In July 2014, NAR mailed out a 127-question survey using a random sample weighted to be representative of sales on a geographic basis to 72,206 recent home buyers. The recent home buyers had to have purchased a home between July of 2013 and June of 2014. A total of 6,572 responses were received from primary residence buyers. After accounting for undeliverable questionnaires, the survey had an adjusted response rate of 9.4 percent.

Consumer names and addresses were obtained from. Experian, a firm that maintains an extensive database of recent home buyers derived from county records. Information about sellers comes from those buyers who also sold a home. All information in this Profile is characteristic of the 12-month period ending June 2014, with the exception of income data, which are reported for 2013. In some sections comparisons are also given for results obtained in previous surveys. Not all results are directly comparable clue to changes in questionnaire design and sample size, Some results are presented for the four U.S. Census regions:

• Northeast
• Midwest
• South and West

The median is the primary statistical measure used throughout this report. Due to rounding and omissions for space, percentage distributions may not add to 100 percent.

Financing the Home Purchase

• Older buyers are less likely to finance their home purchase in comparison to younger buyers; when they do finance, the share of the home they financed is typically smaller.
• Buyers have a variety of sources for a downpayment on a home. The source is predominately savings for younger buyers, while older buyers are more likely than younger buyers to use proceeds from a sale of a primary residence.
• Despite record housing affordability, many buyers still make financial sacrifices. 58 percent of buyers under the age of 32 made sacrifices, compared to just 20 percent of buyers aged 67 to 87. Common sacrifices were cutting spending on luxury or non-essential items, cutting spending on entertainment, or cutting spending on clothes.
• Younger buyers were considerably more optimistic that their home purchase was a good financial investment in comparison to older buyers. 85 percent of buyers under 32 considered their purchase a good financial investment compared to 50 percent of buyers 88 years of age and older.

Characteristics of Home Buyers

• Among the generations, Gen X comprises the largest group of-recent home buyers, followed by Gen Y, and then younger Baby Boomers, older Baby Boomers, and the_Silent Generation. The G.l. Generation represented less than one percent of recent buyers
• While the demographics of recent buyers fall mostly in the expected range, income peaks for ages 33 to 57, and the prevalence of children in the home peaks for buyers under 47.
• Among buyers under 32 years of age, 79 percent are first-time home buyers, compared to only 5 percent among buyers aged 67 to 87.
• The prior living arrangement varies greatly for recent home buyers. Among those who are 32 and younger, 65 percent rented an apartment and 22 percent lived with parents, relatives, or friends. Among those who are older than 58 years of age at least 65 percent owned their previous residence.
• There are varying reasons why buyers buy, but younger buyers tend to buy to own a home of their own, while older buyers are buying to be closer to family, friends. and relatives.
• As age increases among recent home buyers, the rate of owning more than one home also increases.

The Home Search Process

• Among all generations of home buyers the first step in the home buying process is looking online for properties for sale.
• Younger generations of buyers typically find the home they purchase through the internet, while older generations of buyers first found the home they purchased through their real estate agent.
• As ages increases the home-buyer is less likely to consider purchasing a home in foreclosure.
• The frequency of internet use in the home search process was directly related to age. Younger buyers not only more likely to use the internet during their search, they use the intemet more frequently during their home search process. Older buyers are more likely than younger buyers to be more occasional users during their home search.
• Home buyer satisfaction with the home buying process increases as age increases. This may be due to not only tightened inventory in lower price brackets, but also realistic expectations of older buyers who are often repeat buyers.

Home Buying and Real Estate Professionals

• Buyers gain many benefits from working with a real estate professional. Among age groups, younger buyers are more likely to want the agent to help them understand the process as they are more likely to have never purchased a home before.
• Younger buyers were predominately referred to their agent through a friend, neighbor, or relative, while older buyers were more likely to use an agent again that they previously used to buy or sell a home.
• When choosing an agent, younger buyers were more likely to place the agent’s honesty and trustworthiness as a higher factor then older buyers, while older buyers rate the agent’s knowledge of the neighborhood as a higher factor—perhaps because older buyers tend to move longer distances and may not necessarily know the neighborhood.

Home Sellers and Their Selling Experience

• Among the generations, Gen X is the largest group who are recent home sellers followed by both younger Baby Boomers and older Baby Boomers, the Silent Generation, and Gen Y. The G.I. Generation represented less than 1 percent of recent buyers.
• As age increases, the rate of marriage among sellers declines and the rate of single female households increases; perhaps due to death, divorce, and also single female first—time buyers tend to be older as a household type.
• Older buyers tend to move further distances, and are more likely than younger buyers to buy in other regions and less likely than younger buyers to buy in the same state as the home sold.
• There is a clear trend of moving to larger, higher priced homes for Gen Y and Gen X, moving into a similar home for younger Boomers, and downsizing in both square footage and price for older Boomers, the Silent Generation and the G.I. Generation.
• The reasons for selling a home vary; however for younger buyers many want to upgrade to a larger home or to accommodate job relocation. In comparison for older buyers many opt for a smaller home due to retirement, because the upkeep of the home is too difficult due to health or financial limitations, or to be closer to friends and family.
• Typically, the older the home seller, the longer the tenure in their home has been.
• Older home sellers typically are more likely to reduce their asking price and less likely to offer other incentives to attract buyers such as home warranty policies or assistance with closing costs.
• Older home sellers are also generally more satisfied with their selling process as their tenure is longer in the home. They also predictably have more equity and are in a more favorable selling position.

Home Selling and Real Estate Professionals Qualities

• Younger sellers are more likely to use the some real estate agent or broker for their home purchase than older sellers.
• There is a higher level of service provided by real estate agents for older sellers than for younger sellers.
• Youngers sellers typically want their selling agent to help sell the home within a specific timeframe, while older sellers are more likely to want their selling agent to help seller market the home to potential buyers.
• For older sellers, the reputation of the agent is a larger factor in choosing a real estate agent to work with than for younger sellers, who place more importance on the agent being honest and trustworthy.
• Middle-aged sellers are more likely to initiate discussions about compensation with their real estate agent than both younger and older sellers.
• Older sellers are more likely to recommend their agent or broker to others than younger sellers.

Characteristics of Home Buyers

• 33 percent of recent home buyers were first-time buyers, which is still suppressed from the historical norm of 40 percent among primary residence buyers.
• 13 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 care-taking of aging parents.
• The typical first~time buyer was 31 years-old, while the typical repeat buyer was 53.
• The 2013 median household income of buyers was $84,500. The median income was $68,300 among first-time buyers and $95,000 among repeat buyers.
• 65 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 ora change in family situation.

Characteristics of Homes Purchased

• 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.

The Home Search Process Statistics

• 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 l0 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.

Home Buying and Real Estate Professional Statistics

• 88 percent of buyers purchased their home through a real estate agent or broker—a share that has steadily increased from 69 percent in 2001.
• 40 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.

Home Sellers and Their Selling Experience

• 40 percent of home sellers traded up to a larger sized home, 47 percent purchased a more expensive home, and 53 percent purchased a newer home.
• The typical seller lived in their home for 10 years. The median tenure has increased in recent years. In 2007, the typical tenure in home was only six years.
• 88 percent of sellers were assisted by a real estate agent when selling their home.
• Recent sellers typically sold their homes for 97 percent of the listing price, and 45 percent reported they reduced the initial asking price at least once.
• 17 percent of recent sellers had to delay or stall selling their home because the value of their home was worth less than their mortgage.
• 38 percent of sellers offered incentives to attract buyers, most often assistance with home warranty policies and closing costs.

Home Selling and Real Estate Professionals

• 38 percent of sellers who used a real estate agent found their agents through a referral by friends or family, and 22 percent used the agent they worked with previously to buy or sell a home.
• 70 percent of home sellers only contacted one agent before selecting the one to assist with their home sale.
• 90—one percent of sellers reported that their home was listed or advertised on the multiple listing (MLS) website.
• Among recent sellers who used an agent, 83 percent reported they would definitely (68 percent) or probably (15 percent) use that real estate agent again or recommend to others.

Benefits of Proper Pricing

Faster Sale:

When your home sells faster, you save carrying costs.

More Convenience:

If you’ve moved before, you know the energy it takes to prepare for showings, keeping the home clean and altering your lifestyle.

Exposure to More Prospects:

At Market Value, you open your home up to more people who can afford the price.

Increases Salesperson Response:

When agents are excited about a home and it’s price, they make special efforts to cotact all their potential buyers.

Attracts Higher Offers:

When a home is priced correctly, buyers are more likely to make a strong initial purchase offer – they do not want to risk losing the home.

Means More Money To Sellers:

If a home is correctly priced, the excitement of the market produces higher sale prices. You NET more both in terms of actual sale price and in less carrying costs.

Financing should be provided from a qualified home mortgage broker

Fairfax Mortgage Investment brokers pride ourselves on the ability to provide assistance in our local market. We are here to assist with acquiring your home with proper financing when you are ready to buy. If you would like to learn more regarding how to finance a home after renting does not seem like the best option anymore, please call or reach out to us using the contact form with any questions. We are glad to help.