NAR Generational Survey: Millennials Lead All Buyers, Most Likely to Use Real Estate Agent

Despite the economic and financial challenges young adults have braved since the recession, the millennial generation represented the largest share of recent buyers, according to the 2015 National Association of Realtors® Home Buyer and Seller Generational Trends study, which evaluates the generational differences of recent home buyers and sellers.

The survey additionally found that an overwhelming majority of buyers search for homes online and then purchase their home through a real estate agent, with millennials using agents the most.

For the second consecutive year, NAR's study found that the largest group of recent buyers was the millennial generation, those 34 and younger, who composed 32 percent of all buyers (31 percent in 2013). Generation X, ages 35-49, was closely behind with a 27 percent share. Millennial buyers represented more than double the amount of younger boomer (ages 50-59) and older boomer (60-68) buyers (at 31 percent). The Silent Generation (ages 69-89) made up 10 percent of buyers in the past year.

Lawrence Yun, NAR chief economist, says the survey highlights the untapped demand for homeownership that exists among young adults. "Over 80 percent of millennial and Gen X buyers consider their home purchase a good financial investment, and the desire to own a home of their own was the top reason given by millennials for their purchase," he said. "Fixed monthly payments and the long-term financial stability homeownership can provide are attractive to young adults despite them witnessing the housing downturn and subsequent slow recovery in the early years of their adulthood."  

With millennials entering the peak buying period and expected to soon surpass boomers in total population, Yun believes the share of millennial purchases would be higher if not for the numerous obstacles that have slowed their journey to homeownership. "Many millennials have endured underemployment and subpar wage growth, and rising rents and repaying student debt have made it very difficult to save for a downpayment. For some, even forming households of their own has been a challenge."  

According to the survey, 13 percent of all home purchases were by a multi-generational household, consisting of adult siblings, adult children, parents and/or grandparents.                        

The biggest reasons for a multi-generational purchase were cost savings (24 percent) and adult children moving back into the house (23 percent). Younger boomers represented the largest share of multi-generational buyers at 21 percent, with 37 percent of those saying the primary reason for their purchase was due to adult children moving back into their house.

"Even though the share of first-time buyers has fallen to its lowest level since 19871, young adults in general are more mobile than older households," adds Yun. "The return of first-time buyers to normal levels will eventually take place in upcoming years as those living with their parents are likely to form households of their own first as renters and then eventually as homeowners."

Characteristics of Buyers

The median age of millennial homebuyers was 29, their median income was $76,900 ($73,600 in 2013) and they typically bought a 1,720-square foot home costing $189,900 ($180,000 a year ago). The typical Gen X buyer was 41 years old, had a median income of$104,600 ($98,200 a year ago) and purchased a 1,890-square foot home costing $250,000 (same as last year).

Seventy-nine percent of all buyers considered their home purchase a good financial investment, with millennials (84 percent) and Gen X (82 percent) having the highest share, followed by younger and older boomers (both 77 percent), and the Silent Generation (72 percent).

Generation X buyers (68 percent) were the most likely to be married, younger boomers had the highest share of single female buyers (23 percent), and millennial buyers were more likely (compared to other generations) to be an unmarried couple (14 percent).

When asked about the primary reason for purchasing a home, a desire to own a home of their own was highest among millennials at 39 percent. Younger boomers were the most likely to buy because of a job-related relocation or move, and a change in a family situation – likely the birth of a child – was the highest (13 percent) among Gen X buyers. Older boomers (at 15 percent) were the most likely to buy because of retirement.

Searching for and Buying a Home

Regardless of their age, buyers used a wide variety of resources in searching for a home, with the Internet (88 percent) and real estate agents (87 percent) leading the way. Millennials were the most likely to use a real estate agent, mobile or tablet applications, and mobile or tablet search engines during their search; Gen X buyers were the most likely to use an open house.  

Although the Internet was the top source of where millennials found the home they purchased (51 percent), they also used an agent to purchase their home at a higher share (90 percent) than all other generations.

NAR President Chris Polychron, executive broker with 1st Choice Realty in Hot Springs, Ark., says the survey results highlight the fact that while the Internet is widely used during the home search process, the local market knowledge and expertise a Realtor®provides is both valued and highly sought by buyers of all ages.

"Nothing can replace the real insights and guidance Realtors® deliver to help consumers navigate the complex buying and selling process," adds Polychron.

Although most purchases by all generations were in a suburban area, the share of millennials buying in an urban or central city area increased to 21 percent in the past year (19 percent a year ago), compared with only 12 percent of older boomers (unchanged from a year ago). Older boomers and the Silent Generation were more likely to buy in a rural area (18 percent each). Buyers' median distance from their previous residence was 12 miles, with older boomers moving the furthest at a median distance of 30 miles.

The majority of all buyers (79 percent) purchased a detached single-family home. Gen X buyers represented the largest share of single-family homebuyers (85 percent), and the Silent Generation was the most likely to purchase a townhouse or row house (10 percent). A combined 7 percent of millennial buyers bought an apartment, condo or duplex in a building with two or more units.

Among the biggest factors influencing neighborhood choice, millennials were most influenced by the quality of the neighborhood (75 percent) and convenience to jobs (74 percent). Convenience to schools was most desired by Gen X buyers and proximity to health facilities by the Silent Generation.

Millennials plan to stay in their home for 10 years, while the baby boom generation as a whole plans to stay for a median of 18 years.

Financing the Purchase

NAR's study found that 88 percent of all buyers in the past year financed their purchase. Millennials (97 percent) and Gen X (96 percent) were more likely to finance than older boomers (72 percent) and the Silent Generation (61 percent). The median downpayment ranged from 7 percent for millennial buyers to 20 percent for older boomers.

Younger buyers who financed their home purchase most often relied on savings for their downpayment, whereas older buyers were more likely to use proceeds from the sale of a primary residence. Younger buyers also were more likely to receive a gift from a relative or friend, typically their parents, cited by 25 percent of millennials and 15 percent of Gen X.

Twelve percent of all recent buyers had delayed their home purchase due to outstanding debt. Among the 22 percent of millennials who took longer to save for a downpayment, 54 percent cited student loan debt as the biggest obstacle – down slightly from 56 percent a year ago.

Younger buyers were more likely to finance their purchase with a low downpayment Federal Housing Administration-backed mortgage, whereas older buyers were more likely to obtain a mortgage through the Veterans Affairs loan program. 

Characteristics of Sellers

Gen X homeowners represented the largest share of sellers in the past year (27 percent), followed by older boomers (23 percent) and younger boomers (20 percent). The older the seller, the longer he or she was in the home. Millennials had been in their previous home for a median of five years, while older boomers and the Silent Generation stayed for 13 years.

Younger sellers were more likely to need a larger home or move for job relocation. In comparison, older buyers wanted to be closer to family or friends, said their home was too large, or were moving due to retirement.

The survey additionally found that Gen X sellers were the most likely to have wanted to sell earlier but were stalled because their home had been worth less than their mortgage (23 percent compared to 16 percent for all sellers).

Sellers moved a median distance of 20 miles, with boomers and the Silent Generation moving further distances and downsizing to a smaller-sized home.

A combined 60 percent of responding sellers found a real estate agent through a referral by a friend, relative or neighbor, or used their agent from a previous transaction. Eighty-three percent are likely to use the agent again or recommend to others.

While all sellers wanted help in marketing their home to potential buyers, younger sellers were more likely to want their agent to help with pricing the home competitively or selling within a specific timeframe.

NAR mailed a 127-question survey in July 2014 using a random sample weighted to be representative of sales on a geographic basis. A total of 6,572 responses were received from primary residence buyers. After accounting for undeliverable questionnaires, the survey had an adjusted response rate of 9.4 percent. The recent homebuyers had to have purchased a home between July of 2013 and June of 2014. Because of rounding and omissions for space, percentage distributions for some findings may not add up to 100 percent.

All information is characteristic of the 12-month period ending in June 2014 with the exception of income data, which are for 2013.

The 2015 NAR Home Buyer and Seller Generational Trends study is posted at:  http://www.realtor.org/reports/home-buyer-and-seller-generational-trends.

The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

1NAR's 2014 Profile of Home Buyers and Sellers found the share of sales to first-time buyers dropped 5 percentage points from 2013 to 33 percent, representing the lowest share since 1987 (30 percent).

Age Is Just A Number: Single, Female Baby Boomers Happier, Healthier Than Ever

The adage "youth is wasted on the young" doesn't apply to today's single, female Baby Boomers. In fact, 76 percent of single women over 55 feel younger than their age, according to new data from Del Webb, a national brand of PulteGroup, Inc. (NYSE: PHM), one of the nation's largest homebuilders.

The first data in a series of new results from the recently conducted Del Webb Baby Boomer Survey of single, Baby Boomer women, finds that 74 percent of respondents are as happy, or happier, than they were at age 35 and nearly half (45 percent) believe their best years are yet to come.  

Building specifically for homebuyers ages 55 and older, Del Webb is America's largest builder of active adult communities with more than 50 Del Webb communities in 21 states. Of the 76 million Baby Boomers, recent U.S. Census data shows that as many as 28 million (or 37 percent) are single females. Del Webb has conducted more than ten Baby Boomer surveys since 1996. The 2015 Del Webb Baby Boomer Survey is the first time ever that the company has exclusively surveyed this unique demographic to take a closer look at who they are and what really matters to them. 

"Boomer homebuyer preferences and trends have changed dramatically in the 55 years since the first Del Webb community opened, but none stand out more than this generation's movement toward an active lifestyle that rivals people half of their age," said Ryan Marshall, executive vice president of homebuilding operations, PulteGroup. "Single, female Boomers have emerged as a powerful demographic. They have diverse needs, and it is incumbent on us to develop communities that offer an overall experience that reflects all that they want out of life."

The study finds that the single, female Boomer demographic is incredibly confident. According to the 2015 Del Webb Baby Boomer Survey, not only do 80 percent of respondents rank having self-confidence as "very important," but 76 percent are more empowered now than they were at age 35.  In fact, more than one-in-five (22 percent) say they also feel more attractive than they were at 35.  

That confidence may be attributed to the fact that 54 percent of single, female Boomers are as active or more active today than they were at 35. The 2015 Del Webb Baby Boomer Survey shows that four-in-five (81 percent) of single, female Boomers rank being physically healthy as "very important," and 68 percent of respondents rank a healthy lifestyle as their first priority, after time with family and friends.  

Healthy lifestyle habits among this demographic include a number of high-energy activities, including some that may be unexpected. Nearly two-thirds (59 percent) of respondents report exercising at least a few times a week, engaging in activities including:

• Weight training (27 percent)
• Hiking (19 percent)
• Yoga (18 percent)
• Biking (16 percent)
• Swimming (14 percent)

Other activities mentioned by respondents include tai chi, free-style dancing and horseback riding, among others.

"The lifestyle that single, female Boomers are embracing may be surprising to some, but it embodies what we see every day among our residents and prospective homebuyers," said Lindy Oliva, division president, PulteGroup. "Understanding that Del Webb residents demand a lifestyle defined by independence, vibrancy, engagement and fulfillment, has shaped the community designs and amenities offered in Del Webb communities for the past five decades."

Additional data on this dynamic demographic will be released throughout the year, including sentiments related to dating, home preferences and financial security/retirement. For more information, visit www.pultegroupinc.com.

About the Del Webb Baby Boomer SurveyThe Del Webb Baby Boomer Survey polled 1,020 single, female U.S. adults ages 50-68. The survey was conducted online by Nielsen from December 1-8, 2014. Findings for the total sample are projectable to the universe of 50-68-year-old U.S. females. At a 95 percent confidence level, a margin of sample error of +/- 4 percent applies to the sample. Since 1996, Del Webb has conducted more than ten Baby Boomer surveys to better understand this large, powerful demographic.  

Relationships Affect Homeownership, Say Realtors®

Whether married, dating or single, most Americans believe that owning a home is a good financial decision. According to a new infographic from the National Association of Realtors®, relationship status can affect when and where buyers purchase a home and how much they spend on it.

NAR analyzed the median age, income and size of home purchased for married couples, unmarried couples and single men and women; the infographic also shows the home and neighborhood features deemed most important by each group.

 
 
 

How does relationship status affect the kind of home you buy? This infographic from NAR shows how household composition can affect homeownership...

Data is from NAR's 2014 Profile of Home Buyers and Sellers, an annual report that evaluates the demographics, preferences, motivations, plans and experiences of recent home buyers and sellers.

For additional hig

Safety, Neighbors Make Great Halloween Neighborhoods!

Nextdoor, the free and private social network for the neighborhood, released today the findings of a survey conducted online on their behalf by Harris Interactive among over 2,400 U.S. adults that examines Halloween habits this year. When determining what makes a good neighborhood for Halloween, safety (95 percent) and good neighbors (92 percent) were top responses reported as being very important or important. Surprisingly, Halloween candy was only reported to be very important or important by 73 percent of Americans. Decorations and parties fell even further down the list, with 54 percent and 32 percent reported respectively.

This latest survey from Nextdoor about Halloween is part of a series chronicling, "The State of The American Neighborhood." According to the study, one in four parents who take their children age 17 and younger trick-or-treating (25 percent) have met new neighbors for the first time on Halloween; nearly one-third (32 percent) of Americans socialize with neighbors on this holiday; and 29 percent of parents who take their children trick-or-treating feel safe allowing their neighbors to take their children trick-or-treating.

Interestingly, while safety topped the list of priorities as to what makes a neighborhood "good" for Halloween, only half (50 percent) of parents of children age 17 and younger typically talk to their children about safety while trick-or-treating. Half (50 percent) of parents are also willing to venture out to other neighborhoods to take their children trick-or-treating.

"We believe Halloween is all about neighbors and your neighborhood and this is reinforced by the findings of this survey. Thousands of neighborhoods use Nextdoor around Halloween to plan pumpkin carving parties, block parties, costume parades and much more," said Nirav Tolia, Co-Founder and CEO of Nextdoor.

The survey also found that parents truly do go all out for Halloween. 60 percent take their children trick-or-treating, 60 percent give out candy and over half (53 percent) decorate their home for this holiday. Also of note, the average American who will spend money on Halloween will spend $85 this year, on candy, costumes, decorations, etc. Surprisingly, men aged 18-34 who will spend any money on Halloween are the ones that anticipate spending the most, on average $200, significantly higher than any age group.

Other fun Halloween facts from the survey include:

• Not just for kids: Nearly one in three (30 percent) parents dress up in costume for Halloween and one in four (24 percent) people believe you are never too old for trick-or-treating.
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• Creativity reigns: Nearly one in three parents (32 percent) have dressed their child(ren) in homemade costumes.
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• Age appropriate: 13 was the magic age when the most respondents believed that a child becomes too old to trick-or-treat (19 percent say this). The average age when parents believed it was most appropriate to begin taking a child trick-or-treating was around three years old. A mere 5 percent of Americans believe it's never appropriate to let a child partake in this most neighborly of holiday traditions.
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• Lower incomes spend the most: Americans with a household income of less than $35,000 who will spend any amount this Halloween said they plan to spend on average $112, which was the highest reported of all income groups. This is more than twice as much as people with a household income between $50,000-$75,000 who plan on spending about $52.

"Nextdoor has been instrumental in drawing our neighborhood closer together and improving the way we look out for one another. Last year, with the help of Nextdoor, the community came together for our first annual neighborhood pumpkin-carving contest. This simply would not have happened without Nextdoor," said, Adam Tratt, member of Nextdoor Sand Point in Seattle, Wash.

Survey MethodologyThis survey was conducted online within the United States by Harris Interactive on behalf of Nextdoor from September 11-13, 2012 among 2,454 adults ages 18 and older, among which 677 are parents of children age 17 and under. This online survey is not based on a probability sample and therefore no estimate of theoretical sampling error can be calculated. For complete survey methodology, including weighting variables, please contact Dabney Lawless at 415-399-7997.

PR Newswire (http://s.tt/1p4Yl)

2012 resolutions

I saw a funny this weekend about New Year’s resolutions. Someone penned their resolutions in 2009, and each year since updated them with a line drawn through the resolution they couldn’t keep and scribbled the revised resolution above it. This is what my 2012 resolutions feel like, except I’ve learned that change – or resolutions – doesn’t happen over night – or even in a year.

Last year, I kept tabs on where I stood with my resolutions, which is better than I did in 2010, not looking at them again until time to make the new ones. I did do much better than in 2011, even crossing off a couple. So here goes, 2011 in review:

1. Take better care of myself:

Exercise more. I found my weights, and I have new leg-strengthening exercise shoes thanks to my daughter. The new neighborhood also has a swimming pool. When I had a backyard pool, I swam all the time. That’s something I’ve missed these last four years, and I’m looking forward to getting back in the water.

Once again, that didn’t happen. I hit the pool once, hit the treadmill once and walked around the block maybe twice. Oh and walked all over Philadelphia.

Continue to eat better. Crock pots rock! I love coming home and not having to cook dinner, and it’s easy to eat well when I’m not grabbing for junk when I walk in the door. Just have to watch out for weekends when the band plays.

Yes and no… I cooked more at home, but we ate out more too. I held on to the good eating habits through the spring, but it didn’t last through the summer. John convinced me to go on that Atkin’s Diet with him… bad setback.

Take vitamins and engage in more holistic health practices

Again, yes and no… I took fists full of vitamins, until one morning sometime during the summer, I got nauseous from something. I suspected the vitamins and never took anymore. I did discover the neti pot, and that considerably reduced my cold and allergies.

Get eyes checked / new glasses, maybe even contacts again. That’s gotta happen – and soon!

Yes I did! Twice in fact. Turns out that because of my farsightedness, I’m at high risk for something called narrow angle glaucoma. It’s easily fixed with laser surgery, but I’m not at that point. I do have to keep close tabs on it though.

2. Be more of a girlie girl … sitting here with bright blue fingernails! I might have to give up on the idea of going to the salon every week, but I can keep my hair and nails done. I would like to find a decent spa here in McKinney for messages, body wraps and such.

Again, yes and no. I did find a great little mom and pop salon here in McKinney and visited it regularly through the summer. I even managed to keep my nails pointed throughout most of summer. And I’ve even got them painted now. But I also kept them chewed down to the quick when they weren’t painted.

3. Craft Craft Craft. The craft room is organized and ready to go! I’m going to clear out some unfinished projects and then start on some things I’ve been meaning to do for years.

Yes, I did a little more sew more and do some other crafts, but not as frequently as I wanted to.

4. Write for myself. I’m going to launch my Martha Stewart-esk blog, very soon, though it probably won’t be under my own name. And I’m going to monetize it as well. I'm going to write and publish that cook book too! And I just might take up a blog I abandoned last year.

I did manage to reserve a blog name, email and twitter handle. And keep a list of topics and story ideas. But that’s as far as I got.

5. Build the village. I have the space and the resources. I just need to make the time to do it. Next Christmas Maddox will be old enough to enjoy it, so I have a meaningful incentive this year.

Almost! I started Labor Day weekend and worked diligently until right before Thanksgiving. I managed to get it about 30-40 percent complete. I realized that my village is no longer a week-long project; it’s a major undertaking!

6. Decorate the house. We’ve been a long time getting to this point, and I enjoy making a nice home to come back to at the end of the day. Target projects for 2011 include a spa bathroom, an entertaining backyard and a media room. I’m going to tackle one project every week, even if it’s a small thing like buying a new door mat or sewing a new hand towel.

This one is about 80 percent complete. I did make major headway on the spa bath and the entertaining backyard. The media room has since become the Village room – and I’m OK with that. Actually, I’m about 80 percent complete on getting everything done. And I decorated for Summer, Fall and Christmas.

7. Make 2011 StoneAge’s year. In April, when I took up booking the band again, I promised John, Mike and Dave that StoneAge would be on its feet and be a dominate project in the North Texas music scene in 18 months. Within a few weeks, I proved that I can make things happen. Time to shake off the distractions and negative energy to make good on that promise.

That one I made good on. We played nearly every weekend from the middle of January through October. In fact, we played so much that I got burned out and didn’t focus on it at all after Labor Day – and I’m OK with that.

8. Become more entrepreneurial. It’s becoming clearer and clearer that there will be no such thing as retirement. Now is the time to prepare for the “rest of my life.”

I though about this a lot last year, but realized I don’t really know what I want to do. I have a ballpark goal, but never spent time to sharpen any one idea.

9. Focus on “the plan.” Everything I do at work must be tied to the plan. No distractions. Think the plan, work the plan, be the plan.

It was a nice idea, but like the entrepreneurial resolution, I never really clarified what “the plan” was.

10. Spend more time with my family.

Yes, I did do a little better here. Since the summer, I made an effort to spend an evening with Maddox most weeks. And I was able to spend more time with Robert, on the phone and visiting him.

I feel like I laid much of the groundwork toward accomplishing my goals, so 2012 will look a lot like 2011. So here goes:

1. Take better care of myself:

·         Exercise. Somehow, somewhere, someway. I’ve got to walk.

·         Eat better. No more fad diets. Stick to something that works.

·         Take vitamins. I always feel better when I do, so I’m just going to have to line them up on the counter and do it.

·         Get a physical. Haven’t had one since 2009. It’s time.

2. Be more of a girlie girl…

3. Craft Craft Craft. The craft room is organized and ready to go - again! I’ve made a list of projects I want to finish. I’m making a crafting calendar and I’m blogging about my projects, so hopefully that will keep my motivated.

4. Write for myself. I acquired a blog site for my Martha Stewart-esk blog and I documented many of my crafting projects from this year so I’ve got material to work with. I also discovered that my Xoom takes dictation so I can write my pieces as I travel to and from work.

I also set up a home office for me with my own computer and loaded it with all kinds of writing software. I’ve been keeping notes for a couple of novel projects, so hopefully, I can get those organized and that project off the ground – though I don’t expect to finish it next year.

5. Finish the village. Lots of lessons learned from last year, mostly that it’s no longer a 14-day project. It’s a long-term commitment. Fortunately, I don’t have to take down what I accomplished last fall. And knowing what I know now, I realize that I’m no longer constrained by the calendar. I can work on it anytime the mood strikes.

6. Finish decorating the house. There’s not a lot left to do. I need to focus on the master bedroom. If I get that finished, I think I might just take this one off next year’s list.

7. Better define my entrepreneurial goals. I’ve got lots of ideas, but couldn’t congeal any of them into a workable plan. I bought market planning software recently, so I’m hoping it will help me bring together some of my projects, perhaps my writing, and guide me in developing a cohesive plan.

8. Spend more time with my family.

How one comes to live by the seasons

There's two things on this planet I like. I like to decorate and I like to write. And I like to drive my family crazy doing it. Ok, that's three.

I've been a professional writer for more than 30 years. I've been an amateur interior decorator for nearly 20. Since I bought my first home in the early 90s, I felt compelled to turn my entire house upside down every time the seasons change. It started with Christmas, then Halloween, and then autumn décor crept into the mix. Now, I decorate and redecorate every time the calendar page turns.

I blame this on my mother. My mother worked full time and kept a tidy, stylish home despite a husband that traveled most of the years and two rambunctious kids that couldn't pick up after themselves. The secret to her success was being unmovable. Not her, but her stuff. Once pictures went on the walls or a flower arrangement was placed on the table, it never moved. Nope, never. And putting up the Christmas tree was always a fight. Deep down in my soul, I knew that the Christmas tree should go up the day after Thanksgiving. My mother would be happy if it went up Christmas Eve and it had better be down by Dec. 26. The sameness drove me nuts. For real, apparently.

Somewhere along the way, I discovered sewing. That discovery came courtesy of my husband. He loves sports. I hate sports. I learned that I hated sports less if I had something to do besides sit there and stare at the TV. So I took up sewing… and then a little painting and then, well suddenly I had a sewing room, which evolved into a crafting room, which is now a studio outfitted with four sewing machines and all the high-tech gadgetry Michaels, Joann's and Hobby Lobby have to offer. And I haven't even touched on the village, but I will. Oh, I will.

So, please join my on an adventure, as I live by the seasons.