Zillow Group: Consumer Housing Trends Report 2017
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The 2017 Zillow Group Consumer Housing Trends Report found that today's buyers are typically 40 years old, married, and earning a median income of $87,500. Nearly a quarter of buyers pay for their home in full and 79% obtain pre-approval from their lender. Nearly half of all buyers put down multiple offers on homes, showing they are willing to take risks in today's competitive housing market. Interactive media like virtual tours and 3D home views are also important to many buyers, especially millennials, in their home search process. The report also found that today's typical home seller is 45 years old, married, and earning a median income of $87,500, but that many sellers find the process
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Zillow Group: Consumer Housing Trends Report 2017
- 1. ZILLOW GROUP CONSUMER HOUSING TRENDS REPORT 2017 2,920 SELLERS 2,965 BUYERS
- 2. Today’s buyer Today’s Seller Median Age: 40 Married: 61% Median Income: $87,500 Median Age: 45 Married: 66% Median Income: $87,500 Agent
- 3. 24% of buyers pay for their home in full 79% obtained pre-approval from their lender Source: 2017 Zillow Group Consumer Housing Trends Report Buyers are taking control through cash offers and pre-approval
- 4. Source: 2017 Zillow Group Consumer Housing Trends Report Buyers are willing to take risks
- 5. Source: 2017 Zillow Group Consumer Housing Trends Report 46% of buyers put down 2+ offers 22% Of millennial buyers make 3+ offers Nearly half of buyers put down multiple offers
- 6. Source: 2017 Zillow Group Consumer Housing Trends Report Buyers are facing tough market conditions
- 7. Source: 2017 Zillow Group Consumer Housing Trends Report 45% of millennial buyers said live Virtual Tour is important 41% Of millennial buyers say a 3D tour is important Interactive media is important to buyers
- 8. Zillow 3D Home offers buyers a highly visual house-hunting experience online
- 9. Sellers are stressed Source: 2017 Zillow Group Consumer Housing Trends Report Seller Timeline Not Met
- 10. Sellers are willing to trade convenience for cost Source: 2017 Zillow Group Consumer Housing Trends Report
- 12. Agents need to get back to buyers immediately
- 13. Sellers want to see their home online right away
- 14. ZILLOW GROUP CONSUMER HOUSING TRENDS REPORT 2017 Full report available online: ZILLOW.COM/REPORT/2017
Editor's Notes
- Thanks Eric for giving us that more psychological view of why people want things on demand today. As you talked about, we are being programed to expect things immediately in all aspects of our lives today. Now let’s bring what we just learned closer to home, and discuss it from a real estate perspective. Every year Zillow Group conduct the largest consumer housing study where we talk to about 3000 recent buyers and 3000 recent sellers to put together a comprehensive report on their experiences and expectations. A lot of the data I’m going to reference today will come from that report. It is the findings in these studies that really drives the products and experiences we create on Zillow and Trulia.
- When we talk about the on demand consumer in real estate, there are really two people we need to address – the buyer and the seller. And we’ve all seen stats on average demographics for both of these people. (display the stats, but I’m not going to read them) But beyond the stats these are real people with real emotional needs trying to navigate the complex process of trying to find somewhere to live. So please meet Beth the Buyer and Susan the Seller. And then of course we have the agent in the middle trying to balance the needs of Beth and Susan, and our agent Alan, has his own on-demand needs that he expects to be meet. So let’s take a quick dive into each of these three people’s lives.
- Beth the buyer with inventory down 12.6% nationally, not only does Beth want a home On Demand, but she needs to be bold and competitive out of necessary to close the deal. From the moment that Beth gets serious about buying a home, she is going out to get pre qualified so that when she finds the right home, she can move fast. (79%) That might mean to move fast they’ll forego inspections (all=12%). It might mean she’ll have to put in multiple offers (46% and 22% stat). And there is a good chance she’ll have to go over budget (42% and 25% stat, and 29%). But before she can get to stage of submitting an offer, comes the shopping for a home. Of course almost all research is done online today, before going to see the house. And that is why the experience online needs to become richer and richer. The Zestimate was our first step in offering Beth instant information on what a computer thinks a home is worth 13 years ago. And now it has evolved to interactive media. 45% of mill buyers say live VT is important. 41% of mill buyers say 3D tour is important. And it is finding like this that have lead us to create new products like our 3D home tour app. We are betaing it in Pheonix right now, but soon you’ll be able to create a full home tour from a stand alone Zillow app (free) in minutes. [need a little more beef here]
- Beth the buyer with inventory down 12.6% nationally, not only does Beth want a home On Demand, but she needs to be bold and competitive out of necessary to close the deal. From the moment that Beth gets serious about buying a home, she is going out to get pre qualified so that when she finds the right home, she can move fast. (79%) That might mean to move fast they’ll forego inspections (all=12%). In fact the older they are, the more likely they are to do this. It might mean she’ll have to put in multiple offers (46% and 22% stat). And there is a good chance she’ll have to go over budget (42% and 25% stat, and 29%). But before she can get to stage of submitting an offer, comes the shopping for a home. Of course almost all research is done online today, before going to see the house. And that is why the experience online needs to become richer and richer. The Zestimate was our first step in offering Beth instant information on what a computer thinks a home is worth 13 years ago. And now it has evolved to interactive media. 45% of mill buyers say live VT is important. 41% of mill buyers say 3D tour is important. And it is finding like this that have lead us to create new products like our 3D home tour app. We are betaing it in Pheonix right now, but soon you’ll be able to create a full home tour from a stand alone Zillow app (free) in minutes. [need a little more beef here]
- Beth the buyer with inventory down 12.6% nationally, not only does Beth want a home On Demand, but she needs to be bold and competitive out of necessary to close the deal. From the moment that Beth gets serious about buying a home, she is going out to get pre qualified so that when she finds the right home, she can move fast. (79%) That might mean to move fast they’ll forego inspections (all=12%). In fact the older they are, the more likely they are to do this. It might mean she’ll have to put in multiple offers (46% and 22% stat). And there is a good chance she’ll have to go over budget (42% and 25% stat, and 29%). But before she can get to stage of submitting an offer, comes the shopping for a home. Of course almost all research is done online today, before going to see the house. And that is why the experience online needs to become richer and richer. The Zestimate was our first step in offering Beth instant information on what a computer thinks a home is worth 13 years ago. And now it has evolved to interactive media. 45% of mill buyers say live VT is important. 41% of mill buyers say 3D tour is important. And it is finding like this that have lead us to create new products like our 3D home tour app. We are betaing it in Pheonix right now, but soon you’ll be able to create a full home tour from a stand alone Zillow app (free) in minutes. [need a little more beef here]
- Beth the buyer with inventory down 12.6% nationally, not only does Beth want a home On Demand, but she needs to be bold and competitive out of necessary to close the deal. From the moment that Beth gets serious about buying a home, she is going out to get pre qualified so that when she finds the right home, she can move fast. (79%) That might mean to move fast they’ll forego inspections (all=12%). In fact the older they are, the more likely they are to do this. It might mean she’ll have to put in multiple offers (46% and 22% stat). And there is a good chance she’ll have to go over budget, all buyer 29%.......42% urban and 25% suburban But before she can get to stage of submitting an offer, comes the shopping for a home. Of course almost all research is done online today, before going to see the house. And that is why the experience online needs to become richer and richer. The Zestimate was our first step in offering Beth instant information on what a computer thinks a home is worth 13 years ago. And now it has evolved to interactive media. 45% of mill buyers say live VT is important. 41% of mill buyers say 3D tour is important. And it is finding like this that have lead us to create new products like our 3D home tour app. We are betaing it in Pheonix right now, but soon you’ll be able to create a full home tour from a stand alone Zillow app (free) in minutes. [need a little more beef here]
- But before she can get to stage of submitting an offer, comes the shopping for a home. Of course almost all research is done online today, before going to see the house. And that is why the experience online needs to become richer and richer. The Zestimate was our first step in offering Beth instant information on what a computer thinks a home is worth 13 years ago. And now it has evolved to interactive media. 45% of mill buyers say live VT is important. 41% of mill buyers say 3D tour is important. And it is finding like this that have lead us to create new products like our 3D home tour app. We are betaing it in Phoenix right now, but soon you’ll be able to create a full home tour from a stand alone Zillow app (free) in minutes.
- But before she can get to stage of submitting an offer, comes the shopping for a home. Of course almost all research is done online today, before going to see the house. And that is why the experience online needs to become richer and richer. The Zestimate was our first step in offering Beth instant information on what a computer thinks a home is worth 13 years ago. And now it has evolved to interactive media. 45% of mill buyers say live VT is important. 41% of mill buyers say 3D tour is important. And it is finding like this that have lead us to create new products like our 3D home tour app. We are betaing it in Phoenix right now, but soon you’ll be able to create a full home tour from a stand alone Zillow app (free) in minutes.
- And then we turn to Susan who wants her home sold yesterday. In fact, when we asked “did your home sell in the desired time” – 36% said no. And to add to Susan’s stress of wanting to get the home sold fast, 71% of sellers are also simultaneously looking to buy. So timing can be everything. And what research is showing us, is more and more, Susan is willing to trade convenience for cost. Which of course lead us to the creation of Instant Offers. There has always been a way for Susan to get a quick close by selling to the “we Buy Ugly Homes” people. Susan would get a quick sale, but likely leave a lot of money on the table. Today there is a lot of money being pumped into new real estate models to try to automate this process. Instant Offers was a way that we thought we could bring more transparency to this newer way of buying…. Where Susan doesn’t just get one call from one investor and take it or leave it…..But we could surface to Susan a number of people willing to give various offers to her. And even better, we’ve enable a real estate agent to have a seat at this interactive table to show Susan how much more the agent can likely bring in for her home, if she goes through the more traditional process. So the agents is able to compare their services right alongside the iBuyers, to really compare the service levels and returns that good agent can fetch. We’ve only been live in three markets with this product for a few months, but already we are seeing that the Susans who are chosing to learn more about Instant Offers are serious. 1/3 of lead submit sell or list within 45 days. And I don’t think I have to tell this audience this, but when Susan is told about the differences between going with an iBuyer verses an agent….we are seeing Susan choose an agent more often than not.
- And then we turn to Susan who wants her home sold yesterday. In fact, when we asked “did your home sell in the desired time” – 36% said no. And to add to Susan’s stress of wanting to get the home sold fast, 71% of sellers are also simultaneously looking to buy. So timing can be everything. And what research is showing us, is more and more, Susan is willing to trade convenience for cost. Which of course lead us to the creation of Instant Offers. There has always been a way for Susan to get a quick close by selling to the “we Buy Ugly Homes” people. Susan would get a quick sale, but likely leave a lot of money on the table. Today there is a lot of money being pumped into new real estate models to try to automate this process. Instant Offers was a way that we thought we could bring more transparency to this newer way of buying…. Where Susan doesn’t just get one call from one investor and take it or leave it…..But we could surface to Susan a number of people willing to give various offers to her. And even better, we’ve enable a real estate agent to have a seat at this interactive table to show Susan how much more the agent can likely bring in for her home, if she goes through the more traditional process. So the agents is able to compare their services right alongside the iBuyers, to really compare the service levels and returns that good agent can fetch. We’ve only been live in three markets with this product for a few months, but already we are seeing that the Susans who are chosing to learn more about Instant Offers are serious. 1/3 of lead submit sell or list within 45 days. And I don’t think I have to tell this audience this, but when Susan is told about the differences between going with an iBuyer verses an agent….we are seeing Susan choose an agent more often than not.
- There has always been a way for Susan to get a quick close by selling to the “we Buy Ugly Homes” people. Susan would get a quick sale, but likely leave a lot of money on the table. Today there is a lot of money being pumped into new real estate models to try to automate this process. Instant Offers was a way that we thought we could bring more transparency to this newer way of buying…. Where Susan doesn’t just get one call from one investor and take it or leave it…..But we could surface to Susan a number of people willing to give various offers to her. And even better, we’ve enable a real estate agent to have a seat at this interactive table to show Susan how much more the agent can likely bring in for her home, if she goes through the more traditional process. So the agents is able to compare their services right alongside the iBuyers, to really compare the service levels and returns that good agent can fetch. We’ve only been live in three markets with this product for a few months, but already we are seeing that the Susans who are chosing to learn more about Instant Offers are serious. 1/3 of lead submit sell or list within 45 days. And I don’t think I have to tell this audience this, but when Susan is told about the differences between going with an iBuyer verses an agent….we are seeing Susan choose an agent more often than not.
- So Beth is expecting to buy the perfect home immediately and Susan is expecting to sell her house yesterday….and in the middle sits Alan the agent who is also expected to be ‘on demand’ to make these things happen. Once Alan gets a contact, Beth Expects him to follow up fast. 1) Lead API – flow leads right into a system that allows you to manage them 2) Concierge – NEED HELP (respond within minutes and they are getting smarter on how they respond whether it’s an email, phone call 3) To speed your time even more we created bridge And this year to speed up your data management even further, we’ve created Bridge Listing Input where you can enter the data once and it automatically gets sent to where ever Alan tells us, Including if Alan is in multiple MLSs. The goal is to enter it once and all MLSs will receive the appropriate data with the appropriate business rules.
- So Beth is expecting to buy the perfect home immediately and Susan is expecting to sell her house yesterday….and in the middle sits Alan the agent who is also expected to be ‘on demand’ to make these things happen. Once Alan gets a contact, Beth Expects him to follow up fast. 1) Lead API – flow leads right into a system that allows you to manage them 2) Concierge – NEED HELP (respond within minutes and they are getting smarter on how they respond whether it’s an email, phone call And to service Susan in getting her listings online even faster, we’ve not connected to over 680 MLS. This brings the average time to get a listing on the site to under 15 minutes. And to speed it up even more, and decrease the demands on Alan to act fast, we created Bridge Listing Input. Alan can enter the data once and it automatically gets sent to where ever Alan tells us, Including if Alan is in multiple MLSs. The goal is to enter it once and all MLSs will receive the appropriate data with the appropriate business rules.
- I flew through a lot of stats today, but hopefully painted a picture of how a modern Beth and Susan want to be dealt with by a modern Alan. If you want to go even deeper, I encourage you to visit this housing study, URL displayed.