With home prices being at their lowest level in eight year and the foreclosure mess appearing to take longer than anyone expected to rebound, who is actually purchasing a home in this market?
Well, HGTV will have you believe that every potential home buyer wants a home that is perfect and "move-in" ready. HGTV will also have you believe that you can transform a severely decrepit home in two days for under $2,000. Well, HGTV is not completely wrong but preparing and marketing a home does take a bit more work.
According to the National Association of Realtor's Profile of Home Buyers and Seller (2009), the typical first-time home buyer was just 30 years old with a medium income of $61,6000. First time buyers comprised a 47% of the home sales in 2009. The typical repeat buyer was 48 years old with a salary of $88,000.
New home purchases were at the lowest level in eight years. The typical home purchase was 1,800 square feet in size and is 18 years old. 78% of the homes purchases were single family homes.
The median home prices were also lower than I expected:
- Northeast Region ~ $210,000 median home price
- Midwest Region ~ $158,000 median home price
- South Region ~ $175,000 median home price
- West Region ~ $240,000 median home price
94% of potential home buyers used the Internet to search for a home in 2009. This number seems to be increasing every year. The importance of technology cannot be ignored when marketing a home or marketing to a potential home buyer.
With the average first time home buyer being 30 years old and very technology savvy, this may also explain 94% home Internet search numbers. The tax incentives for first time home buyers has had an impact; with the tax incentive being extended until April (and the inclusion of home owners) hopefully more first time home buyers will enter the home ownership arena.
The typical home sold was almost 20 years old and most likely in need of some upgrades and home staging. I have always heard real estate is a young market, and our target demographic appears to be a 30 year old buyer! Is there anything you would change to better reach your target market?
-Kate
Kate's Home Staging and Redesign serves Rockland County and Orange County of New York, Passaic County and Bergen County of New Jersey. We specialize in home staging, vacant home staging, home decorating, interior design, custom wood signs, virtual shows, semi-custom window coverings, and color consultations. Please visit http://www.kateshomestaging.com or call 845-538-3623 for more information.
