2014 Profile of Home Buyers and Sellers

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    2014

    PROFILE OF HOME BUYERS

    AND SELLERS

    National Association of REALTORS®

    Te Voice for Real Estate® 

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    1National Association of REALTORS®  |  PROFILE OF HOME BUYERS AND SELLERS 2014

    National Association of REALTORS®

    ©2014 National Association of REALTORS®

    2014

    PROFILE OF HOME BUYERSAND SELLERS

    National Association of REALTORS®

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    3National Association of REALTORS®  |  PROFILE OF HOME BUYERS AND SELLERS 2014

    National Association of REALTORS®

    Contents

    Introduction .................................................................................................................................. 5

    Highlights ......................................................................................................................................6

    Chapter 1: Characteristics of Home Buyers ..........................................................................8

    Chapter 2: Characteristics of Homes Purchased ..............................................................23

    Chapter 3: The Home Search Process .................................................................................43

    Chapter 4: Home Buying and Real Estate Professionals .................................................57

    Chapter 5: Financing the Home Purchase ...........................................................................69

    Chapter 6: Home Sellers and Their Selling Experience ...................................................79

    Chapter 7: Home Selling and Real Estate Professionals ................................................. 98Chapter 8: For-Sale-by-Owner (FSBO) Sellers ................................................................107

    Methodology .............................................................................................................................117

    List of Exhibits ...........................................................................................................................118

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    5National Association of REALTORS®  |  PROFILE OF HOME BUYERS AND SELLERS 2014

    National Association of REALTORS®

    Introduction

    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 liv-

    ing area. This annual survey conducted by the NATIONAL

    ASSOCIATION OF REALTORS® of recent primary residence

    home buyers and sellers helps to gain insight into detailed

    information about their experiences with this important

    transaction. The information provided supplies understand-

    ing, from the consumer level, of the trends that are transpir-

    ing and the changes seen. The survey covers information on

    demographics, housing characteristics and the experience

    of consumers in the housing market. Buyers and sellers also

    provide valuable information on the role that real estate pro-

    fessionals play in home sales transactions.

     Jessica Lautz

    Meredith Dunn

    Nadia Evangelou

    November 2014

    Buyers continue to face tighter credit standards than in

    previous years. A notable finding from this year’s report was

    the drop in first-time home buyers to a share not reported

    since 1987. Buyers in this year’s profile reported incomes

    continuing to increase, making them more likely to have the

    financial capability to own more than one property. Addi-

    tionally, there is a continuation of trends seen last year of an

    elevated share of married couples and suppressed levels o

    single buyers. Married couples who purchased a home have

    the advantage of more buying power and added financia

    stability—their typical household incomes are higher than

    single households.

    Tightened inventory is affecting the home search pro-

    cess of buyers. Due to suppressed inventory levels in many

    areas of the country, buyers are typically buying more ex-

    pensive homes as prices increase. The number of weeks a

    buyer is searching fell in this year’s report. Buyers continue

    to report the most difficult task for them in the home buying

    process is just finding the right home to purchase.

    Buyers need the assistance of a real estate professiona

    to help find the right home for them, negotiate terms of sale

    and help with price negotiations. Sellers, as well, turn to

    professionals to help market their home to potential buyers

    sell within a specific timeframe, and price their home competitively. For-sale-by-owner sales remain at historic lows

    while the use of the agent to sell the home stays at historic

    highs. Likewise, the buyer use of the agent is at historic

    highs as buyers purchasing directly from a previous owne

    or through a builder falls.

    This report provides real estate professionals with in-

    sights into the needs and expectations of their clients. Wha

    do consumers want when choosing a real estate profession

    al? How do home buyers begin the process of searching fo

    a home? Why do some sellers choose to forego the assis-tance of an agent? The answers to these questions, along

    with other findings in this report, will help real estate pro-

    fessionals better understand the housing market and also

    provide the information necessary to address the needs o

    America’s real estate consumers.

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    2014 PROFILE OF HOME BUYERS AND SELLERS

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    Highlights

    Characteristics of Home Buyers

    n 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.

    n 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.

    n The typical first-time buyer was 31-years-old, while the

    typical repeat buyer was 53.

    n 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.

    n Sixty-five percent of recent home buyers were married

    couples.

    n 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 Homes Purchased

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

    n 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.

    n The typical home purchased was 1,870 square feet in

    size, was built in 1993, and had three bedrooms and two

    bathrooms.

    n Seventy-nine percent of home buyers purchased a

    detached single-family home.

    n Thirteen percent of recent buyers over the age of 50

    bought a home in senior-related housing.

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

    buying.

    The Home Search Process

    n 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.

    n Ninety-two percent of buyers use the internet in some

    way in their home search process and 50 percent ofbuyers use a mobile website or application in their home

    search.

    n Real estate agents were viewed as a useful information

    source by 98 percent of buyers who used an agent while

    searching for a home.

    n The typical home buyer searched for 10 weeks and

    viewed 10 homes—this is two weeks shorter than the

    previous year’s report.

    n

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

    n For more than half of buyers finding the right home was

    the most difficult step in the home buying process.

    n Approximately nine in 10 recent buyers were at least

    somewhat satisfied with the home buying process.

    Home Buying and Real Estate Professionals

    n 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.

    n 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.

    n Two-thirds of recent buyers only interviewed one agent

    before the found the agent they worked with.

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    n 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.n Eighty-eight percent of home buyers financed their

    recent home purchase. Among those who financed

    their home purchase, the buyers typically financed 90

    percent.

    n The share of first-time buyers who financed their home

    purchase was 95 percent compared to 84 percent of

    repeat buyers.

    n Forty-six percent of home buyers reported they have

    made some sacrifices such as reducing spending on

    luxury items, entertainment or clothing.

    n 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.

    n Twelve percent of buyers overall cited saving for a

    downpayment 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 adownpayment.

    n Eight in 10 buyers believe their home is a good financial

    investment.

    Home Sellers and Their Selling Experience

    n Forty 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.

    n 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.

    n Eighty-eight percent of sellers were assisted by a real

    estate agent when selling their home.

    n 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.

    n Seventeen percent of recent sellers had to delay or stal

    selling their home because the value of their home was

    worth less than their mortgage.

    n Thirty-six percent of sellers offered incentives to attractbuyers, most often assistance with home warranty

    policies and closing costs.

    Home Selling and Real Estate Professionals

    n Thirty-eight 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.

    n Seventy percent of home sellers only contacted one

    agent before selecting the one to assist with theirhome sale.

    n Ninety-one percent of sellers reported that their home

    was listed or advertised on the multiple listing (MLS)

    website.

    n Among recent sellers who used an agent, 83 percen

    reported they would definitely (68 percent) or probably

    (15 percent) use that real estate agent again or

    recommend to others.

    For-Sale-by-Owner (FSBO) Sellersn The share of home sellers who sold their home without

    the assistance of a real estate agent was nine percent

    Forty-four percent knew the buyer prior to home

    purchase.

    n Among sellers who did not know the buyer of the home

    previously, 15 percent were contacted by a buyer they

    did not know to buy the home.

    n FSBOs typically have a lower median selling price

    $208,700 compared to $235,000. Thus, the typica

    agent-assisted home sale typically has a 13 percent

    higher sales price than the typical FSBO sale.

    n Half of FSBO sellers took no action to market their home

    and 73 percent did not offer any incentives to attract

    buyers.

    Highlights

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    2014 PROFILE OF HOME BUYERS AND SELLERSCHAPTER 1:

    Characteristics of Home Buyers

    Tightened credit standards for home buyers have suppressed the level

    of first-time buyers in the market. Among primary residence home

    buyers, only 33 percent are first-time buyers, while the historical

    average is 40 percent.

    First-time home buyers are more likely to be single females and single

    males and typically have a lower income than repeat home buyers. Due to

    the lower share of first-time buyers, the data shows a market with a higher

    share of married couples who have higher household income than seensince the last report.

    Thirteen percent of recent buyers purchased a multi-generational home.

    The reasons for purchasing this home type vary from children over 18

    moving back into the house to cost savings to the health and caretaking of

    aging parents, as well as wanting to spend more time with aging parents.

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    Demographic Characteristics of Homebuyers

    •  Exhibits 1–1 through 1–5 

    The demographics of home buyers in the last three years

    have been reflective of tightened credit conditions. Buyers

    tend to have higher incomes and there is a higher share of

    married couples in the market.

    The median age of home buyers rose to 44 years old from

    42 years old. The largest share of home buyers is in the 25

    to 34 age group, who account for 28 percent of recent home

    buyers in the market. The 2013 median household income

    for home buyers rose slightly to $84,500 from $83,300 in

    the last report.

    Buyers in the Midwest region tend to be younger, whilebuyers in the West and South regions tend to be older.

    Buyers in the West region had the highest incomes followed

    by buyers in the Northeast.

    The share of married buyers remained nearly flat from

    the past year at 65 percent. The single buyer share remains

    suppressed. Single female buyers only made up 16 percent of

    buyers while the share of single male buyers is nine percent.

    In past years, single females made up more than one-fifth of

    the market place and single males made up more than one-

    tenth of recent buyers. This suggests that while tightenedlending conditions continue married couples are better able

    to provide the purchasing power needed to buy a home.

    Thirty-five percent of recent buyers had children

    under the age of 18 in the household. Thirteen percent of

    recent buyers purchased a home for a multi-generational

    household—a home that had adult siblings, adult children

    over the age of 18, parents, and or grandparents in the

    household. One-quarter of these homes were bought for

    cost savings and an additional 23 percent due to children

    over the age of 18 moving back into the home. Eighteen

    percent of multi-generational households purchased this

    household type because of health and caretaking of aging

    parents, while one in ten purchased this type of home to

    spend more time with aging parents.

    Race, Ethnicity, Language and National Origin

    of Buyers

    •  Exhibits 1–6 through 1–9, and Exhibits 1–16through 1–18

    Similar to 2013, 85 percent of buyers nationally reported

    their ethnicity as Caucasian, although depending on the

    region in which they bought a home both race and ethnicity

    varies. The West remains the most diverse in composition

    of home buyers, where 23 percent of buyers identified

    themselves as a race other than Caucasian.

    Ninety-six percent of home buyers speak English. This

    number rises to 97 percent in the Midwest and declines

    to 94 percent in the West. Eighty-nine percent of buyers

    reported they were born in the U.S. This number declines

    to 83 percent in the West and rises to 94 percent in the

    Midwest.

    First-time buyers remain more diverse than repeat buyers

    overall. First-time buyers are also more likely to report no

    being born in the U.S. and speaking a language other than

    English at home.

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    National Association of REALTORS®  |  PROFILE OF HOME BUYERS AND SELLERS 201410

    2014 PROFILE OF HOME BUYERS AND SELLERS •  Chapter 1: Characteristics of Home Buyers

    Demographic Characteristics of First-Time and

    Repeat Home Buyers

    •  Exhibits 1–10 through 1–15 

    Historically, the share of primary residence buyers whowere first-time home buyers is 40 percent. The share of

    first-time home buyers from 2011 to 2014 has remained

    under the historical average. In the 2014 report, 33 percent

    of home buyers reported they were first-time home buyers.

    This is the lowest share since 1987, when the share of first-

    time buyers reported was 30 percent. The South had the

    smallest share of first-time home buyers at 30 percent and

    the Northeast had the largest share at 41 percent.

    The share of married first-time buyers is 54 percent,

    while the share of married repeat buyers is 70 percent. The

    number of children under the age of eighteen living at home

    was generally similar between first-time and repeat buyers.

    The median age of first-time buyers is 31, unchanged from

    last year, while the typical age for repeat buyers rose slightly

    to 53 years from last year’s reported 52.

    The median household income varies widely between

    first-time buyers and repeat buyers –the typical 2013

    household income for first-time buyers was $68,300 and

    $95,000 for repeat buyers. Married repeat buyers continue

    to have the highest income among all buyers at $107,800.

    Increased median household income could suggest stricter

    financing that forces low income buyers out of the market.

    Prior Living Arrangement

    •  Exhibits 1–19 and 1–20

    It was more likely for a home buyer to own their previous

    residence then rent a home or apartment before buyingtheir most recent property. Seventy-five percent of first-

    time buyers rented an apartment or house before buying

    their home, while 19 percent lived with parents, relatives or

    friends. Sixty-seven percent of repeat buyers owned their

    previous residence, while 26 percent rented an apartment

    or house before buying again.

    In terms of household composition, married couples

    remained more likely than other household types to own

    their previous residence before buying. Unmarried couples

    were the most likely to rent a home before making a

    purchase. Those with children under the age of 18 in their

    home were more likely to rent an apartment or house, while

    those without children were more likely to live in a home

    they owned.

    Thirteen percent of recent buyers purchased a

    home for a multi-generational household—a

    home that had adult siblings, adult children over

    the age of 18, parents, and or grandparents inthe household.

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    Primary Reason for Home Purchase and Timing

    of Purchase

    •  Exhibits 1–21 through 1–23 

    With the share of buyers who are repeat buyersincreasing the reasons to purchase a home become more

    diverse. The number one reason among all buyers and those

    who are first-time buyers (53 percent) to purchase a home

    is the desire to own a home of their own. Among repeat

    buyers the most common reasons range from job-related

    relocations or moves (12 percent) to the desire for a home

    in a better area (11 percent) to the desire for a larger home

    (10 percent).

    The timing of the home purchase remained largely

    driven by the buyers’ feeling that it was just the right time

    to buy and the buyer felt ready to buy a home; 48 percent

    of all buyers cited this as the primary reason. The second

    most common reason was that the buyer did not have much

    choice and they had to purchase the home when they did,

    which was true for 19 percent of buyers.

    Ownership of Multiple Homes

    •  Exhibit 1–24

    The number of recent home buyers who own more than

    one home was 21 percent in 2014, an increase from 19percent in 2013. The ability for a buyer to own an additiona

    home besides the home they just purchased speaks to

    the tightened credit conditions as buyers who have highe

    incomes and own more than one property are more

    commonly making home purchases. Owning more than

    one property was more common among buyers who are 45

    years and older. Twenty-six percent of buyers over the age of

    44 own at least one other property other than their recently

    purchased home. .

    In the 2014 report, 33 percent of home buyers

    reported they were first-time home buyers. This

    is the lowest share since 1987, when the share of

    first-time buyers reported was 30 percent.

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    2014 PROFILE OF HOME BUYERS AND SELLERS •  Chapter 1: Characteristics of Home Buyers

      EXHIBIT 1–1 AGE OF HOME BUYERS, BY REGION

      (Percentage Distribution)

    BUYERS WHO PURCHASED A HOME IN THE

    All Buyers Northeast Midwest South West

    18 to 24 years 3% 4% 5% 2% 2%

    25 to 34 years 28 31 33 26 25

    35 to 44 years 20 21 18 20 21

    45 to 54 years 16 17 14 17 16

    55 to 64 years 17 13 16 18 19

    65 to 74 years 13 12 10 15 13

    75 years or older 4 3 4 4 5

    Median age (years) 44 41 40 46 46

     EXHIBIT 1–2 HOUSEHOLD INCOME OF HOME BUYERS, BY REGION, 2013

      (Percentage Distribution)

    BUYERS WHO PURCHASED A HOME IN THE

    All Buyers Northeast Midwest South West

    Less than $25,000 3% 3% 5% 3% 3%

    $25,000 to $34,999 6 6 7 6 6

    $35,000 to $44,999 7 6 9 7 6

    $45,000 to $54,999 8 9 8 8 8

    $55,000 to $64,999 9 10 11 9 7

    $65,000 to $74,999 8 8 9 9 8

    $75,000 to $84,999 8 8 8 8 9

    $85,000 to $99,999 10 9 11 10 11

    $100,000 to $124,999 14 15 13 13 15

    $125,000 to $149,999 9 10 7 8 10

    $150,000 to $174,999 5 5 4 5 5

    $175,000 to $199,999 3 4 3 4 3

    $200,000 or more 9 9 6 10 8

    Median income (2013) $84,500 $87,100 $77,700 $85,000 $88,700

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      EXHIBIT 1–4 NUMBER OF CHILDREN UNDER THE AGE OF 18 RESIDING IN HOUSEHOLD(Percentage Distribution)

    EXHIBIT 1–3 ADULT COMPOSITION OF HOME BUYER HOUSEHOLDS, 2001–2014  (Percentage Distribution)

    OTHERUNMARRIED COUPLESINGLE MALESINGLE FEMALEMARRIED COUPLE

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

    40%

    45%

    50%

    55%

    60%

    65%

    70%

    75%

    80%

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

    40%

    45%

    50%

    55%

    60%

    65%

    70%

    75%

    80%

    2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

    68%

    15%

    7%

    3%

    59%

    21%

    11%

    8%

    1%

    62%

    18%

    8%

    9%

    2%

    61%

    21%

    9%

    7%2%

    61%

    22%

    9%

    7%1%

    62%

    20%

    9%

    7%2%

    61%

    20%

    10%

    7%2%

    60%

    21%

    10%

    8%

    1%

    58%

    20%

    12%

    8%

    1%

    64%

    18%

    10%

    7%1%

    65%

    16%

    9%

    8%

    2%

    66%

    16%

    9%

    7%2%

    65%

    16%

    9%

    8%

    2%

    NONE 65%

    THREE OR MORE 7%

    TWO 14%

    ONE 15%

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    2014 PROFILE OF HOME BUYERS AND SELLERS •  Chapter 1: Characteristics of Home Buyers

    14

      EXHIBIT 1–7 RACE/ETHNICITY OF HOME BUYERS, BY ADULT COMPOSITION

    OF HOUSEHOLD  (Percent of Respondents)

    ADULT COMPOSITION OF HOUSEHOLD CHILDREN IN HOME

    All Buyers Married couple Single female Single male

    Unmarried

    couple Other

    Children under

    18 in home

    No children in

    home

    White/Caucasian 85% 85% 85% 82% 85% 74% 79% 88%

    Hispanic/Latino/

    Mexican/Puerto Rican5 6 4 5 6 8 8 4

    Asian/Pacific Islander 5 6 2 6 5 8 7 4

    Black/African-American 5 3 8 6 4 6 6 4

    Other 3 2 2 4 5 7 3 2

    Note: Respondents were permitted to select as many races and ethnicities as they felt applicable.

    The percentage distribution may therefore sum to more than 100 percent.

      EXHIBIT 1–6 RACE/ETHNICITY OF HOME BUYERS, BY REGION  (Percent of Respondents)

    BUYERS WHO PURCHASED A HOME IN THE

    All Buyers Northeast Midwest South West

    White/Caucasian 85% 89% 90% 85% 77%

    Hispanic/Latino/

    Mexican/Puerto Rican5 3 3 6 7

    Asian/Pacific Islander 5 4 3 4 11

    Black/African-American 5 4 4 6 3

    Other 3 2 2 2 5

    Note: Respondents were permitted to select as many races and ethnicities as they felt applicable.

    The percentage distribution may therefore sum to more than 100 percent.

    EXHIBIT 1–5 HOME PURCHASED WAS A MULTI-GENERATIONAL HOME (WILL HOME ADULT

    SIBLINGS, ADULT CHILDREN, PARENTS, AND/OR GRANDPARENTS)  (Percentage Distribution)

    ADULT COMPOSITION OF HOUSEHOLD CHILDREN IN HOME

    All Buyers Married couple Single female Single male

    Unmarried

    couple Other

    Children under

    18 in home

    No children in

    home

    Multi-generational

    household13% 13% 13% 16% 7% 40% 15% 12%

    REASONS FOR PURCHASE:

    Cost Savings 24% 21% 24% 31% 36% 36% 24% 24%

    Children over 18 moving

    back into the house23 26 23 17 3 21 25 22

    Health/Caretaking of

    aging parents18 19 18 14 22 21 19 18

    To spend more time with

    aging parents10 12 8 6 14 * 15 7

    Other 24 22 26 32 25 21 18 28

    * Less than 1 percent

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      EXHIBIT 1–8 PRIMARY LANGUAGE SPOKEN IN HOME BUYER HOUSEHOLD, BY REGION  (Percentage Distribution)

    BUYERS WHO PURCHASED A HOME IN THE

    All Buyers Northeast Midwest South West

    English 96% 96% 97% 96% 94%

    Other 4 4 3 5 6

      EXHIBIT 1–9 NATIONAL ORIGIN OF HOME BUYERS, BY REGION  (Percentage Distribution)

    BUYERS WHO PURCHASED A HOME IN THE

    All Buyers Northeast Midwest South West

    Born in U.S. 89% 91% 94% 91% 83%

    Not born in U.S. 11 9 6 9 17

     EXHIBIT 1–10 FIRST-TIME HOME BUYERS  (Percent of all Home Buyers)

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

    40%

    45%

    50%

    55%

    60%

    2001

    42%

    2003

    40%

    2004

    40%

    2005

    40%

    2006

    36%

    2007

    39%

    2008

    41%

    2009

    47%

    2010

    50%

    2011

    37%

    2012

    39%

    2013

    38%

    2014

    33%

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    National Association of REALTORS®  |  PROFILE OF HOME BUYERS AND SELLERS 201416

    2014 PROFILE OF HOME BUYERS AND SELLERS •  Chapter 1: Characteristics of Home Buyers

    FIRST-TIME HOME BUYERS

     EXHIBIT 1–12 FIRST-TIME AND REPEAT HOME BUYERS BY HOUSEHOLD TYPE  (Percentage Distribution)

      EXHIBIT 1–11 FIRST-TIME HOME BUYERS, BY REGION  (Percent of all Home Buyers)

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    35%

    40%

    45%

    All Buyers Northeast Midwest South West

    33%

    41%

    36%

    30%32%

    OTHER 2%

    UNMARRIED COUPLE 15%

    SINGLE MALE 11%

    SINGLE FEMALE 18%

    MARRIED COUPLE 54%

    REPEAT HOME BUYERS

    OTHER 2%

    UNMARRIED COUPLE 4%

    SINGLE MALE 8%

    SINGLE FEMALE 16%

    MARRIED COUPLE 70%

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    17National Association of REALTORS®  |  PROFILE OF HOME BUYERS AND SELLERS 2014

    National Association of REALTORS®

    NONE 63%

    THREE OR MORE 6%

    TWO 12%

    ONE 20%

    NONE 66%

    THREE OR MORE 7%

    TWO 15%

    ONE 12%

     EXHIBIT 1–13 FIRST-TIME AND REPEAT HOME BUYERS BY CHILDREN IN HOUSEHOLD  (Percentage Distribution)

    FIRST-TIME HOME BUYERS

    REPEAT HOME BUYERS

     EXHIBIT 1–14 AGE OF FIRST-TIME AND REPEAT BUYERS  (Percentage Distribution)

    All Buyers First-time Buyers Repeat Buyers

    18 to 24 years 3% 9% *

    25 to 34 years 28 56 13

    35 to 44 years 20 19 20

    45 to 54 years 16 8 20

    55 to 64 years 17 6 22

    65 to 74 years 13 1 19

    75 years or older 4 * 6

    Median age (years) 44 31 53

    Married couple 43 31 51

    Single female 52 33 58

    Single male 47 31 56

    Unmarried couple 33 28 46

    Other 55 45 57

    * Less than 1 percent

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    National Association of REALTORS®  |  PROFILE OF HOME BUYERS AND SELLERS 201418

    2014 PROFILE OF HOME BUYERS AND SELLERS •  Chapter 1: Characteristics of Home Buyers

      EXHIBIT 1–15 HOUSEHOLD INCOME OF FIRST-TIME AND REPEAT BUYERS, 2013  (Percentage Distribution)

    All Buyers First-time Buyers Repeat Buyers

    Less than $25,000 3% 4% 3%

    $25,000 to $34,999 6 9 5

    $35,000 to $44,999 7 11 5

    $45,000 to $54,999 8 11 7

    $55,000 to $64,999 9 11 8

    $65,000 to $74,999 8 10 8

    $75,000 to $84,999 8 9 8

    $85,000 to $99,999 10 10 11

    $100,000 to $124,999 14 12 15

    $125,000 to $149,999 9 7 10

    $150,000 to $174,999 5 3 6

    $175,000 to $199,999 3 2 4

    $200,000 or more 9 3 11

    Median income (2013) $84,500 $68,300 $95,000

    Married couple $98,300 $79,400 $107,800

    Single female $54,800 $47,900 $60,600

    Single male $65,800 $60,100 $71,800

    Unmarried couple $80,800 $68,300 $97,200

    Other $63,500 $56,200 $80,700

      EXHIBIT 1–16 RACE/ETHNICITY OF FIRST-TIME AND REPEAT BUYERS(Percent of Respondents)

    All Buyers First-time Buyers Repeat Buyers

    White/Caucasian 85% 78% 88%

    Hispanic/Latino/

    Mexican/Puerto Rican5 7 4

    Asian/Pacific Islander 5 8 4

    Black/African-American 5 7 3

    Other 3 3 2

    Note: Respondents were permitted to select as many races and ethnicities as they felt applicable.

    The percentage distribution may therefore sum to more than 100 percent.

      EXHIBIT 1–17 PRIMARY LANGUAGE SPOKEN IN FIRST-TIME AND REPEAT

    BUYER HOUSEHOLDS(Percentage Distribution)

    All Buyers First-time Buyers Repeat Buyers

    English 96% 92% 97%

    Other 4 8 2

     

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    19National Association of REALTORS®  |  PROFILE OF HOME BUYERS AND SELLERS 2014

    National Association of REALTORS®

     EXHIBIT 1–18 NATIONAL ORIGIN OF FIRST-TIME AND REPEAT BUYERS(Percentage Distribution)

    All Buyers First-time Buyers Repeat Buyers

    Born in U.S. 89% 86% 91%

    Not born in U.S. 11 14 9

     

    EXHIBIT 1–19 PRIOR LIVING ARRANGEMENT OF FIRST-TIME AND REPEAT BUYERS  (Percentage Distribution)

    All Buyers First-time Buyers Repeat Buyers

    Rented an apartment or house 42% 75% 26%

    Owned previous residence 46 3 67

    Lived with parents, relatives or friends 10 19 6

    Rented the home buyer ultimately purchased 1 2 1

    Note: After selling their previous home, buyers may have rented a home or apartment before purchasing their next home. A first-time buyer couldhave acquired ownership of their previous home (as an inheritance or gift, for example) without having been the buyer of the home. Thus, a first-

    time buyer could have owned a home prior to their first home purchase.

    EXHIBIT 1–20 PRIOR LIVING ARRANGEMENT, BY ADULT COMPOSITION OF HOUSEHOLD  (Percentage Distribution)

    ADULT COMPOSITION OF HOUSEHOLD CHILDREN IN HOME

    All Buyers

    Married

    couple Single female Single male

    Unmarried

    couple Other

    Children under

    18 in home

    No children in

    home

    Rented an apartment or

    house42% 40% 43% 46% 56% 49% 45% 41%

    Owned previous residence 46 52 41 36 25 35 44 47

    Lived with parents,

    relatives or friends10 7 15 16 18 17 10 10

    Rented the home buyer

    ultimately purchased1 1 1 2 1 * 2 1

    * Less than 1 percent

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    National Association of REALTORS®  |  PROFILE OF HOME BUYERS AND SELLERS 201420

    2014 PROFILE OF HOME BUYERS AND SELLERS •  Chapter 1: Characteristics of Home Buyers

     EXHIBIT 1–21 PRIMARY REASON FOR PURCHASING A HOME, FIRST-TIME AND

    REPEAT BUYERS  (Percentage Distribution)

    All Buyers First-time Buyers Repeat Buyers

    Desire to own a home of my own 24% 53% 9%

    Job-related relocation or move 9 4 12

    Desire for a home in a better area 8 2 11

    Change in family situation 8 5 9

    Desire for larger home 7 1 10

    Affordability of homes 5 8 3

    Desire to be closer to family/friends/relatives 3 1 4

    Retirement 3 * 5

    Establish a household 3 7 1

    Desire for smaller home 3 * 4

    Financial security 3 6 1

    Desire for a newly built or custom-built home 2 1 3

    Tax benefits 2 3 2

    Desire to be closer to job/school/transit 2 1 2

    Greater number of homes on the market for sale/better choice * * *

    Other 19 8 24

    * Less than 1 percent

     

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    21National Association of REALTORS®  |  PROFILE OF HOME BUYERS AND SELLERS 2014

    National Association of REALTORS®

     EXHIBIT 1–22 PRIMARY REASON FOR PURCHASING A HOME, BY ADULT COMPOSITION

    OF HOUSEHOLD  (Percentage Distribution)

    ADULT COMPOSITION OF HOUSEHOLD CHILDREN IN HOME

    All Buyers

    Married

    couple Single female Single male

    Unmarried

    couple Other

    Children under

    18 in home

    No children

    in home

    Desire to own a home of my own 24% 19% 37% 23% 48% 41% 23% 25%

    Job-related relocation or move 9 11 2 6 1 * 12 7

    Desire for a home in a better area 8 9 3 4 10 11 12 6

    Change in family situation

    (e.g. marriage, birth of child,

    divorce, etc.)

    8 8 6 9 6 15 13 5

    Desire for larger home 7 9 * * 4 * 14 2

    Affordability of homes 5 4 11 3 5 15 5 5

    Desire to be closer to family/

    friends/relatives3 3 6 4 1 * 2 4

    Retirement 3 2 3 13 * * * 5

    Establish a household 3 4 * * 4 * 2 4

    Desire for smaller home 3 4 * * * * 1 4

    Financial security 3 1 6 11 2 * 1 4

    Desire for a newly built or

    custom-built home2 3 1 1 4 3 2

    Tax benefits 2 2 6 4 * 4 1 3

    Desire to be closer to job/

    school/transit2 2 * * * * 4 1

    Greater number of homes on the

    market for sale/better choice* * 2 * * * * *

    Other 19 18 19 21 19 11 8 25

    * Less than 1 percent

     EXHIBIT 1–23 PRIMARY REASON FOR THE TIMING OF HOME PURCHASE, FIRST-TIME

    AND REPEAT BUYERS  (Percentage Distribution)

    All Buyers First-time Buyers Repeat Buyers

    It was just the right time, buyer was ready to buy a home 48% 56% 43%

    Buyer did not have much choice, had to purchase when buyer did 19 12 22

    It was the best time for buyer because of affordability of homes 11 13 10

    It was the best time for buyer because of mortgage financing options available 10 13 9

    It was the best time for buyer because of availability of homes for sale 9 5 11Other 3 1 4

    Wish they had waited 1 1 2

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    National Association of REALTORS®  |  PROFILE OF HOME BUYERS AND SELLERS 201422

    2014 PROFILE OF HOME BUYERS AND SELLERS •  Chapter 1: Characteristics of Home Buyers

      EXHIBIT 1–24 OTHER HOMES OWNED, BY AGE  (Percentage Distribution)

    AGE OF HOME BUYER

    All Buyers 18 to 24 25 to 44 45 to 64 65 or older

    Recently purchased home only 79% 95% 84% 74% 74%

    One or more investment properties 10 2 10 12 9

    Previous homes that buyer is trying to sell 5 * 3 6 8

    Primary residence 3 1 2 3 3

    One or more vacation homes 4 * 1 5 8

    Other 2 * 1 4 1

    * Less than 1 percent

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    National Association of REALTORS®CHAPTER 2:

    Characteristics of Homes Purchased

    Buyers purchase different types of homes for different reasons. While

    new home purchasers buy with the hope of avoiding renovations or

    problems with plumbing or electrical, and the ability to customize

    their home, previously owned home buyers often purchase their home for a

    better price and overall value and the charm and character their home

    provides.

    Repeat buyers purchase larger homes than first-time buyers, and new

    homes are larger than previously owned homes. Thirteen percent of recenthome buyers over 50 years of age purchased a home in senior-related

    housing or an active adult community, which tends to change the home type

    and location somewhat from homes not in senior housing.

    Once the buyer is moved in to their newly purchased home, they expect

    to live there for 12 years. First-time home buyers and younger buyers expect

    their tenure will be shorter, while older buyers expect their tenure to be

    longer. Forty-four percent of buyers report that they could move with a

    future life change such as an addition to the family, marriage, when children

    move out of the home or retirement, while 23 percent report this is their

    forever home and they have no intention of ever moving.

    23National Association of REALTORS® |  PROFILE OF HOME BUYERS AND SELLERS 2014

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    National Association of REALTORS®  |  PROFILE OF HOME BUYERS AND SELLERS 201424

    2014 PROFILE OF HOME BUYERS AND SELLERS •  Chapter 2: Characteristics of Homes Purchased

    New and Previously Owned Homes Purchased

    • Exhibits 2–1 through 2–3 

    The share of new homes purchased remains at

    suppressed levels as construction has remained at low levels

    across the U.S. In 2003, 28 percent of homes purchased

    were new homes. In 2014, that share is 16 percent, which

    is the same share seen since 2011. Purchasing a new home

    is more common in the South, where 21 percent of buyers

    bought a new home.

    Among buyers who purchased new homes, 40 percent

    did so to avoid renovations or problems with the plumbing

    or electricity and 24 percent did so for the ability to choose

    and customize their design features. Among buyers who

    purchased previously owned homes about 32 percent did

    so for a better price and better overall value and 19 percent

    did so for more charm and character.

    Type of Home Purchased

    •  Exhibits 2–4 through 2–6

    Detached single-family homes continue to be the most

    popular type of home purchased, accounting for 79 percent

    of the home buying market. Eight percent of householdspurchased a townhouse or row house and eight percent

    purchased a condo.

    First-time home buyers are slightly more likely to

    purchase a townhouse or a condo than repeat buyers. Single

    buyers were more likely to purchase a townhouse or condo

    than married couples and unmarried couples. Eighty-seven

    percent of buyers with children under the age of 18 in the

    home purchased a detached single-family home compared

    to 74 percent of buyers with no children in the home.

    Location of Home Purchased

    •  Exhibits 2–7 through 2–9

    Fifty percent of buyers purchased a home in a suburb

    or subdivision, 20 percent of buyers purchased in a smalltown, 16 percent purchased in an urban area, and 11 percent

    purchased in a rural area. First-time home buyers were more

    likely than repeat buyers to purchase a home in an urban or

    central city area. Buyers of new homes were most likely to

    purchase in a suburb.

    Senior Housing and Active Adult Communities

    •  Exhibit 2–10

    Thirteen percent of recent home buyers over 50 years of

    age purchased a home in senior-related housing or an active

    adult community, either for themselves or for a friend or

    family member. Fifty-nine percent of the homes purchased

    were detached single-family homes, 21 percent were condos

    and eight percent were townhouses. While 48 percent of

    senior housing was purchased in the suburbs, 14 percent

    was purchased in a resort or recreation area, and 20 percent

    was in a small town.

    Distance Between Home Purchased and Previous

    Residence

    •  Exhibit 2–11

    Nationally, home buyers moved a median of 12 miles

    from their previous residence. Buyers in the South moved

    the farthest—a median of 15 miles from their previous

    residence, while buyers in the Midwest and Northeast

    moved only 10 miles.

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    25National Association of REALTORS®  |  PROFILE OF HOME BUYERS AND SELLERS 2014

    National Association of REALTORS®

    Factors Influencing Neighborhood Choice

    •  Exhibits 2–12 and 2–13 

    Factors that influence buyers are subjective based on

    what is important to the buyer. For the past several years,the top factor influencing where a buyer purchased a home

    was the quality of the neighborhood. Convenience to work

    was the second-most significant factor with just over half of

    buyers citing its importance. Affordability of homes was also

    very important, with 47 percent citing it as a factor in their

    neighborhood choice. By family type there are variations

    in the importance of neighborhood factors. Single females

    in comparison to other buyers place a higher priority on

    convenience to friends and family. Both single buyers and

    unmarried couples value affordability of homes. Marriedcouples and those with children in the home place higher

    priority on the quality and convenience to schools than

    other buyers.

    Price of Home Purchased

    •  Exhibits 2–14 through 2–17

    Prices of homes purchased by recent buyers have shown

    a two-year increased price trend. The median price paid by

    all recent buyers from mid-2013 to mid-2014 was $216,000

    compared to mid-2012 to mid-2013 at $210,000. Prices

    were the highest in the West with a median of $280,000,

    followed by the Northeast at $219,000. Prices were the

    lowest in the Midwest at a median price paid of $167,000.

    Typically, new homes are more expensive than

    previously owned homes. The median price buyers paid

    for a new home was $277,200 compared to $200,000 for

    a previously owned home. The median price repeat buyers

    paid for their home was $240,000 compared to a median

    price of $169,000 for first-time buyers.

    Buyers typically paid slightly less than the asking price

    with the median purchase price 98 percent of the asking

    price—the same share reported in the previous year’s

    report. Thirteen percent of buyers paid more than the asking

    price and one-quarter of buyers paid the asking price of the

    home. In the West region 29 percent of buyers paid theasking price of the home, and 21 percent paid more than the

    asking price of the home.

    Size of Home Purchased

    •  Exhibits 2–18 through 2–22

    The median size of homes purchased was 1,870 in this

    year’s report compared to 1,900 in last year’s report. Repeat

    buyers usually purchase larger homes than first-time buyers

    Repeat buyers typically purchased a 2,030 square foot

    home whereas first-time buyers purchased a 1,570 square

    foot home. Married couples and families with children

    under the age of 18 in their home typically purchased the

    largest homes, while single buyers typically purchased the

    smallest homes.

    Homes purchased in the South were generally larger a

    a median of 2,000 square feet. Looking at price per square

    foot makes it possible to compare prices across regions

    and types of homes. Homes purchased in the West and

    Northeast were more expensive per square foot compared

    to the Midwest and South. When looking at the type of home

    purchased, condos in buildings with five or more units were

    the most expensive type of home based on square footage

    while detached single-family homes and duplex and condos

    in buildings with two to four units were the least expensive.

    Buyers with children in the home typically purchased a

    four bedroom and two bathroom home, while all other buyer

    types typically had a median of three bedrooms and two

    bathrooms.

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    National Association of REALTORS®  |  PROFILE OF HOME BUYERS AND SELLERS 201426

    2014 PROFILE OF HOME BUYERS AND SELLERS •  Chapter 2: Characteristics of Homes Purchased

    Year Home Was Built

    • Exhibit 2–23 

    The typical home purchased was built in 1993. By region

    the age of homes varies. Homes in the South were typicallythe newest homes, built in 1999, which is not surprising

    due to the high percentage of new home sales in the South.

    Homes in the Northeast were typically the oldest homes,

    built in 1970. Homes in the Midwest were typically built in

    1980 and homes in the West 1993.

    Environmental Features and Commuting Costs

    •  Exhibits 2–24 through 2–27

    Commuting costs and environmental efficiency have

    increasingly factored into home buying decisions due to

    higher energy costs, but also due to overall concern for the

    environment. Factors that are most important to buyers are

    those directly related to the buyers’ pocketbook. Heating

    and cooling costs were at least “somewhat” important to

    86 percent of home buyers. Commuting costs were at least

    “somewhat” important to 70 percent of home buyers. Buyers

    who purchased newer homes typically placed a higher

    importance on environmentally friendly home features.

    Characteristics of Home on Which Buyer

    Compromised

    •  Exhibits 2–28 through 2–30

    One-third of respondents said that they did not makeany compromises when purchasing their home. However,

    23 percent of buyers reported that they compromised on

    the price of the home, and 20 percent compromised on

    the size of home. First-time buyers and unmarried couples

    were the most likely to make comprises when purchasing a

    home. The least compromised features consistently for all

    buyers over time is the quality of schools and the distance

    to schools.

    Expected Length of Tenure in Home Purchased

    •  Exhibits 2–31 through 2–34

    Thirty-nine percent of recent buyers were unsure of how

    long they expected to own their home. The typical buyer

    estimated they would live in their home for 12 years. First-

    time home buyers estimated they would live in their house

    for 10 years before moving and repeat buyers 15 years before

    moving. Buyers aged 18 to 24 had the shortest timeframe

    of eight years, while buyers aged 45 to 64 had the longest

    timeframe of 20 years.

    Among potential motivating factors to make a buyer

    move, moving with potential life changes was the most

    common at 44 percent. Twenty-three percent of buyers

    reported they were never moving and this was their forever

    home. Eighteen percent of buyers reported a potential job

    change could be the impetus for a future move.

    Thirteen percent of recent home buyers over 50

    years of age purchased a home in senior-related

    housing or an active adult community, either for

    themselves or for a friend or family member.

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    27National Association of REALTORS®  |  PROFILE OF HOME BUYERS AND SELLERS 2014

    National Association of REALTORS®

      EXHIBIT 2–1 NEW AND PREVIOUSLY OWNED HOMES PURCHASED, 2001–2014  (Percentage Distribution)

    EXHIBIT 2–2 NEW AND PREVIOUSLY OWNED HOMES PURCHASED, BY REGION  (Percentage Distribution)

    BUYERS WHO PURCHASED A HOME IN THE

    All Buyers Northeast Midwest South West

    New 16% 8% 9% 21% 16%

    Previously Owned 84 92 92 79 84

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

    NEW PREVIOUSLY OWNED

    78%77%

    79%82%

    85%84% 84% 84%

    79%

    21%

    72%

    28%

    79%

    21%

    77%

    23% 22%   23% 21%

    18%

    15%  16% 16% 16%

    84%

    16%

    2014

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    National Association of REALTORS®  |  PROFILE OF HOME BUYERS AND SELLERS 201428

    2014 PROFILE OF HOME BUYERS AND SELLERS •  Chapter 2: Characteristics of Homes Purchased

     EXHIBIT 2–3 REASON FOR NEW AND PREVIOUSLY OWNED HOME PURCHASE(Percentage Distribution)

    NEW HOME: 16%

    Avoid renovations or problems with plumbing or electricity 40%

    Ability to choose and customize design features 24Amenities of new home construction communities 17

    Lack of inventory of previously owned home 10

    Green/energy efficiency 9

    Other 15

    PREVIOUSLY OWNED HOME: 84%

    Better price 32%

    Better overall value 32

    More charm and character 19

    Lack of inventory of new homes 9

    Other 14

     EXHIBIT 2–4 TYPE OF HOME PURCHASED, BY LOCATION  (Percentage Distribution)

    BUYERS WHO PURCHASED A HOME IN A

    All Buyers Suburb/ Subdivision Small town Urban/Central city Rural area Resort/Recreation area

    Detached single-family home 79% 83% 82% 61% 83% 67%

    Townhouse/row house 8 8 6 12 3 10

    Apartment/condo in building

    with 5 or more units6 4 3 17 1 10

    Duplex/apartment/condo in 2

    to 4 unit building 2 2 1 4 * 4

    Other 6 4 8 6 13 9

    * Less than 1 percent

     EXHIBIT 2–5 TYPE OF HOME PURCHASED BY FIRST-TIME AND REPEAT BUYERS,

    AND BUYERS OF NEW AND PREVIOUSLY OWNED HOMES  (Percentage Distribution)

    BUYERS OF

    All Buyers First-time Buyers Repeat Buyers New Homes Previously Owned Homes

    Detached single-family home 79% 75% 81% 84% 78%

    Townhouse/row house 8 10 7 8 8

    Apartment/condo in building with 5 or more units 6 7 5 4 6

    Duplex/apartment/condo in 2 to 4 unit building 2 3 2 1 2

    Other 6 6 6 3 7

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    29National Association of REALTORS®  |  PROFILE OF HOME BUYERS AND SELLERS 2014

    National Association of REALTORS®

     EXHIBIT 2–8 LOCATION OF HOME PURCHASED BY FIRST-TIME AND REPEAT BUYERS,

    AND BUYERS OF NEW AND PREVIOUSLY OWNED HOMES  (Percentage Distribution)

    BUYERS OF

    All Buyers First-time Buyers Repeat Buyers New Homes Previously Owned Homes

    Suburb/Subdivision 50% 46% 52% 63% 48%

    Small town 20 21 20 16 21

    Urban area/Central city 16 21 13 10 17

    Rural area 11 10 11 7 12

    Resort/Recreation area 3 2 3 5 2

     EXHIBIT 2–6 TYPE OF HOME PURCHASED, BY ADULT COMPOSITION OF HOUSEHOLD  (Percentage Distribution)

    ADULT COMPOSITION OF HOUSEHOLD CHILDREN IN HOME

    All Buyers

    Married

    couple Single female Single male

    Unmarried

    couple Other

    Children under

    18 in home

    No children

    in home

    Detached single-family home 79% 85% 62% 67% 77% 73% 87% 74%Townhouse/row house 8 5 14 12 7 4 6 8

    Apartment/condo in building

    with 5 or more units6 3 12 12 7 12 1 8

    Duplex/apartment/condo

    in 2 to 4 unit building2 1 4 3 3 3 1 3

    Other 6 5 7 7 6 9 5 7

      EXHIBIT 2–7 LOCATION OF HOME PURCHASED, BY REGION  (Percentage Distribution)

    BUYERS WHO PURCHASED A HOME IN THE

    All Buyers Northeast Midwest South West

    Suburb/Subdivision 50% 43% 48% 55% 47%

    Small town 20 28 22 17 20

    Urban area/Central city 16 12 18 14 19

    Rural area 11 14 11 11 10

    Resort/Recreation area 3 2 1 3 4

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    National Association of REALTORS®  |  PROFILE OF HOME BUYERS AND SELLERS 201430

    2014 PROFILE OF HOME BUYERS AND SELLERS •  Chapter 2: Characteristics of Homes Purchased

     EXHIBIT 2–9 LOCATION OF HOME PURCHASED VERSUS LOCATION OF HOME SOLD  (Percentage Distribution Among those that Sold a Home)

    LOCATION OF HOME PURCHASED

    Suburb/Subdivision Small town Urban/Central city Rural area

    Resort/

    Recreation area

    LOCATION OF

    HOME SOLD

    Suburb/Subdivision 36% 7% 3% 4% 2%

    Small town 5 8 2 3 1

    Urban area/Central city 5 2 5 2 *

    Rural area 6 3 2 3 *

    Resort/Recreation area 1 * * * 1

    * Less than 1 percent

      EXHIBIT 2–10 SENIOR-RELATED HOUSING BY TYPE OF HOME PURCHASED AND LOCATION(Percentage Distribution)

    ALL BUYERS OVER 50

    Share who purchased a home in senior related housing 13%

    Buyers over 50 who purchased senior-related housing:

    TYPE OF HOME PURCHASED

    Detached single-family home 59%

    Townhouse/row house 8

    Apartment/condo in building with 5 or more units 12

    Duplex/apartment/condo in 2 to 4 unit building 9

    Other 13

    LOCATION

    Suburb/ Subdivision 48%

    Small town 20

    Urban/ Central city 12

    Rural area 6

    Resort/ Recreation area 14

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    31National Association of REALTORS®  |  PROFILE OF HOME BUYERS AND SELLERS 2014

    National Association of REALTORS®

      EXHIBIT 2–11 DISTANCE BETWEEN HOME PURCHASED AND PREVIOUS RESIDENCE  (Median Miles)

    0

    2

    4

    6

    8

    10

    12

    14

    16

    18

    All Buyers Northeast Midwest South West

    12

    10 10

    15

    11

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    2014 PROFILE OF HOME BUYERS AND SELLERS •  Chapter 2: Characteristics of Homes Purchased

      EXHIBIT 2–12 FACTORS INFLUENCING NEIGHBORHOOD CHOICE, BY LOCATION  (Percent of Respondents)

    BUYERS WHO PURCHASED A HOME IN A

    All Buyers Suburb/Subdivision Small town Urban/Central city Rural area

    Resort/

    Recreation area

    Quality of the neighborhood 69% 77% 65% 64% 48% 64%

    Convenient to job 52 55 47 62 43 23

    Overall affordability of homes 47 49 50 46 38 41

    Convenient to friends/family 43 45 44 40 34 33

    Convenient to shopping 31 34 28 35 19 38

    Quality of the school district 30 37 27 20 22 14

    Design of neighborhood 28 32 24 24 19 39

    Convenient to entertainment/

    leisure activities25 26 18 39 10 46

    Convenient to schools 25 28 24 20 21 11

    Convenient to parks/

    recreational facilities23 24 20 29 11 38

    Availability of larger lots or

    acreage19 17 17 9 51 8

    Convenient to health facilities 15 16 13 13 10 24

    Home in a planned

    community10 13 7 6 6 34

    Convenient to public

    transportation8 7 5 21 2 3

    Convenient to airport 7 9 4 8 5 8

    Other 6 6 7 5 9 12

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      EXHIBIT 2–13 FACTORS INFLUENCING NEIGHBORHOOD CHOICE, BY ADULT COMPOSITION

    OF HOUSEHOLD AND CHILDREN IN HOUSEHOLD  (Percent of Respondents)

    ADULT COMPOSITION OF HOUSEHOLD CHILDREN IN HOME

    All Buyers

    Married

    couple Single female Single male

    Unmarried

    couple Other

    Children under

    18 in home

    No children

    in home

    Quality of the neighborhood 69% 70% 68% 63% 68% 67% 71% 69%

    Convenient to job 52 51 51 53 67 42 61 48

    Overall affordability of homes 47 45 52 46 54 57 48 47

    Convenient to friends/family 43 41 53 36 46 35 38 45

    Convenient to shopping 31 30 32 32 34 44 24 35

    Quality of the school district 30 36 18 17 24 24 57 15

    Design of neighborhood 28 28 29 27 24 21 25 29

    Convenient to entertainment/

    leisure activities25 23 24 33 31 23 18 29

    Convenient to schools 25 29 13 13 22 21 55 9

    Convenient to parks/recreational facilities 23 24 19 22 27 19 27 21

    Availability of larger lots or

    acreage19 22 11 12 21 15 25 16

    Convenient to health facilities 15 15 16 16 10 26 8 18

    Home in a planned community 10 11 11 9 6 13 9 11

    Convenient to public

    transportation8 7 10 7 12 11 7 8

    Convenient to airport 7 7 6 8 6 11 6 8

    Other 6 7 6 5 5 11 5 7

      EXHIBIT 2–14 PRICE OF HOME PURCHASED, BY REGION  (Percentage Distribution)

    BUYERS WHO PURCHASED A HOME IN THE

    All Buyers Northeast Midwest South West

    Less than $75,000 6% 5% 10% 6% 2%

    $75,000 to $99,999 6 6 10 6 3

    $100,000 to $124,999 7 7 10 7 4

    $125,000 to $149,999 10 10 13 10 6

    $150,000 to $174,999 9 9 11 10 7

    $175,000 to $199,999 8 8 10 8 7

    $200,000 to $249,999 14 11 15 15 13

    $250,000 to $299,999 10 11 9 10 12

    $300,000 to $349,999 8 7 5 8 9

    $350,000 to $399,999 6 5 3 6 8

    $400,000 to $499,999 8 9 4 7 11

    $500,000 or more 9 11 3 6 19

    Median price $216,000 $219,000 $167,000 $207,000 $280,000

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    2014 PROFILE OF HOME BUYERS AND SELLERS •  Chapter 2: Characteristics of Homes Purchased

      EXHIBIT 2–15 PRICE OF HOME PURCHASED, NEW AND PREVIOUSLY OWNED HOMES  (Percentage Distribution)

    BUYERS WHO PURCHASED A

    All Buyers New Home Previously Owned Home

    Less than $75,000 6% 1% 6%

    $75,000 to $99,999 6 * 7

    $100,000 to $124,999 7 2 8

    $125,000 to $149,999 10 4 11

    $150,000 to $174,999 9 7 10

    $175,000 to $199,999 8 8 8

    $200,000 to $249,999 14 18 13

    $250,000 to $299,999 10 16 9

    $300,000 to $349,999 8 14 6

    $350,000 to $399,999 6 10 5

    $400,000 to $499,999 8 9 7

    $500,000 or more 9 11 9

    Median price $216,000 $277,200 $200,000

    * Less than 1 percent

      EXHIBIT 2–16 PRICE OF HOME PURCHASED, FIRST-TIME AND REPEAT BUYERS  (Percentage Distribution)

    All Buyers First-time Buyers Repeat Buyers

    Less than $75,000 6% 9% 4%

    $75,000 to $99,999 6 9 4

    $100,000 to $124,999 7 9 6

    $125,000 to $149,999 10 14 8

    $150,000 to $174,999 9 12 8

    $175,000 to $199,999 8 9 8

    $200,000 to $249,999 14 12 15

    $250,000 to $299,999 10 7 12

    $300,000 to $349,999 8 5 9

    $350,000 to $399,999 6 4 7

    $400,000 to $499,999 8 6 8

    $500,000 or more 9 6 11

    Median price $216,000 $169,000 $240,000

    Married couple $240,000 $185,000 $260,000

    Single female $153,600 $135,000 $170,400

    Single male $173,700 $161,500 $182,400

    Unmarried couple $186,600 $155,000 $240,000

    Other $187,000 $141,500 $233,300

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      EXHIBIT 2–17 PURCHASE PRICE COMPARED WITH ASKING PRICE, BY REGION  (Percentage Distribution)

    BUYERS WHO PURCHASED A HOME IN THE

    Percent of asking price: All Buyers Northeast Midwest South West

    Less than 90% 10% 15% 12% 10% 6%

    90% to 94% 16 19 19 17 11

    95% to 99% 36 39 36 37 33

    100% 25 20 22 25 29

    101% to 110% 11 7 9 9 16

    More than 110% 2 1 1 2 5

    Median (purchase price as a

    percent of asking price)98% 97% 97% 98% 99%

      EXHIBIT 2–18 SIZE OF HOME PURCHASED, FIRST-TIME AND REPEAT BUYERS, AND BUYERS

    OF NEW AND PREVIOUSLY OWNED HOMES  (Percentage Distribution)

    BUYERS OF

    All Buyers First-time Buyers Repeat Buyers New Homes

    Previously Owned

    Homes

    1,000 sq ft or less 1% 2% * * 1%

    1,001 to 1,500 sq ft 15 24 11 3 18

    1,501 to 2,000 sq ft 28 37 24 19 30

    2,001 to 2,500 sq ft 24 22 26 31 23

    2,501 to 3,000 sq ft 14 9 17 21 13

    3,001 to 3,500 sq ft 9 5 12 15 8

    3,501 sq ft or more 8 3 11 12 8

    Median (sq ft) 1,870 1,570 2,030 2,200 1,800

    * Less than 1 percent

      EXHIBIT 2–19 SIZE OF HOME PURCHASED, BY ADULT COMPOSITION OF HOUSEHOLD  (Percentage Distribution)

    ADULT COMPOSITION OF HOUSEHOLD CHILDREN IN HOME

    All Buyers

    Married

    couple

    Single

    female Single male

    Unmarried

    couple Other

    Children under

    18 in home

    No children

    in home

    1,000 sq ft or less 1% * 2% 3% * * * 1%

    1,001 to 1,500 sq ft 15 9 30 24 25 17 9 19

    1,501 to 2,000 sq ft 28 24 37 34 36 28 22 31

    2,001 to 2,500 sq ft 24 26 21 22 26 24 24 24

    2,501 to 3,000 sq ft 14 18 7 9 8 17 18 13

    3,001 to 3,500 sq ft 9 12 2 5 3 11 13 7

    3,501 sq ft or more 8 11 2 4 3 4 14 5

    Median (sq ft) 1,870 2,090 1,500 1,570 1,640 1,800 2,170 1,740

    * Less than 1 percent

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    2014 PROFILE OF HOME BUYERS AND SELLERS •  Chapter 2: Characteristics of Homes Purchased

      EXHIBIT 2–20 HOME SIZE AND PRICE PER SQUARE FOOT, BY REGION  (Median)

    BUYERS WHO PURCHASED A HOME IN THE

    All Buyers Northeast Midwest South West

    All homes purchased

    Square feet 1,870 1,700 1,800 2,000 1,780

    Price per square foot $110 $130 $95 $100 $145

    Detached single-family home

    Square feet 2,000 1,800 1,900 2,100 2,000

    Price per square foot $110 $125 $95 $100 $140

    Townhouse or row house

    Square feet 1,600 1,700 1,460 1,700 1,500

    Price per square foot $140 $130 $100 $135 $250

    Duplex/apartment/condo in 2-4 unit building

    Square feet 1,600 1,400 1,700 1,790 1,340

    Price per square foot $105 $160 $100 $115 $135

    Apartment/condo in building with 5 or more units

    Square feet 1,200 1,140 1,300 1,300 1,090

    Price per square foot $170 $225 $120 $140 $290

      EXHIBIT 2–21 NUMBER OF BEDROOMS AND BATHROOMS, BY FIRST-TIME AND REPEAT

    BUYERS, AND BUYERS OF NEW AND PREVIOUSLY OWNED HOMES  (Percentage Distribution)

    BUYERS OF

    All Buyers First-time Buyers Repeat Buyers New Homes Previously Owned Homes

    One bedroom 2% 3% 1% * 2%

    Two bedrooms 16 18 15 10 17

    Three bedrooms or more 82 80 84 90 81

    Median number of bedrooms 3 3 3 3 3

    One full bathroom 16 28 11 2 19

    Two full bathrooms 62 61 62 63 61

    Three full bathrooms or more 22 11 28 36 20

    Median number of full bathrooms 2 2 2 2 2

    * Less than 1 percent

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      EXHIBIT 2–22 NUMBER OF BEDROOMS AND BATHROOMS, BY ADULT HOUSEHOLD

    COMPOSITION AND CHILDREN IN HOUSEHOLD  (Percentage Distribution)

    ADULT COMPOSITION OF HOUSEHOLD CHILDREN IN HOME

    All Buyers

    Married

    couple

    Single

    female

    Single

    male

    Unmarried

    couple Other

    Children under

    18 in home

    No children in

    home

    One bedroom 2% * 5% 4% 2% 4% * 2%

    Two bedrooms 16 11 29 27 20 18 6 21

    Three bedrooms or more 82 89 65 69 78 78 93 76

    Median number of bedrooms 3 3 3 3 3 3 4 3

    One full bathroom 16 11 28 27 25 20 13 18

    Two full bathrooms 62 61 63 57 64 67 56 65

    Three full bathrooms or more 22 28 9 17 12 13 32 17

    Median number of full bathrooms 2 2 2 2 2 2 2 2

    * Less than 1 percent

     EXHIBIT 2–23 YEAR HOME BUILT, BY REGION  (Median)

    BUYERS WHO PURCHASED A HOME IN THE

    All Buyers Northeast Midwest South West

    2013 16% 8% 9% 22% 16%

    2012 through 2010 3 2 2 3 4

    2009 through 2007 7 3 6 10 7

    2006 through 2002 12 5 11 14 11

    2001 through 1987 21 16 18 22 23

    1986 through 1960 22 25 24 20 25

    1959 through 1910 17 33 25 9 15

    1909 or earlier 3 8 5 * 1

    Median 1993 1970 1980 1999 1993

    * Less than 1 percent

      EXHIBIT 2–24 IMPORTANCE OF COMMUTING COSTS(Percentage Distribution)

    NOT IMPORTANT 30%

    SOMEWHAT IMPORTANT 38%

    VERY IMPORTANT 32%

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    2014 PROFILE OF HOME BUYERS AND SELLERS •  Chapter 2: Characteristics of Homes Purchased

      EXHIBIT 2–25 IMPORTANCE OF HOME’S ENVIRONMENTALLY FRIENDLY FEATURES  (Percentage Distribution)

    EXHIBIT 2–26 ENVIRONMENTALLY FRIENDLY FEATURES CONSIDERED “VERY IMPORTANT,”

    BY REGION  (Percent of Respondents)

    BUYERS WHO PURCHASED A HOME IN THE

    All Buyers Northeast Midwest South West

    Heating and cooling costs 36% 37% 32% 39% 32%

    Energy efficient appliances 23 17 17 27 23

    Energy efficient lighting 22 14 17 25 24

    Landscaping for energy conservation 10 5 5 11 15

    Environmentally friendly community features 14 8 10 15 17

    Solar panels installed on home 2 1 1 2 4

    0% 20% 40% 60% 80% 100%

    Solar panels installed on home

    Environmentally friendly community features

    Landscaping for energy conservation

    Energy efficient lighting

    Energy efficient appliances

    Heating and cooling costs

    VERY IMPORTANT SOMEWHAT IMPORTANT NOT IMPORTANT

    2% 9% 89%

    14% 33% 53%

    10% 36% 54%

    22% 44% 34%

    23% 45% 32%

    36% 50% 15%

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     EXHIBIT 2–28 CHARACTERISTICS OF HOME ON WHICH BUYER COMPROMISED,

    BY LOCATION  (Percent of Respondents)

    BUYERS WHO PURCHASED A HOME IN A

    All Buyers Suburb/Subdivision Small town Urban/Central city Rural Resort/Recreation area

    Price of home 23% 23% 20% 27% 22% 18%

    Size of home 20 19 21 24 19 19

    Condition of home 18 17 18 22 18 11

    Lot size 16 16 18 13 13 13

    Style of home 16 15 15 18 14 16

    Distance from job 14 15 12 11 17 3

    Distance from friends or family 7 7 7 6 11 7

    Quality of the neighborhood 5 5 4 10 4 3

    Quality of the schools 4 4 2 6 3 1

    Distance from school 2 1 2 2 3 2

    None - Made no compromises 33 32 35 30 33 43

    Other compromises not listed 8 8 9 7 8 7

      EXHIBIT 2–27 ENVIRONMENTALLY FRIENDLY FEATURES CONSIDERED "VERY IMPORTANT,"

    BY YEAR HOME WAS BUILT  (Percent of Respondents)

    All Buyers 2013

    2012

    through

    2010

    2009

    through

    2007

    2006

    through

    2002

    2001

    through

    1987

    1986

    through

    1960

    1959

    through

    1910

    1909 or

    earlierHeating and cooling costs 36% 53% 44% 28% 37% 34% 29% 32% 35%

    Energy efficient appliances 23 49 30 21 21 17 15 17 16

    Energy efficient lighting 22 41 28 19 21 17 17 18 19

    Landscaping for energy

    conservation10 14 13 6 11 10 8 9 6

    Environmentally friendly

    community features14 27 9 13 13 12 12 11 10

    Solar panels installed

    on home2 4 2 1 1 2 1 2 3

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    2014 PROFILE OF HOME BUYERS AND SELLERS •  Chapter 2: Characteristics of Homes Purchased

      EXHIBIT 2–29 CHARACTERISTICS OF HOME ON WHICH BUYER COMPROMISED,

    FIRST-TIME AND REPEAT BUYERS, AND BUYERS OF NEW AND

    PREVIOUSLY OWNED HOMES  (Percentage of Respondents)

    BUYERS OF

    All Buyers First-time Buyers Repeat Buyers New Homes Previously Owned Homes

    Price of home 23% 25% 21% 19% 23%

    Size of home 20 27 17 16 21

    Condition of home 18 19 17 2 21

    Lot size 16 18 15 26 14

    Style of home 16 18 14 12 16

    Distance from job 14 18 11 19 13

    Distance from friends or family 7 9 6 10 7

    Quality of the neighborhood 5 6 5 5 5

    Quality of the schools 4 7 2 4 4

    Distance from school 2 3 1 3 2

    None - Made no compromises 33 25 36 36 32

    Other compromises not listed 8 8 8 6 9

     EXHIBIT 2–30 CHARACTERISTICS OF HOME ON WHICH BUYER COMPROMISED, BY ADULT

    COMPOSITION OF HOUSEHOLD(Percentage of Respondents)

    ADULT COMPOSITION OF HOUSEHOLD CHILDREN IN HOME

    All Buyers

    Married

    couple

    Single

    female

    Single

    male

    Unmarried

    couple Other

    Children under

    18 in home

    No children

    in home

    Price of home 23% 22% 22% 23% 26% 33% 24% 22%

    Size of home 20 19 20 23 24 13 21 19

    Condition of home 18 17 18 19 18 17 18 18

    Lot size 16 18 10 12 16 10 18 15

    Style of home 16 15 15 17 19 18 16 15

    Distance from job 14 14 11 9 18 18 18 11

    Distance from friends or family 7 7 7 8 7 10 8 7

    Quality of the neighborhood 5 5 6 7 5 3 5 5

    Quality of the schools 4 4 2 3 6 5 6 3

    Distance from school 2 2 1 1 2 3 4 1

    None - Made no compromises 33 32 36 38 26 30 27 35

    Other compromises not listed 8 8 9 7 7 8 8 8

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    National Association of REALTORS®

     EXHIBIT 2–32 EXPECTED LENGTH OF TENURE IN HOME PURCHASED, BY AGE  (Percentage Distribution)

    AGE OF HOME BUYER

    All Buyers 18 to 24 25 to 44 45 to 64 65 or older

    1 year or less 2% 2% 1% 2% 2%

    2 to 3 years 3 2 3 2 1

    4 to 5 years 9 19 12 6 3

    6 to 7 years 3 7 5 2 1

    8 to 10 years 14 18 18 12 9

    11 to 15 years 5 3 5 5 8

    16 or more years 25 14 24 30 22

    Don't Know 39 35 32 41 54

    Median 12 8 10 20 15

     EXHIBIT 2–31 EXPECTED LENGTH OF TENURE IN HOME PURCHASED, FIRST-TIME AND

    REPEAT BUYERS, AND BUYERS OF NEW AND PREVIOUSLY OWNED HOMES  (Percentage Distribution)

    BUYERS OF

    All Buyers First-time Buyers Repeat Buyers New Homes Previously Owned Homes

    1 year or less 2% 2% 2% 2% 2%

    2 to 3 years 3 3 2 3 2

    4 to 5 years 9 12 7 9 9

    6 to 7 years 3 5 2 2 3

    8 to 10 years 14 16 13 16 14

    11 to 15 years 5 4 6 7 5

    16 or more years 25 22 27 23 26

    Don't Know 39 37 41 38 40

    Median 12 10 15 10 14

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    National Association of REALTORS®  |  PROFILE OF HOME BUYERS AND SELLERS 201442

    2014 PROFILE OF HOME BUYERS AND SELLERS •  Chapter 2: Characteristics of Homes Purchased

     EXHIBIT 2–33 FACTORS THAT COULD CAUSE BUYER TO MOVE, BY AGE  (Percent of Respondents)

    AGE OF HOME BUYER

    All Buyers 18 to 24 25 to 44 45 to 64 65 or older

    Move with life changes (addition to family,

    marriage, children move out, retirement, etc.) 44% 46% 46% 44% 36%

    Never moving-forever home 23 7 13 28 43

    Move with job or career change 18 21 27 12 *

    May desire better area/neighborhood 9 13 11 8 6

    May outgrow home 7 13 12 2 1

    Will flip home 2 4 2 1 2

    Other 6 3 3 7 13

    * Less than 1 percent

     EXHIBIT 2–34 FACTORS THAT COULD CAUSE BUYER TO MOVE, BY ADULT COMPOSITION

    OF HOUSEHOLD(Percentage of Respondents)

    ADULT COMPOSITION OF HOUSEHOLD CHILDREN IN HOME

    All Buyers

    Married

    couple

    Single

    female

    Single

    male

    Unmarried

    couple Other

    Children under

    18 in home

    No children

    in home

    Move with life changes (addition

    to family, marriage, children

    move out, retirement, etc.)

    44% 40% 55% 49% 44% 35% 43% 44%

    Never moving-forever home 23 24 24 15 16 31 17 25

    Move with job or career change 18 20 9 13 20 7 24 14

    May desire better area/neigh-

    borhood

    9 9 7 12 13 9 10 9

    May outgrow home 7 7 4 7 14 6 9 6

    Will flip home 2 1 1 3 3 4 2 1

    Other 6 6 5 7 4 10 3 7

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    2014 PROFILE OF HOME BUYERS AND SELLERS

    Characteristics of Homes Purchased

    CHAPTER 3:

    The Home Search Process

    The internet continues to play an ever-increasing role for home buyers

    in the home search process. Nine in 10 buyers used the internet at

    some point while looking for a home. Over half of buyers started their

    home search online and 43 percent of recent buyers first found the home

    they purchased online. Half of home buyers used a mobile or tablet website

    or application to search for a home. Of these mobile searchers, 27 percent of

    mobile searchers reported they found the home they ultimately purchased

    with a mobile application.

    The role of the real estate agent becomes increasingly important to the

    buyer as market conditions change in local areas of the country, especially

    where buyers saw tightened inventory. With limited inventory on the market

    for many home buyers, the most difficult part of the search process for

    recent home buyers is finding the right property. The search process has

    been squeezed with a limited number of homes to view, in a shorter

    timeframe. Overall, 89 percent of home buyers are at least somewhat

    satisfied with their search process to find a home.

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    National Association of REALTORS®  |  PROFILE OF HOME BUYERS AND SELLERS 201444

    2014 PROFILE OF HOME BUYERS AND SELLERS •  Chapter 3: The Home Search Process

    The Search Process

    •  Exhibits 3–7 through 3–11 

    From 2009 to 2013 the typical home search process took

    12 weeks for a buyer. This year as inventory tightened thehome search and potential homes to view, the typical search

    dropped to 10 weeks for a buyer to find a home. While

    searching, buyers typically looked at a median of 10 homes

    before finding a home to purchase. Buyers usually spent two

    weeks searching before they contacted an agent. First-time

    buyers also searched longer for their first home, 12 weeks,

    compared with repeat buyers who spent nine weeks in the

    process.

    In 2001, eight percent of buyers found their home on

    the internet; today 43 percent of buyers find the home theyultimately purchased on the internet. The internet has edged

    out all other sources in the process. The real estate agent

    remains the second most common source at 33 percent, but

    it has declined steadily from 48 percent in 2001. All other

    sources such as yard signs, hearing from friend or relative,

    or home builders, have declined.

    While nearly half of buyers considered buying a home

    in foreclosure, many buyers could not find the right home

    to buy, decided the process was too difficult or complex, or

    that the home was in poor condition. First-time buyers weremost likely to consider a home in foreclosure, while buyers

    who ultimately purchased a new home were least likely to

    consider a home in foreclosure.

    Unsurprisingly, with housing inventory limited in many

    local markets, the most difficult step for home buyers in

    the home buying process was finding the right home to

    purchase (53 percent). For 24 percent of buyers the most

    difficult step was the paperwork, and 16 percent cited the

    most difficult step was understanding the process and steps

    involved. While 16 percent of recent buyers had no difficultsteps, this was much more common among repeat buyers.

    The First Step in the Home Buying Process

    • Exhibits 3–1 and 3–2 

    Increasingly buyers are using the internet as their first

    step in the home search process. Forty-three percent of

    buyers first looked online for properties for sale as their first

    step—an incremental increase from 35 percent in 2011. An

    additional 12 percent began by finding information online

    about the home buying process, which has increased from

    10 percent in 2011. Repeat home buyers were more likely to

    look online at properties for sale while first-time home buyers

    were more likely to look online for information about the

    home buying process. As the age of home buyers increased,

    the likelihood that their first step would be contacting a real

    estate agent or driving by homes and neighborhoods alsoincreased. Buyers aged 18 to 24 were most likely, compared

    to other buyers, to talk to a friend or relative about the home

    buying process first.

    Information Sources

    •  Exhibits 3–3 through 3–6

    Eighty-eight percent of home buyers used an online

    website and a real estate agent as information sources in

    their home search process. Buyers of previously owned

    homes were most likely to report using a real estate agent

    at 90 percent. While yard signs and open houses have

    historically been used most frequently after online websites

    and real estate agents, the use of mobile technology is now

    outpacing these traditional sources in the home search

    process. Mobile or tablet websites and applications were

    used by 50 percent of buyers and mobile or tablet search

    engines by 48 percent of buyers. In the same time period,

    yard signs dropped in frequency of use to 48 percent from

    51 percent and open houses stayed nearly flat at 44 percentof buyers using this source.

    Younger buyers are most likely to embrace the use of

    mobile technology in their home search process, while

    older buyers are more likely than younger buyers to use

    open houses. Interestingly, older buyers are more likely to

    use online videos in their home search, perhaps as they are

    more likely to move longer distances and want to learn as

    much as possible in their home search process remotely.

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    National Association of REALTORS®

    Internet Usage Trends

    •  Exhibits 3–12 and 3–13

    Ninety-two percent of buyers used the internet in some

    form to search for a home. Underscoring the value of theinternet are the actions that home buyers take after an

    internet home search. Buyers are increasingly taking the

    next step such as driving by or viewing a home (76 percent)

    or walking through a home they viewed online (64 percent).

    These steps are equally likely for first-time and repeat

    buyers, however first-time buyers are more likely to request

    more information and look for more information on how to

    get a mortgage and general home buying tips.

    Characteristics of Internet Searchers and

    Sources Used

    •  Exhibits 3–14 and 3–17

    The buyers who use the internet in their home searchcompared to those who do not, vary along demographic

    lines. The typical buyer who used the internet in their home

    search is 42-years-old and had a median 2013 household

    income of $86,800. The typical buyer who did not use the

    internet to search for a home was 62-years-old and had a

    median 2013 household income of $66,200. The typica

    buyer who used the internet to search spent 10 weeks

    searching compared to those who did not use the interne

    and searched for four weeks.

    Those who did not use the internet in their home search

    process used yard signs, open houses, home books and

    magazines less frequently than those who used the interne

    to search. Conversely those who did not use the interne

    to search used print newspaper advertisements and home

    builders more frequently in their home search than those

    who used the internet to search.

    Among buyers who used the internet to search for homes

    46 percent first found their home through the internet

    Thirty-two percent of buyers who used the internet firs

    found their home through the real estate agent, compared

    to 42 percent of buyers who did not use the internet

    Buyers who did not use the internet found their home more

    frequently through a yard sign or through a friend, relative o

    neighbor, or directly from the sellers, or through a builder o

    builder’s agent than those who used the internet to search.

    While the vast majority of buyers use the internet during

    the home buying process, the internet does not replace the

    real estate agent in the transaction. Ninety percent of home

    buyers who used the internet to search for homes purchased

    their home through an agent. In fact, buyers who used the

    internet were more likely than those who did not use the

    internet to purchase their home through an agent. Buyers

    who did not use the internet to search were more likely to

    purchase through a builder or builder’s agent and through a

    previous owner of the home.

    Increasingly buyers are using the internet as

    their first step in the home search process.

    Forty-three percent of buyers first looked online

    for properties for sale as their first step—an

    incremental increase from 35 percent in 2011.

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    National Association of REALTORS®  |  PROFILE OF HOME BUYERS AND SELLERS 201446

    2014 PROFILE OF HOME BUYERS AND SELLERS •  Chapter 3: The Home Search Process

    Website Features and Mobile Search

    • Exhibits 3–18 and 3–19

    Because use of the internet in the home search process

    has increased so rapidly and there are so many sites available

    for buyers to use, it’s essential to know what aspects

    offered by sites are most important to buyers. Eighty-three

    percent of buyers rated photos and 79 percent of buyers

    rated detailed information about properties for sale the

    most useful website features. About four in 10 buyers rated

    interactive maps, virtual video tours, and neighborhood

    information very useful among website features.

    Searching for any product on a mobile device is becoming

    more common. Fifty percent of home buyers used a mobile

    or tablet website or application to search for a home. They

    are most commonly searching on an iPhone (52 percent) or

    iPad (46 percent) and less frequently with an Android devi