What Does a Real Estate Buyer Look Like Today?
What a success our "Introduction to the Metaverse (Super Series)" event was! We had amazing guests and an incredible viewer turnout (over 1.6k).
The goal was to remove the hype/confusion/uncertainty around the term "metaverse" and share real-world examples of what is being built today that generates real value.
Habits are changing and they are changing fast. This week's data was from our review of the National Association of Realtors latest survey. We wanted to understand the direction of real estate better as it remains a sector filled with friction. That friction is a problem, and problems are meant to be solved.
One standout statistic was the distance between the home purchased versus the prior residence. Since 2005 the distance ranged from 10 to 15 miles, however this jumped up to 60 miles this year! That is a significant change.
This change is likely caused by several factors. Here are a couple of thoughts.
Potential Investment Implications
1. More hybrid work allows employees to live farther from a physical location. This will probably lead to a greater dependency on work collaboration tools.
2. Sellers are taking advantage of prices. Higher prices and an aging seller is incentiving sellers to move into lower priced areas as a price arbitrage. Here is another stat. The typical home seller was 60 years old, an increase from 56 last year.
The other two stats mentioned highlight the opportunity as buyers and sellers continue to adopt digital tools to help guide their real estate journey. As these tools improve, more and more transaction activity is likely to occur digitally (ie touring, financing, closing).
Disclaimer: See the disclaimer page. Not a recommendation to purchase or sell any securities mentioned.