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Today's home buyer: who are they, what do they want and what's happening?

By
Real Estate Agent with Remax Metro Staten Island, New York
Still the American Dream: Despite attacks by critics in recent months on the value of home ownership and whether it’s still the American Dream, the idea of home continues to resonate with a majority of people from all walks of life. For proof, look no further than the Country Music Awards. Country singer Miranda Lambert’s song “The House that Built Me” won the award for Single of the Year. A sample of the lyrics reinforces the importance of home: Mama cut out pictures of houses for you/ From Better Homes and Gardens magazine/ Plans were drawn and concrete poured/ Nail by nail and board by board/ Daddy gave life to mama’s dream. For many people, owning a home is much more than just a financial decision – it’s a place where they build families, memories and futures.

Today’s record low mortgage rates and high household incomes have created a very favorable buying environment in terms of affordability.  The typical family could afford a home costing about $315,000. With mortgage rates expected to rise over the next year, the index will likely decline modestly, but NAR economists still expect 2011 to be the third best year on record for housing affordability.

Who are today's home buyers?

  • Most are married. Forty-nine percent are a married couple.
  • Single females comprise a quarter of first-time buyers, and single males account for just 12 percent.
  • They’re young. More than half—53 percent—are between the ages of 24 and 34. And 12 percent are younger than 24. 
  • They’re diverse. Twenty-two percent are part of a minority group, compared with 13 percent of repeat buyers. Six percent speak a language other than English, and 12 percent were not born in the United States.
  • They like the ‘burbs. Even though 22 percent purchase in an urban area, the suburbs continue to be the most popular locale, with 52 percent buying there. The third most popular spot is a small town. 
  • They take their time. First-time buyers take an average of 12 weeks to find their home, compared with 10 weeks for repeat buyers.

According to a NATIONAL ASSOCIATION OF REALTORS® survey of 3,793 adults conducted by Harris Interactive and released in January 2011, home owners and renters agree that home ownership benefits individuals and families, strengthens our communities, and is integral to our nation’s economy.

On Staten Island the median sale price for single family detached house is $445,000 up from $415,000. a year ago.  And a two family detached house median sale price was $550,000. slightly up from a year ago price of $540,000., this would be considered a "stable market." 

Putting on a Pretty Face; Exterior replacement projects continue to be the most cost effective home improvement projects, according to the 2010-11 Remodeling Cost vs. Value Report. This year nine out of the 10 projects that return the most bang for the buck are improvements to a home’s exterior. A steel entry door took the top spot with an estimated 102.1 percent of cost recouped upon resale. That was the only project in this year’s report expected to return more than the cost.

The above information was taken from several National Association of Realtors web site.

 

RE/MAX Metro  718-979-3000 ext 125

Connie Pepenella  associate broker  email : connie@pepenella.com

since 1992

585 North Gannon Avenue Staten Island, New York 10314

http://pepenella.com web site 

 

Comments (1)

Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Concetta, pls. view our Re/Max RELO message -  http://actvra.in/4jHG

Aug 20, 2014 05:42 AM