As another decade comes and goes it helps to look back over the past ten years and see how much has changed in the real estate industry. There are certain elements that have really changed the way business is done these days and will have a long term effect on the process of buying and selling a home. According to the National Association of Realtors Profile of Home Buyers and Sellers data:
- Over the past decade (1999 compared to 2009), median home values have increased more than 25 percent from $137,600 in Nov. 1999 to $172,600 in Nov. 2009. This shows that those who have been in their homes for 10+ years have definitely equity built up in those properties.
- Fewer people are buying single family homes - 78% in 2009 compared to 82% in 1999.
- More than half of buyers (54 percent) bought a home in a suburban neighborhood last year compared to 46 percent 10 years ago.
- A majority of last year’s buyers (90 percent) began their search for a home online compared to only 37 percent in 1999. I highlight this because this has been an instrumental change in how real estate is done these days, which has led to The Madden Team being on the forefront of these technological changes.
While these changes have occurred within the real estate industry, some things have remained unchanged over the course of ten years.
- The median age for homebuyers in 2009 was 39, just as it was in 1999.
- Neighborhood quality, affordability and convenience to work and school are still top considerations for buyers.
- 80% of buyers still believe that owning a home is an investment in their future.
While some things change, other stay the same. There will always be innovation that changes this industry and we will adapt to use it to the best of our ability. Have a happy and healthy 2010!