Real Estate Information Archive

Each year the National Association of Realtors conducts and extensive study about consumer trends related to real estate.  Test your knowledge and see how the typical American buyer and seller navigated their real estate transaction. Here's a little quiz from the 2006 survey.

1. The median age of all buyers was ____.

2. The median age of first-time buyers was____.

3. The percentage of married buyers _____. Single buyers____.

4. The typical home search took _____ weeks.

5. The typical home purchase was slightly larger than _____ square feet.

6. ____ out of five homes sold were new construction.

7. The percentage of single family homes purchased was _____.

8.  The percentage of buyers using a real estate agent during their search was _____?

9.  The typical seller owned their home for _____ years.

10. The average move up buyer spent _____ % more on their next home.

-------------------------Below are the answers-------------------------

1. The median age of all buyers was 41 years old.

2. The median age of first-time buyers was 32 years old.

3. The percentage of married buyers 61% versus single buyers 39%.

4. The typical home search took 8 weeks.

5. The typical home purchase was slightly larger than 1800 square feet.

6. One out of five homes sold were new construction.

7. The percentage of single family homes purchased was 75%.

8.  The percentage of buyers using a real estate agent during their search was 85%?

9.  The typical seller owned their home for 6 years.

10. The average move up buyer spent 40% more on their next home.

Why are these pieces of information useful? When counseling buyers and sellers on their long-term real estate plans they'll be able to make informed decision about mortgages, size, space neighborhood, budget, amenities. This was just a snapshot of the 50+ page survey.  This should be required reading for all full-time, professional Realtors.

Here's the link to the most recent Minneapolis Association of Realtors. This month's Twin Cities MLS market stats show the doom and gloom of the local market conditions. The sky is falling, our economy is heading into a recession, home prices are in a free fall, blah, blah, blah.

http://www.mplsrealtor.com/Segments/Realtors/mhs_2008_01.pdf

Here's my take on the recent stats; If you look at pages 6 and 7 of the report the bottom chart shows the historic fluctuations of the median and average sales prices. Yes there are monthly fluctuations!  Last year nearly 40,000 properties sold in the Twin Cities. The powers that be are predicting 41,000 to sell in 2008!  Yes the numbers are down from 2004 and 2005. However, there are different homes selling. The foreclosure/REO/short sales have taken the place of the high dollar new construction and downtown condos.  Distressed sales are up 10-15 percent while new construction is down.  This might help explain the 10% drop in the MEDIAN sale price (mid-point). More bottom quartile properties are selling than the top quartile, thus pulling the numbers down. 

The long and the short of statistics it this; they are a generalization of the overall market.  Like people, no two homes are alike. Location, Location, Location plus Condition, Marketing and the Realtor navigating the journey will influence the outcome!

My glass is half full! Happy Valentine's Day!  xoxo