New Jersey REALTORS® Release Annual Profile of New Jersey Home Buyers and Sellers
Edison, NJ – January 29, 2009 – (RealEstateRama) – According to the 2008 Profile of New Jersey Home Buyers and Sellers, first-time buyers account for a larger portion of the housing market than in previous years. The survey conducted by the NATIONAL ASSOCIATION of REALTORS® (NAR) on behalf of the New Jersey Association of REALTORS® (NJAR®) found the number of first-time buyers rose to 49 percent from 36 percent in 2007. When asked about the primary reason for the timing of their home purchase, 49 percent of first-time buyers said it was just the right time. “Today’s housing market holds real potential for financially capable first-time buyers,” said 2009 NJAR® President Diane Dilzell, CRS and e-PRO. “This survey is evidence that first-time buyers are taking advantage of the increased housing stock for sale, historically low interest rates, the temporary $7,500 tax credit and other economic stimulus measures.”
Buying Experience
A majority (56 percent) of all buyers viewed their home purchase as a better financial investment than stocks. An additional 25 percent of buyers believe their home purchase was at least as good of an investment as stocks. The report also shows recent home buyers plan to live in their home a median of 10 years.
“Although the housing market is going through a period of transition, this survey clearly indicates consumers understand that real estate continues to be a smart long-term investment,” added Dilzell. “Perceptions about real estate have been skewed in recent years due to unsustainable levels of growth at the height of the market in 2005. Even though there are some people who view real estate as a quick money maker, most people understand that buying a home is usually not a about getting rich quickly but rather building wealth over time.”
According to the survey, nearly 90 percent of home buyers used the Internet to search for homes. A significant number (32 percent) of recent buyers reported that their first step in the home-buying process was looking online for properties for sale. The typical home buyer had a median age of 36, searched for a home for a median of 12 weeks and saw a median of 15 homes. An overwhelming majority of buyers (71 percent) reported the mortgage application and approval process was not difficult or no more difficult than expected. Nearly all buyers (95 percent) said they were not rejected by any mortgage lenders and 89 percent reported they obtained a fixed-rate mortgage to finance their home purchase
The report also shows that consumers have come to depend on the expertise of real estate agents to guide them through real estate transactions. The survey found that 84 percent of home buyers used a real estate agent or broker to purchase their home, as compared to 76 percent in 2007. Real estate agents were viewed as a very useful source of information by 84 percent of buyers. When asked about their agent’s performance on qualities they viewed as important, 87 percent of buyers reported they were “very satisfied.”
Selling Experience
The typical home seller owned their home for seven years and 42 percent of sellers traded up to a larger home when purchasing their next home. According to the report, sellers listed the primary reasons for selling their home was a change in their family situation (19 percent) and the size of their home was too small (17 percent).
The survey also found that the vast majority (89 percent) of sellers used the Internet to market their home. Yard signs where used by 63 percent of sellers, while 71 percent held an open house to market their home. Sellers typically sold their homes for 96 percent of the listing price, while 33 percent of people did not reduce their asking price before their home was sold.
Furthermore, 88 percent of sellers used the services of a real estate professional to sell their home. A majority of sellers (54 percent) reported that they were very satisfied with the selling process. The survey shows that 66 percent of recent sellers would definitely use their agent again, and an additional 19 percent would probably use their agent again or recommend him/her to others.
“This report indicates that real estate agents are an integral part of the home buying and selling process and people have come to depend on their services. REALTORS® can guide consumers through the complicated process of buying or selling a home and will most likely save them time and stress while doing it,” concluded Dilzell.
The data in the 2008 New Jersey Profile of Home Buyers and Sellers is based on questionnaire responses of 276 New Jersey consumers who purchased a home between July 2007 and June 2008. The survey information is drawn from the 2008 NATIONAL ASSOCIATION OF REALTORS® Profile of Home Buyers and Sellers. To view a summary of the report, visit NJAR®‘s website at www.njar.com/research_statistics/njhbsp.php.
The New Jersey Association of REALTORS®, with approximately 53,000 REALTOR® and REALTOR-ASSOCIATE® members, is one of the largest trade organizations in the state. NJAR®‘s membership is comprised of real estate professionals who subscribe to a strict Code of Ethics and are members of the national and local REALTOR® organizations. As the leading advocate for the real estate industry and private property rights in New Jersey, NJAR® is committed to protecting the dream of homeownership. For more information, please visit www.njar.com.
For all media inquiries contact:
Danielle Alpert
Media & Public Affairs Coordinator
Phone: (732) 494-4730
Fax: (732) 494-4723
E-mail: dalpert (at) njar (dot) com
