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Profile of Home Buyers and Sellers 2012


                News Release
                November 10, 2012
Methodology

•   Surveys mailed to 93,502 households
•   Response rate 9.1 percent with 8,501 responses
•   Purchased a home between July 2011 and June 2012
•   Addresses from Experian
•   Reflect distribution of home sales in each state
What is covered?

• Ask buyers about:
   – Basic demographics
   – Type of home
   – Search process
   – Relationship with agent
   – Home financing
• Ask sellers about:
   – Basic demographics
   – Home selling experience
   – Relationship with agent
   – FSBO vs agent-assisted sales
Demographic Changes Since 2010
                   2012 Profile          2011 Profile          2010 Profile
Median Age         42                    45                    39
Gross HH Income    $78,600               $80,900               $72,200

Household          65% married           64% married           58% married
Composition        couples,              couples,              couples,
                   16% single females,   18% single females,   20% single females,
                   9% single males,      10% single males,     12% single males,
                   8% unmarried          7% unmarried          8% unmarried
                   couples               couples               couples

Children in Home   41%                   36%                   35%

Own a 2nd Home     19%                   19%                   14%
Shift in Household Composition

          2001 2003 2004     2005   2006   2007   2008   2009   2010   2011   2012
Married
couple      68% 59%    62%   61%    61%    62%    61%    60%    58%    64%    65%
Single
female        15  21    18    21     22     20     20     21     20     18     16
Single male    7  11     8     9      9      9     10     10     12     10      9
Unmarried
couple         7   8     9     7      7      7      7      8      8      7      8
Other          3   1     2     2      1      2      2      1      1      1      2
First-time Buyer Share Closer to Historical Norm
60%
55%
                                                   50%
50%                                          47%
45%    42%
             40% 40% 40%               41%
40%                              39%                           39%
                           36%                           37%
35%
30%
25%
20%
       2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Desire to Own Home Remains Top Reason to Buy
                                                  All Buyers   First-time Buyers   Repeat Buyers
Desire to own a home of my own                          30%                 60%             11%
Desire for larger home                                    11                   3              16
Job-related relocation or move                             9                   3              13
Change in family situation                                 8                   9               8
Affordability of homes                                     7                  11               5
Desire to be closer to family/friends/relatives            6                   1               9
Desire for a home in a better area                         6                   3               7
Retirement                                                 4                   1               7
Desire for smaller home                                    4                   0               6
Desire to be closer to job/school/transit                  4                   2               5
Establish household                                        2                   3               1
Desire for a newly built or custom-built home              2                   1               2
Financial security                                         1                   1               1
Desire for vacation home/investment property               1                   0               1
Purchased home for family member or relative              1                   1               1
Tax benefits                                              1                   1               1
Greater number of homes on the market for
sale/better choice                                        1                   1               1
Other                                                     4                   2               5
Increased Purchases in Senior-related Housing
                                                       All buyers over 50
Share who purchased a home in senior-related housing                 14%

Among buyers over 50 who purchased senior related housing
Type of home purchased:
  Detached single-family home                                       63%
  Townhouse/row house                                                  8
  Apartment/condo in building with 5 or more units                    12
  Duplex/apartment/condo in 2 to 4 unit building                       7
 Other                                                                11
Location:
 Suburb/ Subdivision                                                45%
 Small town                                                           21
 Urban/ Central city                                                  10
 Rural area                                                            7
 Resort/ Recreation area                                              17
Expected Tenure Remains High
                                         AGE OF HOME BUYER
                 All Buyers   18 to 24      25 to 44   45 to 64   65 or older
1 year or less         1%           2           1%         1%            2%
2 to 3 years             2          2             2          1             2
4 to 5 years             7         14            10          4             2
6 to 7 years             2          1             4          1             0
8 to 10 years           13         17            15         12             9
11 to 15 years           6          8             5          5             7
16 or more
years                   26         18            27         32            18
Don't Know              43         39            37         43            61
Median                  15         10            12         20            15
Actual Tenure Among Sellers Remains High
                10
                 9                                               9    9
                 8                                          8
Years in Home




                 7                                    7
                 6      6    6    6    6    6    6
                 5
                 4
                 3
                 2
                 1
                 0
                      2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Tightened Inventory Affecting Home Search

• Buyers saw 10 homes before
  buying-drop from 12 homes
• Typically look for 12 weeks
  total and 3 weeks before
  contacting an agent
• 51% of buyers reported
  hardest task in process was
  finding the right home
Use of the Internet Increased
Agent Use By Buyers & Sellers Remains High

• 89% of buyers purchased their home through a real estate agent or
  broker
   – Most want help finding right home
   – Benefited from help understanding the process
   – High importance on honesty and integrity
• 88% of sellers were assisted by an agent
   – Sell w/in specific timeframe
   – Help market home
   – Find a buyer for the home
   – Reputation and honesty and integrity important
Agent Assisted Sales High
100    4    1    4    4               4    4    2    3    3       3     4      3    3    2
                            7    8
 90
 80
 70
 60    77   82        80
                 81        77         83   82   85   84   85      84   85      88   87   88
 50                             79

 40
 30
 20
 10    19   17   15   18   16   13    14   14   13   12   12      13   11      9    10   9
  0
      1991 1993 1995 1997 1999 2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
                 All FSBO (For-sale-by-owner)    Agent-assisted        Other
Reasons Behind Selling as FSBO

• Among the 9% of FSBOs
   – One-third knew the buyer
   – Two-thirds did not know the buyer
• For FSBO sellers who did not know the
  buyer
   – 20% were contacted by a buyer they
     did not know asking to buy home
     increase from 15 percent in 2010

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2012 Profile of Home Buyers and Sellers Press Highlights

  • 1. Profile of Home Buyers and Sellers 2012 News Release November 10, 2012
  • 2. Methodology • Surveys mailed to 93,502 households • Response rate 9.1 percent with 8,501 responses • Purchased a home between July 2011 and June 2012 • Addresses from Experian • Reflect distribution of home sales in each state
  • 3. What is covered? • Ask buyers about: – Basic demographics – Type of home – Search process – Relationship with agent – Home financing • Ask sellers about: – Basic demographics – Home selling experience – Relationship with agent – FSBO vs agent-assisted sales
  • 4. Demographic Changes Since 2010 2012 Profile 2011 Profile 2010 Profile Median Age 42 45 39 Gross HH Income $78,600 $80,900 $72,200 Household 65% married 64% married 58% married Composition couples, couples, couples, 16% single females, 18% single females, 20% single females, 9% single males, 10% single males, 12% single males, 8% unmarried 7% unmarried 8% unmarried couples couples couples Children in Home 41% 36% 35% Own a 2nd Home 19% 19% 14%
  • 5. Shift in Household Composition 2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Married couple 68% 59% 62% 61% 61% 62% 61% 60% 58% 64% 65% Single female 15 21 18 21 22 20 20 21 20 18 16 Single male 7 11 8 9 9 9 10 10 12 10 9 Unmarried couple 7 8 9 7 7 7 7 8 8 7 8 Other 3 1 2 2 1 2 2 1 1 1 2
  • 6. First-time Buyer Share Closer to Historical Norm 60% 55% 50% 50% 47% 45% 42% 40% 40% 40% 41% 40% 39% 39% 36% 37% 35% 30% 25% 20% 2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
  • 7. Desire to Own Home Remains Top Reason to Buy All Buyers First-time Buyers Repeat Buyers Desire to own a home of my own 30% 60% 11% Desire for larger home 11 3 16 Job-related relocation or move 9 3 13 Change in family situation 8 9 8 Affordability of homes 7 11 5 Desire to be closer to family/friends/relatives 6 1 9 Desire for a home in a better area 6 3 7 Retirement 4 1 7 Desire for smaller home 4 0 6 Desire to be closer to job/school/transit 4 2 5 Establish household 2 3 1 Desire for a newly built or custom-built home 2 1 2 Financial security 1 1 1 Desire for vacation home/investment property 1 0 1 Purchased home for family member or relative 1 1 1 Tax benefits 1 1 1 Greater number of homes on the market for sale/better choice 1 1 1 Other 4 2 5
  • 8. Increased Purchases in Senior-related Housing All buyers over 50 Share who purchased a home in senior-related housing 14% Among buyers over 50 who purchased senior related housing Type of home purchased: Detached single-family home 63% Townhouse/row house 8 Apartment/condo in building with 5 or more units 12 Duplex/apartment/condo in 2 to 4 unit building 7 Other 11 Location: Suburb/ Subdivision 45% Small town 21 Urban/ Central city 10 Rural area 7 Resort/ Recreation area 17
  • 9. Expected Tenure Remains High AGE OF HOME BUYER All Buyers 18 to 24 25 to 44 45 to 64 65 or older 1 year or less 1% 2 1% 1% 2% 2 to 3 years 2 2 2 1 2 4 to 5 years 7 14 10 4 2 6 to 7 years 2 1 4 1 0 8 to 10 years 13 17 15 12 9 11 to 15 years 6 8 5 5 7 16 or more years 26 18 27 32 18 Don't Know 43 39 37 43 61 Median 15 10 12 20 15
  • 10. Actual Tenure Among Sellers Remains High 10 9 9 9 8 8 Years in Home 7 7 6 6 6 6 6 6 6 5 4 3 2 1 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
  • 11. Tightened Inventory Affecting Home Search • Buyers saw 10 homes before buying-drop from 12 homes • Typically look for 12 weeks total and 3 weeks before contacting an agent • 51% of buyers reported hardest task in process was finding the right home
  • 12. Use of the Internet Increased
  • 13. Agent Use By Buyers & Sellers Remains High • 89% of buyers purchased their home through a real estate agent or broker – Most want help finding right home – Benefited from help understanding the process – High importance on honesty and integrity • 88% of sellers were assisted by an agent – Sell w/in specific timeframe – Help market home – Find a buyer for the home – Reputation and honesty and integrity important
  • 14. Agent Assisted Sales High 100 4 1 4 4 4 4 2 3 3 3 4 3 3 2 7 8 90 80 70 60 77 82 80 81 77 83 82 85 84 85 84 85 88 87 88 50 79 40 30 20 10 19 17 15 18 16 13 14 14 13 12 12 13 11 9 10 9 0 1991 1993 1995 1997 1999 2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 All FSBO (For-sale-by-owner) Agent-assisted Other
  • 15. Reasons Behind Selling as FSBO • Among the 9% of FSBOs – One-third knew the buyer – Two-thirds did not know the buyer • For FSBO sellers who did not know the buyer – 20% were contacted by a buyer they did not know asking to buy home increase from 15 percent in 2010

Editor's Notes

  1. Increased incrementally from 11% in 2010
  2. 96% of buyers under 44 used internetMore than ½ started search online—looking at properties for sale or info about home buying process42% found the home they purchased online