Homebuyers Continue to Prefer Pre-Owned Homes and Detached Single-Family Homes
Previously-owned detached single-family homes are the most popular types of residential properties among home buyers across the U.S., according to the National Association of Realtors’ report 2015 Profile of Home Buyers and Sellers.
Among all homebuyers, 84% purchased previously owned homes and 83% purchased detached single-family homes. Pre-owned homes are favored mainly for their price advantages while detached single-family homes obviously offer larger interior spaces, front yards, backyards, other grounds and more privacy.
The typical home recently purchased had an area of 1,900 square feet, had three bedrooms and two bathrooms and was constructed in 1991. The median price for homes purchased was $ 220,000 and represented 98% of the seller’s desired price.
Who Are Buying Homes?
The NAR report says that the typical buyer across the U.S. was 44 years old and had a median household income of $ 86,100. Married couples continue to dominate the market, representing 67% of all home buyers. The next biggest homebuying group consists of single females, accounting for 15%.
There are less new homebuyers recently, with first-time home buyers accounting for 32% of all home buyers, a decrease of one percent from last year’s 33%.
The number one reason for buying a home is still people’s desire to have a home of their own. The other most frequently mentioned reason is the goal of having a good financial investment. 80% said that a home purchase is a wise investment.
How Are Home Buyers Searching for Homes to Buy?
Home buyers use the Internet to search for homes, but ultimately, they rely on their real estate agents to complete the home search and the purchase. Forty-two percent of home buyers start their home search online while 14% call first a real estate agent to start their search.
Real estate websites are popular as 82% see these sites as useful source of information. Photos are very important because 87% see these as useful in their search while 84% see written information on properties as useful.
How Long Is the Typical Home Search?
The typical home buyer searched for 10 weeks and looked at 10 homes.
Are Real Estate Agents Still Very Popular Among Home Buyers?
Yes, real estate agents and brokers are still seen as very important in the home buying process. 87% of home buyers purchased their home through a real estate agent. Home buyers stated the importance of the help of a real estate agent in choosing the right home. Most home
buyers also did not change agents, or did not fly from agent to agent; they interviewed only one real estate agent and were satisfied. Only 8% bought their home directly from the builder.
A big majority of real estate agents must have been delivering the best customer service for their clients as the report states that 88% of home buyers would again use their agents for future real estate transactions and would recommend them to other home buyers.
How Did Recent Home Buyers Pay?
Eighty-six percent of recent home buyers financed their home purchase, with most of them financing 90% of the cost. First-time buyers financed 94% of the cost. It’s the repeat buyers who made bigger downpayments and financed 86% of the cost.
Thirty-eight percent used what they got from the sale of a primary residence in paying for their next home purchase. 60% used their savings for downpayment and 40% said they saved for their downpayment for six months or less.