The National Association of Realtors published their 2016 Profile of Homebuyers and Sellers
For most home buyers, the purchase of real estate is one of the largest financial transactions they will make. Buyers purchase a home not only for the desire to own a home of their own, but also because of changes in jobs, family situations, and the need for a smaller or larger living area. This annual survey conducted by the NATIONAL ASSOCIATION OF REALTORS® of recent home buyers and sellers provides insight into detailed information about their experiences with this important transaction. Here are highlights from the latest report.
■ At 31%, the primary reason for purchasing a home was the desire to own a home of their own.
■ First-time buyers made up 35% of all home buyers, an increase over last year’s near all-time low of 32 percent.
■ 88% of buyers recently purchased their home through a real estate agent or broker.
■ 88% of buyers would use their agent again or recommend their agent to others.
■ 8% of recent home sales were FSBO sales again this year. For the second year, this is the lowest share recorded since this report started in 1981.
In 2016, the share of first-time home buyers was 35%, a three-point increase over last year’s 32%. This figure gravitates back towards the historical norm at 40% of the market. The median household income of buyers increased again this year, likely due to a nationwide increase in home prices caused by a lack of housing inventory. Married and unmarried couples have double the buying power of single home buyers, and may be better able to meet the price increases of this housing market. Tightened inventory is affecting the home search process of buyers. Due to suppressed inventory levels in many areas of the country, buyers are typically purchasing more expensive homes as prices increase. The number of weeks a buyer is searching for a home remained at 10 weeks. Buyers continue to report the most difficult task for them in the home buying process is simply finding the right home to purchase. Tenure in the home has returned to a peak of 10 years again this year. Historically, tenure in the home has been six to seven years. Sellers may now have the equity and buyer demand to sell their home after stalling or delaying their home sale but may be facing reduced affordability to buy a new home.
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