New Year New Home: 2018 Home Buying Trends

One of the first things you should understand before selling your home is who you are selling to and what about your home is marketable in today’s real estate market. Zillow surveyed, recorded and analyzed data from people who bought homes in 2018. Here are the highlights of their research.

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Who Are the Buyers?

  • The typical buyer is a well-educated, 41-year-old couple who has previously owned a home
  • The typical first-time home buyer is 34 years old
  • The largest, single group of home buyers is millennials between ages of 24 and 38
  • Median household income is $72,500
  • Of those buying a home:
    • 65% married
    • 19% never married
    • 11% divorced/widowed
    • 9% living with partner
  • Of those buying a home:
    • 86% live with other people (spouse/partner, kids, other family members, etc.)
    • 64% with pets
    • 7% alone
  • Of those buying a home:
    • 46% are first-time home buyers
    • 30% have bought one home previously
    • 24% have bought multiple homes previously

 

What Do Buyers Want?

  • 81% are looking for single-family detached homes
    • 10% are looking for townhomes
    • 7% are looking for condo/co-op
    • 6% are looking for manufactured/mobile homes
    • 3% are looking for a duplex/triplex
  • Average home:
    • 3 bedrooms
    • 3 bathrooms
    • 1,800-2,000 square feet
    • $230,000
  • Of those buying a home:
    • 70% buy existing homes
    • 19% buy newly renovated homes
    • 11% buy new construction
      • However, 83% of buyers consider brand new homes
        • The higher their income, the more likely they are to consider new construction
  • 82% say safety is biggest factor when looking to buy a home
    • Neighborhood safety
    • Homes with security systems
    • Neighborhood Crime Watch
  • First-time home buyers gravitate towards suburban or urban areas
    • They are younger
    • Short commute is crucial
    • Access to public transportation is important
  • Most common sacrifices first-time home buyers make in order to stay in budget:
    • Smaller home
    • Doesn’t have preferred finishes
    • Longer commute times
  • Those with kids are likely to go over budget to be in their desired school district and location

 

Why should you care about all of these facts? Well, if you want to sell your home, you need to know who you are selling to. That way, you can focus on the best features when marketing your home in order to attract potential buyers.

In addition, the audience you are trying to reach determines which methods of marketing you and your agent decide on. For example, since the largest group of home buyers are millennials between the ages of 24 and 38, it would be best to take an online marketing approach, utilizing Facebook and Instagram advertising as well as making sure you have high-quality listing photos and a virtual tour.

These facts also come into play when pricing your home for sale. If you are in a desirable school district, you might be able to get away with listing your home higher since we know that families are more likely to go over budget in order to stay in their desired location and school district.

 

 

For a complete analysis of buyer trends, visit https://www.zillow.com/report/2018/.

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