It Ain't All Big Hair and Cadillacs

Illinois 2006 Profile of Home Buyers and Sellers

Even as the housing market retreats from the frenzied pace of the last several years, home buying and selling remains an important segment of the national and local economies. Buyers and sellers continue to have opportunities to trade up, trade down, relocate or purchase a second home. As importantly, first-time buyers, accounting for over 40 percent of the market, are discovering and capturing the benefits of homeownership.

The 2006 Illinois Profile of Home Buyers and Sellers, conducted by the National Association of REALTORS and funded by the Illinois Association of REALTORS, allows real estate professionals to better understand their clients and how their needs are evolving over time. Figures reported in this article are drawn from the national survey (July 2005 through June 2006) and provide information on demographics, housing characteristics and the experience of buyers and sellers in the housing market.

Highlights - Characteristics of Home Buyers

• The median age of home buyers was 37 years old. Among first-time buyers, the median age was 31.
• The median household income of home buyers was $73,300 compared to $71,800 in the U.S.
• 59 percent of home buyers reported that there were no children under age 18 residing in the home.
• 57 percent of home buyers were married couples, 26 percent single females, 8 percent single males, and 9 percent were unmarried couples.
• First-time home buyers accounted for 44 percent of homes purchased in 2006.
  62 percent of first-time home buyers were between 25 and 34 years old.
• The median income of first-time home buyers was $59,500 compared to $58,300 among all first-time buyers nationally.

Highlights - Characteristics of Homes Purchased

• 62 percent of homes purchased were detached single-family homes.
• The typical home buyer purchased a home 12 miles from their previous residence.
• The median price of homes purchased was $225,000 (in the survey period) compared to $214,000 in the U.S. (See IAR Market Stats for the most recent monthly and quarterly housing stats information for Illinois.)
• The typical buyer purchased a home that was 1,849 square feet in size.
• Recent home buyers plan to live in their home a median of 6 years.

Highlights - The Home Search Process

• Recent home buyers searched for a home for a median 8 weeks and saw a median 11 homes.
• 87 percent of home buyers used a real estate professional during their home search.
• 59 percent of home buyers used the Internet frequently to search for homes.
• Among home buyers, the typical Internet searcher was 36 years old and visited a median 12 homes. The typical home buyer that did not use the Internet to search for homes was 46 years old and saw a mediain of 7 homes.
• 40 percent of home buyers first learned about the home they purchased from a real estate professional; 22 percent first learned about the home they purchased through the Internet.
• 70 percent of buyers viewed the Internet as a very useful tool in their home search.
• 76 percent of buyers rated real estate agents as a very useful information source with an additional 13 percent rating them somewhat useful.

Highlights - Home Buying and Real Estate Professionals

• 76 percent of home buyers purchased their home through a real estate agent.
  Buyers searched for a median of 2 weeks on their own before contacting an agent.
• 48 percent of first-time buyers were referred to their agent by a friend, neighbor or relative.
• 98 percent of buyers ranked honesty and integrity as a "very important" factor when choosing a real estate professional to assist with a home purchase.
• 87 percent reported they were "very satisfied" with the honesty and integrity of their agent.
• 67 percent of recent buyers will definitely use their agent again, and an additional 21 percent will probably use the agent again or recommend to others.

Highlights - Home Sellers and their Selling Experience

• 
  The median age of home sellers was 41 years old; they had a median household income of $93,800.
• 74 percent of home sellers were married and 45 percent had no children under 18 years old living at home.
• The typical home seller owned their home for 5 years.
• The typical home was on the market for 4 weeks; 49 percent of home sellers did not reduce their asking price before their home sold.
• 77 percent of sellers used an agent or broker to sell their home.
  56 percent of all sellers were very satisfied with the selling process.

Highlights - Home Sellers and the Real Estate Professional

• 63 percent of sellers contacted only one agent before selecting one to help assist in the sale of their home.
• When selecting a real estate professional, 50 percent of sellers received a recommendation from a friend, neighbor or relative.
• 62 percent of sellers used the same agent for their home purchase.
• 88 percent of sellers used the Internet to market their home.
• 78 percent of sellers used an agent that provided a broad range of services and managed most aspects of the sales transaction.
• 66 percent of sellers reported they would definitely use the same real estate agent again.

About the Survey: In August 2006, the National Association of REALTORS® mailed an 8-page questionnaire to 129,500 consumers who bought a home between July 2005 and June 2006. The survey yielded 7,548 usable responses. This report is based on the 347 responses from the state of Illinois for the 12-month period ending June 2006. At the 90 percent level of confidence, estimates that appear in this report are general accurate within 5.3 percentage points. Consumer names and addresses were obtained from Experian, a firm that maintains an extensive database of recent homebuyers derived from county records.