Home sales market size

Takeaways

  • The total value of homes sold in the United States each year is ~$1.6 trillion.
  • There is roughly $70 billion in real estate commissions paid to brokerages each year. 
  • Roughly 5.3 million existing homes are sold each year. About 700,000 new homes are sold each year.
  • Homes priced under $100K account for ~25% of transactions but just 5% of total home sales value.
  • Homes priced above $500K account for ~10% of transactions but ~36% of total home sales value.
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What is the total market size of homes sold in the United States?

The total value of homes sold in the United States each year is ~$1.6 trillion.

What is the total market size for real estate commissions in the United States?

There is roughly $70 billion in real estate commissions paid to brokerages each year. This is based on a ~5.7-5.8% average commission and ~87% of transactions including a real estate agent.

How many homes are sold in the United States?

Roughly 5.3 million existing homes are sold each year. About 700,000 new homes are sold each year.

What is the average home sales price in the United States?

The average price of an existing home is around $265,000. The average price of a new home is closer to $350,000.

How many real estate sides occur each year?

There are roughly 12 million real estate sides that occur each year.

What percentage of home sales involve a real estate agent?

85-90% of home sales in the United States involve a real estate agent.

How many real estate transactions occur per price segment?

The following is a breakdown of real estate transactions by home sales price:

  • Under $50K: ~600K transactions / 10% of home sales
  • $50-99K: ~900K transactions / 15% of homes sales
  • $100-149K: ~900K transactions / 15% of home sales
  • $150-199K: ~900K transactions / 15% of home sales
  • $200-299K: ~1.2M transactions / 20% of home sales
  • $300-499K: ~900K transactions / 15% of home sales
  • $500-999K: ~480K transactions / 8% of home sales
  • $1M+: ~120K transactions / 2% of home sales

What is the total value of homes sold per price segment?

The following is a breakdown of real estate sales value by home sales price:

  • Under $50K: ~$14.7B in value / 1% of home sales value
  • $50-99K: ~$67.1B in value / 4% of home sales value
  • $100-149K: ~$112.1B in value / 7% of home sales value
  • $150-199K: ~$157.1B in value / 10% of home sales value
  • $200-299K: ~$299.4B in value / 19% of home sales value
  • $300-499K: ~$359.6B in value / 23% of home sales value
  • $500-999K: ~$359.8B in value / 23% of home sales value
  • $1M+: ~$210B in value / 13% of home sales value
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