{"id":2659,"date":"2016-11-04T21:26:31","date_gmt":"2016-11-05T01:26:31","guid":{"rendered":"http:\/\/dankrell.com\/blog\/?p=2659"},"modified":"2016-11-04T21:44:05","modified_gmt":"2016-11-05T01:44:05","slug":"35-years-of-home-buying-changes","status":"publish","type":"post","link":"https:\/\/dankrell.com\/blog\/2016\/11\/04\/35-years-of-home-buying-changes\/","title":{"rendered":"35 years of home buying changes"},"content":{"rendered":"
\"home<\/a>
Years of home buying changes? (infographic from keepingcurrentmatters.com)<\/figcaption><\/figure>\n

This week\u2019s release of the National Association of Realtors\u00ae Annual Profile of Home Buyers and Sellers<\/a> marks the 35th<\/sup> year of NAR\u2019s analysis and description of home buyer and seller behaviors and attitudes.\u00a0 You may not remember what it was like in 1981, but the country was coming out of a deep recession.\u00a0 The economy was still scarred with double-digit unemployment, inflation and interest rates.\u00a0 The 35th<\/sup> issue makes us think about home buying changes over the years.<\/p>\n

According to the US Census Bureau<\/a> (census.gov), the median price for a new home in 1981 was $68,900, while in 2010 the average new home price was $221,800.\u00a0 Freddie Mac<\/a>\u2019s (freddiemac.com) data indicates that the average mortgage interest rate in 1981 was 16.63 percent, and 4.69 percent in 2010.\u00a0 Surprisingly, the cost of housing (when financing 100 percent of the sale price) has only increased about 17.5 percent from 1981 to 2010!<\/p>\n

People want their space and privacy.\u00a0 According to the American Enterprise Institute<\/a> (aei.org), the median square feet per person in a home in 1981 was about 550sf, while in 2014 it was 987sf.\u00a0 This expansion in personal space was expressed in the home size.\u00a0 The median size of a home in 1981 1,550sf, while 2010 it was 2,169sf (according to the Census Bureau).\u00a0 Also consider that the typical home of 1981 only had one and a half bathrooms, and the expectation today is that a home should have at least two and a half bathrooms.<\/p>\n

An October 18th<\/sup> news release from the NAR (Five Notable Nuggets from NAR\u2019s Home Buyer and Sellers Survey\u2019s 35-Year History<\/em><\/a>; realtor.org) provided some insight into how the housing market has changed through the years.\u00a0 One noticeable factor is the reduced number of first time home buyers entering the market due to underemployment, student debt, lack of down payment, or delaying family formation.\u00a0 Last year\u2019s percentage of first time home buyers dropped the lowest rate since 1987; and \u201caccording to the U.S. Census Bureau, the homeownership rate for 18-35 year-olds is currently at 34.1 percent, the lowest level in records dating back to 1994<\/em>.\u201d<\/p>\n

It\u2019s becoming apparent that real estate agents are not<\/strong> <\/em>being replaced by the internet<\/a>.\u00a0 Although a majority of home buyers use the internet to assist them with the home buying process, the NAR reported that 90 percent of home buyers and sellers surveyed for this year\u2019s profile worked with a real estate agent.\u00a0 As a result, for-sale-by-owner transactions were at the lowest level ever (FSBO transactions peaked during 2003-2004).<\/p>\n

The home buying process<\/a> now takes longer than it used to.\u00a0 Putting aside recent changes to the mortgage process, the 2016 Home Buyer and Seller Profile brings attention to the amount of time a home buyer needs to find a home.\u00a0 According to the NAR, the average time to find a home was relatively unchanged from the 1980\u2019s to about 2007; which about seven to eight weeks.\u00a0 The duration of the home search peaked at twelve weeks from 2009 to 2013.\u00a0 However, since then the average time needed to find a home is about ten weeks.\u00a0 The increased search time is due to a number of factors.\u00a0 Brisk sales combined with periods of low inventory has not provided home buyers with much of a choice from which to select.\u00a0 Not to mention an unprecedented amount of available information that has created a savvy home buyer.<\/p>\n

Copyright \u00a9 Dan Krell<\/p>\n

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\nDisclaimer<\/a>. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.<\/p>\n","protected":false},"excerpt":{"rendered":"

This week\u2019s release of the National Association of Realtors\u00ae Annual Profile of Home Buyers and Sellers marks the 35th year of NAR\u2019s analysis and description of home buyer and seller behaviors and attitudes.\u00a0 You may not remember what it was like in 1981, but the country was coming out of a deep recession.\u00a0 The economy … <\/p>\n

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