2011 National Association of Realtors Survey Says...

By
Real Estate Broker/Owner with Hello Realty NM Broker License 16161
https://activerain.com/droplet/qVj

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In this new landscape of real estate online, everyone seems to be asking about what buyers and sellers are actually doing in the real estate market place. The 2011 National Association of Realtors (NAR) Profile of Home Buyers and Sellers is a resourceful guide when looking for trends in home buyer and seller preferences and behavior. Here are some interesting results which stood out for me about buyers and sellers.

  • The median downpayment for all buyers was 11 percent. The range was 5% down for lst time home buyers with a range of up to 15% for repeat buyers.
  • Buyers searched a median of 12 weeks and looked at 12 homes. This was the same as in 2010.
  • Forty (40%) of buyers said they first learned about the home they purchased on the internet.
  • Ninety-one (91%) of the buyers who used the internet to search for a home, then purchased through a real estate agent.
  • Neighborhood quality was the biggest factor in selecting a neighborhood followed by affordability of the home.
  • The typical home purchased had 3 bedrooms and 2 bathrooms.
  • More than half the buyers considered a foreclosure, but in the end did not buy one.

I was surprised by the 11 percent median downpayment. The vast amount of information on the internet now makes it possible for buyers to research not only homes but neighborhoods. This information is helpful for sellers to understand why buyers do what they do next.

The report cost NAR members $19.95 and $149.95 for non-members. A summary of survey highlights is available through the National Association of Realtors site here.

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Our Santa Fe real estate market is a local one. Search All Santa Fe Listings Here and get results in both an easy list or map search. If you want to see a SOLD sign on your property or you want to make a lifestyle change by moving here, call me at 505-660-4541 to schedule a real estate consultation. No one has time or money to waste in this new landscape of real estate online. I am available to help you and make a positive difference in your real estate experience. Remember dreams are made a reality only when you act on them. Emily Medvec

Today, I represent Sellers and Buyers in all price ranges in Santa Fe and throughout northern New Mexico. My focus is to use my experience, vision and strategies to find you opportunities and solutions. My goal is always to save you time and money whether you are selling or buying any type of Santa Fe real estate, including homes, land, town homes, condominiums, ranches and commercial property. Here are recent reviews from my past clients about my know-how and service. Until you are ready to Buy or Sell, let's connect and learn more about each other on Facebook or Twitter

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Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Gail Robinson 01/09/2012 03:05 PM
  2. Cheryl Ritchie 01/09/2012 08:23 PM
  3. Gloria Todor 01/10/2012 03:05 PM
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Rainer
124,306
Jon Wade
The Steamboat Group - Steamboat Springs, CO
Steamboat CO Real Estate

It's amazing how few Realtors read these surveys and actually let the data influence how they run their business.

Jan 09, 2012 06:36 PM #7
Rainmaker
1,360,046
Cheryl Ritchie
RE/MAX Leading Edge www.GoldenResults.com - Huntingtown, MD
Southern Maryland 301-980-7566

Reblogged with this intro!

I also just downloaded this NAR Report  on my iPad so I would always have a copy of the report with me. The twelve homes in twelve weeks stat was the one that caught my eye the most. And the fact that almost all sales are used with an agent is notable.

Jan 09, 2012 08:25 PM #8
Ambassador
1,951,882
Fernando Herboso - Broker for Maxus Realty Group
Maxus Realty Group - Broker 301-246-0001 - Gaithersburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

Can't really utilize a national snapshot about buyers. . but is a good start

I believe local influence is the major difference.

Jan 10, 2012 12:18 AM #9
Rainmaker
1,370,177
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Emily, the number of people who search for a home on the Internet and use a REALTOR® appears to be increasing. How does it compare to previous years?

Jan 10, 2012 12:46 AM #10
Rainmaker
1,822,827
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

I can't wait to see  the age breakdown of buyers ~! In most recent years , 64% of buyers were age 46 or younger.

Jan 10, 2012 01:03 AM #11
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Bryan Robertson
Los Altos, CA

The low down payment must be regional.  Every buyer I've worked with last year has at least 20% down and most had 30-40% down.  What's really interesting is the number of people who found their home on the Internet (40%, up from 37% last year).  That's a growing trend.

Jan 10, 2012 01:06 AM #12
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413,437
Emily Medvec Qualifying Broker
Hello Realty - Santa Fe, NM
Realtor | Serving Santa Fe & Northern NM

Karen, I recommend the report. It is beyond stats for the national housing market.

Gene, the downpayment was the biggest surprise for me.

Sue, the trends continue to validate home buyers are searching first on the internet as one of the major shifts in this new landscape of real estate.

George, remember these numbers are national and most likely still represent the availability for 5%/10%/15% downpayments when mortgage insurance was more easily obtained.

Gail, I agree about the raising more questions. Like you and George, we are seeing more buyers who are using FHA due to the 3.5% downpayment requirement, especially if they are relocating or are lst time homebuyers.

Lynda, we see similar trends here with parents contributing or purchases being made by a newly formed family trust. The issue for any availability of financing is not only downpayment but credit scores. A family contribution towards the downpayment will not change the impact of a lower credit score. There are a lot of variables and requirements on the table now.

 

 

 

Jan 10, 2012 01:10 AM #13
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Emily Medvec Qualifying Broker
Hello Realty - Santa Fe, NM
Realtor | Serving Santa Fe & Northern NM

Jon, I agree. The NAR annual survey report brings reality to the table when consulting with both buyers and sellers about the real estate market in general and trends. Yes, all real estate is local, but information if global online.

Cheryl, good idea. The 12 homes in 12 weeks stat seemed to indicate home buyers are doing more research as well as just looking/searching online.

Jan 10, 2012 01:20 AM #14
Rainmaker
1,939,215
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

Markets, quite a few in real estate in the country. One size does not fit all.

Jan 10, 2012 01:25 AM #15
Rainmaker
908,388
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Real estate is definitely local. In my market, for first-time homebuyers it's FHA loans, the down payment of 3.5%. Lately very few first-time homeubyers have more than that. A couple of years ago, a different story. Many all cash investor buyers seem to be the trend here. 

Jan 10, 2012 03:36 AM #16
Rainmaker
1,537,366
Mike Cooper, GRI
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Like many of my colleagues above, I'm a numbers guy.  Numbers can definitely give you a sense of what's going on.  Thanks for sharing.  I will check out the NAR stats.

Jan 10, 2012 03:39 AM #17
Rainmaker
4,360,330
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Emily this is excellent information.  Thanks for sharing this with everyone.  A

Jan 10, 2012 08:13 AM #18
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Emily Medvec Qualifying Broker
Hello Realty - Santa Fe, NM
Realtor | Serving Santa Fe & Northern NM

Andrew, all real estate is local. At the same time, this NAR annual survey does provide data which is important in the housing market recovery.

Pamela, yes, real estate is a function of local market realities. I do not think the survey takes away from the local market. What is does do is provide insight into trends. For example, even in light of the housing market crash, the survey reported that 78% of recent home buyers saw their home as a good investment, and 45% believed it was better than stocks. This is good news as buyers still believe in the value of home ownership.

Jan 10, 2012 12:50 PM #20
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Emily Medvec Qualifying Broker
Hello Realty - Santa Fe, NM
Realtor | Serving Santa Fe & Northern NM

Fernando, I find our customers and clients value this information. They recognize it is an analysis of national the national housing market. Given the collapse of the housing sector in our economy, more people want to be more informed.

Michael, (#10) I believe it was 87 percent (I do not have the 2010 report handy at the moment). Internet use has been increasing steadily for years.

Michael, (#11) What I did find was the median age of first time home buyers was 31 with a median income of $62,400, up from $59,900 in 2010.

Bryan, you are right about the variation in downpayment in local markets. The report focused on the median being 11 percent. Tighter lending requirements may be shifting buyers to different financing products.

Ron & Alexandra, thank you. What I found interesting was the neighborhood quality was a bigger influence than overall affordability. Clearly, the impact of lower interest rates is giving qualified buyers more options.

And the typical home seller was 53 years old with an income of $101,500. All food for thought.

Erica, this is where the local economy is important. I do not think we can isolate the local housing market from the local economy. Jobs are critical in the housing recovery for all markets.

 

 

 

 

Jan 10, 2012 01:12 PM #21
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Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

Emily - Interesting information.  I know that many of our buyers like FHA for 3.5% down.  So many current owners either can't sell or don't have the equity to buy up.

Jan 10, 2012 02:57 PM #22
Rainmaker
1,006,061
Gloria Todor
Century 21 Absolute Realty - Springfield, PA
& Doug Durren (484) 431-3686 in SE PA

Hi Emily, Very interesting stats.  It is really good to note that even though the inital search may start on the internet, a life person is still being contacted to help in a transaction. Great news for us!

Thank you for posting this.

Really like your photo!  I hope to visit Santa Fe again one day.

Gloria 

Jan 10, 2012 03:03 PM #23
Rainmaker
2,731,828
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Emily - Very educational survey. Thank you for sharing detailed quality information on NAR's survey.

Jan 10, 2012 03:57 PM #24
Rainer
206,584
Marge Piwowarski
Phoenix AZ Horse Property - Phoenix, AZ
Phoenix AZ Horse Property, LLC

I am unusual or my area market is unusual, even my first time buyers last year had 20% or better.  Nobody wants to pay mortgage insurance.  I read the reports and statistics but don't give them a lot of weight in our market.  At best they are national trends, real estate is still local. 

Jan 10, 2012 06:48 PM #25
Rainmaker
841,108
Joshua Zargari
MJ Decorators Workshop LI staging and home decorating - Lynbrook, NY
MJ Decorators Workshop

Good morning Emily.

A very interesting post...

Thank you for sharing.

Have a great day.

Jan 11, 2012 12:02 AM #26
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Emily- interesting figures and found the "buyers searched a median of 12 weeks and looked at 12 homes" was interesting. 

Jan 11, 2012 07:24 AM #27
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