2015 Home Buyer Survey Highlights
Draft 2
The Buying Experience
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Listing & sale price are equal at $350,000.
Fewer properties listed above sale price.
40% of homes purchased are located in the suburbs. Repeat buyers were more likely to
purchase in the suburbs, while first-time buyers were more likely to purchase in an urban
location.
There was an increase from 2% to 12% in the percentage of buyers who previously lived with
parents.
Buyers spent longer searching for a home, but viewed fewer homes and made fewer offers on
other homes than last year.
Top 5 reasons for buying:
1. Tired of renting (15%)
2. To have a place to live (14%)
3. Desired a larger home (12%)
4. Changed jobs/relocated (11%)
5. Desired a better/different location (8.4%)
21% of first-time buyers purchased because they were tired of renting. 15% of repeat buyers
purchased due to job change or relocation.
Buyers didn’t purchase sooner because there was no urgency (22%), they waited until their
finances improved (21%) or they felt there were not many good housing options (13%). Firsttime buyers didn’t purchase sooner mainly because they needed to save for a down payment,
whereas repeat buyers simply didn’t need to purchase sooner.
85% of buyers feel their home is worth the price they paid, 14% feel they overpaid.
Buyers plan to keep homes more than twice as long as they did last year: 20 years on average,
up from 8.8 years last year.
Safety is the most important factor to buyers in choosing a neighborhood. First-time buyers
value school quality and a short commute to work more than repeat buyers.
Ideal neighborhood is suburban (34%), pedestrian-oriented (21%) and located in a cul-de-sac
(21%). Only 27% of buyers mentioned an urban setting.
¾ buyers are satisfied with their purchase, 13% selected the best house given the limited supply
in their desired neighborhood, and 12% selected the best house in a neighborhood they could
afford because their preferred neighborhood was too expensive.
Technology Use
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Zillow continued to grow in popularity as the most useful website and app in the buying process.
It was also the #1 website where buyers found their home among those who found their home
online (18%).
Most buyers continue to use mobile devices in the transaction.
Social media use in the buying process dropped by more than half from 77% in 2014 to 35% this
year.
Agent ratings are not very popular; only 36% of buyers searched for agent ratings on their agent,
and only 38% rated their agent online.
Financing
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23% of buyers paid cash and 77% obtained financing for their purchase.
For those who obtained financing, the average down payment was 24% of the sale price, which
has remained above the traditional 20% for the past 7 years.
Most buyers obtained 30-year fixed rate loans, however 3.5% were unsure about the type of
loan they have and 3.4% were unsure about the length of the term.
The average difficulty rating in acquiring financing has dropped to the lowest rate in the Survey’s
history: 4.1 (out of 10). Repeat buyers had less difficulty obtaining financing, with an average
rating of 3.7, compared to 4.6 for first-time buyers.
Nearly 2/3 buyers think interest rates have bottomed.
Buyer/Agent Relationship
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92% of buyers used an agent and the majority indicated they found their agent through
relationships and personal contacts.
The majority of buyers interviewed more than 1 agent before selecting one to represent them;
they interviewed 2.4 agents, on average.
A responsive agent is the most important quality to buyers in selecting an agent, followed by
having previously used the agent and the agent being trustworthy.
Buyers are generally satisfied with their agents because the agent communicated according to
the buyers’ preference and responded in a timely manner. Most buyers (85%) indicated they
would work with the same agent again and recommend their agent to others.
Demographics
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Typical buyer:
o 48 years old
o 62% white
o 55% college degree
o 70% married
Typical household:
o 3 people
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o ½ have children
o 82% live with spouse or significant other
o 8% live with parents
o Average annual household income: $216,443
40% are first-time buyers.
22% have experienced a distressed sale; 79% of those distressed sales occurred after 2007.
23% of repeat buyers were previously under water on their home.