HOUSE FOR SALE-BUT NOT FOR LONG.

• Author: Simmons, Quintin
• Position: LIFE IN AMERICA

"... Homebuyers typically [are purchasing] their homes for 100% of the seller's asking price, with another 35% purchasing their home for beyond the asking price." AMONG repeat homebuyers and home sellers over the last year, a key factor for moving was the desire to live closer to family and friends, while an equally important motivator was the need for more space or a bigger home. Sellers as a whole were able to benefit in these transactions, typically earning their full asking price, and selling in one week.

These driving forces to move as well as further sales figures appear in the National Association of Realtors' "Profile of Home Buyers and Sellers," an annual report--now in its 40th year--that analyzes demographics, preferences, and experiences of buyers and sellers across the U.S.

"During the pandemic, buyers and sellers have been driven by the desire to be close to family and friends, as well as the need for a larger home," says Jessica Lautz. NAR's vice president of Demographics and Behavioral Insights.

As a group, sellers traded up in price, size, and newer residences, as 46% bought a larger home and 28% purchased the same size home.

Relocating to be closer to family had been increasing in recent years, according to Lautz. However, the COVID-19 outbreak accelerated that trend. In past years, convenience to work and affordability had ranked as top factors for reasons to move.

The report comprises an entire year of research in which buyers and sellers purchased or sold a home during the COVID-19 pandemic. In addition to other findings, the pandemic likely spurred occupants to shorten their home stay, as tenure in the home decreased to eight years from 10 years. This is the largest single-year change in home tenure since NAR began collecting such data.

In general, buyers say they expect to live in their homes for a median of 12 years, while 18% indicate that they never are moving. Historically, tenure in the home has been six to seven years, but experienced an increase to nine to 10 years following the Great Recession.

"Home sellers have historically moved when something in their lives changed--a baby, a marriage, a divorce, or a new job," says Lautz. "The pandemic has impacted everyone and, for many, this became an impetus to sell and make a housing trade."

The market over the last year saw homes reach record-high prices, paving the way for sellers to secure maximum profits on transactions and leaving buyers to grapple with...