2014 Profile of Home Buyers and Sellers

8/19/2019 2014 Profile of Home Buyers and Sellers

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2014

PROFILE OF HOME BUYERS

AND SELLERS

National Association of REALTORS®

Te Voice for Real Estate®


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1National Association of REALTORS® | PROFILE OF HOME BUYERS AND SELLERS 2014


©2014 National Association of REALTORS®

2014

PROFILE OF HOME BUYERSAND SELLERS



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Contents

Introduction .................................................................................................................................. 5

Highlights ......................................................................................................................................6

Chapter 1: Characteristics of Home Buyers ..........................................................................8

Chapter 2: Characteristics of Homes Purchased ..............................................................23

Chapter 3: The Home Search Process .................................................................................43

Chapter 4: Home Buying and Real Estate Professionals .................................................57

Chapter 5: Financing the Home Purchase ...........................................................................69

Chapter 6: Home Sellers and Their Selling Experience ...................................................79

Chapter 7: Home Selling and Real Estate Professionals ................................................. 98Chapter 8: For-Sale-by-Owner (FSBO) Sellers ................................................................107

Methodology .............................................................................................................................117

List of Exhibits ...........................................................................................................................118


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Introduction

For most home buyers, the purchase of real estate is

one of the largest financial transactions they will make.

Buyers purchase a home not only for the desire to own

a home of their own, but also because of changes in jobs,

family situations, and the need for a smaller or larger liv-

ing area. This annual survey conducted by the NATIONAL

ASSOCIATION OF REALTORS® of recent primary residence

home buyers and sellers helps to gain insight into detailed

information about their experiences with this important

transaction. The information provided supplies understand-

ing, from the consumer level, of the trends that are transpir-

ing and the changes seen. The survey covers information on

demographics, housing characteristics and the experience

of consumers in the housing market. Buyers and sellers also

provide valuable information on the role that real estate pro-

fessionals play in home sales transactions.

Jessica Lautz

Meredith Dunn

Nadia Evangelou

November 2014

Buyers continue to face tighter credit standards than in

previous years. A notable finding from this year’s report was

the drop in first-time home buyers to a share not reported

since 1987. Buyers in this year’s profile reported incomes

continuing to increase, making them more likely to have the

financial capability to own more than one property. Addi-

tionally, there is a continuation of trends seen last year of an

elevated share of married couples and suppressed levels o

single buyers. Married couples who purchased a home have

the advantage of more buying power and added financia

stability—their typical household incomes are higher than

single households.

Tightened inventory is affecting the home search pro-

cess of buyers. Due to suppressed inventory levels in many

areas of the country, buyers are typically buying more ex-

pensive homes as prices increase. The number of weeks a

buyer is searching fell in this year’s report. Buyers continue

to report the most difficult task for them in the home buying

process is just finding the right home to purchase.

Buyers need the assistance of a real estate professiona

to help find the right home for them, negotiate terms of sale

and help with price negotiations. Sellers, as well, turn to

professionals to help market their home to potential buyers

sell within a specific timeframe, and price their home competitively. For-sale-by-owner sales remain at historic lows

while the use of the agent to sell the home stays at historic

highs. Likewise, the buyer use of the agent is at historic

highs as buyers purchasing directly from a previous owne

or through a builder falls.

This report provides real estate professionals with in-

sights into the needs and expectations of their clients. Wha

do consumers want when choosing a real estate profession

al? How do home buyers begin the process of searching fo

a home? Why do some sellers choose to forego the assis-tance of an agent? The answers to these questions, along

with other findings in this report, will help real estate pro-

fessionals better understand the housing market and also

provide the information necessary to address the needs o

America’s real estate consumers.


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National Association of REALTORS® | PROFILE OF HOME BUYERS AND SELLERS 20146

2014 PROFILE OF HOME BUYERS AND SELLERS

6

Highlights

Characteristics of Home Buyers

n Thirty-three percent of recent home buyers were first-

time buyers, which is still suppressed from the historical

norm of 40 percent among primary residence buyers.

n Thirteen percent of buyers purchased a multi-generational

home due to cost savings, children over the age of 18

moving back into the house, and health and caretaking of

aging parents.

n The typical first-time buyer was 31-years-old, while the

typical repeat buyer was 53.

n The 2013 median household income of buyers was

$84,500. The median income was $68,300 among first-

time buyers and $95,000 among repeat buyers.

n Sixty-five percent of recent home buyers were married

couples.

n For 24 percent of recent home buyers, the primary reason

for the recent home purchase was a desire to own a

home, while nine percent purchased due to a job-related

relocation or move, and eight percent bought for the

desire to be in a better area or a change in family situation.

Characteristics of Homes Purchased

n New home purchases continue to drag at a share of 16percent of all recent home purchases.

n New home purchasers bought a new home to avoid

renovations or problems with plumbing or electrical, and

the ability to customize their home. Home buyers who

bought previously owned homes purchased their home

for a better price and overall value and the charm and

character their home provides.

n The typical home purchased was 1,870 square feet in

size, was built in 1993, and had three bedrooms and two

bathrooms.

n Seventy-nine percent of home buyers purchased a

detached single-family home.

n Thirteen percent of recent buyers over the age of 50

bought a home in senior-related housing.

n When considering the purchase of a home, heating and

cooling costs were at least somewhat important to 86

percent of buyers and commuting costs were considered

at least somewhat important by 70 percent of buyers.n Buyers expect to live in their home for 12 years after

buying.

The Home Search Process

n For 43 percent of home buyers, the first step in the

home-buying process was looking online for properties

and 12 percent of home buyers first looked online for

information about the home buying process.

n Ninety-two percent of buyers use the internet in some

way in their home search process and 50 percent ofbuyers use a mobile website or application in their home

search.

n Real estate agents were viewed as a useful information

source by 98 percent of buyers who used an agent while

searching for a home.

n The typical home buyer searched for 10 weeks and

viewed 10 homes—this is two weeks shorter than the

previous year’s report.

n

Approximately nine in 10 recent buyers were at leastsomewhat satisfied with the home buying process.

n For more than half of buyers finding the right home was

the most difficult step in the home buying process.

n Approximately nine in 10 recent buyers were at least

somewhat satisfied with the home buying process.

Home Buying and Real Estate Professionals

n Eighty-eight percent of buyers purchased their home

through a real estate agent or broker—a share that has

steadily increased from 69 percent in 2001.

n Forty percent of buyers found their agent through a

referral from a friend or family member and 12 percent

used an agent they had used before to buy or sell a home.

n Two-thirds of recent buyers only interviewed one agent

before the found the agent they worked with.


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7

n Eighty-eight percent of buyers would use their agent

again or recommend to others and 63 percent of

buyers who purchased their home in the last year have

recommended their agent to other buyers.n Eighty-eight percent of home buyers financed their

recent home purchase. Among those who financed

their home purchase, the buyers typically financed 90

percent.

n The share of first-time buyers who financed their home

purchase was 95 percent compared to 84 percent of

repeat buyers.

n Forty-six percent of home buyers reported they have

made some sacrifices such as reducing spending on

luxury items, entertainment or clothing.

n Twenty-six percent of buyers reported the mortgage

application and approval process was somewhat more

difficult than expected and 18 percent reported it was

much more difficult than expected.

n Twelve percent of buyers overall cited saving for a

downpayment was the most difficult task in the home

buying process. Among those buyers, 48 percent report

credit card debt, 44 percent reported student loan debt,

and 36 percent car loans delayed them saving for adownpayment.

n Eight in 10 buyers believe their home is a good financial

investment.

Home Sellers and Their Selling Experience

n Forty percent of home sellers traded up to a larger sized

home, 47 percent purchased a more expensive home,

and 53 percent purchased a newer home.

n The typical seller lived in their home for 10 years. The

median tenure has increased in recent years. In 2007,

the typical tenure in home was only six years.

n Eighty-eight percent of sellers were assisted by a real

estate agent when selling their home.

n Recent sellers typically sold their homes for 97 percent

of the listing price, and 45 percent reported they reduced

the initial asking price at least once.

n Seventeen percent of recent sellers had to delay or stal

selling their home because the value of their home was

worth less than their mortgage.

n Thirty-six percent of sellers offered incentives to attractbuyers, most often assistance with home warranty

policies and closing costs.

Home Selling and Real Estate Professionals

n Thirty-eight percent of sellers who used a real estate

agent found their agents through a referral by friends

or family, and 22 percent used the agent they worked

with previously to buy or sell a home.

n Seventy percent of home sellers only contacted one

agent before selecting the one to assist with theirhome sale.

n Ninety-one percent of sellers reported that their home

was listed or advertised on the multiple listing (MLS)

website.

n Among recent sellers who used an agent, 83 percen

reported they would definitely (68 percent) or probably

(15 percent) use that real estate agent again or

recommend to others.

For-Sale-by-Owner (FSBO) Sellersn The share of home sellers who sold their home without

the assistance of a real estate agent was nine percent

Forty-four percent knew the buyer prior to home

purchase.

n Among sellers who did not know the buyer of the home

previously, 15 percent were contacted by a buyer they

did not know to buy the home.

n FSBOs typically have a lower median selling price

$208,700 compared to $235,000. Thus, the typica

agent-assisted home sale typically has a 13 percent

higher sales price than the typical FSBO sale.

n Half of FSBO sellers took no action to market their home

and 73 percent did not offer any incentives to attract

buyers.

Highlights


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2014 PROFILE OF HOME BUYERS AND SELLERSCHAPTER 1:

Characteristics of Home Buyers

Tightened credit standards for home buyers have suppressed the level

of first-time buyers in the market. Among primary residence home

buyers, only 33 percent are first-time buyers, while the historical

average is 40 percent.

First-time home buyers are more likely to be single females and single

males and typically have a lower income than repeat home buyers. Due to

the lower share of first-time buyers, the data shows a market with a higher

share of married couples who have higher household income than seensince the last report.

Thirteen percent of recent buyers purchased a multi-generational home.

The reasons for purchasing this home type vary from children over 18

moving back into the house to cost savings to the health and caretaking of

aging parents, as well as wanting to spend more time with aging parents.



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Demographic Characteristics of Homebuyers

• Exhibits 1–1 through 1–5

The demographics of home buyers in the last three years

have been reflective of tightened credit conditions. Buyers

tend to have higher incomes and there is a higher share of

married couples in the market.

The median age of home buyers rose to 44 years old from

42 years old. The largest share of home buyers is in the 25

to 34 age group, who account for 28 percent of recent home

buyers in the market. The 2013 median household income

for home buyers rose slightly to $84,500 from $83,300 in

the last report.

Buyers in the Midwest region tend to be younger, whilebuyers in the West and South regions tend to be older.

Buyers in the West region had the highest incomes followed

by buyers in the Northeast.

The share of married buyers remained nearly flat from

the past year at 65 percent. The single buyer share remains

suppressed. Single female buyers only made up 16 percent of

buyers while the share of single male buyers is nine percent.

In past years, single females made up more than one-fifth of

the market place and single males made up more than one-

tenth of recent buyers. This suggests that while tightenedlending conditions continue married couples are better able

to provide the purchasing power needed to buy a home.

Thirty-five percent of recent buyers had children

under the age of 18 in the household. Thirteen percent of

recent buyers purchased a home for a multi-generational

household—a home that had adult siblings, adult children

over the age of 18, parents, and or grandparents in the

household. One-quarter of these homes were bought for

cost savings and an additional 23 percent due to children

over the age of 18 moving back into the home. Eighteen

percent of multi-generational households purchased this

household type because of health and caretaking of aging

parents, while one in ten purchased this type of home to

spend more time with aging parents.

Race, Ethnicity, Language and National Origin

of Buyers

• Exhibits 1–6 through 1–9, and Exhibits 1–16through 1–18

Similar to 2013, 85 percent of buyers nationally reported

their ethnicity as Caucasian, although depending on the

region in which they bought a home both race and ethnicity

varies. The West remains the most diverse in composition

of home buyers, where 23 percent of buyers identified

themselves as a race other than Caucasian.

Ninety-six percent of home buyers speak English. This

number rises to 97 percent in the Midwest and declines

to 94 percent in the West. Eighty-nine percent of buyers

reported they were born in the U.S. This number declines

to 83 percent in the West and rises to 94 percent in the

Midwest.

First-time buyers remain more diverse than repeat buyers

overall. First-time buyers are also more likely to report no

being born in the U.S. and speaking a language other than

English at home.


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2014 PROFILE OF HOME BUYERS AND SELLERS • Chapter 1: Characteristics of Home Buyers

Demographic Characteristics of First-Time and

Repeat Home Buyers


Historically, the share of primary residence buyers whowere first-time home buyers is 40 percent. The share of

first-time home buyers from 2011 to 2014 has remained

under the historical average. In the 2014 report, 33 percent

of home buyers reported they were first-time home buyers.

This is the lowest share since 1987, when the share of first-

time buyers reported was 30 percent. The South had the

smallest share of first-time home buyers at 30 percent and

the Northeast had the largest share at 41 percent.

The share of married first-time buyers is 54 percent,

while the share of married repeat buyers is 70 percent. The

number of children under the age of eighteen living at home

was generally similar between first-time and repeat buyers.

The median age of first-time buyers is 31, unchanged from

last year, while the typical age for repeat buyers rose slightly

to 53 years from last year’s reported 52.

The median household income varies widely between

first-time buyers and repeat buyers –the typical 2013

household income for first-time buyers was $68,300 and

$95,000 for repeat buyers. Married repeat buyers continue

to have the highest income among all buyers at $107,800.

Increased median household income could suggest stricter

financing that forces low income buyers out of the market.

Prior Living Arrangement

• Exhibits 1–19 and 1–20

It was more likely for a home buyer to own their previous

residence then rent a home or apartment before buyingtheir most recent property. Seventy-five percent of first-

time buyers rented an apartment or house before buying

their home, while 19 percent lived with parents, relatives or

friends. Sixty-seven percent of repeat buyers owned their

previous residence, while 26 percent rented an apartment

or house before buying again.

In terms of household composition, married couples

remained more likely than other household types to own

their previous residence before buying. Unmarried couples

were the most likely to rent a home before making a

purchase. Those with children under the age of 18 in their

home were more likely to rent an apartment or house, while

those without children were more likely to live in a home

they owned.

Thirteen percent of recent buyers purchased a

home for a multi-generational household—a

home that had adult siblings, adult children over

the age of 18, parents, and or grandparents inthe household.


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Primary Reason for Home Purchase and Timing

of Purchase


With the share of buyers who are repeat buyersincreasing the reasons to purchase a home become more

diverse. The number one reason among all buyers and those

who are first-time buyers (53 percent) to purchase a home

is the desire to own a home of their own. Among repeat

buyers the most common reasons range from job-related

relocations or moves (12 percent) to the desire for a home

in a better area (11 percent) to the desire for a larger home

(10 percent).

The timing of the home purchase remained largely

driven by the buyers’ feeling that it was just the right time

to buy and the buyer felt ready to buy a home; 48 percent

of all buyers cited this as the primary reason. The second

most common reason was that the buyer did not have much

choice and they had to purchase the home when they did,

which was true for 19 percent of buyers.

Ownership of Multiple Homes

• Exhibit 1–24

The number of recent home buyers who own more than

one home was 21 percent in 2014, an increase from 19percent in 2013. The ability for a buyer to own an additiona

home besides the home they just purchased speaks to

the tightened credit conditions as buyers who have highe

incomes and own more than one property are more

commonly making home purchases. Owning more than

one property was more common among buyers who are 45

years and older. Twenty-six percent of buyers over the age of

44 own at least one other property other than their recently

purchased home. .

In the 2014 report, 33 percent of home buyers

reported they were first-time home buyers. This

is the lowest share since 1987, when the share of

first-time buyers reported was 30 percent.


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EXHIBIT 1–1 AGE OF HOME BUYERS, BY REGION

(Percentage Distribution)

BUYERS WHO PURCHASED A HOME IN THE

All Buyers Northeast Midwest South West

18 to 24 years 3% 4% 5% 2% 2%

25 to 34 years 28 31 33 26 25

35 to 44 years 20 21 18 20 21

45 to 54 years 16 17 14 17 16

55 to 64 years 17 13 16 18 19

65 to 74 years 13 12 10 15 13

75 years or older 4 3 4 4 5

Median age (years) 44 41 40 46 46

EXHIBIT 1–2 HOUSEHOLD INCOME OF HOME BUYERS, BY REGION, 2013

(Percentage Distribution)



Less than $25,000 3% 3% 5% 3% 3%

$25,000 to $34,999 6 6 7 6 6

$35,000 to $44,999 7 6 9 7 6

$45,000 to $54,999 8 9 8 8 8

$55,000 to $64,999 9 10 11 9 7

$65,000 to $74,999 8 8 9 9 8

$75,000 to $84,999 8 8 8 8 9

$85,000 to $99,999 10 9 11 10 11

$100,000 to $124,999 14 15 13 13 15

$125,000 to $149,999 9 10 7 8 10

$150,000 to $174,999 5 5 4 5 5

$175,000 to $199,999 3 4 3 4 3

$200,000 or more 9 9 6 10 8

Median income (2013) $84,500 $87,100 $77,700 $85,000 $88,700


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EXHIBIT 1–4 NUMBER OF CHILDREN UNDER THE AGE OF 18 RESIDING IN HOUSEHOLD(Percentage Distribution)

EXHIBIT 1–3 ADULT COMPOSITION OF HOME BUYER HOUSEHOLDS, 2001–2014 (Percentage Distribution)

OTHERUNMARRIED COUPLESINGLE MALESINGLE FEMALEMARRIED COUPLE

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

68%

15%

7%

3%

59%

21%

11%

8%

1%

62%

18%

8%

9%

2%

61%

21%

9%

7%2%

61%

22%

9%

7%1%

62%

20%

9%

7%2%

61%

20%

10%

7%2%

60%

21%

10%

8%

1%

58%

20%

12%

8%

1%

64%

18%

10%

7%1%

65%

16%

9%

8%

2%

66%

16%

9%

7%2%

65%

16%

9%

8%

2%

NONE 65%

THREE OR MORE 7%

TWO 14%

ONE 15%


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EXHIBIT 1–7 RACE/ETHNICITY OF HOME BUYERS, BY ADULT COMPOSITION

OF HOUSEHOLD (Percent of Respondents)

ADULT COMPOSITION OF HOUSEHOLD CHILDREN IN HOME

All Buyers Married couple Single female Single male

Unmarried

couple Other

Children under

18 in home

No children in

home

White/Caucasian 85% 85% 85% 82% 85% 74% 79% 88%

Hispanic/Latino/

Mexican/Puerto Rican5 6 4 5 6 8 8 4

Asian/Pacific Islander 5 6 2 6 5 8 7 4

Black/African-American 5 3 8 6 4 6 6 4

Other 3 2 2 4 5 7 3 2

Note: Respondents were permitted to select as many races and ethnicities as they felt applicable.

The percentage distribution may therefore sum to more than 100 percent.

EXHIBIT 1–6 RACE/ETHNICITY OF HOME BUYERS, BY REGION (Percent of Respondents)



White/Caucasian 85% 89% 90% 85% 77%

Hispanic/Latino/

Mexican/Puerto Rican5 3 3 6 7

Asian/Pacific Islander 5 4 3 4 11

Black/African-American 5 4 4 6 3

Other 3 2 2 2 5



EXHIBIT 1–5 HOME PURCHASED WAS A MULTI-GENERATIONAL HOME (WILL HOME ADULT

SIBLINGS, ADULT CHILDREN, PARENTS, AND/OR GRANDPARENTS) (Percentage Distribution)


All Buyers Married couple Single female Single male

Unmarried

couple Other

Children under

18 in home

No children in

home

Multi-generational

household13% 13% 13% 16% 7% 40% 15% 12%

REASONS FOR PURCHASE:

Cost Savings 24% 21% 24% 31% 36% 36% 24% 24%

Children over 18 moving

back into the house23 26 23 17 3 21 25 22

Health/Caretaking of

aging parents18 19 18 14 22 21 19 18

To spend more time with

aging parents10 12 8 6 14 * 15 7

Other 24 22 26 32 25 21 18 28

* Less than 1 percent


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EXHIBIT 1–8 PRIMARY LANGUAGE SPOKEN IN HOME BUYER HOUSEHOLD, BY REGION (Percentage Distribution)



English 96% 96% 97% 96% 94%

Other 4 4 3 5 6

EXHIBIT 1–9 NATIONAL ORIGIN OF HOME BUYERS, BY REGION (Percentage Distribution)



Born in U.S. 89% 91% 94% 91% 83%

Not born in U.S. 11 9 6 9 17

EXHIBIT 1–10 FIRST-TIME HOME BUYERS (Percent of all Home Buyers)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

60%

2001

42%

2003

40%

2004

40%

2005

40%

2006

36%

2007

39%

2008

41%

2009

47%

2010

50%

2011

37%

2012

39%

2013

38%

2014

33%


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FIRST-TIME HOME BUYERS

EXHIBIT 1–12 FIRST-TIME AND REPEAT HOME BUYERS BY HOUSEHOLD TYPE (Percentage Distribution)

EXHIBIT 1–11 FIRST-TIME HOME BUYERS, BY REGION (Percent of all Home Buyers)

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%


33%

41%

36%

30%32%

OTHER 2%

UNMARRIED COUPLE 15%

SINGLE MALE 11%

SINGLE FEMALE 18%

MARRIED COUPLE 54%

REPEAT HOME BUYERS

OTHER 2%

UNMARRIED COUPLE 4%

SINGLE MALE 8%

SINGLE FEMALE 16%

MARRIED COUPLE 70%


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NONE 63%

THREE OR MORE 6%

TWO 12%

ONE 20%

NONE 66%

THREE OR MORE 7%

TWO 15%

ONE 12%

EXHIBIT 1–13 FIRST-TIME AND REPEAT HOME BUYERS BY CHILDREN IN HOUSEHOLD (Percentage Distribution)

FIRST-TIME HOME BUYERS

REPEAT HOME BUYERS

EXHIBIT 1–14 AGE OF FIRST-TIME AND REPEAT BUYERS (Percentage Distribution)

All Buyers First-time Buyers Repeat Buyers

18 to 24 years 3% 9% *

25 to 34 years 28 56 13

35 to 44 years 20 19 20

45 to 54 years 16 8 20

55 to 64 years 17 6 22

65 to 74 years 13 1 19

75 years or older 4 * 6

Median age (years) 44 31 53

Married couple 43 31 51

Single female 52 33 58

Single male 47 31 56

Unmarried couple 33 28 46

Other 55 45 57



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EXHIBIT 1–15 HOUSEHOLD INCOME OF FIRST-TIME AND REPEAT BUYERS, 2013 (Percentage Distribution)


Less than $25,000 3% 4% 3%

$25,000 to $34,999 6 9 5

$35,000 to $44,999 7 11 5

$45,000 to $54,999 8 11 7

$55,000 to $64,999 9 11 8

$65,000 to $74,999 8 10 8

$75,000 to $84,999 8 9 8

$85,000 to $99,999 10 10 11

$100,000 to $124,999 14 12 15

$125,000 to $149,999 9 7 10

$150,000 to $174,999 5 3 6

$175,000 to $199,999 3 2 4

$200,000 or more 9 3 11

Median income (2013) $84,500 $68,300 $95,000

Married couple $98,300 $79,400 $107,800

Single female $54,800 $47,900 $60,600

Single male $65,800 $60,100 $71,800

Unmarried couple $80,800 $68,300 $97,200

Other $63,500 $56,200 $80,700

EXHIBIT 1–16 RACE/ETHNICITY OF FIRST-TIME AND REPEAT BUYERS(Percent of Respondents)


White/Caucasian 85% 78% 88%

Hispanic/Latino/

Mexican/Puerto Rican5 7 4

Asian/Pacific Islander 5 8 4

Black/African-American 5 7 3

Other 3 3 2



EXHIBIT 1–17 PRIMARY LANGUAGE SPOKEN IN FIRST-TIME AND REPEAT

BUYER HOUSEHOLDS(Percentage Distribution)


English 96% 92% 97%

Other 4 8 2


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EXHIBIT 1–18 NATIONAL ORIGIN OF FIRST-TIME AND REPEAT BUYERS(Percentage Distribution)


Born in U.S. 89% 86% 91%

Not born in U.S. 11 14 9

EXHIBIT 1–19 PRIOR LIVING ARRANGEMENT OF FIRST-TIME AND REPEAT BUYERS (Percentage Distribution)


Rented an apartment or house 42% 75% 26%

Owned previous residence 46 3 67

Lived with parents, relatives or friends 10 19 6

Rented the home buyer ultimately purchased 1 2 1

Note: After selling their previous home, buyers may have rented a home or apartment before purchasing their next home. A first-time buyer couldhave acquired ownership of their previous home (as an inheritance or gift, for example) without having been the buyer of the home. Thus, a first-

time buyer could have owned a home prior to their first home purchase.

EXHIBIT 1–20 PRIOR LIVING ARRANGEMENT, BY ADULT COMPOSITION OF HOUSEHOLD (Percentage Distribution)


All Buyers

Married

couple Single female Single male

Unmarried

couple Other

Children under

18 in home

No children in

home

Rented an apartment or

house42% 40% 43% 46% 56% 49% 45% 41%

Owned previous residence 46 52 41 36 25 35 44 47

Lived with parents,

relatives or friends10 7 15 16 18 17 10 10

Rented the home buyer

ultimately purchased1 1 1 2 1 * 2 1



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EXHIBIT 1–21 PRIMARY REASON FOR PURCHASING A HOME, FIRST-TIME AND

REPEAT BUYERS (Percentage Distribution)


Desire to own a home of my own 24% 53% 9%

Job-related relocation or move 9 4 12

Desire for a home in a better area 8 2 11

Change in family situation 8 5 9

Desire for larger home 7 1 10

Affordability of homes 5 8 3

Desire to be closer to family/friends/relatives 3 1 4

Retirement 3 * 5

Establish a household 3 7 1

Desire for smaller home 3 * 4

Financial security 3 6 1

Desire for a newly built or custom-built home 2 1 3

Tax benefits 2 3 2

Desire to be closer to job/school/transit 2 1 2

Greater number of homes on the market for sale/better choice * * *

Other 19 8 24



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EXHIBIT 1–22 PRIMARY REASON FOR PURCHASING A HOME, BY ADULT COMPOSITION

OF HOUSEHOLD (Percentage Distribution)


All Buyers

Married


Unmarried

couple Other

Children under

18 in home

No children

in home

Desire to own a home of my own 24% 19% 37% 23% 48% 41% 23% 25%

Job-related relocation or move 9 11 2 6 1 * 12 7

Desire for a home in a better area 8 9 3 4 10 11 12 6

Change in family situation

(e.g. marriage, birth of child,

divorce, etc.)

8 8 6 9 6 15 13 5

Desire for larger home 7 9 * * 4 * 14 2

Affordability of homes 5 4 11 3 5 15 5 5

Desire to be closer to family/

friends/relatives3 3 6 4 1 * 2 4

Retirement 3 2 3 13 * * * 5

Establish a household 3 4 * * 4 * 2 4

Desire for smaller home 3 4 * * * * 1 4

Financial security 3 1 6 11 2 * 1 4

Desire for a newly built or

custom-built home2 3 1 1 4 3 2

Tax benefits 2 2 6 4 * 4 1 3

Desire to be closer to job/

school/transit2 2 * * * * 4 1

Greater number of homes on the

market for sale/better choice* * 2 * * * * *

Other 19 18 19 21 19 11 8 25


EXHIBIT 1–23 PRIMARY REASON FOR THE TIMING OF HOME PURCHASE, FIRST-TIME

AND REPEAT BUYERS (Percentage Distribution)


It was just the right time, buyer was ready to buy a home 48% 56% 43%

Buyer did not have much choice, had to purchase when buyer did 19 12 22

It was the best time for buyer because of affordability of homes 11 13 10

It was the best time for buyer because of mortgage financing options available 10 13 9

It was the best time for buyer because of availability of homes for sale 9 5 11Other 3 1 4

Wish they had waited 1 1 2


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EXHIBIT 1–24 OTHER HOMES OWNED, BY AGE (Percentage Distribution)

AGE OF HOME BUYER

All Buyers 18 to 24 25 to 44 45 to 64 65 or older

Recently purchased home only 79% 95% 84% 74% 74%

One or more investment properties 10 2 10 12 9

Previous homes that buyer is trying to sell 5 * 3 6 8

Primary residence 3 1 2 3 3

One or more vacation homes 4 * 1 5 8

Other 2 * 1 4 1



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National Association of REALTORS®CHAPTER 2:


Buyers purchase different types of homes for different reasons. While

new home purchasers buy with the hope of avoiding renovations or

problems with plumbing or electrical, and the ability to customize

their home, previously owned home buyers often purchase their home for a

better price and overall value and the charm and character their home

provides.

Repeat buyers purchase larger homes than first-time buyers, and new

homes are larger than previously owned homes. Thirteen percent of recenthome buyers over 50 years of age purchased a home in senior-related

housing or an active adult community, which tends to change the home type

and location somewhat from homes not in senior housing.

Once the buyer is moved in to their newly purchased home, they expect

to live there for 12 years. First-time home buyers and younger buyers expect

their tenure will be shorter, while older buyers expect their tenure to be

longer. Forty-four percent of buyers report that they could move with a

future life change such as an addition to the family, marriage, when children

move out of the home or retirement, while 23 percent report this is their

forever home and they have no intention of ever moving.



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2014 PROFILE OF HOME BUYERS AND SELLERS • Chapter 2: Characteristics of Homes Purchased

New and Previously Owned Homes Purchased


The share of new homes purchased remains at

suppressed levels as construction has remained at low levels

across the U.S. In 2003, 28 percent of homes purchased

were new homes. In 2014, that share is 16 percent, which

is the same share seen since 2011. Purchasing a new home

is more common in the South, where 21 percent of buyers

bought a new home.

Among buyers who purchased new homes, 40 percent

did so to avoid renovations or problems with the plumbing

or electricity and 24 percent did so for the ability to choose

and customize their design features. Among buyers who

purchased previously owned homes about 32 percent did

so for a better price and better overall value and 19 percent

did so for more charm and character.

Type of Home Purchased


Detached single-family homes continue to be the most

popular type of home purchased, accounting for 79 percent

of the home buying market. Eight percent of householdspurchased a townhouse or row house and eight percent

purchased a condo.

First-time home buyers are slightly more likely to

purchase a townhouse or a condo than repeat buyers. Single

buyers were more likely to purchase a townhouse or condo

than married couples and unmarried couples. Eighty-seven

percent of buyers with children under the age of 18 in the

home purchased a detached single-family home compared

to 74 percent of buyers with no children in the home.

Location of Home Purchased


Fifty percent of buyers purchased a home in a suburb

or subdivision, 20 percent of buyers purchased in a smalltown, 16 percent purchased in an urban area, and 11 percent

purchased in a rural area. First-time home buyers were more

likely than repeat buyers to purchase a home in an urban or

central city area. Buyers of new homes were most likely to

purchase in a suburb.

Senior Housing and Active Adult Communities

• Exhibit 2–10

Thirteen percent of recent home buyers over 50 years of

age purchased a home in senior-related housing or an active

adult community, either for themselves or for a friend or

family member. Fifty-nine percent of the homes purchased

were detached single-family homes, 21 percent were condos

and eight percent were townhouses. While 48 percent of

senior housing was purchased in the suburbs, 14 percent

was purchased in a resort or recreation area, and 20 percent

was in a small town.

Distance Between Home Purchased and Previous

Residence

• Exhibit 2–11

Nationally, home buyers moved a median of 12 miles

from their previous residence. Buyers in the South moved

the farthest—a median of 15 miles from their previous

residence, while buyers in the Midwest and Northeast

moved only 10 miles.


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Factors Influencing Neighborhood Choice


Factors that influence buyers are subjective based on

what is important to the buyer. For the past several years,the top factor influencing where a buyer purchased a home

was the quality of the neighborhood. Convenience to work

was the second-most significant factor with just over half of

buyers citing its importance. Affordability of homes was also

very important, with 47 percent citing it as a factor in their

neighborhood choice. By family type there are variations

in the importance of neighborhood factors. Single females

in comparison to other buyers place a higher priority on

convenience to friends and family. Both single buyers and

unmarried couples value affordability of homes. Marriedcouples and those with children in the home place higher

priority on the quality and convenience to schools than

other buyers.

Price of Home Purchased


Prices of homes purchased by recent buyers have shown

a two-year increased price trend. The median price paid by

all recent buyers from mid-2013 to mid-2014 was $216,000

compared to mid-2012 to mid-2013 at $210,000. Prices

were the highest in the West with a median of $280,000,

followed by the Northeast at $219,000. Prices were the

lowest in the Midwest at a median price paid of $167,000.

Typically, new homes are more expensive than

previously owned homes. The median price buyers paid

for a new home was $277,200 compared to $200,000 for

a previously owned home. The median price repeat buyers

paid for their home was $240,000 compared to a median

price of $169,000 for first-time buyers.

Buyers typically paid slightly less than the asking price

with the median purchase price 98 percent of the asking

price—the same share reported in the previous year’s

report. Thirteen percent of buyers paid more than the asking

price and one-quarter of buyers paid the asking price of the

home. In the West region 29 percent of buyers paid theasking price of the home, and 21 percent paid more than the

asking price of the home.

Size of Home Purchased


The median size of homes purchased was 1,870 in this

year’s report compared to 1,900 in last year’s report. Repeat

buyers usually purchase larger homes than first-time buyers

Repeat buyers typically purchased a 2,030 square foot

home whereas first-time buyers purchased a 1,570 square

foot home. Married couples and families with children

under the age of 18 in their home typically purchased the

largest homes, while single buyers typically purchased the

smallest homes.

Homes purchased in the South were generally larger a

a median of 2,000 square feet. Looking at price per square

foot makes it possible to compare prices across regions

and types of homes. Homes purchased in the West and

Northeast were more expensive per square foot compared

to the Midwest and South. When looking at the type of home

purchased, condos in buildings with five or more units were

the most expensive type of home based on square footage

while detached single-family homes and duplex and condos

in buildings with two to four units were the least expensive.

Buyers with children in the home typically purchased a

four bedroom and two bathroom home, while all other buyer

types typically had a median of three bedrooms and two

bathrooms.


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Year Home Was Built

• Exhibit 2–23

The typical home purchased was built in 1993. By region

the age of homes varies. Homes in the South were typicallythe newest homes, built in 1999, which is not surprising

due to the high percentage of new home sales in the South.

Homes in the Northeast were typically the oldest homes,

built in 1970. Homes in the Midwest were typically built in

1980 and homes in the West 1993.

Environmental Features and Commuting Costs


Commuting costs and environmental efficiency have

increasingly factored into home buying decisions due to

higher energy costs, but also due to overall concern for the

environment. Factors that are most important to buyers are

those directly related to the buyers’ pocketbook. Heating

and cooling costs were at least “somewhat” important to

86 percent of home buyers. Commuting costs were at least

“somewhat” important to 70 percent of home buyers. Buyers

who purchased newer homes typically placed a higher

importance on environmentally friendly home features.

Characteristics of Home on Which Buyer

Compromised


One-third of respondents said that they did not makeany compromises when purchasing their home. However,

23 percent of buyers reported that they compromised on

the price of the home, and 20 percent compromised on

the size of home. First-time buyers and unmarried couples

were the most likely to make comprises when purchasing a

home. The least compromised features consistently for all

buyers over time is the quality of schools and the distance

to schools.

Expected Length of Tenure in Home Purchased


Thirty-nine percent of recent buyers were unsure of how

long they expected to own their home. The typical buyer

estimated they would live in their home for 12 years. First-

time home buyers estimated they would live in their house

for 10 years before moving and repeat buyers 15 years before

moving. Buyers aged 18 to 24 had the shortest timeframe

of eight years, while buyers aged 45 to 64 had the longest

timeframe of 20 years.

Among potential motivating factors to make a buyer

move, moving with potential life changes was the most

common at 44 percent. Twenty-three percent of buyers

reported they were never moving and this was their forever

home. Eighteen percent of buyers reported a potential job

change could be the impetus for a future move.

Thirteen percent of recent home buyers over 50

years of age purchased a home in senior-related

housing or an active adult community, either for

themselves or for a friend or family member.


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EXHIBIT 2–1 NEW AND PREVIOUSLY OWNED HOMES PURCHASED, 2001–2014 (Percentage Distribution)

EXHIBIT 2–2 NEW AND PREVIOUSLY OWNED HOMES PURCHASED, BY REGION (Percentage Distribution)



New 16% 8% 9% 21% 16%

Previously Owned 84 92 92 79 84

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

NEW PREVIOUSLY OWNED

78%77%

79%82%

85%84% 84% 84%

79%

21%

72%

28%

79%

21%

77%

23% 22% 23% 21%

18%

15% 16% 16% 16%

84%

16%

2014


30/128



EXHIBIT 2–3 REASON FOR NEW AND PREVIOUSLY OWNED HOME PURCHASE(Percentage Distribution)

NEW HOME: 16%

Avoid renovations or problems with plumbing or electricity 40%

Ability to choose and customize design features 24Amenities of new home construction communities 17

Lack of inventory of previously owned home 10

Green/energy efficiency 9

Other 15

PREVIOUSLY OWNED HOME: 84%

Better price 32%

Better overall value 32

More charm and character 19

Lack of inventory of new homes 9

Other 14

EXHIBIT 2–4 TYPE OF HOME PURCHASED, BY LOCATION (Percentage Distribution)

BUYERS WHO PURCHASED A HOME IN A

All Buyers Suburb/ Subdivision Small town Urban/Central city Rural area Resort/Recreation area

Detached single-family home 79% 83% 82% 61% 83% 67%

Townhouse/row house 8 8 6 12 3 10

Apartment/condo in building

with 5 or more units6 4 3 17 1 10

Duplex/apartment/condo in 2

to 4 unit building 2 2 1 4 * 4

Other 6 4 8 6 13 9


EXHIBIT 2–5 TYPE OF HOME PURCHASED BY FIRST-TIME AND REPEAT BUYERS,

AND BUYERS OF NEW AND PREVIOUSLY OWNED HOMES (Percentage Distribution)

BUYERS OF

All Buyers First-time Buyers Repeat Buyers New Homes Previously Owned Homes

Detached single-family home 79% 75% 81% 84% 78%

Townhouse/row house 8 10 7 8 8

Apartment/condo in building with 5 or more units 6 7 5 4 6

Duplex/apartment/condo in 2 to 4 unit building 2 3 2 1 2

Other 6 6 6 3 7


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EXHIBIT 2–8 LOCATION OF HOME PURCHASED BY FIRST-TIME AND REPEAT BUYERS,

AND BUYERS OF NEW AND PREVIOUSLY OWNED HOMES (Percentage Distribution)

BUYERS OF


Suburb/Subdivision 50% 46% 52% 63% 48%

Small town 20 21 20 16 21

Urban area/Central city 16 21 13 10 17

Rural area 11 10 11 7 12

Resort/Recreation area 3 2 3 5 2

EXHIBIT 2–6 TYPE OF HOME PURCHASED, BY ADULT COMPOSITION OF HOUSEHOLD (Percentage Distribution)


All Buyers

Married


Unmarried

couple Other

Children under

18 in home

No children

in home

Detached single-family home 79% 85% 62% 67% 77% 73% 87% 74%Townhouse/row house 8 5 14 12 7 4 6 8

Apartment/condo in building

with 5 or more units6 3 12 12 7 12 1 8

Duplex/apartment/condo

in 2 to 4 unit building2 1 4 3 3 3 1 3

Other 6 5 7 7 6 9 5 7

EXHIBIT 2–7 LOCATION OF HOME PURCHASED, BY REGION (Percentage Distribution)




Small town 20 28 22 17 20

Urban area/Central city 16 12 18 14 19

Rural area 11 14 11 11 10

Resort/Recreation area 3 2 1 3 4


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EXHIBIT 2–9 LOCATION OF HOME PURCHASED VERSUS LOCATION OF HOME SOLD (Percentage Distribution Among those that Sold a Home)

LOCATION OF HOME PURCHASED

Suburb/Subdivision Small town Urban/Central city Rural area

Resort/

Recreation area

LOCATION OF

HOME SOLD


Small town 5 8 2 3 1

Urban area/Central city 5 2 5 2 *

Rural area 6 3 2 3 *

Resort/Recreation area 1 * * * 1


EXHIBIT 2–10 SENIOR-RELATED HOUSING BY TYPE OF HOME PURCHASED AND LOCATION(Percentage Distribution)

ALL BUYERS OVER 50

Share who purchased a home in senior related housing 13%

Buyers over 50 who purchased senior-related housing:

TYPE OF HOME PURCHASED

Detached single-family home 59%

Townhouse/row house 8

Apartment/condo in building with 5 or more units 12

Duplex/apartment/condo in 2 to 4 unit building 9

Other 13

LOCATION

Suburb/ Subdivision 48%

Small town 20

Urban/ Central city 12

Rural area 6

Resort/ Recreation area 14


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EXHIBIT 2–11 DISTANCE BETWEEN HOME PURCHASED AND PREVIOUS RESIDENCE (Median Miles)

0

2

4

6

8

10

12

14

16

18


12

10 10

15

11


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EXHIBIT 2–12 FACTORS INFLUENCING NEIGHBORHOOD CHOICE, BY LOCATION (Percent of Respondents)


All Buyers Suburb/Subdivision Small town Urban/Central city Rural area

Resort/

Recreation area

Quality of the neighborhood 69% 77% 65% 64% 48% 64%

Convenient to job 52 55 47 62 43 23

Overall affordability of homes 47 49 50 46 38 41

Convenient to friends/family 43 45 44 40 34 33

Convenient to shopping 31 34 28 35 19 38

Quality of the school district 30 37 27 20 22 14

Design of neighborhood 28 32 24 24 19 39

Convenient to entertainment/

leisure activities25 26 18 39 10 46

Convenient to schools 25 28 24 20 21 11

Convenient to parks/

recreational facilities23 24 20 29 11 38

Availability of larger lots or

acreage19 17 17 9 51 8

Convenient to health facilities 15 16 13 13 10 24

Home in a planned

community10 13 7 6 6 34

Convenient to public

transportation8 7 5 21 2 3

Convenient to airport 7 9 4 8 5 8

Other 6 6 7 5 9 12


35/128



EXHIBIT 2–13 FACTORS INFLUENCING NEIGHBORHOOD CHOICE, BY ADULT COMPOSITION

OF HOUSEHOLD AND CHILDREN IN HOUSEHOLD (Percent of Respondents)


All Buyers

Married


Unmarried

couple Other

Children under

18 in home

No children

in home

Quality of the neighborhood 69% 70% 68% 63% 68% 67% 71% 69%

Convenient to job 52 51 51 53 67 42 61 48

Overall affordability of homes 47 45 52 46 54 57 48 47

Convenient to friends/family 43 41 53 36 46 35 38 45

Convenient to shopping 31 30 32 32 34 44 24 35

Quality of the school district 30 36 18 17 24 24 57 15

Design of neighborhood 28 28 29 27 24 21 25 29

Convenient to entertainment/

leisure activities25 23 24 33 31 23 18 29

Convenient to schools 25 29 13 13 22 21 55 9

Convenient to parks/recreational facilities 23 24 19 22 27 19 27 21

Availability of larger lots or

acreage19 22 11 12 21 15 25 16

Convenient to health facilities 15 15 16 16 10 26 8 18

Home in a planned community 10 11 11 9 6 13 9 11

Convenient to public

transportation8 7 10 7 12 11 7 8

Convenient to airport 7 7 6 8 6 11 6 8

Other 6 7 6 5 5 11 5 7

EXHIBIT 2–14 PRICE OF HOME PURCHASED, BY REGION (Percentage Distribution)



Less than $75,000 6% 5% 10% 6% 2%

$75,000 to $99,999 6 6 10 6 3

$100,000 to $124,999 7 7 10 7 4

$125,000 to $149,999 10 10 13 10 6

$150,000 to $174,999 9 9 11 10 7

$175,000 to $199,999 8 8 10 8 7

$200,000 to $249,999 14 11 15 15 13

$250,000 to $299,999 10 11 9 10 12

$300,000 to $349,999 8 7 5 8 9

$350,000 to $399,999 6 5 3 6 8

$400,000 to $499,999 8 9 4 7 11

$500,000 or more 9 11 3 6 19

Median price $216,000 $219,000 $167,000 $207,000 $280,000


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EXHIBIT 2–15 PRICE OF HOME PURCHASED, NEW AND PREVIOUSLY OWNED HOMES (Percentage Distribution)

BUYERS WHO PURCHASED A

All Buyers New Home Previously Owned Home

Less than $75,000 6% 1% 6%

$75,000 to $99,999 6 * 7

$100,000 to $124,999 7 2 8

$125,000 to $149,999 10 4 11

$150,000 to $174,999 9 7 10

$175,000 to $199,999 8 8 8

$200,000 to $249,999 14 18 13

$250,000 to $299,999 10 16 9

$300,000 to $349,999 8 14 6

$350,000 to $399,999 6 10 5

$400,000 to $499,999 8 9 7

$500,000 or more 9 11 9

Median price $216,000 $277,200 $200,000


EXHIBIT 2–16 PRICE OF HOME PURCHASED, FIRST-TIME AND REPEAT BUYERS (Percentage Distribution)


Less than $75,000 6% 9% 4%

$75,000 to $99,999 6 9 4

$100,000 to $124,999 7 9 6

$125,000 to $149,999 10 14 8

$150,000 to $174,999 9 12 8

$175,000 to $199,999 8 9 8

$200,000 to $249,999 14 12 15

$250,000 to $299,999 10 7 12

$300,000 to $349,999 8 5 9

$350,000 to $399,999 6 4 7

$400,000 to $499,999 8 6 8

$500,000 or more 9 6 11

Median price $216,000 $169,000 $240,000

Married couple $240,000 $185,000 $260,000

Single female $153,600 $135,000 $170,400

Single male $173,700 $161,500 $182,400

Unmarried couple $186,600 $155,000 $240,000

Other $187,000 $141,500 $233,300


37/128



EXHIBIT 2–17 PURCHASE PRICE COMPARED WITH ASKING PRICE, BY REGION (Percentage Distribution)


Percent of asking price: All Buyers Northeast Midwest South West

Less than 90% 10% 15% 12% 10% 6%

90% to 94% 16 19 19 17 11

95% to 99% 36 39 36 37 33

100% 25 20 22 25 29

101% to 110% 11 7 9 9 16

More than 110% 2 1 1 2 5

Median (purchase price as a

percent of asking price)98% 97% 97% 98% 99%

EXHIBIT 2–18 SIZE OF HOME PURCHASED, FIRST-TIME AND REPEAT BUYERS, AND BUYERS

OF NEW AND PREVIOUSLY OWNED HOMES (Percentage Distribution)

BUYERS OF

All Buyers First-time Buyers Repeat Buyers New Homes

Previously Owned

Homes

1,000 sq ft or less 1% 2% * * 1%

1,001 to 1,500 sq ft 15 24 11 3 18

1,501 to 2,000 sq ft 28 37 24 19 30

2,001 to 2,500 sq ft 24 22 26 31 23

2,501 to 3,000 sq ft 14 9 17 21 13

3,001 to 3,500 sq ft 9 5 12 15 8

3,501 sq ft or more 8 3 11 12 8

Median (sq ft) 1,870 1,570 2,030 2,200 1,800


EXHIBIT 2–19 SIZE OF HOME PURCHASED, BY ADULT COMPOSITION OF HOUSEHOLD (Percentage Distribution)


All Buyers

Married

couple

Single

female Single male

Unmarried

couple Other

Children under

18 in home

No children

in home

1,000 sq ft or less 1% * 2% 3% * * * 1%

1,001 to 1,500 sq ft 15 9 30 24 25 17 9 19

1,501 to 2,000 sq ft 28 24 37 34 36 28 22 31

2,001 to 2,500 sq ft 24 26 21 22 26 24 24 24

2,501 to 3,000 sq ft 14 18 7 9 8 17 18 13

3,001 to 3,500 sq ft 9 12 2 5 3 11 13 7

3,501 sq ft or more 8 11 2 4 3 4 14 5

Median (sq ft) 1,870 2,090 1,500 1,570 1,640 1,800 2,170 1,740



38/128



EXHIBIT 2–20 HOME SIZE AND PRICE PER SQUARE FOOT, BY REGION (Median)



All homes purchased

Square feet 1,870 1,700 1,800 2,000 1,780

Price per square foot $110 $130 $95 $100 $145

Detached single-family home

Square feet 2,000 1,800 1,900 2,100 2,000


Townhouse or row house

Square feet 1,600 1,700 1,460 1,700 1,500


Duplex/apartment/condo in 2-4 unit building

Square feet 1,600 1,400 1,700 1,790 1,340


Apartment/condo in building with 5 or more units

Square feet 1,200 1,140 1,300 1,300 1,090


EXHIBIT 2–21 NUMBER OF BEDROOMS AND BATHROOMS, BY FIRST-TIME AND REPEAT

BUYERS, AND BUYERS OF NEW AND PREVIOUSLY OWNED HOMES (Percentage Distribution)

BUYERS OF


One bedroom 2% 3% 1% * 2%

Two bedrooms 16 18 15 10 17

Three bedrooms or more 82 80 84 90 81

Median number of bedrooms 3 3 3 3 3

One full bathroom 16 28 11 2 19

Two full bathrooms 62 61 62 63 61

Three full bathrooms or more 22 11 28 36 20

Median number of full bathrooms 2 2 2 2 2



39/128



EXHIBIT 2–22 NUMBER OF BEDROOMS AND BATHROOMS, BY ADULT HOUSEHOLD

COMPOSITION AND CHILDREN IN HOUSEHOLD (Percentage Distribution)


All Buyers

Married

couple

Single

female

Single

male

Unmarried

couple Other

Children under

18 in home

No children in

home

One bedroom 2% * 5% 4% 2% 4% * 2%

Two bedrooms 16 11 29 27 20 18 6 21

Three bedrooms or more 82 89 65 69 78 78 93 76

Median number of bedrooms 3 3 3 3 3 3 4 3

One full bathroom 16 11 28 27 25 20 13 18

Two full bathrooms 62 61 63 57 64 67 56 65

Three full bathrooms or more 22 28 9 17 12 13 32 17

Median number of full bathrooms 2 2 2 2 2 2 2 2


EXHIBIT 2–23 YEAR HOME BUILT, BY REGION (Median)



2013 16% 8% 9% 22% 16%

2012 through 2010 3 2 2 3 4

2009 through 2007 7 3 6 10 7

2006 through 2002 12 5 11 14 11

2001 through 1987 21 16 18 22 23

1986 through 1960 22 25 24 20 25

1959 through 1910 17 33 25 9 15

1909 or earlier 3 8 5 * 1

Median 1993 1970 1980 1999 1993


EXHIBIT 2–24 IMPORTANCE OF COMMUTING COSTS(Percentage Distribution)

NOT IMPORTANT 30%

SOMEWHAT IMPORTANT 38%

VERY IMPORTANT 32%


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EXHIBIT 2–25 IMPORTANCE OF HOME’S ENVIRONMENTALLY FRIENDLY FEATURES (Percentage Distribution)

EXHIBIT 2–26 ENVIRONMENTALLY FRIENDLY FEATURES CONSIDERED “VERY IMPORTANT,”

BY REGION (Percent of Respondents)



Heating and cooling costs 36% 37% 32% 39% 32%

Energy efficient appliances 23 17 17 27 23

Energy efficient lighting 22 14 17 25 24

Landscaping for energy conservation 10 5 5 11 15

Environmentally friendly community features 14 8 10 15 17

Solar panels installed on home 2 1 1 2 4

0% 20% 40% 60% 80% 100%

Solar panels installed on home

Environmentally friendly community features

Landscaping for energy conservation

Energy efficient lighting

Energy efficient appliances

Heating and cooling costs

VERY IMPORTANT SOMEWHAT IMPORTANT NOT IMPORTANT

2% 9% 89%

14% 33% 53%

10% 36% 54%

22% 44% 34%

23% 45% 32%

36% 50% 15%


41/128



EXHIBIT 2–28 CHARACTERISTICS OF HOME ON WHICH BUYER COMPROMISED,

BY LOCATION (Percent of Respondents)


All Buyers Suburb/Subdivision Small town Urban/Central city Rural Resort/Recreation area

Price of home 23% 23% 20% 27% 22% 18%

Size of home 20 19 21 24 19 19

Condition of home 18 17 18 22 18 11

Lot size 16 16 18 13 13 13

Style of home 16 15 15 18 14 16

Distance from job 14 15 12 11 17 3

Distance from friends or family 7 7 7 6 11 7

Quality of the neighborhood 5 5 4 10 4 3

Quality of the schools 4 4 2 6 3 1

Distance from school 2 1 2 2 3 2

None - Made no compromises 33 32 35 30 33 43

Other compromises not listed 8 8 9 7 8 7

EXHIBIT 2–27 ENVIRONMENTALLY FRIENDLY FEATURES CONSIDERED "VERY IMPORTANT,"

BY YEAR HOME WAS BUILT (Percent of Respondents)

All Buyers 2013

2012

through

2010

2009

through

2007

2006

through

2002

2001

through

1987

1986

through

1960

1959

through

1910

1909 or

earlierHeating and cooling costs 36% 53% 44% 28% 37% 34% 29% 32% 35%

Energy efficient appliances 23 49 30 21 21 17 15 17 16

Energy efficient lighting 22 41 28 19 21 17 17 18 19

Landscaping for energy

conservation10 14 13 6 11 10 8 9 6

Environmentally friendly

community features14 27 9 13 13 12 12 11 10

Solar panels installed

on home2 4 2 1 1 2 1 2 3


42/128



EXHIBIT 2–29 CHARACTERISTICS OF HOME ON WHICH BUYER COMPROMISED,

FIRST-TIME AND REPEAT BUYERS, AND BUYERS OF NEW AND

PREVIOUSLY OWNED HOMES (Percentage of Respondents)

BUYERS OF


Price of home 23% 25% 21% 19% 23%

Size of home 20 27 17 16 21

Condition of home 18 19 17 2 21

Lot size 16 18 15 26 14

Style of home 16 18 14 12 16

Distance from job 14 18 11 19 13

Distance from friends or family 7 9 6 10 7

Quality of the neighborhood 5 6 5 5 5

Quality of the schools 4 7 2 4 4

Distance from school 2 3 1 3 2

None - Made no compromises 33 25 36 36 32

Other compromises not listed 8 8 8 6 9

EXHIBIT 2–30 CHARACTERISTICS OF HOME ON WHICH BUYER COMPROMISED, BY ADULT

COMPOSITION OF HOUSEHOLD(Percentage of Respondents)


All Buyers

Married

couple

Single

female

Single

male

Unmarried

couple Other

Children under

18 in home

No children

in home

Price of home 23% 22% 22% 23% 26% 33% 24% 22%

Size of home 20 19 20 23 24 13 21 19

Condition of home 18 17 18 19 18 17 18 18

Lot size 16 18 10 12 16 10 18 15

Style of home 16 15 15 17 19 18 16 15

Distance from job 14 14 11 9 18 18 18 11

Distance from friends or family 7 7 7 8 7 10 8 7

Quality of the neighborhood 5 5 6 7 5 3 5 5

Quality of the schools 4 4 2 3 6 5 6 3

Distance from school 2 2 1 1 2 3 4 1

None - Made no compromises 33 32 36 38 26 30 27 35

Other compromises not listed 8 8 9 7 7 8 8 8


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EXHIBIT 2–32 EXPECTED LENGTH OF TENURE IN HOME PURCHASED, BY AGE (Percentage Distribution)

AGE OF HOME BUYER


1 year or less 2% 2% 1% 2% 2%

2 to 3 years 3 2 3 2 1

4 to 5 years 9 19 12 6 3

6 to 7 years 3 7 5 2 1

8 to 10 years 14 18 18 12 9

11 to 15 years 5 3 5 5 8

16 or more years 25 14 24 30 22

Don't Know 39 35 32 41 54

Median 12 8 10 20 15

EXHIBIT 2–31 EXPECTED LENGTH OF TENURE IN HOME PURCHASED, FIRST-TIME AND

REPEAT BUYERS, AND BUYERS OF NEW AND PREVIOUSLY OWNED HOMES (Percentage Distribution)

BUYERS OF


1 year or less 2% 2% 2% 2% 2%

2 to 3 years 3 3 2 3 2

4 to 5 years 9 12 7 9 9

6 to 7 years 3 5 2 2 3

8 to 10 years 14 16 13 16 14

11 to 15 years 5 4 6 7 5

16 or more years 25 22 27 23 26

Don't Know 39 37 41 38 40

Median 12 10 15 10 14


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EXHIBIT 2–33 FACTORS THAT COULD CAUSE BUYER TO MOVE, BY AGE (Percent of Respondents)

AGE OF HOME BUYER


Move with life changes (addition to family,

marriage, children move out, retirement, etc.) 44% 46% 46% 44% 36%

Never moving-forever home 23 7 13 28 43

Move with job or career change 18 21 27 12 *

May desire better area/neighborhood 9 13 11 8 6

May outgrow home 7 13 12 2 1

Will flip home 2 4 2 1 2

Other 6 3 3 7 13


EXHIBIT 2–34 FACTORS THAT COULD CAUSE BUYER TO MOVE, BY ADULT COMPOSITION

OF HOUSEHOLD(Percentage of Respondents)


All Buyers

Married

couple

Single

female

Single

male

Unmarried

couple Other

Children under

18 in home

No children

in home

Move with life changes (addition

to family, marriage, children

move out, retirement, etc.)

44% 40% 55% 49% 44% 35% 43% 44%

Never moving-forever home 23 24 24 15 16 31 17 25

Move with job or career change 18 20 9 13 20 7 24 14

May desire better area/neigh-

borhood

9 9 7 12 13 9 10 9

May outgrow home 7 7 4 7 14 6 9 6

Will flip home 2 1 1 3 3 4 2 1

Other 6 6 5 7 4 10 3 7


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2014 PROFILE OF HOME BUYERS AND SELLERS


CHAPTER 3:

The Home Search Process

The internet continues to play an ever-increasing role for home buyers

in the home search process. Nine in 10 buyers used the internet at

some point while looking for a home. Over half of buyers started their

home search online and 43 percent of recent buyers first found the home

they purchased online. Half of home buyers used a mobile or tablet website

or application to search for a home. Of these mobile searchers, 27 percent of

mobile searchers reported they found the home they ultimately purchased

with a mobile application.

The role of the real estate agent becomes increasingly important to the

buyer as market conditions change in local areas of the country, especially

where buyers saw tightened inventory. With limited inventory on the market

for many home buyers, the most difficult part of the search process for

recent home buyers is finding the right property. The search process has

been squeezed with a limited number of homes to view, in a shorter

timeframe. Overall, 89 percent of home buyers are at least somewhat

satisfied with their search process to find a home.



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2014 PROFILE OF HOME BUYERS AND SELLERS • Chapter 3: The Home Search Process

The Search Process


From 2009 to 2013 the typical home search process took

12 weeks for a buyer. This year as inventory tightened thehome search and potential homes to view, the typical search

dropped to 10 weeks for a buyer to find a home. While

searching, buyers typically looked at a median of 10 homes

before finding a home to purchase. Buyers usually spent two

weeks searching before they contacted an agent. First-time

buyers also searched longer for their first home, 12 weeks,

compared with repeat buyers who spent nine weeks in the

process.

In 2001, eight percent of buyers found their home on

the internet; today 43 percent of buyers find the home theyultimately purchased on the internet. The internet has edged

out all other sources in the process. The real estate agent

remains the second most common source at 33 percent, but

it has declined steadily from 48 percent in 2001. All other

sources such as yard signs, hearing from friend or relative,

or home builders, have declined.

While nearly half of buyers considered buying a home

in foreclosure, many buyers could not find the right home

to buy, decided the process was too difficult or complex, or

that the home was in poor condition. First-time buyers weremost likely to consider a home in foreclosure, while buyers

who ultimately purchased a new home were least likely to

consider a home in foreclosure.

Unsurprisingly, with housing inventory limited in many

local markets, the most difficult step for home buyers in

the home buying process was finding the right home to

purchase (53 percent). For 24 percent of buyers the most

difficult step was the paperwork, and 16 percent cited the

most difficult step was understanding the process and steps

involved. While 16 percent of recent buyers had no difficultsteps, this was much more common among repeat buyers.

The First Step in the Home Buying Process


Increasingly buyers are using the internet as their first

step in the home search process. Forty-three percent of

buyers first looked online for properties for sale as their first

step—an incremental increase from 35 percent in 2011. An

additional 12 percent began by finding information online

about the home buying process, which has increased from

10 percent in 2011. Repeat home buyers were more likely to

look online at properties for sale while first-time home buyers

were more likely to look online for information about the

home buying process. As the age of home buyers increased,

the likelihood that their first step would be contacting a real

estate agent or driving by homes and neighborhoods alsoincreased. Buyers aged 18 to 24 were most likely, compared

to other buyers, to talk to a friend or relative about the home

buying process first.

Information Sources


Eighty-eight percent of home buyers used an online

website and a real estate agent as information sources in

their home search process. Buyers of previously owned

homes were most likely to report using a real estate agent

at 90 percent. While yard signs and open houses have

historically been used most frequently after online websites

and real estate agents, the use of mobile technology is now

outpacing these traditional sources in the home search

process. Mobile or tablet websites and applications were

used by 50 percent of buyers and mobile or tablet search

engines by 48 percent of buyers. In the same time period,

yard signs dropped in frequency of use to 48 percent from

51 percent and open houses stayed nearly flat at 44 percentof buyers using this source.

Younger buyers are most likely to embrace the use of

mobile technology in their home search process, while

older buyers are more likely than younger buyers to use

open houses. Interestingly, older buyers are more likely to

use online videos in their home search, perhaps as they are

more likely to move longer distances and want to learn as

much as possible in their home search process remotely.


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Internet Usage Trends


Ninety-two percent of buyers used the internet in some

form to search for a home. Underscoring the value of theinternet are the actions that home buyers take after an

internet home search. Buyers are increasingly taking the

next step such as driving by or viewing a home (76 percent)

or walking through a home they viewed online (64 percent).

These steps are equally likely for first-time and repeat

buyers, however first-time buyers are more likely to request

more information and look for more information on how to

get a mortgage and general home buying tips.

Characteristics of Internet Searchers and

Sources Used


The buyers who use the internet in their home searchcompared to those who do not, vary along demographic

lines. The typical buyer who used the internet in their home

search is 42-years-old and had a median 2013 household

income of $86,800. The typical buyer who did not use the

internet to search for a home was 62-years-old and had a

median 2013 household income of $66,200. The typica

buyer who used the internet to search spent 10 weeks

searching compared to those who did not use the interne

and searched for four weeks.

Those who did not use the internet in their home search

process used yard signs, open houses, home books and

magazines less frequently than those who used the interne

to search. Conversely those who did not use the interne

to search used print newspaper advertisements and home

builders more frequently in their home search than those

who used the internet to search.

Among buyers who used the internet to search for homes

46 percent first found their home through the internet

Thirty-two percent of buyers who used the internet firs

found their home through the real estate agent, compared

to 42 percent of buyers who did not use the internet

Buyers who did not use the internet found their home more

frequently through a yard sign or through a friend, relative o

neighbor, or directly from the sellers, or through a builder o

builder’s agent than those who used the internet to search.

While the vast majority of buyers use the internet during

the home buying process, the internet does not replace the

real estate agent in the transaction. Ninety percent of home

buyers who used the internet to search for homes purchased

their home through an agent. In fact, buyers who used the

internet were more likely than those who did not use the

internet to purchase their home through an agent. Buyers

who did not use the internet to search were more likely to

purchase through a builder or builder’s agent and through a

previous owner of the home.

Increasingly buyers are using the internet as

their first step in the home search process.

Forty-three percent of buyers first looked online

for properties for sale as their first step—an

incremental increase from 35 percent in 2011.


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2014 PROFILE OF HOME BUYERS AND SELLERS • Chapter 3: The Home Search Process

Website Features and Mobile Search


Because use of the internet in the home search process

has increased so rapidly and there are so many sites available

for buyers to use, it’s essential to know what aspects

offered by sites are most important to buyers. Eighty-three

percent of buyers rated photos and 79 percent of buyers

rated detailed information about properties for sale the

most useful website features. About four in 10 buyers rated

interactive maps, virtual video tours, and neighborhood

information very useful among website features.

Searching for any product on a mobile device is becoming

more common. Fifty percent of home buyers used a mobile

or tablet website or application to search for a home. They

are most commonly searching on an iPhone (52 percent) or

iPad (46 percent) and less frequently with an Android devi

2014 Profile of Home Buyers and Sellers

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