Learn the 6 sets of hot real estate statistics from 2023 that will drive your sales in the new year.
Real estate statistics show that the housing market is dynamic and always changing. Every city, state, and metropolitan area is unique in terms of its own real estate trends. Yet many of the widespread trends of 2023 will shape the market in 2024 for most of us.
Understanding the common market trends can help you position yourself for a strong 2024. So in this post, we’ll share the top 6 sets of real estate statistics from 2021 to 2023 that will help you do just that.
Alright, let’s dive in!
Top 6 Sets of Hot Real Estate Statistics
Let’s explore the top 6 sets of statistics that will drive your sales for the new year and help you better navigate the 2024 real estate market:
1. Real Estate Statistics Show Rising Home Prices
The most dramatic set of real statistics for 2022 were those that showed sharply rising home prices:
- In November 2022, home prices in Florida were up 10.1% compared to last year, selling for a median price. On average, the number of homes sold was down 39.1% year over year and there were 24,517 homes sold in November this year, down 40,189 homes sold in November last year.
- This amazing rise is confirmed by the most recent House Price Index. In fact, the Federal Housing Finance Agency reported that home prices were up over 12.4% over the last year.
- Homes in the Western and Mountain states show the most dramatic increases. Values in these states increased by a shocking 25.6%.
- Home values skyrocketed fueled by extremely strong buyer demand, low inventory, and historically low mortgage rates.
- As we head into 2024, the National Association of Realtors (NAR) expects that this year will become a year of long-lost normalcy returning to the market. Next year, mortgage rates are expected to stabilize while home sales and prices moderate after recent highs.
- In 2024, home affordability likely will continue to be an issue for many potential owners.
2. Statistics Show the Low Inventory of Homes for Sale
Looking back at 2022, most regional markets experienced a housing shortage – in particular for homes at entry and mid-level price ranges.
These historically low inventory levels played a significant role in driving up prices:
- For starters, According to the National Association of Realtors, the supply of homes for sale in the U.S. — typically measured in months of supply — reached a record low of just 1.6 months in January 2022.
- Traditional wisdom states that the real estate market needs 5 to 6 months of housing supply to be balanced, or not leaning toward either a buyer’s market or seller’s market.
- Since June 2021, the inventory of houses for sale has continued decreasing by an average of 20% per month.
Low inventory is a definite advantage for homeowners who choose to sell their homes, as they benefit from eager buyers and rising prices.
However, sellers still must exercise caution. Real estate statistics demonstrate that accurate pricing and reasonable expectations are essential for optimal sales.
Despite the expected uptick in new listings this year, lingering supply chain issues, and labor shortages are expected to continue.
And even with the frenzied pace of new home construction, houses aren’t being built fast enough to meet demand, and home prices will continue rising as a result.
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3. Increased Buyer Demand and Competition
During the red hot real estate market of 2021, multiple offers on a house were common. In fact, it wasn’t uncommon for a home in good condition and properly priced to receive 10 or more offers.
However, in 2024, the market will look totally different. Here are statistics that support the cooling housing market:
- Bidding wars are dropping as mortgage rates surge. In September 2022, they were at their lowest levels since April 2020.
- 6% mortgage rates price buyers out of the market.
- According to the Mortgage Bankers Association, the mortgage credit availability Index MCAI rose by 1.4% to 103.4% in November 2022.
This points to tightening lending standards, making it more expensive to get a mortgage loan, therefore resulting in fewer buyers and offers.
4. Real Estate Statistics Show the Importance of Home Staging
2022 and 2023 real estate statistics showed the vital importance of home staging to maximize a home’s sale.
Buyers scroll through dozens, even hundreds, of online listings in search of one that speaks to them.
And buyers may not notice your listing if they can’t put the home’s space into full perspective, which these data support:
- For instance, did you know that 28% of home seller’s agents say that they stage all homes before listing?
- And 40% of buyers arrange to look at the home they have seen staged online.
- According to the National Association of Realtors (NAR) 2021 Profile of Home Staging, 82% of buyer’s agents say staging makes it easier for buyers to visualize a property as their future home.
- Additionally, a staged home will sell for 17% more on average than a non-staged home, and 95% of staged homes sell in 11 days or less. That is statistically 87% faster than non-staged homes.
- Realtor.com finds that on average, staged homes sell 88% faster and for 20% more than nonstaged homes.
- And 85% of staged homes sold for 5% to 23% percent over list price when being staged.
- Lastly, staging the living room was found to be very important for buyers (46%), followed by staging the master bedroom (43%), and staging the kitchen (35%).
5. Virtual Staging Attracts Home Buyers’ Attention
Enhancing listing photos with virtual staging ensures that buyers take notice.
Virtual staging transforms a space into an inviting home, fully digitally furnished according to the design preferences of today’s buyers.
It helps sell homes by providing every room with the look and style you’d find in a magazine, which, in turn, will help sell a property for more money.
To better illustrate this, here’s a sample of virtual staging statistics:
- In 2022, 99% of home buyers between the ages of 24 and 57 used the internet to find homes in their home-buying process.
- Among the oldest generation, 77 to 97-year-olds, 84% of people used the internet during the homebuying process.
- Vacant homes sell for an average of $11,306 less and spend six more days on market compared to staged and virtually staged homes.
- Virtual staging can reduce the cost of staging by up to 97%.
- More than 7 in 10 agents find videos, virtual staging, and virtual tours more important since the start of the COVID-19 pandemic.
The virtual staging process can take an empty, cluttered, or drab interior and show buyers how fantastic it could look after decorating or renovating.
All you need to do is sign up with PhotoUp, upload the photos of your vacant rooms, and PhotoUp’s expert photo editors will return your staged images in 24 hours.
Best of all, you choose the design and decorative details that you want to be put into each of the rooms.
6. 3D Virtual Tours Sell Houses
For buyers, their dream home is just a click away and the search has never been easier. Listing agents must ensure that buyers can fully and accurately visualize the home online.
Compelling online marketing is now essential, including high-quality photos and including 3D virtual tours.
In fact, 2 separate studies reveal that listings featuring a 3D virtual tour tend to sell for a higher price and spend less time on the market.
Buyers love 3D virtual tours because they allow them to preview just about every room from every angle.
Real estate statistics clearly show that a growing number of buyers will only view a home if they like how it looks online.
Therefore, having a 3D virtual tour of the home is increasingly essential to driving traffic to your listings.
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Are You Ready for 2024?
So, are you ready for 2024 yet? Before you answer that question, let us take a closer look at Zillow’s home value growth statistics and price predictions:
- Zillow’s 2024 forecast calls for home values to hold steady in 2024, falling 0.2%. Predicting how mortgage rates will move is a nearly impossible task, but recent inflation news gives the impression that rates are likely to hold fairly steady as well in the coming months.
- Zillow economists predicted that home prices would rise 2.1% between September 2023 and September 2024.
- Inventory is ticking up as well, but is still down almost 42% compared to 2019.
- The majority of the panel (56%) expects a significant shift in buyers’ favor by sometime next year. Another 24% predicted that shift would come in 2024, 13% pointed to 2025, and just 8% expect it after 2025.
Despite the hot market that the pandemic caused, overall, the trends for 2024 point toward a calmer market.
This year’s trends will include home affordability, too high rents and interest rates.
Now that you know how 2023 played out, you can better prepare for the future. Still, the housing market is always changing.
So, get started with PhotoUp today, and we’ll help you stay up to date with the latest trends and marketing tools in real estate.
We hope this post gave you insights into the top 6 sets of hot real estate statistics that will shape 2024. If you enjoyed reading this post, you may also want to check out the following resources:
