Every year we take a good, hard look at the demographics of buyers and sellers from the previous year, and compare it to buyers and sellers from this year. Each year the demographics shift and change. Here are the demographics of buyers and sellers in 2011.
TYPCIAL CHARACTERISTICS OF BUYERS IN 2011
- 37% of buyers were first-time buyers, compared with 50% in 2010.
- The typical home buyer was 45 years old, compared with 39 in 2010.
- The median income of 2010 buyers was $80,900. The median income of first-time buyers was $62,400 among first time buyers and $96,600 among repeat buyers.
- 64% of buyers were married. This is the highest rate since 2001. 18% were single females - the lowest since 2004.
TYPICAL CHARACTERISTICS OF THE HOMES PURCHASED IN 2011:
- The typical home purchased in 2011 had 1900 square feet, 3BR, 2BA and was built in 1993.
- New Home Sales made up only 16% of the home buyer market.
- 77% of buyers purchased a detached, single-family home.
- The top three factors influencing neighborhood choice were quality of the neighborhood, closeness to job, and overall affordability.
THE HOME SEARCH PROCESS - and FINANCING A HOME IN 2011:
- For 35% of home buyers, the first step in the home search process was looking online.
- The use of the internet to find a home dipped slightly from 90% to 88%, as the demographics of buyers shifted to senior repeat buyers, from first time buyers.
- Real estate agents were viewed as a useful information source by 98% of buyers.
- The typical buyer searched for 12 weeks and viewed 12 homes.
- 87% of buyers financed their home purchase.
- 95% of first time buyers financed their home, compared to 82% of repeat buyers.
- Nearly half of all buyers reported making sacrifices in personal spending and luxury items in order to be able to afford their new home purchase.
- 23% of buyers reported the mortgage application process was somewhat more difficult than expected, and 16% reported it was much more difficult than they expected.
TYPCIAL CHARACTERISTICS OF SELLERS IN 2011
- About half of sellers traded up their home in 2011 for a larger home, while 60% chose newer homes.
- The typical seller lived in their home for 9 years before selling. This tenure is up from 2007, when the typical seller lived in their home for only 6.
- 87% of sellers were assisted by a real estate agent.
- 61% of recent sellers report reducing their asking price at least once.
- 41% of sellers offered incentives to attract buyers, including paying for closing costs and home warranties.
When comparing the 2011 Profile of Home Buyers and Sellers to the 2010 Profile, sellers are still doing what it takes to attract buyers to their home. The buyer demographic is aging a bit, as we see more Boomers transition into retirement/maintenance-free living.
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