Pekin Real Estate-Buyers Updates 2011-Who Bought And Why ?

Who Bought in 2011 ?

Home buyer demographics have changed substantially in the past 12 months due to the combination of tighter credit standards to qualify for a residential mortgage and the end of the Home Buyer Tax Credit.

The 2011 Profile shows the current share of first-time buyers is just over one-third of the market – a decline from about half of the market seen in the results of both the 2009 and 2010 Profiles. The influence can be seen prominently in household composition. There has been a reversal of a 10-year trend that saw more single buyers in the market. A higher share of married couple buyers – 64 percent of all buyers – purchased homes. That is the highest share of married-couple buyer households since 2001. Eighteen percent of recent home buyers were single females—the lowest share since 2004.

The age of home buyers has also been influenced by these trends. The median age of home buyers in 2011 was 45, compared with 39 in last year’s survey as buyers held off buying a home or trading up or down until they had to move. The typical age for first-time buyers in 2011 was 31, nearly unchanged from 2010, while the typical age for repeat buyers increased to 53 from 49 in 2010.While the largest share of home buyers was aged 25 to 34, this share accounted for 36 percent in the 2010 Profile and in the 2011 report accounts for 27 percent of recent buyers.

Income has followed the same trend as age with tightened credit conditions. The household income among all buyers was $80,900 in the 2011 Profile compared to $72,200 in the 2010 Profile. Repeat buyers had the biggest increase in median income compared to first-time buyers, but the median income for both groups rose. Among repeat buyers, the typical income was $96,600 in the 2011 Profile, up from $87,000 in the 2010 Profile. First-time buyers had a typical income of $62,400 in the 2011 Profile, up from $59,900 in the 2010 Profile. Additionally, related to the buying power of recent buyers, there was a rise in the number of home buyers in 2011 who own a second home from that reported in the 2010 Profile—19 percent in 2011 compared to just 14 percent in 2010.

Why They Bought in 2011 ?

Many buyers are still buying homes because of the desire to own a home of their own; however, many buyers are also buying because they find themselves in a situation where they have to buy a new home. As was the case in past home buyer and home seller surveys, the primary reason for purchasing a home was the desire to own a home. More than one-quarter of home buyers (27 percent) cited this reason in 2011. But while this remains the most cited reason why buyers made a home purchase, the share of buyers indicating this as the primary motivation decreased in prominence from 31 percent in 2010.At the same time, the share of buyers indicating that their home purchase was motivated by a job change/relocation increased – to 10 percent in 2011 from 7 percent in 2010. The desire to be closer to family and friends was also cited by a larger share of buyers in 2011 compared to 2010.

If you are looking to buy a home in the Pekin Real Estate market, REALTOR®, Brad Barnard can find just what you are looking for while staying within your budgert Brad can be contacted directly at 309-241-0313 or by visiting www.livinginpekin.com. Or you may drop him an email at brad@kaebel.com or complete the form below.

Statistics Courtesy of realtor.org

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