Webinar: 2010 NAR Profile of Home Buyers and Sellers Highlights

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2010 Profile of Home Buyers and Sellers Jessica Lautz December 9, 2010

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Webinar was held 12/9/10.

Transcript of Webinar: 2010 NAR Profile of Home Buyers and Sellers Highlights

  • 1.
    • 2010 Profile of Home Buyers and Sellers
  • Jessica Lautz
  • December 9, 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 111,004 questionnaires
  • Received 8,449 responses
  • Response rate of 7.9%
  • Names obtained from Experian

3. Home Buyers 4. Who is buying today?

  • Typical buyer:
    • 39-years-old
    • $72,200
    • 58% married
    • 20% single females
    • 12% single males
    • 8% unmarried couples
    • 35% have children in home

5. Share of First-Time Buyers 6. Who is buying today? First-time Buyer: Repeat Buyer:

    • 30-years-old
    • 49-years-old
    • $59,900
    • $87,000
    • 48% married
    • 68% married
    • 23% single females
    • 17% single females
    • 15% single males
    • 9% single males
    • 12% unmarried couples
    • 4% unmarried couples
    • 32% have children
    • 37% have children

7. Why do buyers want to own today? All Buyers First-time Buyers Repeat Buyers Desire to own a home of my own 31% 53% 10% Desire for larger home 9 2 15 Change in family situation 8 7 10 Home buyer tax credit 8 13 3 Job-related relocation or move 7 2 12 Affordability of homes 6 8 4 Desire to be closer to family/friends/relatives 5 1 10 Desire for a home in a better area 5 2 7 8. What homes are being sold?

  • Typical home purchased:
    • 85% of homes were previously owned
    • 77% detached single family homes
    • Built in 1990
    • 1,780 square feet
    • 3 bedrooms/2 full baths
    • More than half of homes purchased were in the suburbs
    • Buyers typically moved 12 miles

9. Location, Location, Location

  • Quality of the neighborhood
  • Convenient to job
  • Overall affordability of homes
  • Convenient to friends and family
  • Quality of the school district
  • Convenient to shopping

10. Expected Tenure in Home 11. Importance of Commute Costs 12. Importance of Energy Efficiency 13. Senior-related housing Share who purchased a home in senior related housing (among buyers over 50) 11% Type of Home Purchased: Detached single-family home 51% Townhouse/row house 9 Apartment/condo in building with 5 or more units 13 Duplex/apartment/condo in 2 to 4 unit building 9 Other 17 14. The Search Process 15. First Step in Buying Process All Buyers AGE OF HOME BUYER 18-24 25-44 45-64 65 or older Looked online for properties for sale 36% 34% 40% 36% 21% Contacted a real estate agent19 16 16 21 35 Looked online for information about the home buying process 11 16 13 8 4 Contacted a bank or mortgage lender 8 11 9 7 4 Drove-by homes/neighborhoods 7 4 5 10 12 Talked with a friend or relative about home buying process 7 13 8 4 6 Visited open houses 4 2 2 5 9 16. Frequency of Use of Different Information Sources 17. Usefulness of Information Sources 18. Length of the Search Process Number of Weeks Searched 19. Where Buyer Found Their Home 20. Satisfaction With Buying Process 21. Method of Home Purchase 22. What do buyers want from real estate professionals? 23. Benefits Buyers Had When Using an Agent All Buyers First-time Buyers Repeat Buyers Helped buyer understand the process 66% 80% 53% Pointed out unnoticed features/faults with property 53 55 50 Negotiated better sales contract terms 42 43 40 Improved buyer's knowledge of search areas 42 41 43 Provided a better list of service providers 41 41 42 Negotiated a better price 34 34 34 24. Referrals Matter

  • 57% used an agent that was referred to them or they had worked with before
  • 65% would definitely refer their agent or work with them again22% probably would
  • 64% of home buyers contacted only 1 agent during their search process

25. Financing the Home Purchase 26. Median Percent of Home Financed

  • 91% of home buyers financed their home purchase
  • First-time buyers typically finance 96%
  • Repeat buyers typically finance 86%
  • Share of buyers who financed 100% of their home purchase dropped from 23% in 2008 to 14% of buyers in 2010

27. Sacrifices

  • Cut spending on luxury items
  • Cut spending on entertainment
  • Cut spending on clothes
  • Cancelled vacation plans

28. Home Buyer Tax Credit All Buyers First-time Buyers Repeat Buyers Used tax credit 71% 93% 48% Did not qualify for tax credit 27 6 49 Was not aware of tax credit 2 1 3 29. Housing a Good or Bad Financial Investment? All Buyers Good financial investment 85% Better than stocks 47 About as good as stocks 30 Not as good as stocks 9 Not a good financial investment 4 Don't know 11 30. Home Sellers 31. Who is selling today?

  • Typical seller:
    • 46-years-old
    • $90,000
    • 75% married
    • 16% single females
    • 6% single males
    • 3% unmarried couples
    • 40% have children in home
    • Typically lived in their home for 8 years

32. Home Selling Situation 33. Why are sellers moving?

  • Home is too small
  • Job relocation
  • Want to move closer to friends or family
  • Neighborhood has become less desirable
  • Change in family situation (e.g., marriage, birth of a child, divorce)

34. Trade up or down?

  • 55% purchased a more expensive home
  • 51% purchased a larger home
  • 57% purchased a new home

35. Selling Market Today

  • Sellers typically received 96% of their asking price for the home
  • 57% of sellers reduced their asking price
  • 44% offered incentives
  • Homes were typically on the market 8 weeks

36. Equity Earned in Home TENURE IN HOME All Sellers Dollar value Percent 1 year or less $37,626 17% 2 to 3 years $0 0% 4 to 5 years $6,000 3% 6 to 7 years $17,000 11% 8 to 10 years $35,000 26% 11 to 15 years $49,000 40% 16 to 20 years $79,100 78% 21 years or more $108,300 152% Median$33,000 24% 37. Satisfaction With Selling Process 38. Method Used to Sell Home 39. What do sellers want from their real estate professional?

  • Help price home competitively
  • Help find a buyer for home
  • Help seller market home to potential buyers
  • Help sell the home within specific timeframe

40. Method to Market Home All Homes Listing on the Internet 91% Yard sign 79 Open house 56 Print newspaper advertisement 28 Real estate magazine 25 Other Web sites with real estate listings 25 Direct mail (flyers, postcards, etc.) 16 Video 12 Social networking Web sites 5 Television 2 Video hosting Web sites (e.g., YouTube, etc.) 2 Other 5 41. Buyer Side: Use of Information Sources 42. Referrals Matter

  • 64%used an agent that was referred to them or they had worked with before
  • 63% would definitely refer their agent or work with them again an additional 21% probably would
  • 66% of home sellers contacted only 1 agent during their search process

43. FSBO Sellers 44. FSBO Experience

  • Most cited reason for FSBO selling:
    • Did not want to pay a commission or fee (38%)
    • Sold to friend or relative (32%)
  • Most difficult tasks:
    • Getting the price right (23%)
    • Preparing or fixing up the home for sale (18%)

45. FSBO Selling Market All Sellers All FSBO Seller Knew Buyer Seller did not Know Buyer All Agent-assisted Agent-assisted only First FSBO, then Agent-assisted Median selling price $190,000$140,000$139,600$155,700$199,300$200,000$168,000Median (sales price as a percent of asking price) 96% 100% 100% 97% 96% 96% 93% Percent who reduced asking price 57% 42% 23% 62% 59% 59% 62% 46. Where to Find Your Copy Via the Right Tools, Right Now webpage: http://www.realtor.org/prodser.nsf/RightTools/ResearchTools?OpenDocument