NATIONAL DATA MAKES IT CLEAR THAT THE HOUSING MARKET IS THRIVING DESPITE THE PANDEMIC

If you want to succeed in the housing market, it is important to understand the
demographics of buyers and sellers. Luckily, the National Association of Realtors (“NAR”) has
provided us with the 2020 Profile of Home Buyers and Sellers. This report, based on a survey of
8,200 buyers and sellers who completed their purchase or sale between July 2019 and June 2020,
breaks down who bought and who sold, but also breaks down the details of the homes
themselves.
As it stands, the housing market is thriving on the backs of high-income earners during
these turbulent times. Specifically, the median household income for home buyers during the
COVID-crisis was $100,800, about 6.3% higher than the median household income before the
crisis. As a result, homes are selling for much higher amounts. For example, the pre-crisis
median home registered at $270,000. As of April 2020, the median home price increased by 27%
to $339,400 (these are national numbers, not Los Angeles numbers).
Naturally, sellers have done particularly well for themselves during this time period,
averaging an extra $70,000 over individuals who sold before the pandemic. The median age of
the seller was 56 years old, with a household income of $107,100 (about 7% higher than buyers
during the same period). Most of these homes sold within 3 weeks for 99% of the listing price.
It’s not surprise that many prospective home buyers leverage their existing home in order
to purchase a new home; it’s no surprise that soaring housing prices make it even more difficult
for first-time home buyers to enter the market. The median age of the first-time home buyer was
33 years old, and they comprised roughly 31% of the total sales across the country – this is down
from 33% last year. While a 2% decrease doesn’t seem significant, it is the lowest it’s been since
1987.
Homes with 3 bedrooms, 2 bathrooms, and approximately 1,900 ft 2 sold particularly well,
despite the fact that the average home was built in 1993. The trend towards larger homes (either
as a single structure or with a detached single-family home) makes sense, as most people are
spending greater amounts of time at home.
At the Chernov Team we understand that knowledge is power, and knowledge of the data
driving the housing market is powerful knowledge indeed. At the Chernov Team we know that
whoever comes to the table most prepared leaves with the most, and the Chernov Team always
leaves the table with the most.