Every year we take a good, hard look at the demographics of buyers and sellers in our Minnesota marketplace from the previous year, and compare it to how Minnesota's buyers and sellers compare to the market on a national scale. Every year, the demographics shift and change. It helps complete the picture about what we are seeing in our local marketplace.
Here is a brief breakdown of what 2009's BUYERS looked like:
- 49% were first-time homebuyers (compared to 47% nationally.)
- The average first-time buyer was 28 years old, and the average repeat buyer was 44 years old. Minnesota's buyers in 2009 were younger than the national average of 30 and 48, respectively.
- The median household income of buyers was $73,900. It was about the same nationally.
- 23% of buyers were single females. 10% were single males.
Here is a breakdown of the HOMES PURCHASED, FINANCING OBTRAINED, and other MISC details:
- New construction purchases were at the lowest level in eight years. Only 13% of Minnesota home purchases were new.
- The typical Minnesota home purchased was 1,880 sqft. and was built in 1984.
- 20% of Minnesota buyers bought homes in foreclosure - this is double the national rate.
- 74% of buyers purchased a detached, single-family home.
- The cost of commuting was a substantial criterion in a home purchase for 2009 buyers.
- 93% of buyers financed their home purchase.
- The typical buyer financed 94% of their home.
- Over 30% of buyers found the pre-approval process to be difficult.
Here is a brief breakdown regarding 2009's SELLERS:
- 87% of sellers used a REALTOR to sell their home.
- 59% of sellers had to reduce the price of their home at least once.
- 32% of sellers offered additonal incentives to buyers such as paying closing costs and financing home warranties.
- The share of For Sale By Owners in Minnesota continues to fall, and is lower than the national average of 11%.
- More than half of For Sale By Owners personally knew the buyer they sold their home to.
In summary, it appears that first-time buyers are making up (at least in 2009) almost half of the market. They are younger and are buying foreclosures at a faster rate than buyers on a national scale. They are buying smaller homes, financing more, and sacrificing luxuries to get into homes.
Maybe this is the way it was always supposed to be. Start small. Sacrifice and save. And work your way up to bigger and better.
The Pointe Oak Hills Woodhill Summit Ponds Heatherton Ridge Hamilton Hills Hamilton Hylands
Comments