|By Marketwired .||
|November 10, 2012 10:52 AM EST||
ORLANDO, FL -- (Marketwire) -- 11/10/12 -- Dual income households are comprising a greater portion of the housing market and helping sales recover, according to an annual study released today.
The 2012 National Association of Realtors® Profile of Home Buyers and Sellers continues a long-running series of large national NAR surveys evaluating the demographics, preferences, motivations, plans and experiences of recent home buyers and sellers. The responses are heavily representative of owner-occupants and do not include most investors.
Sixty-five percent of all buyers are married couples, 16 percent are single women, 9 percent single men, 8 percent unmarried couples and 2 percent other; percentages of single buyers were slightly higher in 2011. However, just two years ago, 58 percent of buyers were married, 20 percent were single women, 12 percent single men and 7 percent unmarried couples; the overall market share of single buyers declined a total of 7 percentage points over the past two years. Before 2010, the market shares moved within a very narrow range, generally a percentage point or two.
Paul Bishop, NAR vice president of research, said the study is painting a clearer picture of the impact of mortgage limitations. "We've known for some time that stringent mortgage credit standards have been holding back home sales, but these findings show single buyers have been hurt the most over the past two years. Total home sales would be 10 to 15 percent higher without these unnecessary headwinds," he said.
"The continued growth in married couples as single buyers shrink demonstrates that households with dual incomes are more successful in obtaining a mortgage. However, given the historically favorable housing affordability conditions, most single-income buyers could also purchase a home and stay well within their means, if lending requirements were more sensible," Bishop said.
First-time home buyers* edged up to a 39 percent market share in the past year from 37 percent in the 2011 study. Long-term survey averages show that four out of 10 buyers are typically first-time buyers, who are critical to a housing recovery because they help existing home owners to sell and make a trade.
The study shows the median age of first-time buyers was 31 and the median income was $61,800. The typical first-time buyer purchased a 1,600 square-foot home costing $154,100, while the typical repeat buyer was 51 years old and earned $93,100. Repeat buyers purchased a median 2,100-square foot home costing $220,000.
The median downpayment for all home buyers was 9 percent, ranging from 4 percent for first-time buyers to 13 percent for repeat buyers. "First-time buyers historically make small downpayments, but repeat buyers like to put down 20 percent if they can to avoid paying mortgage insurance," Bishop said. "The general loss in home value since the peak of the housing boom means many repeat buyers in recent years had to make smaller downpayments. Fortunately, prices have turned up this year and are showing sustained increases, so we're on the road to a recovery in home equity."
First-time buyers who financed their purchase used a variety of resources for the downpayment: 76 percent tapped into savings; 24 percent received a gift from a friend or relative, typically from their parents; and 6 percent received a loan from a relative or friend. Eleven percent tapped into a 401(k) fund, and 6 percent sold stocks or bonds. Ninety-three percent of entry-level buyers chose a fixed-rate mortgage.
Forty-six percent of first-time buyers financed with a low-downpayment FHA mortgage, and 10 percent used the VA loan program with no downpayment requirements. Forty-two percent cut spending on luxury items to buy their first home, 35 percent cut spending on entertainment and 27 percent cut spending on clothes.
Seventy-eight percent of recent home buyers said their home is a good investment, and 46 percent believe it's better than stocks; 92 percent were satisfied with the buying process.
The typical buyer began their home search online and then contacted a real estate agent. Buyers who used an agent searched a median of 12 weeks and visited 10 homes, down from 12 homes in 2011. "The decline in the number of homes visited reflects a tighter inventory environment that became more pronounced during the second half of the survey period," Bishop explained. "It makes sense that buyers are seeing fewer homes in the current market."
Buyers use a wide variety of resources in searching for a home. Top results show 90 percent use the Internet, 87 percent use real estate agents, 53 percent yard signs, 45 percent attend open houses and 27 percent review print or newspaper ads.
When buyers were asked where they first learned about the home they purchased, 42 percent said the Internet; 34 percent from a real estate agent; 10 percent a yard sign or open house; 6 percent from a friend, neighbor or relative; 5 percent home builders; 2 percent directly from the seller; 1 percent a print or newspaper ad; and less than 1 percent from other sources.
Ninety-one percent of home buyers who used the Internet to search for a home purchased through a real estate agent, as did 71 percent of non-Internet users, who were more likely to purchase directly from a builder or from an owner they already knew in a private transaction.
Local metropolitan multiple listing service websites were the most popular Internet resource, used by 54 percent of buyers; followed by Realtor.com, 51 percent; real estate agent websites, 47 percent; real estate company sites, 39 percent; other websites with real estate listings, 27 percent; search engines, 19 percent; mobile or tablet apps, and for-sale-by-owner sites, 13 percent each; mobile or tablet websites, 12 percent; and mobile or tablet search engines, 11 percent; other categories were notably smaller.
While sellers had been in their previous home for a median of nine years, first-time buyers plan to stay for 10 years and repeat buyers plan to hold their property for 15 years.
The biggest factors influencing neighborhood choice were quality of the neighborhood, cited by 61 percent of buyers; convenience to jobs, 43 percent; overall affordability of homes, 39 percent; and convenience to family and friends, 35 percent. Other factors with relatively high responses include neighborhood design and convenience to shopping, 26 percent each; quality of the school district, 25 percent; convenience to schools, 22 percent; and convenience to entertainment or leisure activities, 19 percent.
Commuting costs continue to factor strongly in decisions regarding location, with 75 percent of buyers saying transportation costs were important.
Seventy-nine percent of respondents purchased a detached single-family home, 8 percent a condo, 6 percent a townhouse or rowhouse, and 7 percent some other kind of housing. The typical home had three bedrooms and two bathrooms.
Fifty-one percent of homes purchased by all buyers were in a suburb or subdivision, 18 percent in a small town, 17 percent were in an urban area, 12 percent in a rural area and 3 percent in a resort or recreation area. The median distance from the previous residence was 11 miles.
Eighty-nine percent of respondents used real estate agents and brokers to purchase a home, 6 percent purchased directly from a builder and 5 percent directly from the previous owner; 59 percent of buyers working with real estate professionals had a buyer representative arrangement.
The biggest reason people buy a home is the simple desire to own a home of their own, cited by 30 percent of respondents, including 60 percent of first-time buyers. The next biggest reasons for buying were desire for a larger home, cited by 11 percent of respondents; a job-related move, 9 percent; a change in family situation, 8 percent; and the affordability of homes, 7 percent.
Fifteen percent of respondents currently own two homes, and an additional 5 percent own three or more properties.
The typical home seller was 53 years old and their income was $95,400. Sellers moved a median distance of 19 miles and their home was on the market for 11 weeks. Forty-six percent moved to a larger home, 29 percent bought a comparably sized home and 25 percent downsized.
Twelve percent of sellers do not plan to sell their previous home, and 6 percent said their home has not yet sold but they're currently renting to others.
The typical seller, who purchased a home nine years earlier, realized a median equity gain of $20,000, a 12 percent increase over the original purchase price, while sellers who were in their homes for 11 to 15 years saw a median gain of $54,000, or 31 percent.
Sellers typically found a real estate agent through a referral by a friend, neighbor or relative, or used the agent in a previous transaction; 84 percent are likely to use the agent again or recommend to others.
Like sellers, buyers most commonly choose an agent based on a referral, with trustworthiness and reputation being the most important factors; two out of thee buyers interviewed only one agent. Eighty-nine percent of buyers are likely to use the same agent again or recommend to others.
Of sellers working with real estate agents, the study found that 80 percent used full-service brokerage, in which agents provide a broad range of services and manage most of the aspects of selling a home. Eight percent of sellers chose limited services, which may include discount brokerage, and 12 percent used minimal service, such as simply listing a property on a multiple listing service.
Realtors® provide all of these types of services, as do non-member agents and brokers, with similar findings for each year since questions about brokerage services were added in 2006.
For-sale-by-owner transactions accounted for 9 percent of sales, matching the record-low set in 2010 and down from 10 percent in last year's study, well below the record high of 20 percent set in 1987. The share of homes sold without professional representation has trended lower since last reaching a cyclical peak, which was 18 percent in 1997.
Many FSBO properties are not sold on the open market. Factoring out private sales between parties who knew each other in advance, the actual number of homes sold on the open market without professional assistance was 6 percent.
"An interesting finding is that when asked about the reason for selling, 20 percent of FSBOs said they had been contacted directly by a buyer, up from 15 percent in the 2010 study," Bishop said. "This is another indication of the tight inventory situation that is developing in various parts of the country, notably in the West."
The median transaction price for sellers who used an agent was $215,000, well above the $174,900 median for a home sold directly by an owner, but there were differences in the findings. The median income of unassisted sellers was $80,400, in contrast with $97,600 for agent-assisted sellers. Unassisted sellers were much more likely to be selling a smaller home, and they were more likely to be in an urban or central city area, all suggesting a lower home value.
The most difficult tasks reported by unrepresented sellers are understanding and completing paperwork, getting the right price, and preparing or fixing up the home for sale.
NAR mailed an eight-page questionnaire in July 2012 to a national sample of 93,502 home buyers and sellers who purchased their homes between July 2011 and June 2012, according to county records and using the Tailored Survey Design Method. It generated 8,501 usable responses; the adjusted response rate was 9.1 percent. All information is characteristic of the 12-month period ending in June 2012 with the exception of income data, which are for 2011. Because of rounding and omissions for space, percentage distributions for some findings may not add up to 100 percent.
The 2012 NAR Profile of Home Buyers and Sellers can be ordered by calling 800-874-6500, or online at www.realtor.org/prodser.nsf/Research. The study costs $19.95 for NAR members and $149.95 for non-members.
The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.
*Survey results largely represent owner-occupants and differ from separately reported monthly findings from NAR's Realtors® Confidence Index, which include all types of buyers. Investors are under-represented in this annual study because survey questionnaires are mailed to the addresses of the property purchased and generally are not returned by absentee owners. Results include both new and existing homes.
Information about NAR is available at www.realtor.org. This and other news releases are posted in the "News, Blogs and Videos" tab on the website. Statistical data in this release, as well as other tables and surveys, are posted in the "Research and Statistics" tab.
For further information contact:
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Aug. 31, 2016 02:15 AM EDT Reads: 2,274
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Aug. 31, 2016 02:00 AM EDT Reads: 1,979
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Aug. 31, 2016 01:45 AM EDT Reads: 3,073
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Aug. 31, 2016 01:00 AM EDT Reads: 1,703
Identity is in everything and customers are looking to their providers to ensure the security of their identities, transactions and data. With the increased reliance on cloud-based services, service providers must build security and trust into their offerings, adding value to customers and improving the user experience. Making identity, security and privacy easy for customers provides a unique advantage over the competition.
Aug. 30, 2016 08:15 PM EDT Reads: 2,491
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
Aug. 30, 2016 08:00 PM EDT Reads: 1,930
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Aug. 30, 2016 08:00 PM EDT Reads: 2,031
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
Aug. 30, 2016 07:15 PM EDT Reads: 368
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Aug. 30, 2016 07:00 PM EDT Reads: 938
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
Aug. 30, 2016 06:15 PM EDT Reads: 377
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Aug. 30, 2016 05:45 PM EDT Reads: 3,596
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Aug. 30, 2016 05:00 PM EDT Reads: 905
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
Aug. 30, 2016 04:15 PM EDT Reads: 976
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Aug. 30, 2016 03:30 PM EDT Reads: 3,783
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...
Aug. 30, 2016 03:00 PM EDT Reads: 873