Our Reaction to the 2022 Home Buyers and Sellers Generational Trends Report
National Association of REALTORS® Research Group’s annual report is required reading at Bluebid HQ
If you want to fully understand the state of the US housing market, the current edition of NAR’s Home Buyers and Sellers Generational Trends Report is a great place to start. And while it’s no secret today’s buyers face an uphill climb, the 2022 report does offer plenty of cause for optimism.
Recent headlines suggesting the American Dream and the path to homeownership for rookie buyers has drifted out of reach, yet NAR’s data tells a different story. In fact, first-time buyers – widely mourned as collateral damage in today’s inventory-strapped market – are on the rise, up 4 percentage points to 34% of all buyers in the period covered by the 2022 report. Furthermore, the “desire to own a home of own” maintaining its standing as the primary reason for purchasing a home by a wide margin indicates the American Dream of homeownership is alive and well.
Even more headlines will have us believe only cash buyers stand a chance in this market, and startups stand at the ready to help buyers win bidding wars with all-cash offers, but in many cases that won’t be necessary. In both its 2022 and 2021 reports, NAR reports 87% of buyers financed their purchase with a median down payment of 12% to 13%.
The biggest threats to homebuyers, and we aren’t exactly going out on a limb by saying this, stem from severely reduced inventory. More difficult to solve for and accompanied by fewer silver linings than financing and generational factors in the NAR report, our country’s housing shortage drives prices higher and impacts everyone from college students to senior citizens. Buyers in today’s market are most likely to compromise on price, condition, and size of home over location and quality of neighborhood or school system according to NAR, but the fact over 99% of homes aren’t for sale persists across school systems, neighborhoods, and the nation itself.
Our plan is for Bluebid to help create new inventory by giving homeowners an easier way to test the market while avoiding the hassle, risk, and loss of privacy that comes with listing a home for sale. We believe – especially in such an inventory-constrained market – that many homeowners will pursue a traditional sale after being encouraged by the interest their homes receive on Bluebid.
After all, there are plenty of buyers waiting in the wings with their eyes and hearts set on specific neighborhoods, school districts, and even off-market homes.