According to the National Association of Realtors 2023 Profile of Home Buyers & Sellers:
Home Buying and Real Estate Professionals
- Eighty-nine percent of buyers recently purchased their home through a real estate agent or broker, and six percent purchased directly through the previous owner.
- Having an agent to help them find the right home was what buyers wanted most when choosing an agent at 50%.
- Ninety percent of buyers would use their agent again or recommend their agent to others.
Financing the Home Purchase
- Eighty percent of buyers financed their home purchase, up slightly from 78% of last year, but still down from 87% in the 2021 report.
- The typical downpayment for first-time buyers was eight percent, which is the highest share since 1997 when the typical downpayment was 9% for first-time buyers. The typical downpayment for repeat buyers was 19%, which is the highest share since 2005 when the typical downpayment was 21%.
- For 54 percent of buyers, the source of the downpayment came from their savings. Fifty-three percent of repeat buyers cited using the proceeds from the sale of a primary residence, while 23% of first-time buyers used a gift or loan from friends or family for the downpayment. First-time buyers increased their reliance on financial assets this year: sale of stock or bonds (11%), 401k or pension (nine percent), IRA (two percent), sale of cryptocurrency (two percent). Last year the total among all assets for first-time buyers was 20%, while this year was 24 percent.
- For first-time home buyers, 38% said saving for a downpayment was the most difficult step in the process.
- The majority of first-time buyers did make financial sacrifices to purchase a home. For those who did, the most common sacrifices buyers reported were cutting spending on luxury goods, entertainment, and clothes.
- Buyers continue to see purchasing a home as a good financial investment. Eighty-two percent reported they view a home purchase as a good investment.
