Are you a typical homebuyer? 2013 saw some interesting changes…

Buyers1The National Association of Realtors compiles an annual profile of buyers and sellers. We will look at characteristics of homebuyers in Minnesota and nationwide today and next week we will take a look at homesellers. How do you compare?

In 2013, the typical home buyer searched for 12 weeks and viewed 10 homes.

Can you guess which characteristic has the highest share since 2001? Hint: it is likely at least partly the result of more stringent financing requirements.

CHARACTERISTICS OF HOME BUYERS

  • First-time buyers – still at a suppressed level compared to historical norm of 40% nationally
    • 40% in Minnesota
    • 38% nationwide
  • Multi-generational homes – due to adult children moving back 'home', cost savings, health and caretaking of aging parents
    • 10% in Minnesota
    • 14% nationwide
  • Age of typical homebuyer – both first-time and repeat buyers
    • 36 years old for all Minnesota homebuyers
      • 30 years for first-time homebuyers
      • 42 years for repeat buyers
    • 42 years old for national homebuyers
      • 31 years for first-time buyers
      • 52 years for repeat buyers
  • Median household income – income in 2012 for buyers purchasing in 2013
    • $82,000 in Minnesota
      • $68,300 for first-time buyers
      • $95,900 for repeat buyers
    • $83,300 nationally
      • $67,400 for first-time buyers
      • $96,000 for repeat buyers
  • Married couple – the share of married couples buying is the highest since 2001 while the share of single buyers remains suppressed… suggesting that as lending conditions tighten married couples are better able to provide the necessary purchasing power to buy a home
    • 68% of homebuyers in Minnesota
    • 66% share nationally
  • Primary reason for purchase was desire to own a home
    • 28% in Minnesota
    • 30% nationally

CHARACTERISTICS OF HOMES PURCHASED

  • New homes – continue to drag
    • 11% in Minnesota
    • 16% nationwide
  • Size
    • Minnesota typical home purchased – 2,000 square feet, built in 1985, 3BR/2BA
    • Nationwide – 1,900 square ft, built in 1992, 3BR/2BA
  • Detached single-family home
    • 77% in Minnesota
    • 80% nationally
  • Age 50+
    • 13% of buyers over the age of 50 bought a home in senior-related housing
    • 14% of buyers nationwide did the same
  • Heating and cooling costs
    • 87% of Minnesota buyers considered heating and cooling costs at least somewhat important in choosing a home
    • 85% of buyers nationally considered the same
  • Commuting costs
    • 79% of Minnesota buyers considered commuting costs
    • 73% of buyers nationwide took commuting costs into consideration when choosing a home

Sharlene Hensrud, RE/MAX Results – EmailMinneapolis-St. Paul Buyer's Agent

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I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity.

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