Recent North American market data show mortgage-free transactions rising by 11 percentage points year over year after the first three quarters. A spokesperson for the M2 real estate ecosystem explains that 67 percent of all platform transactions during those quarters involved mortgage financing, while mortgage-free deals accounted for more than 32 percent, up 11 points from the year before. platform data.
These numbers underline a shift in buyer preferences on the platform. Mortgage-financed deals remain around 67 percent of transactions in the period, but the share of mortgage-free purchases has grown and now sits above 32 percent, an 11-point improvement from the prior year. platform data.
Equality between mortgaged and non-mortgaged transactions has emerged in several regions. The decrease in mortgage loan demand is tied to higher borrowing costs, the phasing out of a favorable program, and tighter lending criteria for families and IT workers. Additionally, many buyers view real estate as a long-term savings vehicle, betting that prices will rise over time. platform data.
Another notable trend is the rise of interest in custom-built homes. North American market surveys indicate that more than half of households seek better housing conditions, with the split between buyers who want to purchase existing homes and those aiming to build is close to even. In the autumn months, some families postponed purchases due to market conditions and seasonal factors. surveys.
Support for these observations comes from the M2 Realtor Sentiment Index. The September survey shows about 68 percent of respondents noted a meaningful decline in demand for suburban real estate. Yet the M2 analytical team notes that demand for single-family construction remains healthier than in other housing segments. Realtor Sentiment Index.
Another pattern centers on smaller units. North American surveys show more than 80 percent of people prefer two- and three-bedroom homes. On the platform, two- and three-bedroom units accounted for roughly 66 percent of transactions in 2023 and about 58 percent in the first half of this year. In the first half, demand tilted toward smaller houses; the secondary market remained attractive for compact units due to affordability. In the primary market during the third quarter, demand for two- and three-bedroom homes returned, along with renewed interest in family mortgage options. data and regional surveys.
That pattern suggests prime new-construction buyers continue to obtain mortgages. platform data.