After reading NARs publication for what does todays buyer look like, this is:
My recap of the National Association of Realtors 2009 Chapter 1 of the
Profile of Home Buyers and Sellers for 2009 for the Midwest Demographic Characteristics of Home Buyers
The median Age decreased slightly. 25-34 was 34% and 35-44 the next largest group.
The median household income decreased nationally (more first time home buyers).
Affordability and the tax credit are what contributed most to the sales increase.
Household composition hardly changed. 3/5 married couples and less than 1 in 10 were unmarried couples. Female single buyers bought 2 x as many homes as single males.
Race, Ethnicity, Language & National OriginIn the Midwest 85% Caucasian, 96% speak English at home & 95% were born in the USDemographic Characteristics of First-Time & Repeat Home Buyers
An increase number over 2008 were drawn by the first-time home buyer tax credit and the affordability of homes.
We saw about a 7% increase from 2008.
The number of single first time buyers was double that of the male first time home buyers.
50% + were couples, 25% were single females and 17% were repeat (rented etc for awhile).
More than ½ were 25-34 years old.
The typical buyer was 39 years old “same as 2008.
The median first time home buyer was 30 & repeat buyers 48.
Incomes did not change much from 2008.
Race, Language and National First-Time and Repeat Buyers First-time home buyers identify themselves as African-American, Asian or Hispanic and are more likely to speak a language other than English at home(6% 1st time vs 2% repeat) and are more likely to have been born outside of the US (7% repeat vs 12% 1st time) than repeat buyers.Prior Living Arrangement ½ of all buyers reported renting right before making their home purchases more than in 2008 which was 44%. ¾ of first-time buyers rented right before.
Repeat buyers owned a residence right before 68% of the time.
Primary Reason for Home Purchase & Timing of Purchase Number one reason (35%) was The Desire to own their own home.
First-time home buyers #1 Desire to own a home.
Repeat #1 Job-related relocation and wanted a larger home with the Desire to own a home as 3rd.
Has not changed much over 2008.
The affordability of homes (1st time home buyers 10% & repeat 6%) which is up from 5% and 2% in 2008.
The 1st time home buyers tax credit was the primary reason for 6% of first-time home buyers and 1% of repeat buyers.
7% of buyers under 25 cited the primary reason for their purchase as the first-time home buyer tax credit.
The older buyers get, the less important owning a home is according to the article.
For the majority of buyers 65 and older, their reason for moving was to be closer to family.
Married couples moved mostly related to their job and then to increase the size of their home.
Singles moved most because of their jobs and second because of family situations.
For Unmarried couples affordability was their second reason.
Primarily the buyers bought because they were ready, affordability & mortgage financing options, vs 2008 when they were more impressed with the inventory of homes.
Ownership of multiple homes
98% of buyers aged 18-24 own one home.
75% of buyers aged 65 or older own just one.
1/10 recent buyers 45-65 years old own one investment property or more.
The percentage of 65 or older selling their homes is higher than younger groups.
Some of this information is not news as I saw it last year in my business. But highlighted information was a little of an aha for me and will help me in helping my clients more this year.
Posted By: Julie Anne – The Julie Anne Real Estate Team at Keller Williams Success Realty
CDPE Certified for Short Sales and REO
Information in this blog is not guaranteed, it is my interpretation of part of a report from NAR for 2009