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2014 Homebuyer Survey Contains Valuable Information

by Galand Haas

Well another year has come and gone. As we near the end of 2014, it is a good idea to reflect on the progress we have made in our own lives over the past year. Hopefully, some of you achieved the goals you set for yourselves at the beginning of 2014. And as we look ahead to the new year, it is time to set new goals for ourselves based on our progress this year.

The 2014 real estate market has seen declines and increases with regard to past years, has continued some trends and is changing with the times. As the internet becomes easier to access with mobile devices, it is safe to say the internet is leading the way in the home buying search process. Read the following article from RealtyTimes to find out the results of the 2014 home buyer and seller survey. 

One of the most useful research projects of the National Association of REALTORS®(NAR) is the annual survey of homebuyers and sellers. It is particularly useful because it shows sellers and their agents what works and what sources buyers use to find their new homes.

The most recent version (2014 Profile of Home Buyers and Sellers) became available in November of this year. The information is based on answers to a 127-question survey mailed to a random sample of 72,206 consumers who purchased a home between July 2013 and June 2014. (Names and addresses were provided by Experian, a company that maintains an extensive database of recent homebuyers that is derived from county records.) After accounting for undeliverable surveys, there was a 9.4 percent response rate.

 


In 2014, first-time homebuyers constituted 33 percent of the market. This reflects a steady drop since 2010, and in fact is the lowest figure in more than a decade. Even with interest rates at record lows, the first-time buyer market is still quite weak. The tightening of lending standards is no doubt a major factor. Moreover, the widespread prevalence of student loan debt, combined with an economy that still remains uncertain for many in this cohort, has taken a toll.

 


The most useful information for sellers and their agents is to be found in the section on the home search process. While the survey results are not significantly different from those of recent years, the trends continue. For example, this year 74 percent of buyers said that they used the internet frequently during the search process. In 2003 that number was only 42%. This past year 34% of buyers said that they frequently used a mobile or tablet application. That is a newer and growing phenomenon. 63% of buyers said that they frequently relied on a real estate agent for information.

 


Forty-three percent of buyers went to the internet as the first step in the home search process. 15% contacted a real estate agent first, and 6% began by driving through neighborhoods looking for homes for sale. 12% first went online to find out about the process.

 

 

 


Buyers use multiple sources of information in the process of looking for a home. Far and away the most used sources are on-line websites (88%) and real estate agents (87%). Mobile or tablet applications (50%) have replaced yard signs as the third most used source of information. Still though, 48% of buyers indicate that yard signs are one of their sources of information. Only 21% of buyers indicate that they used newspaper ads as an information source. A mere 4% garnered information from television.


While there are a lot of intriguing data about the sources of information used by prospective homebuyers, certainly the most relevant has to do with where they actually found the home that they ultimately purchased. This year the information source that was highest in that category (43%) was the internet. Agents are second at 33%. Note that this is not to say that buyers bought their home through the internet. The typical scenario would be that a consumer sees the home on the internet, and then contacts his or her agent. 90% of those who used the internet to search purchased their home through an agent.


The differences in a little more than a decade are fascinating. In 2001, 48 percent of buyers learned about their home through a real estate agent, and only 8 percent found their home on the internet. The times they have changed.

Some things, though, remain persistently the same -- or close to it. In 2001, a yard sign was the third most likely source of information leading to the home that was purchased (15%). And this year? It is still the third leading source at 9%, but this is now the second time in the survey history that it has been lower than double digits. Print media may not be dead, but it has shrunk to insignificance in this arena. In 2001, 7% of homebuyers found the home they ultimately purchased through a newspaper ad; in 2014, it was only 1%. Fewer than 1% found their home through a home book or magazine.

Hope you all have a very Happy New Year!

Article originally posted on RealtyTimes

Myth Busting: Is Winter Really the Worst Time to Sell?

by Galand Haas

Some of us have heard that the worst time to sell a home is during winter months, but is it true? Do homes sell in winter? Is it a good idea to list in winter? No, winter is not the worst time to sell your home. The myth is just that: a myth.  In fact, listing your home in winter is a great idea. The following is an article from Inman News that provides data to disprove the myth. 

Conventional wisdom has it that winter is the worst time to sell a home.

But a recent study from Redfin casts doubt on that belief, finding that listings seem to fare better on the market from January to March than they do during the summer or fall — though spring still seems to take the cake as best the season to put your home up for sale.

From 2010 to 2013, the average share of homes that sold above list price during January, February and March ranged from 11 to 13 percent.

That range ticked up to between 12 and 14 percent during April, May and June, and then slumped for the summer and fall.

From July to November, the share of homes that sold above list price stayed steady at 11 percent before increasing to 12 percent in December.

According to the study, homes also tended to sell at the slowest rate during the summer and fall, with September (83) and October (83) registering the highest average number of days on the market between 2010 and 2013.

While the data suggested homes were most likely to sell the fastest and at the highest price during the spring, winter turned out to be the season where a homeowner has the best shot at selling within 90 days.

January (62 percent), February (64 percent) and March (62 percent) led the pack as the best months for selling a home in 90 days or sooner, while October (58 percent) and November (58 percent) came in  last.

Data provided by Redfin

Article originally posted on Inman News

Good Monday Morning!

I find that many clients that I assist are confused about the difference between a CMA (market Analysis) and an appraisal.  There is a difference and the two are used for different purposes.  The following is an article from "Realty Times" that will give you a good idea about what both are and what they are used for.

As part of the homebuying process, your real estate agent may create a comprehensive market analysis or CMA. Later, when you apply for a mortgage, a bank appraisal is conducted by a licensed appraiser. Are CMAs and appraisals the same thing?

While both CMAs and appraisals help determine a home's market value, their purposes are not the same. The CMA is a sales tool to help you find an offer price for the home you want to buy. The homes in the CMA include the home you want to buy plus similar nearby homes. This helps you see how the home you want compares to other homes so you have an idea what to offer.

A real estate professional may prepare a CMA for their sellers to help them choose a listing price. The CMA includes recently sold homes and homes for sale in the seller's neighborhood that are most similar to the seller's home in appearance, features, and general price range.

Although the CMA is used to help determine current market value, the seller's home is typically not even featured in the CMA. The CMA is merely a guide to help the seller learn what's happening in their local market, so they can better understand where their home fits in term of price ranges, based on location, features, size, condition and other factors.

The CMA offers the same advantages to you as a buyer. They help you better understand the local market. You can expand the search and get different results in a CMA simply by changing the zip code or the price range or the number of bedrooms and baths.

Appraisals are all about risk retention for banks and their customers. If the buyer is receiving financing through a bank, the bank will order an appraisal.

Unlike the CMA, a bank appraisal is a professional determination of a home's value. It's performed by a licensed appraiser, using guidelines established by the Federal Housing Finance Agency, which regulates federal housing loan guarantors such as FHA, VA and housing loan purchasers Fannie Mae and Freddie Mac.

An appraisal is a comprehensive look at a home's location, condition, age and relativity to the market of like properties. It reflects only the data that comes form historic sales, typically over the past six months and does not consider market conditions and existing competing homes like a CMA does.

Have An Awesome Week!

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Galand Haas Team
Keller Williams Realty Eugene and Springfield
2644 Suzanne Way
Eugene OR 97408
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Fax: 541-687-6411

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