The National Association Of Realtors (NAR) conducts an annual survey of  home buyers and sellers evaluating the demographics, preferences, motivations, plans and experiences of recent home buyers and sellers.

 

Some highlights from the most recent 2012 NAR report.

Characteristics Of Home Buyers:

– 39% of recent home buyers were first time buyers, a slight rise from 2011, but close to the historical norm of 40%

– The typical home buyer was 42 years old – a decrease from the average in 2011 of 45

– First time home buyers averaged 31 years of age – repeat buyers were 51 years old on average

– Median income of buyers was $78,600. The median was $61,800 for 1st time home buyers, and $93,100 for repeat buyers

– 65% of buyers were married – the highest share since 2001. 16% were single females – the lowest share since 2001

– The typical buyer searched for 12 weeks for a new home, and viewed 10 homes

Characteristics Of Homes Purchased:

– New homes accounted for only 16% of purchases

– The typical home purchased by a 1st time buyer was 1,900 square feet in size, built in 1992, had 3 bedrooms and 2 baths, and was priced at $154,100, repeat buyers purchased homes with a median price of $220,000

– 79% of the homes purchased were detached single family homes

 Financing The Purchase:

– 87% of buyers financed their purchase. The typical amount financed was 91% of the purchase price

– 96% of 1st time buyers financed their home compared to 81% of repeat buyers

– 40% of buyers reported the mortgage application and approval process was somewhat or more more difficult than expected

 Home Sellers:

– 46% of sellers traded up to a larger size and higher priced home

– The typical seller lived in their home for 9 years. In 2007 the typical tenure was only 6 years

– Sellers typically sold their home for 95% of the listing price, and 60% reduced their price at least once

– 40% of sellers offer incentives to buyers, such as seller assists and home warranties

 

Wallingford PA Real Estate – Wallingford, PA 19086

In a recent study by Trulia 53% of the homes listed had a price that ended in a 9. There seems to be an underlying market psychology that a price such as $299,999 is a better deal that a home priced at $300,000. Retailers have long used pricing that ends in a 9 rather that a whole number in order to entice buyers to purchase, and real estate has followed that lead. Trulia found that prices ending in 9 were even more common for homes that have price reductions, but inexplicably more expensive homes tend to shun the number 9.

Certain numbers and their combinations are popular in select areas of the county as opposed to others. For instance in the Bible Belt the number combinations 316 – representing the popular Bible verse John 3:16, and 666 – representing the devil – appear in pricing more than other areas. In the Las Vegas area the number 7 is very prominent, and the number 8 is a very popular number for homes selling in predominately Asian neighborhoods.

How important is the number 8 in the Asian community? The Chinese word for 8 sounds like a word that means “prosper,” “fortune,” or “wealth,” making 8 a very lucky number in Chinese culture. Do you think it is any coincidence that the Beijing Olympics officially began at 8:08:08 pm on 8/8/08? A home address containing 8’s is very auspicious in Asian culture.

Numerical superstitions also play a part in real estate. The fear of the number 13 – triskaidekaphobia – is widespread. Many hotels and office buildings skip the 13th floor, and Friday the 13th has long been considered a highly unlucky day. Trulia looked for the number 13 anywhere in a home price – such as $136,000 or $213,900 – and found it to be much less common than the numbers on either side of 13. The number 13 appears in asking prices 13% less often than the number 12 and 17% less often than the number 14.

Tetraphobia – fear of the number 4 – is also quite common. The number 4 is associated with death in China, Japan and Korea. As with 13 in Western society, 4 is often omitted from floors, addresses and telephone numbers in these countries. Citing Las Vegas again, where superstitious beliefs are rampant, many large casino-hotels omit floor numbers 4, 14, 24, 34 and 40 to 49 because the number “4” is considered unlucky in  Chinese culture.

Home pricing is by no means an exact science, and the effect of numeric psychology is another element to consider when determining a listing price for your home.
 

Wallingford PA Real Estate – Wallingford, PA 19086