The National Association of Realtors surveys home buyers and sellers each year to gather information about the home buying and selling process. These surveys provide information on demographics, housing characteristics, and the experience of consumers in the housing market. Buyers and sellers also share information on the role that real estate professionals play in home sales transactions. Here are some exerpts from the Chicagoland Profile which I found most interesting. If you’d like more information on the reports for Chicago, Chicago Suburbs, or the entire Chicagoland PMSA please let me know.
Characteristics of Home Buyers
- Fifty-nine percent of recent home buyers were first-time buyers, compared to 47 percent nationwide.
- The typical first-time home buyer was 31 years old, while the typical repeat buyer was 43 years old, nationwide first-time buyers were typically 30 and repeat buyers were typically 48 years old.
- The 2008 median household income of buyers was $86,300 which is higher than the median income of buyers nationwide which was $73,100.
- The median income was $78,700 among first-time buyers and $99,600 among repeat buyers.
- For 40 percent of recent home buyers, the primary reason for the recent home purchase was a desire to own a home.
Characteristics of Homes Purchased
- New home purchases were at the lowest level in eight years nationwide—down to 18 percent of all recent home purchases. This is reflective in Chicagoland PMSA—15 percent of homes were new.
- The typical home purchased was 1,200 square feet in size and was built in 1969.
- Thirty-seven percent of home buyers purchased a detached single-family home.
- The median price of home purchased was $272,500 compared to $185,000 nationwide.
- When considering the purchase of a home, commuting costs were considered very or somewhat important by 82 percent of buyers.
The Home Search Process
- For 38 percent of home buyers, the first step in the home-buying process was looking online for properties.
- Ninety-four percent of home buyers used the Internet to search for homes.
- Real estate agents were viewed as a very useful information source by 83 percent of buyers who used an agent while searching for a home.
- The typical home buyer searched for 12 weeks and viewed 15 homes. This compares to 12 weeks and 12 homes viewed by the typical buyer nationwide.
Home Buying and Real Estate Professionals
- Eighty-six percent of buyers purchased their home through a real estate agent or broker.
- Six percent of buyers purchased a home in foreclosure. Nationally, 10 percent of buyers purchased a home in foreclosure.
- Fifty-four percent of buyers found their agent through a referral from a friend or family member.
- Fifty-eight percent of buyers would definitely use their real estate again or recommend the same agent to others.
Financing the Home Purchase
- Ninety-nine percent of home buyers financed their recent home purchase. This is slightly more than all buyers nationwide—92 percent financed their recent home purchase.
- The typical home buyer financed 87 percent of their home purchase.
- More than half (55 percent) of home buyers reported they have made some sacrifices such as reducing spending on luxury items, entertainment or clothing.
- Thirty-five percent of first-time buyers reported their mortgage application and approval process was somewhat more difficult than they expected, and 12 percent reported it was much more difficult than expected.
Home Sellers and Their Selling Experience
- Eighty-nine percent of sellers were assisted by a real estate agent when selling their home. Nationwide, 85 percent of sellers used a real estate agent when selling their home.
- Recent sellers typically sold their homes for 94 percent of the listing price, and 72 percent reported they reduced the asking price at least once. Among all sellers nationally, sellers typically sold their homes for 95 percent of the listing price, and 60 percent reported they reduced the asking price at least once.
- Twenty-eight percent of sellers offered incentives to attract buyers, most often assistance with home warranty policies and closing costs.
Home Selling and Real Estate Professionals
- Fifty percent of sellers who used a real estate agent found their agents through a referral by friends or family, and 29 percent used the agent they worked with previously to buy or sell a home.
- Ninety-six percent of sellers reported that their home was listed or advertised on the Internet.
- Among recent sellers who used an agent, 81 percent reported they would definitely (55 percent) or probably (26 percent) use that real estate agent again or recommend to others.
For-Sale-by-Owner (FSBO) Sellers
- The share of home sellers who sold their home without the assistance of a real estate agent was 9 percent this is lower than the national share of 11 percent.
- All FSBO sellers reported not wanting to pay a commission or fee was the reason they chose to sell their home without assistance.