There have been a couple of survey’s released recently by the National Association of REALTORS® that highlight long term (like over 8 year) patterns and shorter term (last 12 to 18 month) patterns in buyers. If you are considering a home SALE or purchase, these trends are important.
- Typical sellers had been in their previous home for eight years. This is up from the 2009 survey that showed home sellers in their home for only seven years. The survey also showed that repeat buyers plan to stay in their home for 15 years… so we are all thinking a little more long term!
- First Time Home Buyers plan to stay in their home for at least 10 years. This says (to me) that SCHOOLS are going to be an even bigger issue in the future.
Even with several years of price declines, the typical seller who purchased a home eight years ago experienced a median equity gain of $33,000, a 24 percent increase, while sellers who were in their homes for 11 to 15 years saw a median gain of 40 percent.
“Sellers who purchased at the top of the market and had to sell in a short time frame were hurt by the price correction, but the vast majority who are able to stay for a normal period of home ownership generally built enough equity to make a trade-up purchase,” NAR President, Ms. Golder of Arizona said. “Despite swings in the housing market in recent years, the fact is most long-term owners see healthy gains in the value of their property.”
Homeownership, despite all of the problems in the last few years, still appears to be an American Dream according to this survey. NAR economists state in the survey that, “Eighty-five percent of recent home buyers see their home as a good investment, and nearly half think that investment is better than stocks.” What are some of the OTHER reasons they are buying?
- “Honey We Need A Bigger House!” A desire for a larger home influenced almost 10% of all buyers.
- A change in their families’ situation (like divorce or death) influenced just under 10% of buyers
- The Whopping $7500 and $8000 First Time Home buyer tax credit was cited by 8 percent of buyers
- A job-related move (which we thought would be much higher) influenced 7 percent of buyers
- Affordability Issues (meaning can’t afford your house anymore) only figured into just over 5% of those responding (which was surprising).
Another NAR Survey released details the massive numbers of First Time Home Buyers entering the market. For more on that, click here.
If you have questions about purchasing a home, how long you need to wait after a short sale or modification – or special ways for First Time Home Buyers to qualify in NC, please call Steve Thorne 919-649-5057. We have the best mortgage interest rates, and the lowest Fees Available!