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.
Thanks for the comment on my post! Hey you look like REBA! :-)
That 94% number of internet home buyers, is the main reason for having homes staged and photographed before they go on the market. Vacant homes are not inviting and I as I've said over and over, a creative stager knows how to bring in the needed drama at any budget. If not, you've teamed with a wrong stager.
Liz ~ Thanks for the complement, I have heard that before.
Shirin ~ I could not agree more. Thanks for posting.
Those statistics are very helpful. I like to stage with more modern furniture and accessories (not contemporary). Most pieces are transitional, not traditional, and I think that helps appeal to a younger segment.
Cathy ~ You are right on the mark with your furniture! I found the NAR Profile on Buyers and Sellers very interesting, now we know who we need to target. Thanks for your kind words.
Kate,
This is great food for thought. Now that the average age of buyers is so young we could all probably do some more research. It's so important to know your target market inside and out.
Carra ~ I agree; 47% of our target market is @ 30 years old - this really changes everything, especially the use of technology. If you are not using technology to market your services, you really should start. I am pretty sure most 30 year olds have grown up using a computer, mp3 players, gaming system, etc... Thanks for posting.