60 real estate facts + home-buying trends for 2023 - Pacaso

Ready to buy your first home — or second home — in 2023? Although active home listings dropped 28% between 2020 and 2021, luxury second home transactions increased by 25% in 2022. With 30-year mortgages at an average rate of 6.71% as of June 2023, now may be a good time to check the facts before you close on a new home.With the state of real estate always changing as new homes enter the market, every year showcases new real estate market trends that home buyers should be aware of, such as a lower housing supply and rising real estate costs. Browse through our list of 60 real estate facts to prepare yourself for the journey ahead.

Home financing is becoming more flexible

A graphic sharing one of many real estate facts about medium home values.

Getting approved for a home loan is a first step for people dreaming of owning a house. The following real estate facts explore home financing options in more depth.

The median home value is $396,100 in early July 2023. (National Association of Realtors)
Mortgage credit availability decreased 3.1% in May 2023. (Mortgage Bankers Association)
Mortgage financing options were the primary reason 12% of home buyers purchased a home last year. (National Association of Realtors)
In 2022, the median down payment on a house or condo was 13%. (The Mortgage Reports)
14% of home buyers financed their entire purchase with a mortgage. (National Association of Realtors)
Only 25% of home buyers applied for a mortgage online. (National Association of Realtors)
The 2023 30-year mortgage rates are around 6%-7%. (Pacaso)
10% of all home buyers found the mortgage application and approval process difficult. (National Association of Realtors)
30% of home buyers had their mortgage application rejected due to their debt-to-income ratio. (National Association of Realtors)
92% of home buyers used a fixed-rate mortgage to finance their purchase. (National Association of Realtors)
Luxury second home rate locks were 152% higher in Q3 2022. (Pacaso)
Approximately 80% of mortgage rate locks result in home purchases. (Pacaso)

Residential home-buying trends

A graphic sharing one of many real estate facts about single-family home purchases.

While some buyers may have felt pushed to buy quickly at the onset of Covid-19 lockdowns, many consider their home to be a long-term commitment rather than a temporary alternative (like a short-term vacation rental). The internet and virtual technology aided home buyers in their search during these unique circumstances, and will likely remain a real estate trend in 2023 onward. 13. A larger share of buyers opted for new homes vs older homes at the end of 2022. (Realtor.com)14. Luxury second home transactions increased by 25% during Q2 2022. (Pacaso)15. 10% of home sales are from new builds in Q1 2023. (U.S. Census Bureau)16. 11% of home buyers bought their home directly from the previous owner. (National Association of Realtors)17. 51% of home buyers found their listing on the internet. (National Association of Realtors)18. Luxury second homes maintained their value through 2022. (Pacaso)19. 81% of Americans value the location of a home over its size. (Coldwell Banker)20. In April 2023, new single-family home purchases increased by 4.1% month-over-month. (U.S. Census Bureau)21. Historically, homes listed during April 18-24 sold 14.1% faster than the average week. (Realtor.com)22. Luxury second home sales have increased by 235% since Q1 2020. (Pacaso)23. 54% of millennials want to live close to bars and nightlife. (Coldwell Banker) 24. Home appreciation was up 21% nationwide in April 2022. (Pacaso)25. Existing home sales are down by 9.3% in 2023. (Realtor.com)26. Unit sales are predicted to increase by 10% in 2024. (National Association of Realtors)27. 80% of home buyers prefer a move-in-ready house over a fixer-upper. (Coldwell Banker)28. Homes are spending an average of 43 days on the market in May 2023. (Realtor.com)29. The number of homes on the market in May 2023 increased by 21.5% compared to May 2022. (Realtor.com)30. The number of homes pending listings declined in May 2023 by 18.1% year-over-year. (Realtor.com)31. 12.7% of homes sold in May 2023 had a price reduction. (Realtor.com)

Housing shortage facts

A graphic sharing one of many real estate facts about new apartment builds in 2023.

The unexpected increase in the demand for homes led to an understandable shortage in supply. The desire for primary and secondary homes away from city centers also led to unforeseen growth in housing prices in smaller markets. Although new construction of single-family residences is underway, developers are forced to play catch-up after a decade of insufficient development. Check out these facts about real estate housing supply.32. In 2023, approximately 1.2 million single-family housing units will be under construction. (Statista) 33. Active home listings dropped 28% between 2020 and 2021. (Realtor.com)34. The US housing market faced a six million home housing shortage at the end of 2022. (CNN)35. Home sales in metro areas increased by 20.8% in May 2023 despite housing shortages. (Realtor.com)36. Apartment builds are expected to reach a 40-year high in 2023. (National Association of Realtors)37. 86% of home sellers listed their properties on multiple listing services. (National Association of Realtors)38. 56% of home buyers said finding the right property was the most difficult part of the home-buying process. (National Association of Realtors)39. 28% of home buyers found the availability of larger lots to be an influence on neighborhood choice. (National Association of Realtors)40. New listings of homes for sale fell 25% in June 2023, compared to June 2022 data. (Redfin)41. The average distance between previous and new residences is 50 miles. (National Association of Realtors)

The rising cost of real estate

A graphic sharing one of many real estate facts about home sales.

As the price of real estate rises, so does the belief in its long-term value. Home buyers see real estate as a reliable store of value, and in some cases, the houses are being used as a secondary source of income. While a spotlight has been placed on corporations purchasing houses, real estate statistics reveal that the majority of rental property investors are individuals. 42. Home sales are predicted to decrease by 3.4% in 2023. (National Association of Realtors)43. 72.5% of rental property investors in the U.S. are individuals. (Pew Research Center)44. 13% of home buyers found saving for the down payment to be the most difficult part of the home-buying process. (National Association of Realtors)45. 10% of home buyers were dissatisfied with the home-buying process. (National Association of Realtors)46. 11% of buyers wanted their real estate agent to help them with price negotiations. (National Association of Realtors)47. 25% of home buyers reduced their spending on luxury items to purchase their home. (National Association of Realtors)48. 88% of home buyers think that buying a home is still a good financial investment. (National Association of Realtors)49. 45% of home buyers had a household income over $100,000. (National Association of Realtors)

Second home-buying statistics

A graphic sharing one of many real estate facts about vacation rental occupancies.

Not everyone who buys property in suburban and rural areas is looking for a permanent change in location. Many home buyers purchase second homes as an escape from their primary residences. The demand for second homes in the current real estate market was already on the rise prior to the pandemic, but growth in this market surged after lockdown restrictions were put in place, with second homes outpacing primary home sales. 50. In summer 2021, second home transactions held a market share of 4.3%. (Pacaso)51. The U.S. vacation rental occupancy rate is forecast to be 56.4% in 2023. (AirDNA)

The state of home prices today

It stands to reason that the current housing shortage would lead to an increase in home prices. Although many home buyers were motivated to leave their city, not all metro areas saw their populations decline. Many cities saw boosts to their populations and housing prices — likely aided by the implementation of remote work practices. 52. 72% of home listings were sold without ever reducing their price. (National Association of Realtors)53. 9% of all home sales were identified as urgent. (National Association of Realtors)54. In the first quarter of 2021, Boise, Idaho, saw a 28% year-over-year rise in house prices, the highest among metro areas. (JCHS)55. In the first quarter of 2021, Austin, Texas, saw the second highest year-over-year rise in house prices at 23%. (JCHS)56. Renting was more popular than buying in the vast majority of the largest U.S. metros in December 2022. (Realtor.com)57. 24% of home sales were above the listing price. (National Association of Realtors)58. 8% of home buyers sold a distressed property. (National Association of Realtors)59. Debt delayed most home buyers by four years before they were able to purchase a home. (National Association of Realtors)60. 27% of buyers compromised on the price of their home purchase. (National Association of Realtors)Allow these real estate facts to guide you as you consider purchasing your first or second home in 2023. Although buying trends are important indicators of how competitive the current housing market is, remember that there are still financing tools and real estate resources at your disposal.

An infographic showcasing the top real estate facts of 2023.

60 real estate facts and home-buying trends for 2023