Do you know where home buyers come from? When we list a house for sale we know who the most likely buyer for that house are based on their demographic data and also where they likely live now.
The National Association of Realtors publishes annually a “Profile of Buyers and Sellers”. The statistics to compile this report come from annual surveys taken of people who actually participated in a real estate transaction in the preceding year. We buy a copy annually and study it to increase our knowledge and expertise and to better serve our clients. The 2017 edition is 144 pages long and is packed with fascinating charts, statistics, and information about both buyers and sellers.
In 2017 the median age of all home buyers continued to increase; the median age was 45 years old. By contrast through 2007 and including 2009 the median age was steady at 39 years. It began increasing in 2010 and continues to climb.
The largest share of home buyers was from the 25 to 34 age group which accounted for 26% of all buyers. Second was 35 to 44 with 21% of all buyers.
Another very important factor to know about homebuyers is their income; can they afford to buy your home?
The median household income for rose for first time buyers last year and decreased for repeat buyers.
First time homebuyers reported a median income of $75,000 in 2017, up from $72,000 in 2016. Repeat buyers made a median salary of $97,500 in 2017 , down from $98,000 in 2016, not much of a drop but a drop nevertheless.
Married, repeat buyers had the highest income among all buyers at $113,200.
Increased median household income could suggest stricter financing that forces low income buyers out of the market and an increase in home prices which is restricting who can enter the market.
First time homebuyers were 34% of the total buyers and 43% of those buyers bought in the Northeast.
It may surprise you to know that 15 miles or less was the distance between the homes that recent buyers purchased and the homes they moved from. That fact can be corroborated by data from the Internal Revenue Service (IRS) that shows the majority of the people moving into Rockingham County either lived here first or moved here with the movers in Bradenton. The IRS compiles this data by noting where the taxpayer filed their return last year compared with the previous year.
If you’re thinking of selling your home we think it’s very important for your Realtor to know who the most likely buyer is and where they’re coming from.
Click here to get an instant estimate of what your home could sell for in today’s market. We’re happy to prepare a more in depth analysis and talk with you in person as well.