The "typical" homeowner of 2010

The typical homeowner of 2010.  (This article is from NAR)


Home buyers today have affirmed a long-term view of home ownership, the typical seller is experiencing positive returns and the vast majority of home owners see their property as a good investment, according to the latest consumer survey of home buyers and sellers.

 

The 2010 NAR Profile of Home Buyers and Sellers is the latest in a series of large national NAR surveys evaluating demographics, preferences, marketing and experiences of recent home buyers and sellers.

 

Although typical sellers had been in their previous home for eight years, up from seven years in the 2009 study, first-time buyers plan to stay for 10 years and repeat buyers plan to hold their property for 15 years.

 

Here are some highlights:

 

• The typical seller who purchased a home eight years ago experienced a median equity gain of $33,000, a 24% increase, while sellers who were in their homes for 11 to15 years saw a median gain of 40%.
• With #1 reason to buy a home being a good investment, the next biggest reasons for buying, identified by all home buyers, was a desire for a larger home, 9 percent; a change in family situation and the home buyer tax credit, 8%; a job-related move, 7%; and the affordability of homes, 6%. Twelve other categories were 5% or less.  
• The number of first-time home buyers rose to a record high 50% of all home sales from 47% in the 2009 study, building on success of the home buyer tax credit which began in 2009.  
• The profile shows the median age of first-time buyers was 30 and the median income was $59,900. The typical first-time buyer purchased a 1,540 square foot home costing $152,000, with 93% using the first-time buyer tax credit.  
• 56% of entry level buyers financed their purchase with an FHA loan, while another 7% used the VA loan program. 42% said financing their first home was more difficult than expected and 9% had been rejected by a lender.  
• 58% of all buyers are married couples, 20% are single women, 12% single men, 8% unmarried couples and 1% other.  
• Buyers searched a median of 12 weeks and viewed 12 homes.  
• The typical repeat buyer was 49 years old, earned $87,000 and purchased a 2,000 square foot home costing $215,000.  
• The median age of home sellers was 49 and their income was $90,000. Sellers moved a median distance of 18 miles and their home was on the market for 8 weeks, down from 10 weeks in the 2009 survey. Half traded up in size, 28% bought a comparably sized home and 21% traded down.  
• 64% of sellers chose their agent based on a referral or had used the same agent in the past. Reputation was the most important factor in choosing an agent, cited by 35% of respondents, followed by trustworthiness at 23%. 84% of sellers are likely to use the same agent again or recommend to others.  
• Home buyers thought the most important services agents offer are helping find the right house, negotiating sales terms and price. Buyers also most commonly choose an agent based on a referral from a friend, neighbor or relative, with trustworthiness and reputation being the most important factors.  
• Buyers use a wide variety of resources in searching for a home: 89% surf the Internet, 88% use real estate agents, 57% yard signs, 45 percent attend open houses and 36% look at print or newspaper ads. Although buyers also use other resources, they generally start the search process online and then contact an agent.  
• Local metropolitan MLS websites were the most popular Internet resource, used by 59% of buyers; followed by Realtor.com, 45%; real estate company sites, 43%; real estate agent websites, 42%; other websites with real estate listings, 41%; and for-sale-by-owner sites, 15 percent; other categories were smaller.  
• 77% of all buyers purchased a detached single-family home, 9% a condo, 8% a townhouse or rowhouse, and 6% some other kind of housing.  
• Not surprisingly, for-sale-by-owner transactions reached a record low, accounting for 9% of sales in the 2010 study, down from 11% in 2009.  
• The share of homes sold without professional representation has trended down since reaching a cyclical peak of 18% in 1997.

DO ANY OF THESE DESCRIPTIONS SOUND "TYPICAL" TO YOU??  hmmmmmmm