Median household income for repeat home buyers hits a staggering $95,000!

Among the many interesting tidbits to be found in the study of home buyers and home sellers just released by the National Association of Realtors was the fact the median household income for repeat home buyers has reached a staggering $95,000!http:billfields.com

Far behind the repeat buyers but still not to go unnoticed was the fact the median household income for first time buyers is also up to a new high of $68,300!

Other interesting statistics regarding home buyers and the home buying process discovered in the survey included:

Thirty-three percent of recent home buyers were first-time buyers, which is still suppressed from the historical norm of 40 percent among primary residence buyers.

Thirteen percent of buyers purchased a multi-generational home due to cost savings, children over the age of 18 moving back into the house, and health and caretaking of aging parents.

The typical first-time buyer was 31-years-old, while the typical repeat buyer was 53.

Sixty-five percent of recent home buyers were married couples.

For 24 percent of recent home buyers, the primary reason for the recent home purchase was a desire to own a home, while nine percent purchased due to a job-related relocation or move, and eight percent bought for the desire to be in a better area or a change in family situation.

Characteristics of the properties the home buyers are buying:

New home purchases continue to drag at a share of 16 percent of all recent home purchases.

New home purchasers bought a new home to avoid renovations or problems with plumbing or electrical, and the ability to customize their home. Home buyers who bought previously owned homes purchased their home for a better price and overall value and the charm and character their home provides.

The typical home purchased was 1,870 square feet in size, was built in 1993, and had three bedrooms and two bathrooms.

Seventy-nine percent of home buyers purchased a detached single-family home.

Thirteen percent of recent buyers over the age of 50 bought a home in senior-related housing.

When considering the purchase of a home, heating and cooling costs were at least somewhat important to 86 percent of buyers and commuting costs were considered at least somewhat important by 70 percent of buyers.

Buyers expect to live in their home for 12 years after buying.

What does the survey tells us about the home hunting and purchasing process?

For 43 percent of home buyers, the first step in the home-buying process was looking online for properties and 12 percent of home buyers first looked online for information about the home buying process.

Ninety-two percent of buyers use the internet in some way in their home search process and 50 percent of buyers use a mobile website or application in their home search.

Real estate agents were viewed as a useful information source by 98 percent of buyers who used an agent while searching for a home.

The typical home buyer searched for 10 weeks and viewed 10 homes—this is two weeks shorter than the previous year’s report.

Approximately nine in 10 recent buyers were at least somewhat satisfied with the home buying process.

For more than half of buyers finding the right home was the most difficult step in the home buying process.

Approximately nine in 10 recent buyers were at least somewhat satisfied with the home buying process.

Eighty-eight percent of buyers purchased their home through a real estate agent or broker—a share that has steadily increased from 69 percent in 2001.

Forty percent of buyers found their agent through a referral from a friend or family member and 12 percent used an agent they had used before to buy or sell a home.

Two-thirds of recent buyers only interviewed one agent before the found the agent they worked with.

Eighty-eight percent of buyers would use their agent again or recommend to others and 63 percent of buyers who purchased their home in the last year have recommended their agent to other buyers.

Eighty-eight percent of home buyers financed their recent home purchase. Among those who financed their home purchase, the buyers typically financed 90 percent.

The share of first-time buyers who financed their home purchase was 95 percent compared to 84 percent of repeat buyers.

Forty-six percent of home buyers reported they have made some sacrifices such as reducing spending on luxury items, entertainment or clothing.

Twenty-six percent of buyers reported the mortgage application and approval process was somewhat more difficult than expected and 18 percent reported it was much more difficult than expected.

Twelve percent of buyers overall cited saving for a down payment was the most difficult task in the home buying process. Among those buyers, 48 percent report credit card debt, 44 percent reported student loan debt, and 36 percent car loans delayed them saving for a down payment.

Eight in 10 buyers believe their home is a good financial investment.

Great information to help you develop the right strategies and services to help more home buyers locate and purchase their next home.

Next we’ll examine important information the survey revealed about our home sellers.

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