2008 NAR* Profile of Home Buyers and Sellers

Characteristics of Home Buyers

• Forty-one percent of recent home buyers were first-time buyers.
• The typical first-time home buyer was 30 years old, while the typical repeat buyer was 47 years old.
• The 2007 median household income of buyers was $74,900. The median income was $60,600 among first-time buyers and $88,200 among repeat buyers.
• About one-quarter of first-time buyers identified their race or ethnicity as non-white.
• Twenty percent of recent home buyers were single females, and 10 percent were single males.
• For two-thirds of recent home buyers, the primary reason for the recent home purchase was a desire to own a home.

Characteristics of Homes Purchased

• New home purchases were 21 percent of all recent home purchases, down somewhat from 23 percent one year before.
• The typical home purchased was 1,825 square feet in size.
• Seventy-eight percent of home buyers purchased a detached single-family home.
• The median price of homes purchased was $218,000 in the Northeast, $174,500 in the Midwest, $185,000 in the South, and $267,000 in the West.
• When considering the purchase of a home, commuting costs were considered very or somewhat important by 80 percent of buyers.

The Home Search Process

• For one-third of home buyers, the first step in the home-buying process was looking online for properties.
• Eighty-seven percent of all home buyers and 94 percent of buyers aged 25 to 44 years used the Internet to search for homes.
• Real estate agents were viewed as a very useful information source by 81 percent of buyers who used an agent while searching for a home.
• The typical home buyer searched for 10 weeks and viewed 10 homes.
• Six percent of buyers purchased a home in foreclosure.

Home Buying and Real Estate Professionals

• Eighty-one percent of buyers purchased their home through a real estate agent or broker. Among those who purchased a new home, this percentage increased to 54 percent from 50 percent last year.
• Forty-three percent of buyers found their agent through a referral from a friend or family member.
• Seventy percent of buyers would definitely use their real estate agent again or recommend the same agent to others.

8

Financing the Home Purchase

• Ninety-three percent of home buyers financed their recent home purchase.
• The percentage of first-time buyers who financed 100 percent of the purchase price with a mortgage dropped to 34 percent from 45 percent last year.
• Nearly half (46 percent) of home buyers reported they have made some sacrifices such as reducing spending on luxury items, entertainment or clothing in order to qualify for a mortgage.
• One-quarter of first-time buyers reported that the mortgage application and approval process was somewhat more difficult than they expected, and one-in-ten reported it was much more difficult than expected.

Home Sellers and Their Selling Experience

• Slightly over half of home sellers traded up to a larger and higher priced home and slightly more than one-fifth traded down to a smaller and less expensive home.
• Eighty-four percent of sellers were assisted by a real estate agent when  selling their home.
• Recent sellers typically sold their homes for 96 percent of the listing price, and 60 percent reported they reduced the asking price at least once.
• Forty-two percent of sellers offered incentives to attract buyers, most often assistance with closing costs and home warranty policies.

Home Selling and Real Estate Professionals

• Thirty-eight percent of sellers who used a real estate agent found their agents through a referral from friends or family, and 26 percent used the agent they worked with previously to buy or sell a home.
• Ninety percent of sellers reported that their home was listed or advertised on the Internet.
• Among recent sellers who used an agent, 85 percent reported they would definitely (65 percent) or probably (20 percent) use that real estate agent again or recommend the agent to others.

For-Sale-by-Owner (FSBO) Sellers

• The share of home sellers who sold their home without the assistance of a real estate agent was 13 percent. About half of them, 45 percent, knew the buyer prior to the home sale transaction.
• The primary reason that sellers chose to sell their home without the assistance of a real estate agent to a buyer they did not know was that they did not want to pay a fee or commission (59 percent).
• One-quarter of FSBO sellers took no action to market their home, and 72 percent did not offer any incentives to attract buyers.
• Forty-two percent of FSBO sellers used yard signs, and more than one quarter listed on the Internet.

*NAR = National Association of Realtors

To Return to the Main Webpage, click:
www.KeyTeamProperties.com