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 Profile2011 Profile2010 Profile Median Age 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 Home41%36%35% Own a 2 nd Home19% 14%
Shift in Household Composition Married couple68%59%62%61% 62%61%60%58%64%65% Single female Single male Unmarried couple Other
First-time Buyer Share Closer to Historical Norm
Desire to Own Home Remains Top Reason to Buy All BuyersFirst-time BuyersRepeat Buyers Desire to own a home of my own30%60%11% Desire for larger home11316 Job-related relocation or move9313 Change in family situation898 Affordability of homes7115 Desire to be closer to family/friends/relatives619 Desire for a home in a better area637 Retirement417 Desire for smaller home406 Desire to be closer to job/school/transit425 Establish household231 Desire for a newly built or custom-built home212 Financial security111 Desire for vacation home/investment property101 Purchased home for family member or relative111 Tax benefits111 Greater number of homes on the market for sale/better choice111 Other425
Increased Purchases in Senior-related Housing All buyers over 50 Share who purchased a home in senior-related housing14% Among buyers over 50 who purchased senior related housing Type of home purchased: Detached single-family home63% Townhouse/row house8 Apartment/condo in building with 5 or more units12 Duplex/apartment/condo in 2 to 4 unit building7 Other11 Location: Suburb/ Subdivision45% Small town21 Urban/ Central city10 Rural area7 Resort/ Recreation area17
Expected Tenure Remains High AGE OF HOME BUYER All Buyers18 to 2425 to 4445 to or older 1 year or less1%2 2% 2 to 3 years to 5 years to 7 years to 10 years to 15 years or more years Don't Know Median
Actual Tenure Among Sellers Remains High
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
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