Profile of Home Buyers and Sellers 2012 News Release November 10, 2012.
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Transcript of Profile of Home Buyers and Sellers 2012 News Release November 10, 2012.
Profile of Home Buyers and Sellers 2012
News ReleaseNovember 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 20102012 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 2nd Home
19% 19% 14%
Shift in Household Composition
200
1200
3200
4 2005 2006 2007 2008 2009 2010 2011 2012Married couple 68% 59% 62% 61% 61% 62% 61% 60% 58% 64% 65%Single female 15 21 18 21 22 20 20 21 20 18 16Single male 7 11 8 9 9 9 10 10 12 10 9Unmarried couple 7 8 9 7 7 7 7 8 8 7 8Other 3 1 2 2 1 2 2 1 1 1 2
First-time Buyer Share Closer to Historical Norm
2001 2003 1905 1905 1905 1905 1905 1905 1905 1905 190520%
25%
30%
35%
40%
45%
50%
55%
60%
42%40% 40% 40%
36%39%
41%
47%50%
37%39%
Desire to Own Home Remains Top Reason to Buy
All BuyersFirst-time
BuyersRepeat Buyers
Desire to own a home of my own 30% 60% 11%Desire for larger home 11 3 16Job-related relocation or move 9 3 13Change in family situation 8 9 8Affordability of homes 7 11 5Desire to be closer to family/friends/relatives 6 1 9Desire for a home in a better area 6 3 7Retirement 4 1 7Desire for smaller home 4 0 6Desire to be closer to job/school/transit 4 2 5Establish household 2 3 1Desire for a newly built or custom-built home 2 1 2Financial security 1 1 1Desire for vacation home/investment property 1 0 1Purchased home for family member or relative 1 1 1Tax benefits 1 1 1Greater number of homes on the market for sale/better choice 1 1 1Other 4 2 5
Increased Purchases in Senior-related Housing
All buyers
over 50Share who purchased a home in senior-related housing 14%
Among buyers over 50 who purchased senior related housingType of home purchased: Detached single-family home 63% Townhouse/row house 8 Apartment/condo in building with 5 or more units 12 Duplex/apartment/condo in 2 to 4 unit building 7 Other 11Location: Suburb/ Subdivision 45% Small town 21 Urban/ Central city 10 Rural area 7 Resort/ Recreation area 17
Expected Tenure Remains HighAGE OF HOME BUYER
All Buyers 18 to 24 25 to 44 45 to 64 65 or older
1 year or less 1% 2 1% 1% 2%2 to 3 years 2 2 2 1 24 to 5 years 7 14 10 4 26 to 7 years 2 1 4 1 08 to 10 years 13 17 15 12 911 to 15 years 6 8 5 5 716 or more years 26 18 27 32 18Don't Know 43 39 37 43 61
Median 15 10 12 20 15
Actual Tenure Among Sellers Remains High
20032004200520062007200820092010201120120123456789
10
6 6 6 6 6 67
89 9
Years
in
Hom
e
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
1991
1993
1995
1997
1999
2001
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0
10
20
30
40
50
60
70
80
90
100
19 17 15 18 16 13 14 14 13 12 12 13 11 9 10 9
77 82 81 80 77 79 83 82 85 84 85 84 85 88 87 88
4 1 4 4 7 8 4 4 2 3 3 3 4 3 3 2
All FSBO (For-sale-by-owner) Agent-assistedOther
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