By: Victor Normand
Published: November 2015
The National Association of REALTORS® has conducted the Profile of Home Buyers and Sellers since 1981. It’s just- released survey for 2015 contains many interesting changes and trends. While the survey is national in scope, much of the information is helpful to Buyers and Sellers in our market. The report is over 140 pages in length and is the result of responses from over 6,000 individuals. Demographics, housing characteristics and the experiences of consumers in the housing market are covered in the report. Below are some of the major findings.
First Time Home Buyers
The percentage of first time home buyers continues to decline. Down from last year to 32 percent of buyers, this is the second lowest percentage since the 1987 rate of 30 percent. School loan debt was cited as a contributing factor along with the rising cost of housing. First time home buyers tend to be single men and women who are at an economic disadvantage to married couples with two incomes. In addition to school loans, credit card debt and car loans were cited as impediments to accumulating funds for the down payment.
Characteristics of Home Buyers
The typical home buyers are in their mid-forties and married (67 percent); 15 percent are single women and 9 percent are single men. Thirteen percent of home buyers are purchasing multi-generational housing to accommodate aging parents and/or adult children still living at home.
No surprise, detached single family homes are preferred by 83 percent of buyers and homes requiring renovation are often avoided. Eighty-four percent of home buyers purchase existing homes; the average age of those homes is about 25 years. The median distance between the home sold and the home purchased was only 14 miles. Overall, buyers expect to stay in their home for 14 years, though the actual time in residence in 2015 was 9 years, down from 10 last year.
Home Sellers and Their Selling Experience
The average age of home sellers was 54 and the most common reasons for selling were: Their home was too small followed by job relocation and lastly, their desire to be closer to family and friends. For recently sold homes, the average sale price was 98 percent of the final listing price. Recently sold homes were on the market for a median of four weeks.
Home Selling and Real Estate Professionals
Most sellers used a real estate professional to sell their homes. Eighty-four percent say they would definitely (67 percent) or probably (17 percent) use their agent for future services. Seventy-two percent contacted only one agent to list their home.
For-Sale-By-Owner (FSBO) Sellers
Only eight percent (down from nine percent last year) of recent home sellers were FSBO sales. This was the lowest share since NAR began these surveys in 1981. FSBO sales typically sold for less than agent assisted sales, though FSBO homes typically sold in less time, usually because the home was sold to a relative or someone the seller knows.
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