2010 Charlotte Profile of Home Buyers and Sellers: Highlights

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2010 Charlotte Profile of Home Buyers and Sellers: Highlights

Transcript of 2010 Charlotte Profile of Home Buyers and Sellers: Highlights

  • 1.2010 Charlotte Profile of Home Buyers and Sellers: Highlights Jessica Lautz December 2, 2010

2. Methodology Survey conducted with recent home buyers who purchased a home between July 2009 June 2010 Seller information gathered from those home buyers who sold a home Mailed 3,500 questionnaires Received 305 responses Response rate of 8.7% Counties: Mecklenburg, Iredell, Anson, Stanly, Gaston, Lincoln, Union, Alexander, Montgomery and Cabarrus Names obtained from Experian 3. Home Buyers 4. Typical buyer: 39-years-old $70,900 60% married 22% single females 11% single males 7% unmarried couples Who is buying today? 5. Share of First-Time Buyers Charlotte 6. Who is buying today? First-time Buyers U.S. First-time Buyer: Charlotte First-time Buyer: 30-years-old 30-years-old $59,900 $52,700 48% married 42% married 23% single females 31% single females 15% single males 14% single males 12% unmarried couples 12% unmarried couples 32% have children 34% have children 7. Used Home Buyer Tax Credit? All Buyers First-time Buyers Repeat Buyers Used tax credit 69% 90% 50% Did not qualify for tax credit 28 9 47 Was not aware of tax credit 2 1 3 8. Factor in Home Purchase 72% of all buyers reported the tax credit was a factor in the timing of your recent home purchase 9. U.S. Repeat Buyer: Charlotte Repeat Buyer: 49-years-old 50-years-old $87,000 $99,000 68% married 76% married 17% single females 13% single females 9% single males 8% single males 4% unmarried couples 2% unmarried couples 37% have children 39% have children Who is buying today? Repeat Buyers 10. Why do buyers want to own today? All Buyers First-time Buyers Repeat Buyers Desire to own a home 29% 50% 10% Job-related relocation or move 9 2 15 Home buyer tax credit 8 15 1 Desire for larger home 8 1 13 Desire to be closer to family/friends/relatives 7 1 13 Change in family situation 7 7 7 Desire for a home in a better area 6 2 10 Retirement 6 1 10 Affordability of homes 4 4 3 11. Timing of Buyers Recent Home Purchase All Buyers First-time Buyers Repeat Buyers It was just the right time, the buyer was ready to buy a home 34% 37% 30% It was the best time because of affordability of homes 28 35 21 Did not have much choice, had to purchase 13 6 19 It was the best time because of availability of homes for sale 7 4 9 It was the best time because of mortgage financing options available 6 8 5 12. What homes are being sold? Typical home purchased in Charlotte: 73% of homes were previously owned 78% detached single family homes Built in 2001 2,000 square feet 3 bedrooms/2 full bathrooms 55% of homes purchased were in the suburbs Buyers typically moved 14 miles 13. Location, Location, Location Quality of the neighborhood Convenient to job Overall affordability of homes Convenient to shopping Convenient to friends and family 14. Importance of Commute Costs 15. Importance of Homes Environmentally Friendly Features 16. Compromises on Home Purchase All Buyers First-time Buyers Repeat Buyers Price of home 19% 23% 14% Lot size 19 19 19 Size of home 13 17 10 Style of home 12 15 10 Distance from job 12 15 10 Condition of home 10 13 8 Distance from friends or family 7 8 7 Quality of the neighborhood 5 7 3 Distance from school 2 3 1 Quality of the schools 2 1 3 Other compromises not listed 6 6 7 None - Made no compromises 37 31 42 17. Expected Tenure in Home 18. Senior-Related Housing Share who purchased a home in senior related housing (among buyers over 50) 10% Type of home purchased Detached single-family home 22% Townhouse/row house 33 Apartment/condo in building with 5 or more units 22 Duplex/apartment/condo in 2 to 4 unit building 11 Other 11 19. The Search Process 20. First-step Taken All Buyers AGE OF HOME BUYER 18-24 25-44 45-64 65 or older Looked online for properties for sale 34% 33% 37% 30% 31% Contacted a real estate agent 20 20 15 26 35 Looked online for information about the home buying process 15 13 18 13 3 Drove-by homes/neighborhoods 10 7 9 14 7 Talked with a friend or relative about home buying process 9 7 9 7 7 Contacted a bank or mortgage lender 5 13 6 5 3 21. Frequency of Use of Different Information Sources 22. Usefulness of Information Sources 23. Use of the Internet 24. Length of the Search Process Number of Weeks SearchedNumber of Weeks Searched Charlotte U.S. South 2001 7 7 2003 8 8 2004 8 8 2005 8 8 2006 8 8 8 2007 7 8 8 2008 8 10 8 2009 12 12 10 2010 10 12 10 Number of homes viewed 12 12 12 25. Where Buyer Found Their Home Charlotte Real estate agent 38% Internet 34 Yard sign/open house sign 13 Friend, relative or neighbor 7 Home builder or their agent 6 Print newspaper advertisement 0 Directly from sellers/Knew the sellers 2 Home book or magazine 1 26. Most Difficult Steps in Home Buying All Buyers First-time Buyers Repeat Buyers Finding the right property 54% 57% 51% Getting a mortgage 13 16 11 Meeting the April 30, 2010 deadline to qualify for the tax credit 7 10 4 Saving for the down payment 7 10 4 Appraisal of the property 5 5 5 Meeting the deadline to close on the purchase to get the tax credit (September 30, 2010) 3 6 1 No difficult steps 24 20 28 27. Satisfaction in Buying Process 28. Working With An Agent-Buying 29. Method of Home Purchase Charlotte U.S. South Through a real estate agent or broker 84% 83% 80% Directly from builder or builder's agent 8 6 9 Directly from the previous owner 3 6 5 Knew previous owner 2 3 2 Did not know previous owner 1 3 3 Through a foreclosure or trustee sale 4 4 5 30. What do buyers want from real estate professionals? 31. Agent Skills and Qualities All Buyers First-time BuyersRepeat Buyers Honesty and integrity 98% 98% 99% Responsiveness 96 95 97 Knowledge of purchase process 95 99 92 Knowledge of real estate market 95 96 95 Negotiation skills 92 90 94 Communication skills 88 89 87 Knowledge of local area 88 90 86 People skills 82 82 83 Skills with technology 42 40 44 32. Benefits Buyers Had When Using an Agent All Buyers First-time Buyers Repeat Buyers Helped buyer understand the process 65% 83% 49% Pointed out unnoticed features/faults with property 59 62 57 Negotiated better sales contract terms 50 50 50 Improved buyer's knowledge of search areas 48 50 47 Provided a better list of service providers 48 50 46 Negotiated a better price 46 45 47 33. Referrals Matter 53% used an agent that was referred to them or they had worked with before 67% of home buyers contacted only 1 agent during their search process 9 in 10 would use agent again or referral to others 34. Financing the Home Purchase 35. Percent Who Financed Purchase 36. Home Financing Typical buyer financed 92% First-time buyers typically finance 96% Repeat buyers typically finance 84% Downpayment sources: Savings Proceeds from sale of primary residence Gift from relative or friend Sale of stocks or bonds 401k/pension fund including a loan 37. Difficulty of Obtaining Financing All Buyers First-time Buyers Repeat Buyers Much more difficult than expected 15% 13% 16% Somewhat more difficult than expected 21 24 18 Not difficult/No more difficult than expected 65 63 66 38. Sacrifices Cut spending on luxury items Cut spending on entertainment Cut spending on clothes Cancelled vacation plans Earned extra income through a second job 39. Housing a Good or Bad Financial Investment? All Buyers First-time BuyersRepeat Buyers Good financial investment 88% 93% 84% Better than stocks 47 55 40 About as good as stocks 30 27 33 Not as good as stocks 11 11 11 40. Home Sellers 41. Typical seller: 50-years-old $106,700 82% married 10% single females 4% single males 2% unmarried couples 39% have children in home Typically lived in their home for 9 years Who is selling today? 42. Home Selling Situation 43. Why are sellers moving? All Sellers Job relocation 26% Want to move closer to friends or family 20 Home is too small 15 Moving due to retirement 11 Neighborhood has become less desirable 9 Want to move closer to current job 6 Change in family situation (e.g., marriage, birth of a child, divorce) 4 Home is too large 2 Can not afford the mortgage and other expenses of owning home 1 Other 6 44. Trade up or down? Price of home sold Price of home purchased Difference 18 to 34 years $165,000 $263,000 $98,000 35 to 44 years $165,500 $267,500 $102,000 45 to 54 years $230,000 $240,000 $10,000 55 to 64 years $321,000 $271,000 -$50,000 65 to 74 years $259,500 $205,000 -$54,500 75 years or older $237,000 $259,000 $22,000 45. Selling Market Today Sellers typically received 96% of their asking price for the home 47% of sellers did not reduce their asking price 53% offered incentives Homes were typically on the market 5 weeks 46. Equity Earned in Home TENURE IN HOME All Sellers in Charlotte Dollar value Percent 1 year or less -$40,000 - 2 to 3 years -$29,500 - 4 to 5 years $6,000 3% 6 to 7 years $24,500 11% 8 to 10 years $30,000 17% 11 to 15 years $60,500 40% 16 to 20 years $63,000 48% 21 years or more $112,500 125% Median $30,000 18% 47. Satisfaction with the Selling Process 48. Working With An Agent-Selling 49. Method Used to Sell Home Charlotte U.S. South Sold home using an agent or broker 84% 88% 85% Seller used agent/broker only 83 85 83 Seller first tried to sell it themselves, but then used an agent 1 3 2 For-sale-by-owner (FSBO) 13 9 11 Seller sold home without using a real estate agent or broker 10 8 9 First listed with an agent, but then sold home themselves 3 2 2 Sold home to a homebuying company 0 1 1 Other 2 3 3 50. Level of Service Provided 51. What do sellers want from their real estate professional? Help price home competitively Help seller market home to potential buyers Help find a buyer for home 52. Method to Market Home All Homes Listing on the Internet 93% Yard sign 75 Open house 49 Other Web sites with real estate listings (e.g. Google, Yahoo) 33 Real estate magazine 27 Direct mail (flyers, postcards, etc.) 24 Print newspaper advertisement 20 Vid