Who bought in Florida in 2007?

Study: Single person, non-child families trend in 2007 Florida home sales

ORLANDO, Fla. – Jan. 8, 2008 – One in three Florida homebuyers is single, with 21 percent of 2007 home purchases made by single women and 12 percent by single men – just one finding from the newly-released Florida version of NAR’s “2007 Profile of Florida Homebuyers and Sellers.” Another highlight: Over two-thirds of Florida buyers (64 percent) had no children younger than 18.

The 2007 Profile of Florida Homebuyers and Sellers describes the characteristics and motivations of recent homebuyers and sellers in Florida to help real estate professionals track the changing demands of consumers in a dynamic market. Here’s a summary of the report’s findings:

Characteristics of homebuyers

• The median age of homebuyers was 43 years old. Among first-time buyers, the median age was 32.
• The 2006 median household income of homebuyers was $67,500 compared to $74,000 among homebuyers nationally.
• Sixty-four percent of homebuyers reported that there were no children under age 18 residing in the home.
• Fifty-nine percent of homebuyers were married couples, 21 percent single females, 12 percent single males, and 6 percent were unmarried couples.
• Eighteen percent of Florida homebuyers reported they were born outside the United States, compared to 9 percent nationally.
• First-time homebuyers accounted for 38 percent of homes purchased in 2007.
• Forty-nine percent of first-time homebuyers were between 25 and 34 years old.
• The median income of first-time homebuyers was $58400 compared to $58,600 among all first-time buyers nationally.
• Sixty-five percent of homebuyers between 18 and 24 purchased a home because of their desire to own a home of their own and establish a household.
• Thirty-eight percent of homebuyers reported using social networking Web sites, such as, MySpace, Facebook, LinkedIn, and Friendster. Among homebuyers aged 18 to 24, 76 percent reported using social networking sites.

Characteristics of homes purchased

• Twenty-seven percent of recent homebuyers purchased newly built homes.
• Fifty-eight percent of homes purchased were detached single-family homes.
• The typical homebuyer purchased a home 14 miles from their previous residence.
• The median price of homes purchased was $230,000 compared to $215,000 in the U.S.
• The typical buyer purchased a home that was 1,700 square feet in size.
• Recent homebuyers plan to live in their home a median of 10 years.

The home search process

• Twenty-five percent of recent buyers reported that their first step in the home-buying process was looking online for properties for sale. Eighteen percent of first-time buyers and 24 percent of repeat buyers reported their first step was to contact a real estate agent.
• Eighty percent of homebuyers used the Internet to search for homes.
• The typical homebuyer searched for a home for a median 8 weeks and saw a median 10 homes.
• Eighty-four percent of homebuyers used a real estate professional during their home search.
• Among homebuyers, the typical Internet searcher was 40 years old and visited a median 10 homes. The typical homebuyer that did not use the Internet to search for homes was 53 years old and saw a median 5 homes.
• Thirty-seven percent of homebuyers first learned about the home they purchased from a real estate professional; 19 percent first learned about the home they purchased through the Internet.
• Seventy-two percent of buyers viewed the Internet as a very useful tool in their home search.
• Real estate agents were viewed as a very useful information source by 67 percent of buyers, and as a somewhat useful information source by an additional 23 percent of buyers searching for a home.

Home buying and real estate professionals

• Seventy-one percent of homebuyers purchased their home through a real estate agent or broker.
• Buyers searched for a median of two weeks on their own before contacting an agent.
• A friend, family member, neighbor or relative referred 52 percent of first-time buyers to their agent.
• Ninety-eight percent of buyers ranked honesty and integrity as a “very important” factor when choosing a real estate professional to assist with a home purchase.
• When asked about their agent’s performance on those qualities considered important, 80 percent reported they were “very satisfied” with the honesty and integrity of their agent.
• Sixty-eight percent of recent buyers will definitely use their agent again, and an additional 19 percent will probably use the agent again or recommend to others.

Financing the home purchase

• Ninety percent of homebuyers financed their home purchase; 98 percent of first-time homebuyers financed the purchase of their home compared to 90 percent of repeat buyers.
• Savings were the chief source of the downpayment for most first-time homebuyers (69 percent).
• Fifty-three percent of repeat buyers used proceeds from the sale of their primary residence toward the downpayment; 46 percent relied on savings for a portion of the downpayment.
• Forty-seven percent of all buyers believe that their home purchase was a better financial investment than stocks, and an additional 30 percent of buyers feel their home purchase was at least as good an investment as stocks.

Home sellers and their selling experience

• The median age of home sellers was 48 years; they had a median income of $83900.
• Sixty-nine percent of home sellers were married and 61 percent had no children under 18 years old living at home.
• Fifty-one percent of home sellers traded up to a larger home when purchasing their next home.
• The typical home seller owned their home for 6 years.
• Fifty-three percent of recent home sellers reported that they undertook home improvement or remodeling projects within three months prior to putting their home on the market.
• The typical home was on the market for 10 weeks. 33 percent of home sellers did not reduce their asking price before their home sold.
• Recent sellers typically sold their homes for 96 percent of the listing price.
• Seventy-nine percent of sellers used an agent or broker to sell their home.
• Sixty-seven percent of all sellers were very satisfied with the selling process.

Home sellers and real estate professionals

• Fifty-nine percent of sellers contacted only one agent before selecting one to help assist in the sale of their home.
• When selecting a real estate professional, 36 percent of sellers received a recommendation from a friend, neighbor or relative.
• The reputation of the agent was the most important factor when choosing a real estate professional for 39 percent of recent sellers.
• Twenty-six percent of sellers used the same agent for their home purchase.
• For 37 percent of sellers, their most important expectation is that the real estate agent will help sell the home within a specific timeframe.
• Eighty-six percent of sellers reported that their home was listed or advertised on the Internet.
• Eighty-two percent of sellers used an agent that provided a broad range of services and managed most aspects of the sales transaction.
• Sixty-two percent of sellers reported they would definitely use the same real estate agent again.

For sale by owner (FSBO)

• Seventeen percent of sellers sold their home without the assistance of an agent compared with 12 percent of sellers nationally. Among all sellers, 3 percent were FSBO sellers who knew the buyer.
• Eighty percent of FSBO sellers sold a detached single-family home.
• For 19 percent of FSBO sellers, the most difficult task in selling their home was understanding and performing the necessary paperwork to complete the transaction, for 3 percent it was preparing the home for sale, and for 12 percent the most difficult task was getting the price right.

To download the complete report in PDF format, go to floridarealtors.org at: http://www.floridarealtors.org/LegislativeCenter/Research/index.cfm