Home Buyers and Home Sellers - Who Were They in 2009?

First time home buyers had the highest market share- 8% are unmarried couples and 1% are "other"
on record (since 1981) according to a survey by the- 15% are non-white and 9% were born outside of the
National Association of Realtors® (NAR). The NARU.S.
surveys home buyers and sellers across the nation- The repeat buyer was typically 48 years old with a
each year, and the results of their survey weremedian income of $88,100 purchasing a home costing
released in November 2009 and cover the period from$224,500
June 2008 through July of 2009.- 87% see their home as a good investment and more
The first time home buyer made up 47% of all buyers,than half see it as a better investment than stocks
up from an average of 40 to 41% over the previousWhat did they buy and how did they buy it?
10 years. The previous high was 44% in 1991, also at- 78% bought a detached single family home
the peak of the previous significant downturn in real- 54% of the homes were in a suburb or subdivision;
estate.18% were in an urban area
The fact that first time home buyers made up a- The typical home size was 1800 square feet
significant portion of home buyers this time around isn't- The median distance from their prior home was 12
surprising given these two factors:miles
- Homes became more affordable as prices dropped- The median downpayment was 8%
across the nation- 8% paid all cash for their home The survey also
- The first time home buyer tax credit of up to $8,000covered the typical home seller:
became available So what is the profile of this first- Their median age was 46 and their income was
time home buyer? According to the NAR survey:$91,100
- Their median age was 30- They had been in their home for 7 years
- Their median income was $61,600- They moved a median distance of 19 miles
- The homes they purchased cost $156,000- Their home was on the market for 10 weeks
- 55% financed their home with an FHA loan- Nearly half traded up, 30% bought a comparable
- 96% chose a fixed rate mortgagehome, and 22% traded down
- 61% used their savings for the downpayment; 22%- 85% used a real estate professional
received a gift from a friend or a relative Also,- 42% used incentives to attract buyers, such as
according to this survey, are some interesting statisticspaying for closing costs or providing a home warranty
of the typical buyer and buying process, whether first- The home sold for 95% of list price
time or repeat:- The home sold for a median increase of $36,000
The Buying Process:over the seller's original purchase price There were
- Buyers started their home search process online andalso some interesting stats on For Sale By Owner
then contacted a real estate agent(FSBO) properties:
- 90% of buyers used the Internet; 87% said they- These were a record low of 6% of homes sold and
relied on real estate agentshas been trending downward since 1997
- Buyers searched a median of 12 weeks before they- The median home price for sellers who used an
found their dream homeagent was $215,000 vs. $172,000 for a home sold
- They viewed 12 homes before purchasing the onedirectly by the seller, however this difference can be
they wanted The Typical Buyer:explained by the fact that the FSBO sales were more
- 66% are married coupleslikely to be in a rural area and more likely to be a
- 21% are single woman; 10% are single menmobile or manufactured home.