I don’t know that they’re saying that it’s specifically first time homebuyers being forty seven years old. I would.
Ok, so I would leave. We’re going back to the one before where they are, I guess assumed to be, you know,
Thirty seven must be maybe the median, the mode, the you know, the mean for what that is forty seven years
Old. Yeah, because the age of the typical home buyer remains at forty seven year olds, one year old and 2020, while the median household income of homebuyers rose to ninety six thousand.
Ok, so now the reason that you look at that number is that they’re there in the combined household income for those people, ninety six thousand so nearly one hundred thousand a year. And if you’re looking at just super quick back of the math back the napkin math, you could probably afford a home that is three times your average income. Yeah, your household income. So that’s about the price point that it would be three times just for you.
Don’t have debt?
Yeah. So three to four times and you’re pretty much good just depends on the conservative nature of your personality. So, yeah, so think about your combined household income and what the house is currently worth. And it’s weird because some people that’s where you get priced out of your home. All of a sudden, it’s your income is not keeping up at that same rate to get the same home.
So you may have obviously you qualified for the home that you’re in now, right? Because you bought it and you own it. But if you had to requalify, what would you be doing right now? Right, it’s it’s interesting. Maybe you’re in a home that’s too small. That’s why maybe you’re in a home that’s too big, right?
There’s just different things in those people, right?
All right. Those are great stats. Do you want to cover more now or do you want one more? Ok, one more. One more, one more.
If you know millennials, oh, so. More than forty five million millennials are hitting the prime first time homebuyer ages this year. Twenty twenty two. Wow. Although they’ll have to compete right, we understand that. But they’re hitting that age.
So we talked about yesterday how you have to go out a little bit right to find these places, but you can find these places. You know, we have to change the mindset and educate, educate these buyers on what they need to do. I think they’re scared right now.
That’s a super important point that you bring up is just stop being a wuss like these things all were true beforehand that. You know, not everyone can afford to live in the Empire State building, right, there’s like other addresses in the world.
But you can either get to move and commute and get
There. Throw it away on rent or you move further out that yes, your commute might be, you know, greater and longer. But that’s where things are going, right? They’re going to start expanding to these outer skirt areas. Sprawl. And then you’ve got a great investment in 30 years or 20 years.
Yeah, right? Because if you had bought in, you know, just our local example, everyone can’t live in Dallas.
Well, no, right. Look, I know, for example, exactly what Plano is now and a lot of these these people did buy in the in the eighties, and they have a lot of equity in their homes now. Or you keep it as a rental. So you know, you can’t just have it all day one. You have to think about it’s an investment. If you even back up 10 years in Frisco is a is an example.
You know, downtown was very super affordable and people like, Oh, I won’t do that. But if you had some foresight and you bought that property downtown Frisco 10 years ago, what’s it worth now? Are they up in value? Four times? Yeah, five, six times the value.
We had a building down there and we sold it. So but yeah, interesting. So we’ll stop there and pick up tomorrow.