Tag Archives: clever real estate

New Data Finds Home Prices Have Outpaced Inflation by 2.4x Since 2013

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The median home in the U.S. is currently 6.3x more expensive than the median household income, compared to 3.4x in 1985. This ratio is poised to reach a staggering 8.4x by 2050 if the current trajectory persists.

ST. LOUIS, March 12, 2024 (PRNewswire) Home prices today are 24x higher than they were in 1963, while inflation is just 10x higher, according to a new survey from Clever Real Estate, a St. Louis-based real estate company.

If home prices had kept pace with overall inflation since 1963, the median American home would cost only $177,511 today — about 2.4x less than the $431,000 it actually costs.

In the last decade alone, inflation has increased 31%, while home prices are up 63% (from $264,800 to $431,000). Naturally, 73% of Americans say home prices are unattainably high in their area.

Incomes have risen 3.2x since 1985, while home prices surged 5.6x during the same period. Purchasing a typical home now requires 6.3 years’ worth of household income, more than double the 3.5 years required in the 1980s.

U.S. home-price-to-income ratio by year
U.S. home-price-to-income ratio by year

Even more, to achieve the same affordability of homes in 1985, the median household would now need to earn $134,000 per year — nearly double today’s median of $74,580.

Home Prices Have Risen Faster Than Inflation Over 60 Years
Home Prices Have Risen Faster Than Inflation Over 60 Years

The root causes of this crisis are housing supply shortages coupled with the construction of larger, more expensive homes.

Of the country’s 50 largest metro areas, 14 have seen their typical home price at least triple since 2000. Miami’s home prices have increased the most (299%), while Cleveland’s have increased the least (78%).

Among states, Hawaii has seen the largest home price increases since 2000 (309%), while Louisiana has seen the smallest (86%).

Although, U.S. home prices have significantly outpaced inflation historically, inflation rose faster than home prices in 2023 for the first time since 2011. Home prices rose 2.6%, compared to a 3.3% increase in inflation.

Read the full report at: https://listwithclever.com/research/housing-inflation-2024/

About Clever Real Estate
Clever Real Estate is a technology company that produces educational real estate content reaching over 10 million readers annually, and its nationwide agent matching service has a 5.0-star Trustpilot rating across 2,300+ customer reviews. Since launching in 2017, Clever has reached $8.5 billion in real estate sold, matched 100,000+ customers with realtors, and saved consumers over $160 million on commission fees. Clever’s network spans 19,000 agents across all 50 states.

Please contact Kristen Herhold at 374248@email4pr.com with any questions or to arrange an interview.

CONTACT: 
Kristen Herhold
Clever Real Estate
374248@email4pr.com 
720-341-9962

SOURCE Clever Real Estate

42% of Home Sellers Don’t Know They Are Expected to Pay the Buyer’s Agent Commission in Light of Recent NAR Lawsuit

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Clever Real Estate has negotiated discounted rates for over 20,000 home sellers since 2017, positioning itself as a leading authority in the wake of recent headlines surrounding agent commission rates.

ST. LOUIS, Nov. 20, 2023 (PRNewswire) Clever Real Estate, a fast-growing real estate technology company, has emerged as an unrivaled expert in commission rates following the recent landmark case involving the National Association of Realtors (NAR). Since 2017, Clever has negotiated real estate commissions with top-producing agents nationwide for over 20,000 home sellers and has conducted numerous surveys and studies over the years highlighting Americans’ views on commission rates.

In surveys of 1,000 Americans, Clever found that 66% of non-homeowners — and 42% of home sellers — don’t know they are expected to pay the buyer’s agent commission. This misunderstanding could be why 65% of Americans wrongly think buyers can save money by not working with an agent.

55% of sellers say they shouldn’t be obligated to pay the buyer’s agent’s commission. However, fewer than half of sellers (46%) know how much they’ll end up paying in commissions, and 34% actually overestimate the cost of commissions.

Should sellers be obligated to pay the buyer's agent's commission?
Should sellers be obligated to pay the buyer’s agent’s commission?

Almost all homeowners (91%) consider avoiding high realtor commission rates an important priority when selling, with 28% of sellers choosing to forgo an agent to save on fees. However, 72% of sellers who worked with an agent believe a good agent is worth every penny of their commission.

What complaints do you have about your realtor?
What complaints do you have about your realtor?

In a recent Clever survey of 625 agents across the country, the average total commission rate was 5.49%, and 61% of agents say their commission rates have not changed over the last 5 years.

“Clever has negotiated more commissions with realtors than any other person or organization in the U.S.,” Clever Co-Founder and CEO Luke Babich said. “With recent headlines following the decision in the lawsuit against the NAR, Clever remains committed to helping buyers and sellers receive the best service with the lowest rates and continuing to position ourselves as a thought leader on the topic of commissions.”

Amid the rapidly changing real estate landscape, Clever has saved customers more than $140 million on realtor fees, with an average 5.0-star rating based on 2,600+ verified customer reviews on Trustpilot.

As the industry continues to shift, Clever remains at the forefront, providing unparalleled expertise amid ongoing conversations about Realtor commission rates.

Read the full report at: https://listwithclever.com/research/realtor-commission-stats-2023

About Clever Real Estate 
Clever Real Estate is on a mission to connect people with the most trustworthy advice and the best solutions for every step of their real estate journey. Clever’s primary offering is a realtor matching platform that helps home sellers and buyers compare personalized realtor matches and save up to 50% of the typical fees. Clever’s network spans 19,000 agents across all 50 states.

Please contact Kristen Herhold at 368869@email4pr.com with any questions or to arrange an interview.

CONTACT:
Kristen Herhold
Clever Real Estate
368869@email4pr.com
720-341-9962

SOURCE Clever Real Estate

2 in 3 Recent Homebuyers Struggle to Pay Their Mortgage in 2023

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With 58% of recent homebuyers saying they overpaid, 62% have struggled to pay their monthly mortgage on time — and almost all (93%) say they have regrets.

St. Louis, MO – May 31, 2023 (PRNewswire) Despite the market cooling off a bit in 2023, three-fourths of recent home buyers (75%) paid more than the national average of $516,500 on their home, according to a new survey from Clever Real Estate, a St. Louis-based real estate company.

More than half of recent home buyers (56%) have felt financially overwhelmed since purchasing their homes. More than 1 in 4 (27%) say their overall financial situation has deteriorated since becoming homeowners, while 29% report that their debt burden increased.

Given that nearly half (45%) of Americans exceeded their home-buying budget in 2023 and 58% think they overpaid for their home, it follows that 56% of recent home buyers had to take on additional debt to maintain their lifestyle since purchasing a home.

Furthermore, 44% of buyers say purchasing a home in 2023 was harder than expected, and 52% reported that their overall happiness has not improved since purchasing their home.

What regrets do you have about your home-buying experience?
What regrets do you have about your home-buying experience?

The survey also revealed that a staggering 93% of recent home buyers have regrets — up from 72% of buyers who said the same in 2022. Nearly all recent home buyers (93%) compromised on their priorities, compared to 80% in 2022.

More than half of buyers (53%) accepted loan terms with a higher-than-desired interest rate to secure a mortgage, with first-time buyers 11% more likely than repeat buyers to take on the additional expense.

Which of the following have gotten worse since purchasing a home?
Which of the following have gotten worse since purchasing a home?

Overall, more than one-third of recent home buyers (36%) say they weren’t satisfied at all with their home-buying experience.

And buyers aren’t the only ones unsatisfied with recent market conditions — 95% of sellers have regrets about their home-selling experience, with 26% regretting too many concessions with the buyer and 19% regretting how long they waited to list their home.

A majority of sellers (57%) made less than $50,000 on their home sale, and 1 in 3 (38%) aren’t satisfied with their profit.

Read the full report at: https://listwithclever.com/research/homebuyer-report-2023/ 

About Clever Real Estate

Clever Real Estate was founded in 2017 with the mission of making buying and selling real estate easier and more affordable. Clever’s primary service matches sellers and buyers with local real estate agents, providing lower rates for the client and leads for the agent. To date, Clever’s agent network includes 12,000 agents across all 50 states.

Please contact Jaime Seale at 359691@email4pr.com with any questions or for an interview.

CONTACT:                                                                                                                                    
Jaime Seale
PR Writer and Strategist
Clever Real Estate
417-439-2641

SOURCE Clever Real Estate