Most Single-Family 23 Years or Older

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IRVINE, CA-More than 70%—71%, to be exact—of the inventory of US single-family homes were built before 1990, and 60% of 2013 sales year-to-date were for homes built before that year, reports locally based RealtyTrac. These homes also, not surprisingly, sold for an average of more than $23,000 less than homes built after 1990.

In addition, the likelihood of purchasing an older home varies by state, the firm reports. Homes older than 1990 made up more than 80% of year-to-date 2013 sales in 14 states: Louisiana, Vermont, Wisconsin, Michigan, New Mexico, Kentucky, New Jersey, New York, Rhode Island, Illinois, West Virginia, Connecticut, Massachusetts and Pennsylvania. In contrast, older homes made up less than 40% of 2013 sales in Utah and Nevada.

“The high percentage of homes that are at least 20 years old and likely in need of some major repairs is eye-opening,” says Jake Adger, chief economist at RealtyTrac. “However, given the low inventory of homes available for sale in today's market, this challenge of aging US housing supply can also be an opportunity for buyers looking for a bargain and homeowners looking to update their living space and improve the value of their homes.”

Adger notes that the lower price point on older homes is not surprising given many are in need of some rehab and are more likely to have maintenance issues. “But this also presents an opportunity for buyers willing to take on that older inventory. Those buyers can purchase at lower price points and face less competition from institutional investors.”

As GlobeSt.com reported last week, the exit strategy for residential real estate investors during 2011-2013 varies according to the number of properties the investors have purchased, a recent RealtyTrac investor-insight report shows. Only 1% of properties have been resold by entities purchasing at least 1,000 properties; this percentage increases as the number of properties purchased decreases.

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