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2006: Demographic Profile Of Home Buyers In The United States
With a constantly shifting housing market, the profile of homebuyers and sellers is continuously evolving. Understanding the demographics of today's homebuyers and sellers is therefore vital to understanding the current trends in the real estate market, as well as the current and future housing needs of home buyers
The National Association of Realtors (NAR) conducts an annual survey of demographic patterns of home buyers and sellers. This report is entitled the NAR Profile of Home Buyers and Sellers and is available through the Association.
The 2006 NAR Survey uncovered the following information about the age of home buyers. The typical age of a homebuyer is 41 years. While first-time buyers are much younger with a median age of 32, repeat homebuyers have an average age of 47. Younger people, falling within the 25-34 age group, make up most of the home buying population.
The Survey revealed that there were differences in the median household income of various market segments. While the median national household income of the general population was $46,326 in 2005, the median income of home buyers was much higher at $71,800. Among them, first-time buyers had a lower median household income at $58,300, whereas repeat home buyers who had an income of $81,900.
The Survey reported that approximately 62% of homebuyers live in homes that do not have children under the age of 18. In fact, home buyers who had one child living with them accounted for less than one among every five buyers. This finding is consistent with the upcoming retirement of Baby Boomers, many of whom have already raised their children.
Nationwide, a typical homebuyer purchased a home with a median price of $214,000 and within 13 miles of their previous residence. This indicates that most homebuyers already live in the community in which they purchase a home. Moreover, three out of four homes sold were detached single-family homes.
According to the survey, 80% of homebuyers have used the Internet for information, which is higher than previous years and validates the importance of the Internet in the real estate industry. Notwithstanding this growing reliance on the Internet, real estate agents continue to be the homebuyer's top source of information. The Survey puts a whopping 87% of Internet users as having used the services of an agent, with 35% of them making a purchase through them.
The information above is a good snapshot of the demographic profile of homebuyers. For more information, visit the National Association of Realtor's web site. If you're interested in buying or selling a home, contact a local Realtor to assist you.
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San Diego Homes,
Carmel Valley Homes, and
Mira Mesa Homes
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