Every year the National Association of Realtors® (NAR) releases a Home Buyer and Seller survey so that we can all have a better understanding of what buyers and sellers face during the year. What’s new, different, better, or worse about buying or selling real estate? This survey is a comprehensive look at the experience of buying and selling real estate on a national level.
All real estate is local, of course, and across the Emerald Coast, some of these variables will be a little different, but it’s a good way to get an idea of the real estate market. With that being said, here are 11 interesting things from the NAR 2017 Profile of Home Buyers and Sellers.
- First time home buyers have more student loan debt than in the past with 41 percent reporting some amount of student loan debt.. The average balance is $29,000 with more than half of those surveyed reporting that they have at least $25,000 in student loan debt.
- The median age of a first time home buyer is 32 years old with a household income of $75,000, up from 2016 when it was $72,000. The median age of repeat buyers is 54, up from 52 last year with an annual income of $97,500, not much different from last year ($98,000).
- New buyers bought smaller homes at slightly higher prices. The median home size was 1640 square feet compared to last year when it was 1650. The price went up to $190,000 and was $182,500 in 2016.
- Repeat buyers purchased a 2,000-square-foot home this year just like last year. But the price was higher, costing $266,500, up from $250,000 in 2016.
- In 2017, 42 percent of buyers paid the list price or more for their home, up from 40 percent last year. This is likely due to a lack of inventory driving up competition and prices.
- Conventional mortgages continue to dominate housing purchases with 58 percent of buyers financing their purchase this way while 34 percent used a FHA loan with a lower down payment option.
- Buyers are moving to the suburbs, more rural areas, and small towns with 85 percent of all buyers choosing these locations.
- Detached single family homes continue to be a more popular option across the nation with 83 percent of buyers choosing this option which remains the highest share for the third year in a row since 2004.
- What may come to no surprise is that 95 percent of all buyers began their search for a home or a real estate agent online.
- Ultimately 87 percent worked with a real estate agent at some point in the process and transaction.
- Sellers worked with a real estate agent 89 percent of the time – an all-time high – and only 8 percent worked as a FSBO (for-sale-by-owner).
On an individual basis, and here in Northwest Florida, some of your experience may vary, this is an excellent snapshot of the real estate market from a buyer or seller perspective.
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