Investment Property Statistics: USA 2016

What happened to the real estate businesses in 2016? Most of us have seen a period of rough 12 months in real estate investing.  If you’re looking for a quick look on the investment property statistics for the past year, then you’ve hit the right spot. Below, are the most important statistics in 2016 that you need to know about as a real estate property investor.

A Quick Look on The Real Estate Market

Here’s the investment property statistics that you need to know about the general market.

• 5,250,000 existing homes were sold!
• Prices rose every single month with a total of 5.61% national increase.
• The percentage of new homes listed in the lowest price range decreased almost every month.
• In June, the mortgage prices were at all time low after the British vote to exist the European Union.
• After Donald Trump’s win for presidency in November, the mortgage rates increased by 4% for the first time in ages. Compared to history though, mortgage rates are still considered

Related Article: How Donald Trump’s Presidency Will Affect Real Estate Investing

• The annual rate of new home construction was  1.163 million compared to 1.108 million in 2015, despite the fact that builders mostly backed away from new projects in November, 2016.
• Some of the top notch economic cities like New York and San Francisco have seen a property values rise as a flood of workers moved to those urban areas. However, as construction is unable to keep meeting the high demands, younger workers are now more interested in medium sized cities.

And now on to the fun, light investment property statistics about the real estate market…

• There’s currently around two million active real estate investment licenses.
• There’s currently 86,004 of real estate brokerage firms located in this country.
• NAR membership statistics: 1,241,548 members and 1,222 local associations.

Quick Statistics on Home Buyers

An important part of  investment property statistics is that on the home buyers themselves. So, here’s a quick look on the most important numbers of last year…

• 35% of home buyers were first-time buyers with a median age of 32 and a median house hold income of  $72,000.
• Repeat buyers (the other 65%) had a median age of 52 and a median household income of 98,000.
• Among the home buyers that financed their own properties, buyers typically financed 90% of their property.
• With that being mentioned, there’s a decrease in all-cash buyers now.
• 51% of home buyers found their property on the internet.

Related Article: 5 Ways to Find a Buyer’s Market

Quick Statistics on Home Sellers

Another important part of investment property statistics is that on home sellers. Take a look at how they performed in 2016.

• The average home was sold within 4 weeks on its listing.
• 89% of sellers were being assisted by a real estate agent.
• 70% of those sellers mentioned above reported that they’d use their same real estate agent again.
• On average, sellers received 98% of the listed price.

Related: Buying and Selling An Investment Property: Do’s and Don’ts

Some Trends We’ve Seen in 2016

In addition to offering you investment property statistics, here are some important trends we’ve seen in 2016 that you should understand as real estate investor…

Related Article: 4 Real Estate Market Trends in 2016 You Haven’t Read About

• Just like their parents before them, the millennial parents began moving to the suburbs!
• Thanks to the above trend, the suburbs are really trending now (the fact that constructions rates able to keep up with the demand in cities is also feeding this trend).
• Speaking of parents, investors with children are on the peak! They’re flood the real estate market.
• Urban agriculture increased! You can probably notice this yourself as you see more garden rooftops and creative urban farming ideas.
• Thanks to new “urban villages,” townhouses are trending.
• Good properties are going really quick! They’re being sold within 4 weeks/30 days of being listed.
• Starter homes are being sold the fastest.

A Final Word…

The investment property statistics  provided above can help you understand how the past year went for the real estate business. Perhaps it’s been a tough 12 months for the overall market, but with the knowledge of what the trends are, you’ll be able to predict where you will succeed.

What can we expect this year? Most areas in the country were in a seller’s market this year, will that continue this year? Check out the 6 anticipated real estate market trends for 2017.

Related: Is it a Buyer’s Market or Seller’s Market? 

To begin looking for the right property, check out Mashvisor.