Madison Wisconsin Homes and Real Estate: National Association of Realtors--A profile of home buyers and sellers

Monday, November 14, 2011

National Association of Realtors--A profile of home buyers and sellers

DID YOU KNOW?

According to the 2011 National Association of REALTORS (NAR) Profile of Home Buyers and Seller which surveyed 5,708 home buyers and sellers this summer, the average American home buyer has changed in the last year.

A shift in the age of buyers

The largest share of home buyers is aged 25 to 32 (27 percent), but this share of buyers is down 9 percent in the last year, a considerable drop for a group that continues to dominate the buyer pool. The median age of home buyers has jumped from 39 years old to 45 years old as first time home buyers have dropped to a third of all buyers, down from half of all buyers. (Predictable: Attribute much of this decline to the end of the tax stimulus for first time buyers)

A shift in buyers' incomes

The median household income of buyers in America is now $80,900, an increase in income after the previous two years' decline. (Predictable: A smaller percentage of the market going to first time buyers would cause the average income result to be higher)

A shift in married couple buyers

For ten years, single people were accounting for an increasing share of buyers, as married person's purchases dropped by 10 percent in that time. In 2011, NAR reports a drop in single home buyers. Married persons accounted for 64 percent of the 2011 sales, the highest number since 2001.

This is worth noting: The trend of single women buyers making a mark in the market has slowed. Eighteen percent of home buyers were single women, the smallest share in six years.

The takeway

According to the 2011 NAR Profile of Home Buyers and Sellers, the average American buyer is now older, has a higher income, and is likely married. Single and lower income buyers are sitting on the sidelines as unemployment continues to concern the nation. Home buyers are now "staying well within their means". Imagine that!

Why the drop in first-time home buyers? NAR 2011 President Ron Phipps notes that first time buyers had more challenging financial obstacles to overcome. Phipps said, "First-time home buyers fell from a record high of 50% in 2010 (Tax Credit induced) to 37 percent market share in the past year. That's just about right where first-time buyer activity should be for the market to be in line with typical years.

For more information, and to read 33 facts every Realtor should know about the NAR 2011 Profile of Home Buyers and Sellers, click here.

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If Not Sold in the First 30 Days, Successful Sellers Conceded The Price

Through Mid-September, thirty seven percent (37%) of 126 home owners who sold in 2010 sold without making a single price concession. They typically attracted a buyer within 40 days of going on to the market. These successful owners conceded little on price as they sold for about 97%-98% of asking price.

Those who counted time on the market by months or even quarters eventually sold for an average of 91% of their initial asking price. Price reductions improved their success opportunity. Once their price was reduced to a price favorable to a buyer, the time on the market was short--about 34 days from last price change to accepted offer.

See September 20, Buyer Enticing Pricing

Disclosure

The source of data: South Central WI MLS Type of data: Single family homes and maybe condos and maybe other Areas: Madison and other areas such as McFarland, Shorewood Hills, Middleton, Maple Bluff, Oregon, DeForest, Cross Plains, Dane County, Fitchburg, Verona, did I say Middleton? Dates covered in these blog posts: January 2010 and continuing.

All comments are the relatively well thought out opinions of Tom Meyer. Those opinions are not necessarily shared by Restaino & Associates, other brokers, or the national, local, or state associations of Realtors... in fact, they may be significantly different.