So who bought homes in Massachusetts in 2013? What was the income of the Massachusetts home buyer? How many were first-time home buyers? How many were married? How many bought single-family homes?
The Massachusetts Association of Realtors (MAR) recently released a report that provides details regarding the profile of Massachusetts buyers and sellers in 2013. The following are some of the highlights relating to Massachusetts home buyers.
2. Fourteen (14) percent of buyers nationally purchased a multi-generational home due to children over the age of 18 moving back into the house, cost savings, and health and care taking of aging parents. In Massachusetts, multi-generational home purchases totaled 11 percent.
3. In Massachusetts, the typical buyer was 36-years-old, while the typical first-time home buyer was 32 years old, and the typical repeat buyer was 49 years old. Nationally, the typical home buyer was 42 years old, while the typical first-time home buyer was 31, and the typical repeat buyer was 52 years old.
4. The 2012 (not 2013) median household income of buyers was $83,300 nationally and $95,500 in Massachusetts. The median income was $67,400 among first-time buyers and $96,000 among repeat buyers, and in Massachusetts this was $84,200 and $110,600 respectively.
5. Sixty-six (66) percent of recent home buyers were married couples nationally, a total representing the highest national share since 2001. In Massachusetts, 65 percent of recent home buyers were married couples.
6. Nationally, for 30 percent of recent home buyers, the primary reason for the recent home purchase was a desire to own a home. This was even higher in Massachusetts, with 42 percent of recent home buyers citing the desire to own a home as their primary reason.
1. New home purchases continue to to be slow, with a 16 percent share of all recent home purchases on a national level. In Massachusetts, the share of homes purchased that were new construction was 13 percent.
2. The typical home purchased was 1,900 square feet in size, was built in 1992, and had three bedrooms and two bathrooms. In Massachusetts, the typical home purchased was 1,700 square feet, built in 1971, and had 3 bedrooms and 2 bathrooms.
3. Eighty (80) percent of home buyers purchased a detached single-family home nationally, and 73 percent in Massachusetts.
4. Fourteen (14) percent of recent home buyers over the age of 50 bought a home in senior-related housing, and 8 percent over the age of 50 made a similar purchase in Massachusetts.
5. When considering the purchase of a home, heating and cooling costs were at least somewhat important to 85 percent of buyers nationally and 89 percent in Massachusetts. Commuting costs were considered at least somewhat important by 73 percent of buyers nationally and 75 percent in Massachusetts. [Read about living near public transportation in Massachusetts]
1. For 42 percent of home buyers nationally, the first step in the home-buying process was looking online for properties and 14 percent of home buyers first looked online for information about the home-buying process. In Massachusetts this was 49 percent for properties and 16 percent for information.
2. The use of the Internet in the home search rose slightly to 92 percent nationally and 95 percent in Massachusetts.
3. Real estate agents were viewed as a useful information source by 97 percent of buyers who used an agent while searching for a home. In Massachusetts this share was 98 percent.
4. The typical home buyer searched for 12 weeks and viewed 10 homes nationally; in Massachusetts, also 12 weeks and 10 homes.
5. Approximately nine in 10 recent home buyers were at least somewhat satisfied with the home-buying process. In Massachusetts, 93 percent of home buyers were satisfied with the process.
1. Nationally, 88 percent of buyers purchased their home through a real estate agent or broker— a share that has steadily increased from 69 percent in 2001. In Massachusetts, 94 percent of home buyers purchased their home through a real estate agent or broker.
2. Forty-two percent of buyers found their agent through a referral from a friend or family member nationally; 41 percent in Massachusetts. Twelve percent used an agent they had used before to buy or sell a home nationally, with that figure 8percent in Massachusetts.
3. Two-thirds of recent home buyers only interviewed one agent before they found the agent they worked with, and it was the same percentage in Massachusetts.
4. Eighty-eight (88) percent of home buyers nationally would use their agent again or recommend him or her to others. Eighty-seven (87) percent of home buyers in Massachusetts would do the same.
2. The share of first-time home buyers who financed their home purchase was 96 percent compared to 83 percent of repeat buyers; in Massachusetts 97 percent of first-time buyers financed their purchase while the stood at 85 percent of repeat buyers.
3. More than half of home buyers reported they have made some sacrifices, such as reducing spending on luxury items, entertainment or clothing, a trend that holds true in Massachusetts.
4. Twenty-four percent of buyers reported the mortgage application and approval process was somewhat more difficult than expected nationally, and 25 percent of homer buyers reported the same thing in Massachusetts. Sixteen (16) percent reported it was much more difficult than expected on a national level, and 17 percent said the same in Massachusetts.
5. Nationally, 12 percent of home buyers overall cited saving for a down payment was difficult. Forty-three (43) percent of home buyers nationally reported student loans, 38 percent reported credit card debt, and 31 percent car loans as keeping them from saving. In Massachusetts, 50 percent reported student loans, 32 percent credit card debt and 29 percent car loans as getting in the way.
The methodology used to obtain the profile information was the result of surveys mailed in July 2013. Nationally, 148,011 recent home buyers were sent the survey. A total of 8,767 responses were received. For Massachusetts, there were 223 responses. All information in the profile report was characteristic of the 12-month period ending June 2013, with the exception of income data, which are reported for 2012.