Who Makes Up the Housing Market? | RealtyPin.com
NEW YORK, Feb. 20, 2013 /PRNewswire-iReach/ -- When you hear that the housing market makes up such a big chunk of our nation's overall economy – and, thus, is going to play a role in how and when it recovers – you probably can't help but wonder who is responsible for the health of the housing market. Who are these people buying and selling homes?
Well, the National Association of Realtors has an answer! Every year, they do studies to figure out what kind of people make up the demographics of the U.S. housing market. So, what did it look like in 2012?
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- Close to 40% of buyers were first timers. That's more than there were in 2011, but it's consistent with historical trends (typically, in a "healthy" market, 40% of the buyers are first time buyers). That's a good sign, since as the team at RealtyPin.com has been pointing out, the market has been waiting for years for the first time buyers to come back. Now, it looks like they are! If this trend keeps up in 2013, that will be a very good thing!
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- More than 50% of buyers began their search online. So, if your home is on the market now (or you're getting ready to list your home) – and you don't have a great online listing – you had better get one ASAP. If you don't, the competition is going to pass you by!
- The vast majority of sellers use a realtor to help get the word out about their homes. In fact, only 9% of sellers decided to do a "For Sale By Owner" transaction last year. That's proof that homeowners weren't willing to handle the marketing and promotion for their largest asset themselves. After all, home values still weren't back to their pre-recession levels in 2012 (and, in some places, they weren't even close!). So, sellers weren't willing to take any chances – which is why they left the actual selling to the professionals!
- Buyers weren't willing to go it alone, either. In fact, 89% of them used a realtor or a broker to purchase their homes in 2012. That statistic has gone up steadily since 2001 – back when only 69% of buyers used a professional's assistance to hash out the details on their new homes. The interesting part about this statistic in 2012 is that inventory was incredibly low in most areas of the country. So, even though there were very few homes to choose from, buyers still wanted a professional to help them weed through the selection!