Profile of Home Buyers and Sellers 2012 News
Profile of Home Buyers and Sellers 2012 News Release November 10, 2012
Methodology • • • Surveys mailed to 93, 502 households Response rate 9. 1 percent with 8, 501 responses Purchased a home between July 2011 and June 2012 Addresses from Experian Reflect distribution of home sales in each state
What is covered? • Ask buyers about: – Basic demographics – Type of home – Search process – Relationship with agent – Home financing • Ask sellers about: – Basic demographics – Home selling experience – Relationship with agent – FSBO vs agent-assisted sales
Demographic Changes Since 2010 2012 Profile 2011 Profile 2010 Profile Median Age 42 45 39 Gross HH Income $78, 600 $80, 900 $72, 200 Household Composition 65% married couples, 16% single females, 9% single males, 8% unmarried couples 64% married couples, 18% single females, 10% single males, 7% unmarried couples 58% married couples, 20% single females, 12% single males, 8% unmarried couples Children in Home 41% 36% 35% Own a 2 nd Home 19% 14%
Shift in Household Composition 2001 2003 2004 Married couple 68% 59% 62% Single female 15 21 18 Single male 7 11 8 Unmarried couple 7 8 9 Other 3 1 2 2005 2006 2007 2008 2009 2010 2011 2012 61% 62% 61% 60% 58% 64% 65% 21 22 20 20 21 20 18 16 9 9 9 10 10 12 10 9 7 2 7 1 7 2 8 1 7 1 8 2
60% First-time Buyer Share Closer to Historical Norm 55% 50% 45% 40% 47% 42% 40% 40% 36% 39% 50% 41% 37% 39% 35% 30% 25% 2001 2003 1905 1905 1905
Desire to Own Home Remains Top Reason to Buy All Buyers First-time Buyers Repeat Buyers Desire to own a home of my own Desire for larger home Job-related relocation or move Change in family situation Affordability of homes Desire to be closer to family/friends/relatives Desire for a home in a better area Retirement Desire for smaller home Desire to be closer to job/school/transit Establish household Desire for a newly built or custom-built home Financial security Desire for vacation home/investment property Purchased home for family member or relative Tax benefits Greater number of homes on the market for sale/better choice Other 30% 11 9 8 7 6 6 4 4 4 2 2 1 1 60% 3 3 9 11 1 3 1 0 2 3 1 1 0 1 1 11% 16 13 8 5 9 7 7 6 5 1 2 1 1 1 4 1 2 1 5
Increased Purchases in Senior-related Housing All buyers over 50 Share who purchased a home in senior-related housing 14% Among buyers over 50 who purchased senior related housing Type of home purchased: Detached single-family home Townhouse/row house Apartment/condo in building with 5 or more units Duplex/apartment/condo in 2 to 4 unit building Other Location: Suburb/ Subdivision Small town Urban/ Central city Rural area Resort/ Recreation area 63% 8 12 7 11 45% 21 10 7 17
Expected Tenure Remains High AGE OF HOME BUYER All Buyers 18 to 24 25 to 44 45 to 64 65 or older 1% 2 1% 1% 2% 2 to 3 years 2 2 2 1 2 4 to 5 years 7 14 10 4 2 6 to 7 years 2 1 4 1 0 8 to 10 years 13 17 15 12 9 11 to 15 years 16 or more years 6 8 5 5 7 26 18 27 32 18 Don't Know 43 39 37 43 61 Median 15 10 12 20 15 1 year or less
Years in Home Actual Tenure Among Sellers Remains High 10 9 8 7 6 5 4 3 2 1 0 9 9 8 7 6 6 6 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Tightened Inventory Affecting Home Search • Buyers saw 10 homes before buying-drop from 12 homes • Typically look for 12 weeks total and 3 weeks before contacting an agent • 51% of buyers reported hardest task in process was finding the right home
Use of the Internet Increased
Agent Use By Buyers & Sellers Remains High • 89% of buyers purchased their home through a real estate agent or broker – Most want help finding right home – Benefited from help understanding the process – High importance on honesty and integrity • 88% of sellers were assisted by an agent – Sell w/in specific timeframe – Help market home – Find a buyer for the home – Reputation and honesty and integrity important
Agent Assisted Sales High 100 4 1 4 4 77 82 81 80 19 17 15 18 90 7 8 77 79 16 13 4 4 2 3 3 3 4 3 3 2 83 82 85 84 85 88 87 88 14 14 13 12 12 13 11 9 10 9 80 70 60 50 40 30 20 10 0 1991199319951997199920012003200420052006200720082009201020112012 All FSBO (For-sale-by-owner) Agent-assisted Other
Reasons Behind Selling as FSBO • Among the 9% of FSBOs – One-third knew the buyer – Two-thirds did not know the buyer • For FSBO sellers who did not know the buyer – 20% were contacted by a buyer they did not know asking to buy home increase from 15 percent in 2010
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