Each year the Ellis Team studies a publication put out by the National Association of Realtors research department.  This year we’re studying the 2018 National Profile of Home Buyer and Sellers.  We do this for several reasons.

We’re able to gain insight on how best to serve the buyers we work with.  We want to know what issues are most important to them, and what issues might be affecting them.  When we identify and isolate these issues, often we can come up with solutions for them.

By understanding buyers needs better, this also helps us with sellers as what affects the buyer usually comes back around and affects the seller.  Better understanding buyers helps our seller clients tremendously.  The most educated and skilled agents tend to come up with the best solutions, and when this happens everybody wins.

Secondly, we want to understand home sellers better too.  Sellers have needs that need to be addressed.  We want to pay attention to changes.  Even though our team has loads of experience, we can’t let that blind us to the possibility things are changing in real-time.

So, what did we learn this year?  Gross household income increased to $91,600, up from $88,800 the previous year.  The median age of a home buyer is now 46, up from 42 back in 2013 and 45 last year. 63% were married couples, 18% were single females, 9% single males, and 8% unmarried couples.  Children in the home decreased to 34% and has been on a steady decline from 40% since 2013.

2018 National Profile of Home Buyer and Sellers

2018 National Profile of Home Buyer and Sellers

Drilling deeper into the reason buyers were rejected for a mortgage we found that 33% were rejected due to their debts being too high relative to their income.  27% had a credit score that prevented them from buying, while 14% had income that was difficult to verify.

Buyers of new homes had a median income of $111,770 while buyers of existing homes had a median income of $89,100.  Did you know that 15% of buyers chose their neighborhood because of their pet?  We can’t tell you how many buyers won’t buy a property due to neighborhood restrictions on pets.  It’s often the first question we get regarding condo or HOA documents.

Student loan debt typically delayed a home purchase for 2 years, and the typical student loan debt was $28,000. 3% of buyers are active in the armed forces, while 18% of all buyers were veterans.

The Internet played a large role in the purchase of real estate. 83% frequently used the Internet to search, and 90% used an agent.  88% found the detailed property information useful while 90% found the photos useful.

Single females outpaced single males 2 to 1 in purchases.  Convenience to friends and family was important to single females while convenience to job was important for single males.

54% of unmarried couples rented together before purchasing.  First time home buyers expect to be in their 1st home for 10 years. Repeat buyers expect to be in their next home 15 years.

The stats go on and on.  We like to look at data to see if there are trends we need to pay attention to.  For instance, we notice a rising age in the typical home buyer.  Is this because younger people are delaying their first home purchase, or having trouble saving for the down payment or qualifying for the mortgage.  Once we identify the issue, we may be able to identify a solution.  We do have some down payment assistance programs available.  It’s all about knowing where to look, if you ask the right questions.

Only 4% of buyers can purchase a home without help.  The rest either need help getting a mortgage or have something to sell first.  This is where a good Realtor comes in.  We listen, we identify, and we help.  Call us at 239-489-4042 and see how we can help you, or search the MLS for Free at www.LeeCountyOnline.com If you have questions about selling a home, ask for Brett or Sande Ellis Ext 4.

Find out what your Home is Worth for Free

Good luck and Happy Selling!

Ellis Team Featured Property of the Week

7152 Reymoor Dr

Back in February we posted real estate inventory levels for SW Florida and reported a fairly stable inventory market.  Back in January the market was strong, but since then agents have complained about a shift in the market.  Properties are selling.  We’ve got a great market, however there have been some changes the last few months so we’ll bring you up to speed.

SW Florida Post Season Real Estate Inventory Levels April 2016

SW Florida Post Season Real Estate Inventory Levels April 2016

Almost all categories have increased in the past few months with 2 exceptions.  The below $50,000 range and the $400,000-$600,000 range.  The change below $50,000 is so small and there are so few properties involved it’s not worth talking about.  The $400-600k range is a bright spot.  Active listings went down in this range and closed sales have increased.

SW Florida Post Season Real Estate Inventory Levels April 2016 February

In the past year we’ve had 1,254 sales in the $400-600k range.  Back in February we only had 1,093, so that’s helped lead to a decrease in supply of inventory. There were 1,271 on the market back in February and 1,206 now, so most of the change has to do with increased sales.

Overall the market has increased to a 5.84 months supply, up from 5.03.  The change in sales won’t look as dramatic as month over month sales data from last year because it’s average over the last 365 days, but this is a fairly significant swing given the 2 month window.

At close to 6 month supply I’d say we have a pretty balanced market.  If your home is on the market over $400,000 you’re looking at a year plus to sell your home on average, unless you take steps to win the selling game.

Remember, your home is in competition with all the other homes for sale.  You’re not really in competition with the buyer.  The buyers will look at all options and decide on what is best for them.  The goal is to make your home valuable in the marketplace.  Obviously your home has value.  The question is, does it have as much value to the buyer as it does to you?

When the sellers set the price equal to its value, it will sell.  If a home has a value to the seller at $1 Million dollars but has value to buyers at $500,000, it will not sell.  This is one reason you see so many professional athletes retire.  Perhaps they see their value at $5/million/yr.  Ball teams see value in them too, but the athlete is getting older, susceptible to injury, and not the team’s future.  They may be willing to pay $1.8 million for one year and the athlete is holding to $10 million over 2 years.  When the value is not equal to the price, there is no market for the athlete and they retire.

Some star athletes are trouble makers and have issues.  Perhaps they’re a $10 million/yr player, but because they have baggage and potential to affect other players, teams won’t take a chance on them.  At a lower price, somebody will take a chance no matter how many issues you have.

Right now there isn’t a high market for Johnny Football.  Even his agents have dropped him.  He has baggage and needs to deal with his issues.  If he had no issues he’d be worth a lot more.

The same is true in real estate.  The market changes monthly, and just because you feel your home is worth X doesn’t mean the buyers will.  I can assure you though, when your price equals the value in the market, it will sell, even if your home has issues.  The more you deal with the issues upfront the more value your home will have.

If you’d like to search the market, or your home’s value, feel free at www.LeeCountyOnline.com If you’d like to talk to a professional agent about how to maximize your value, call the super agents on the Ellis Team 239-489-4042.  If you’re a Star athlete, we can’t represent you with ball teams, but we can help you find the perfect home.

Good luck and Happy House Hunting!

Ellis Team Featured Property of the Week

2110 SW 13th St Cape Coral FL– 2,256 Sq Ft pool home built on 4 lots with stainless steel appliances, engineered wood floors throughout the home, and wood cabinets.  Also view virtual tour.