National Real Estate Statistics Give Idea Of Consumer Activity

As this year draws to a close, it is interesting to reflect upon the brisk real estate activity of this past year and consider the numbers showing how purchasers and sellers performed. The following statement from the National Association of Realtors survey that I introduced last week is worthy of note, because it may provide some indication of immediate future activity:


"Married couples continue to dominate the housing market, accounting for 62 percent of transactions through the first half of 2004. Single women purchased 18 percent of homes while single men made up only 8 percent of the market. Unmarried couples were 9 percent, and 2 percent were listed as other. The percentages may not equal 100 due to rounding.



"The typical buyer walked through nine homes, searched eight weeks to buy a home and moved 18 miles from (the) previous residence, while the typical seller placed a home on the market for four weeks, had lived in that home for six years and previously owned three homes, including the one just sold.



"Existing homes are the lion's share of the market, accounting for 79 percent of transactions, while new homes make up 21 percent of purchases. These ratios differ from analysis of market share using statistics from the U.S. Census Bureau because that data does not include homes built on contract, which are not counted as new-home sales by Census.



"Buyers use a wide range of resources in searching for a home. Ninety percent use a real estate agent; the Internet and yard signs were used by 74 percent each, newspaper ads, 53 percent, and open houses, 51 percent. Five other categories were used by less than 50 percent each.



"Use of the Internet in searching for a home has risen along with the level of Internet penetration, rising from only 2 percent of buyers in 1995 to 71 percent in 2003 and 74 percent currently," Lereah, chief economist for the NAR said. "It's hard to imagine having Internet access and not taking advantage of tools such as Realtor.com">http://www.Realtor.com when searching for a home, or in educating yourself about the housing market.



"Realtor.com was the most frequently mentioned Internet resource, used by 52 percent of buyers, followed by multiple listing service Web sites, 45 percent, real estate company sites, 39 percent, real estate agent Web sites, 26 percent and local newspaper sites, 17 percent.



"When asked where they first learned about the home purchased, 38 percent of buyers said a real estate agent, 16 percent a yard sign, 15 percent the Internet, 7 percent from a friend, neighbor or relative, 7 percent from a home builder, 5 percent from a newspaper ad, 5 percent knew the seller, and 2 percent from a home book or magazine. Other categories totaled 4 percent.



"Eighty-one percent of Internet searchers used a real estate professional in purchasing a home, compared to 66 percent of non-Internet users. 'Clearly, there is a lot of great information available to buyers on the Internet, but they look to real estate agents and brokers for context, advice and negotiation,' Lereah said.



"The survey found that the median price of a vacation home was $190,000, while the median price of a second home purchased primarily for investment was $148,000. These compare with a median of $175,000 for a primary residence. The median age of second home buyers was 50; the median income was $83,700 compared with $66,700 for primary residence buyers. Seventy-three percent of second home buyers were married couples, 12 percent single male, 11 percent single female and 4 percent unmarried couples."



St. George Realtor Jim Coleman is an associate broker and partner/owner of ERA Brokers Consolidated. He specializes in residential, investment and commercial real estate. You can contact him via e-mail at jim@realtorjimc.com. Call (435) 674-0600, or write Jim Coleman, 201 E. St. George Blvd., St. George, UT 84770. This and other columns are available at realtorjimc.com/articles">http://www.realtorjimc.com/articles.