From what I hear from people I meet everyone is aware that today's real estate market has slowed to a trickle since the end of the federal tax credits. In fact, today's market has been called the coldest since the Great Depression.
But slow doesn't mean dead… buyers are still shopping and homes are being sold.
So what are the attitudes and preferences of those currently buying? The consumer research firm American Lives conducted a survey for Builder magazine to find out. Below are some of the highlights of what they discovered. About half of those surveyed currently owned a home but were considering making a change.
- Today's buyers are younger
- Big chunk of 30-somethings
- Some 20-somethings
- Almost 65% under age 45
- Price ranges skew toward the more affordable end of the market
- 25% earn less than $50,000 a year
- 33% earn $50,000-$75,000
- 20% earn $75,000-$100,000
- Buyers are more frugal and practical
- Simpler lifestyle, spending more time at home with their families and not spending as much money
- 94% said "I don't want to stretch my finances too much when buying a home"
- More concerned about getting a good investment than a dream home
- Serious concerns about the economy and job security, but expect it to improve
- 70% describe the economy as 'not so good'
- Only 37% are not personally worried about losing their jobs
- 66% expect the economy to be doing better in a year
- Neighborhood is important
- The community is just as important as the home
- Willing to accept a smaller home to be in the neighborhood they want
So why buy now?
- More space
- More energy efficiency
- Better neighborhood
- Home prices and interest rates are the lowest in years
Sharlene Hensrud, RE/MAX Results - Email - Minneapolis-St. Paul Realtor