{"id":16891,"date":"2020-12-15T11:16:49","date_gmt":"2020-12-15T17:16:49","guid":{"rendered":"https:\/\/theamericangenius.com\/housing\/?p=16891"},"modified":"2020-12-15T11:16:49","modified_gmt":"2020-12-15T17:16:49","slug":"what-the-nar-report-says-about-characteristics-of-homebuyers-and-sellers","status":"publish","type":"post","link":"https:\/\/theamericangenius.com\/housing\/big-data\/what-the-nar-report-says-about-characteristics-of-homebuyers-and-sellers\/","title":{"rendered":"What the NAR report says about characteristics of home buyers and sellers"},"content":{"rendered":"

The National Association of Realtors\u00ae (NAR) released its most recent Profile of Home Buyers and Sellers<\/em> report<\/a>. The annual survey conducted by NAR \u201callows industry professionals to gain insight into detailed buying and selling behavior.\u201d This year\u2019s survey contained 131 questions, and it surveyed home buyers and sellers who purchased between July 2019 to June 2020.<\/p>\n

Here is a breakdown of some characteristics of home buyers.<\/p>\n

Median age of home buyers<\/strong><\/p>\n

A shift in a home buyer’s age hasn\u2019t changed much when compared to last year. For first-time home buyers, the median age is still at 33 years. Repeat buyers have remained at 55 for three straight years. The median age of home buyers stayed at 47 in 2019 and 2020, which has been the oldest median range since NAR began collecting data in 1981.<\/p>\n

Also, the 25 to 34 age group continues to be the largest share of home buyers. This year they accounted for 23% of all buyers, and the smallest share of home buyers came from the 18 to 24 (3%) and 75 and over age groups<\/a> (5%).<\/p>\n

\"Median<\/p>\n

Decrease of first-time home buyers<\/strong><\/p>\n

First-time buyers\u2019 market shares have remained below the historical norm of 40% since 2011, and this year we saw a new decline. In 2019, first-time buyers made up 33% of all home buyers. This year that figure dropped to 31%. This is the lowest it has been since 1987 when it was at 30%.<\/p>\n

\"First<\/p>\n

Increase in median household income<\/strong><\/p>\n

First-time buyers might have decreased, but median household income for 2019 increased. This year the median income is at $96,500 whereas last year\u2019s median income was at $93,200.<\/p>\n

Although income has increased for both first-time buyers and repeat buyers, there is a large gap between the two. Data shows first-time buyers\u2019 median income is at $80,000, and repeat buyers\u2019 median income is at $106,700. Also, married repeat buyers have the highest median income at $120,300.<\/p>\n

\"Household<\/p>\n

The report shows those with higher incomes come from the West region with the Northeast region following right behind. And, this could be the reason the Northeast has the highest share of first-time home buyers with 37%. And, why the South region has the lowest at 28%.<\/p>\n

\"First<\/p>\n

Who\u2019s buying a house?<\/strong><\/p>\n

Married couples make up 62% of recent buyers, up 1% from the year before. Single female buyers make up 18%, and 9% are single male buyers. However, the shares of first-time buyers that were married decreased from 53% to 52%. For married repeat buyers, it remained at 67%. And, first-time buyers who are unmarried couples decreased to 16%.<\/p>\n

\"Adult<\/p>\n

Why are people buying houses?<\/strong><\/p>\n

Not surprisingly, the main reason first-time home buyers want to purchase a home is that they want to have a house they can call their own. According to the report, 64% of first-time home buyers said this is why they purchased a house.<\/p>\n