What Do Today's Home Buyers and Home Sellers Look Like?
Louisiana Realtors • November 29, 2018
Before any big game a coaching staff will look at film of an opponent to gain a better understanding of their tendencies. Having the knowledge of what they like to do, and what they don’t like to do can pay dividends when it comes to formulating a successful strategy. As a REALTOR®, your clients and prospects aren’t “opponents”, and you don’t have film to watch of their buying habits; but you do have research and statistics that can give a nice glimpse into what a typical home buyer or home seller looks like. While there are exceptions to every rule, having a current grasp on how people shop for real estate can be an advantage.
Today’s Home Buyers
· 33% of home buyers today are first-time home buyers.
· The average household income of home buyers is $91,600.
· The median purchase of a home today is $250,000.
· Over half (51%) of homes bought today are in a suburban area.
· 82% of homes purchased are single-family homes.
· 87% of all home buyers use a real estate agent.
Today Home Sellers
· 44% of home sellers are moving into a larger home.
· The median equity gain for today’s home seller is $55,000.
· Home sellers have been in their home for an average of 9 years.
· The distance between their current home and new home is 20 miles.
· 91% of home sellers are using a real estate agent, an all-time high.
While these are current numbers destined change and be influenced by a number of variables, they provide valuable insight into both sides of the market are behaving. As these numbers move and trends continue to evolve, one thing is clear and that is the role that a trusted, knowledgeable, professional REALTOR® plays on both sides of the transaction.
Louisiana REALTORS® CEO Norman Morris issued the following statement after SpaceX announced plans to invest $100 billion in a new launch facility in Vermilion Parish. The project is expected to create 3,000 direct jobs and more than 8,100 indirect jobs across Acadiana. “SpaceX’s investment is an extraordinary economic win for Louisiana. We congratulate Governor Jeff Landry, Louisiana Economic Development Secretary Susan Bourgeois, Vermilion Parish leaders, and everyone who helped bring this historic project home. The housing and infrastructure improvements needed to support more than 11,000 new job opportunities should generate a huge economic boost to the Acadiana and Gulf Coast region. According to the National Association of REALTORS®, each typical Louisiana home sale generates approximately $88,600 in economic activity. Even if only half of the new SpaceX related jobs lead to a home purchase, the impact would generate nearly half a billion dollars across our state's economy. That improves our tax base and school systems, and ripples through our economy touching builders, bankers, hardware stores, appliance dealers, contractors and so many more. “Housing is not downstream of economic development; it is an essential infrastructure. Louisiana REALTORS® and our partners stand ready to help turn these new jobs into homes, stronger communities and lasting roots in Louisiana. Economic development creates jobs, but housing turns those jobs into homes. Let’s make Louisiana home again, together.” Economic-impact estimates are illustrative calculations by Louisiana REALTORS® using employment projections from Louisiana Economic Development and the National Association of REALTORS®’ estimated economic impact per typical Louisiana home sale. They are not forecasts or recurring annual-impact figures. Enjoy the video below from the Louisiana Department of Economic Development .
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