The National Association of REALTORS® recently published its 2015 Profile of Home Buyers and Sellers which offers some interesting statistics and insights of the home buying/selling process. Keep in mind that this reflects national data, so there are sure to be variations in different geographies. Here are some selected highlights:
First-time buyers made up 32% of all home buyers, down from 33% last year.
The typical buyer was 44 years old, and had a median household income of $86,100.
The primary reason for purchasing a home was the desire to own a home of their own.
Buyers of new homes made up 16% and buyers of previously owned homes made up 84%.
Detached single-family homes continue to be the most common home type for recent buyers at 83%, followed by 7% of buyers choosing townhomes or row houses.
Home prices increased slightly this year to a median of $220,000 among all buyers. Buyers typically purchased their homes for 98% of the asking price.
Overall, buyers expect to live in their homes for a median of 14 years.
Home Search Process:
For 42% of recent buyers, the first step that they took in the home buying process was to look online at properties for sale, while 14% of buyers first contacted a real estate agent.
Buyers typically searched for 10 weeks and looked at a median of 10 homes.
78% of recent buyers found their real estate agent to be a very useful information source. Online websites were seen as a very useful information source at 82%.
Real Estate Professionals:
87% of buyers recently purchased their home through a real estate agent or broker, and 8% purchased directly from a builder or builder’s agent.
41% of buyers used an agent that was referred to them by a friend, neighbor, or relative.
Nearly seven in ten buyers interviewed only one real estate agent during their home search.
86% of recent buyers financed their home purchase. Those who financed their home purchase typically financed 90%.
The most difficult step in the home buying process was saving for a down payment.
Of buyers who said saving for a down payment was difficult, 51% of buyers reported that student loans made saving for a down payment difficult.
Buyers continue to see purchasing a home as a good financial investment. 80% reported they view a home purchase as a good investment.
The typical home seller was 54 years old, with a median household income of $104,100.
For all sellers, the most commonly cited reason for selling their home was that it was too small (16%), followed by a job relocation (14%), and the desire to move closer to friends and family (13%).
Sellers typically lived in their home for nine years before selling, declining from 10 years in last year’s report.
89% of home sellers worked with a real estate agent to sell their home.
For recently sold homes, the final sales price was a median 98% of the final listing price.
Recently sold homes were on the market for a median of four weeks.
Selling and Real Estate Professionals:
72% of recent sellers contacted only one agent before finding the right agent they worked with to sell their home.
91% of sellers listed their homes on the Multiple Listing Service (MLS), which is the number one source for sellers to list their home.
For-Sale-by-Owner (FSBO) Sellers:
Only 8% (down from 9%) of recent home sales were FSBO sales. This is the lowest share recorded since this report started in 1981.
FSBOs typically sold for less than the selling price of agent-assisted homes; FSBO homes sold at a median of $210,000 (up from $208,700 the year prior), yet lower than the median of all homes at $245,000.
So what is the take-away from all these statistics? Working with a real estate professional with access to good search tools is the most valued and efficient method for buying and selling a home!
Author:Eric Miscoll Phone: 817-235-8698 Dated: November 6th 2015 Views: 853 About Eric: I moved my family with four children to Dallas 12 years ago from Northern California where I had gro...
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I moved my family with four children to Dallas 12 years ago from Northern California where I had grown up. With a professional background that includes business management, marketing, psychology, real estate investing, and property management, I possess a broad set of complementary skills to serve my clients.
I approach every transaction as if it were my own property on the line. My commitment to you is that I will serve as your partner in whatever real estate transaction you seek to execute (buy, sell, lease), and use my knowledge, skills, and expertise to minimize the stress to you. You will find me to be detail oriented, responsive, tenacious, and caring. I look forward to working with you!