Each year, the National Association of REALTORS® surveys recent home buyers and sellers to gather detailed information about their experiences in real estate. The information is a huge help in helping us understand trends on the consumer level in homeownership.
The surveys cover information on demographics, housing characteristics and the experience of consumers in the housing market. There is also valuable information on the role of real estate professionals like REALTORS® in those sales.
As the market has changed in recent years, understanding the role of a REALTOR® is invaluable. The majority of home buyers and sellers use real estate agents to assist them with their transaction. The real estate market is largely based on word of mouth from successful clients passing information to friends and family, building referrals for real estate professionals. One indicator of client satisfaction is that a majority of both buyers and sellers report that they would use the same real estate agent again or recommend that agent to others.
A Look at Home Buyers in Minnesota
- 42% of recent home buyers were first-time buyers in Minnesota, compared to a national level of 37% – a drop from 50% in 2010.
- The typical buyer in Minnesota was 38 years old, while nationally the typical buyer was 45 year old. That’s up from 39 years old in 2010.
- The 2010 median household income of buyers was $76,900 in Minnesota and $80,900 nationally. The median income was $60,000 among first-time buyers and $97,800 among repeat buyers, compared to $62,400 among first-time buyers and $96,600 among repeat buyers nationally.
- Nationally, 64% of recent home buyers were married couples – the highest share since 2001. In Minnesota, the figure was 61%. 18% of recent home buyers were single females nationally – the lowest share since 2004; 17% were single females in Minnesota.
- For 27% of recent home buyers nationally, the primary reason for the recent home purchase was a desire to own a home. In Minnesota, this was the primary reason for 29% of recent home buyers.
Home Sellers and Their Selling Experience
- The typical national seller lived in their home for 9 years. The median tenure has increased in recent years. In 2007, the typical tenure in home was only 6 years. In Minnesota, the median tenure is 9 years.
- 87% of sellers were assisted by a real estate agent when selling their home nationally, and 91% were assisted in Minnesota.
- Nationally, recent sellers typically sold their homes for 95% of the listing price, and 61% reported they reduced the asking price at least once. In Minnesota, recent sellers sold their homes for 92% of the listing price and 74% reduced the asking price at least once.
- 41% of sellers offered incentives to attract buyers nationally, most often assistance with home warranty policies and closing costs. In Minnesota, 37% of sellers offered incentives.
Do any of these numbers surprise you?
You can download the full report at the Minnesota Association of REALTORS® website here: www.mnrealtor.com/Surveys/2011NARprofile
The Minnesota Association of REALTORS® is the largest professional trade association in the state with more than 19,000 members who are active in all aspects of the real estate industry.