With spring on the horizon, many people are beginning to think about selling their homes. Even those not currently considering a move are curious about the state of the American housing market.
The information we are sending this month is intended to give you an overview of what’s going on in the national housing market. The statistics offered on the first page provide a glimpse into current trends and predictions for the year, while page two delves into the financing choices of recent homebuyers.
Here is a quick review of today’s More than 80% of Americans view housing as critical to the nation’s economic recovery, and nearly 70% feel that a presidential candidate’s position on housing will be an important consideration in the voting booth.1 Whether you’re thinking of buying, selling or are actively involved in the market, the statistics below will give you a clearer perspective of the state of the market.
Current National Trends in Housing
70% of Americans view owning a home as part of the American dream.2
62% of consumers feel that buying a home in the current market is a good investment over the next 10 years.3
$190,000: Median home price,4
up from $170,000 the previous year 5
$155,000: Median home price of first-time buyers 4
$219,500: Median home price of repeat buyers 4
Homeownership rate rose to 66.1% in Q3 2011, up from 66.0% in Q2 2011.6
95% of metro areas are expected to see home prices rise in the next year.7
75.1% of homeowners state that their home defines their identity.1
Buyer Overview
Buyers searched for a median of 12 weeks and visited 12 homes before they found the one they purchased.4
27% of homebuyers, including 60% of first-time homebuyers, said that the desire to own a home of their own was the biggest reason they bought.4
First-time homebuyers comprise 37% of the market.4
64% of all buyers are married couples,18% are single women, 10% are single men and 7% are unmarried couples.4
$80,900: The median household income of homebuyers.4
84% of buyers purchased a previously-owned home and 16% purchased a new home.4
Seller Overview
35% of homes were on the market less than 2 months before they sold.6
The average time a home was on the market was 9 weeks.4
66% of sellers were first-time sellers.4
39% of sellers did not reduce the asking price, 26% of sellers reduced it once and 35% reduced the price two or more times.4
Sources:
1. Move, Inc.
2. Wall Street Journal, October 4, 2011
3. Bank of America: Mortgage Index Study, December 8, 2011
4. National Association of REALTORS® Profile of Home Buyers and Sellers 2011
5. National Association of REALTORS® Profile of Home Buyers and Sellers 2010
6. National Association of REALTORS®
7. CNN Money, November 4, 2011
Financing the Home Purchase
Talk to Your Real Estate Professional Today! While these figures provide an overview of the national market, keep in mind that your local market may differ.
Consult your trusted real estate professional for more information about your local market.
The average rent on vacant properties is 28% higher than the average mortgage payment.1
The estimated median monthly mortgage principal and interest payment of a first-time homebuyer was $794.2
The estimated median monthly mortgage principal and interest payment of a repeat buyer was $1,006.2
94% of buyers financed their home purchase, including 96% of 25-44 year olds 82% of 45-64 year olds 66% of buyers 65 and older 2
35% of buyers had a down payment of 20% or more.2
74% of consumers who plan to buy a home in the next 12
months will use their personal savings for a down payment.3
The average buyer financed 89% of the home purchase.2
94% of first-time homebuyers chose a fixed-rate mortgage.2
54% of first-time homebuyers used a low down payment FHA mortgage.2
Mortgage rates are expected to rise and reach 4.5% by mid-2012.4
Sources:
1. Forbes, November 14, 2011
2. National Association of REALTORS® Profile of Home Buyers and Sellers 2011
3. Bank of America: Mortgage Index Study, December 8, 2011
4. National Association of REALTORS®
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