On Tuesday, November 19, NAR Research held a Twitter Chat to discuss the highlights from the newly released 2013 Profile of Home Buyers and Sellers. Research’s Director of Member and Consumer Survey Research, Jessica Lautz, discussed the latest info and trends from this always popular annual report, responding to 140 character-or-less questions as they filtered in. The discussion was lively and informative, and thanks to all who participated. Even if you were unable to interact with us that day, the full recap of the #2013HBS hashtag recap can be found here, and the most popular tweets from the chat can be found after the jump:
As of 2012, the foreign-born population accounted for about 13 percent of the total U.S. population, up from only about 5 percent in 1960. What are the prospects for homeownership of the foreign born? Data indicate the majority of the foreign-born become homeowners. Foreign-born home ownership is at par with the homeownership rate of native-born U.S. citizens.
The prospects for home ownership of the foreign-born are bright because they are generally well-educated and comparably earn higher incomes.
What this means to REALTORS®: Increasing contact with the foreign-born is becoming more critical given the increasing presence of the foreign-born and their sound prospects for home ownership. Information on the characteristics of the foreign-born is available at http://www.realtor.org/reports/state-by-state-international-business-reports
The 2013 NAR Profile of Home Buyers and Sellers was released on November 4, and as it does each year the report examined the demographics, preferences, motivations, plans, and experiences of recent buyers and sellers.
One recent trend discussed is how much consumers now embrace technology during the home search process. Did you know that…
- Fifty-six percent of buyers start their home search online, 43 percent found the home they ultimately purchased online (edging out all other sources), and 92 percent used the internet at some point during their search process.
- Forty-five percent of recent buyers used a mobile or tablet website or application during their home search and among those who did 22 percent found the home they purchased online.
Here are a few charts from the Profile that highlight the growth in technology usage over the years:
- The share of home sellers who sold their home without the assistance of a real estate agent was 9 percent. One-third of those sellers knew the buyer prior to home purchase.
- The primary reason that sellers choose to sell their home without the assistance of a real estate agent to a buyer they did not know was that they did not want to pay a fee or commission (43 percent).
- One-third of FSBO sellers took no action to market their home, and 60 percent did not offer any incentives to attract buyers.
- The typical FSBO home sold for $174,900 compared to $210,000 among agent-assisted home sales.
- For more information on the annual Profile of Home Buyers and Sellers, click here. The 2013 report will be released next Monday, November 4.
International clients frequently pay all cash compared to domestic buyers: About 63 percent of reported transactions were all cash, as reported in the recently released 2013 Profile of International Home Buying Activity, which captures transactions of respondents in the 12 months ended March 2013.
Mortgage financing tends to be a major problem for international clients due to a lack of a U.S. based credit history, lack of a Social Security number, difficulties in documenting mortgage requirements, and financial profiles that are different in some cases from those normally received by the financial institution from domestic residents. Financing-related issues accounted for about 26 percent of the reported reasons for not buying a property in the United States.
There is a good chance of having a foreign buyer, whose expectations and needs may differ from those of U.S. buyers. The site http://www.realtor.org/global provides a substantial amount of information that may be of help to REALTORS® not experienced in dealing with international clients. Information at the site may be useful in addressing reasons why clients don’t buy—and helping to convert no-sales into sales.