The 2010 Profile of Home Buyers and Sellers conduced by NAR told us a number of interesting things and may give us some insight to 2011 trends.
In 2010 first-time homebuyers made up 50% of the market. A number of reasons can be attributed to this phenomenon.
-First-time buyers do not need to first sell a home to buy
-Prices had dropped in the past 2 years
-Low interest rates
Foreclosure properties, though prevalent, were not popular
-Only 4% of buyers purchased a home that had been foreclosed
-39% of buyers did not even consider buying a home in foreclosure in 2010
The internet search isn’t going anywhere
-The trend of an online home search continues, with 74% of buyers using it frequently during the search process
-36% used the internet as there 1st step in the process vs. only 19% who contacted an agent first
-Of the MLS websites, 45% preferred Realtor.com, 43% went to company websites, 42% went to individual agent sites, and 41% used aggregator sites like Zillow
-in 2010, only 2% found the home they eventually purchased through a newspaper ad and fewer than 1% found it through a home magazine.
With the tax credit gone it will be interesting to see how that ratio of first time / veteran home buyers plays out. Food for thought…
And Thank Your For Making Me Your Orange County Real Estate Specialist!
Michael Caruso, Broker ABR ABRM CLHMS CRB CRS GRI GREEN
Past President, Orange County Association of Realtors