As we enter 2013, it is always wise to take the pulse of the current market. Here are a few quick facts to show how Minnesota's real estate home buyer compare to buyers on the national market. In the 2012 Profile of Home Buyers and Sellers complied by the National Association of REALTORS®, there were a number of interesting facts about our local Minnesota market. When information is reported by the media, it is often the national averages. But real estate is local. Here are few more facts about Minnesota Home Buyers from the 2012 report:
Facts about the Minnesota Real Estate Market in 2012
- 41% of recent home buyers were first-time buyers in Minnesota, compared to a national level of 39%.
- The average age of a home buyer in Minnesota was 37 years old. Nationally the typical buyer was a bit older at 42 years of age.
- Household income of typical Minnesota buyers was $80.600; $2K higher than the national average.
- 58% of 2012 Minnesota home buyers were married couples compared to a national average of 65%.
- Interestingly 19% of buyers were single females in Minnesota which is higher than the national average of 16%.
- In Minnesota, 90% of buyers financed their recent purchase compared to 87% nationally. In both cases the average amount financed was 91% of the purchase price of the home.
- Of Minnesota buyers who financed their homes, 27% found the loan process somewhat difficult and an additional 10% found it very difficult. Comparatively nationwide the numbers were 23% and 17% respectively.
- 88% of Minnesotan's would refer their agent or use them again.
- Minnesota home buyers used a real estate agent 95% of the time; this is 6% higher than the national average.
- 93% of Minnesota home buyers used the internet. This number rises to 97% if under 44. This is higher than the national averages of 90% and 96% respectively.
- Only 10% of Minnesotan home buyers bought new construction homes. This is much lower than the 16% sold last year nationally.
- Detached single family homes made up 73% of homes sold in Minnesota compared to 79% nationally.
So what do these facts show?
Home buyers in Minnesota are continuing to educate themselves on the real estate market. They are increasingly using the internet for their home search but will retain the services of an agent for the actual purchase. If a home buyer plans to finance their Minnesota home purchase, they know if may be a bit more difficult than it was in years past. They are open to buying townhomes, twin homes and condos but are still cautious on new construction. If their agent does a good job, they will refer them to their friends.
As a Minnesota REALTOR®, I am not surprised by any of the results in this report. I know home buyers in this area of the country are very astute in the process. They use the internet in combination with their agent to make informed, thought out decisions on their new home whether is it a first purchase or not. They are loyal and reward good service. And I for one, enjoy helping fellow Minnesotan's navigate the process of buying and/or selling their homes.
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