The 2014 Buyer and Seller Trends Report
Mortgage Loan Originators have seen the best and the worst of the housing industry in a span of less than 10 years with a flood of heavily fluctuating trends. MLO’s saw a surge of first time homebuyers followed by a major shift that caused a drastic decrease in first time homebuyers. Other trends indicated consumers more frequently buying second homes followed by a historic number of underwater mortgages.
To better understand the more recent trends, The National Association of Realtors releases an annual trend report that provides an inside look into buyer and seller demographics, home buying purchasing trends and consumers’ experience in the housing market. The 2014 Profile of Home Buyers and Sellers evaluated almost 7,000 recent home buyers from around the U.S. who recently purchased a home.
Close evaluation of these trends empowers MLO’s with a broader knowledge base and an opportunity to tweak their marketing and service techniques.
Who Is Buying Homes?
- 33 percent of recent home buyers were buying their first home – 7 percent lower than the historical norm.
- The typical first-time buyer was 31 years old, and the typical repeat buyer was 53.
- The median income of buyers was $84,500 in 2013. First-time buyers had a median income of $68,300 while repeat buyers had a $95,000 median income.
- 65 percent of buyers in 2014 were married.
How Are People Searching For Homes?
- 92 percent of buyers used the Internet in their home search process and 50 percent used a mobile website or application.
- Realtors were seen as a source of useful information by 98 percent of buyers who used a Realtor.
- The average buyer searched for 10 weeks, two weeks shorter than the 2013 report, and viewed 10 homes before choosing their home.
- More than half of buyers cited finding the right home was their biggest obstacle in the buying process.
- Nine out of 10 buyers were at least “somewhat satisfied” with the entire process.
How Are People Paying For Their Home And What Do They Think About the Process?
- Almost nine out of 10 buyers financed their recent home purchase and, on average financed 90 percent of the home purchase.
- First-time home buyers were 11 percent more likely to finance their homes than repeat buyers.
- 26 percent of buyers reported the mortgage application and approval process was “somewhat more difficult” than expected and 18 percent said it was “much more difficult.”
- 12 percent of buyers cited saving for the down payment as the most difficult process in the home buyer process.
For the full report, click here. To view a NAR webinar that delves even deeper into the report, click here. We hope that you’re able to leverage this extensive research to make 2015 the best year yet for your career.