The 2013 MN profile of home buyers and sellers was recently released and the numbers are different than the national numbers. That being said those numbers are just interesting and noteworthy, but in general I notice that things are busy across the board. Inventory is short and home buyers have been cooped up too long with the cold and snow and want to buy something - and buy now! Inventory that is well maintained and priced right does not last long and buyers have seen everything on the market and are hungry for new listings. I'm happy to answer any specific questions you may have about buying, selling or the market in Minnesota. But feel free to enjoy the latest numbers and articles included. Stay warm! :) -Liz
This year’s report saw some interesting changes in buyer and seller demographics. Nationally, for example, the share of married couple buyers rose to its highest share since 2001, slightly higher even than the 2012 share: 65 to 66 percent. The single buyer share remains suppressed. This suggests that while tightened lending conditions continue, married couples are better able to provide the purchasing power needed to buy a home. On the home seller side, those who performed real estate transactions in the last year were older, typically had a lower household income than was seen in previous years, and were more likely to be a married couple than other household compositions. The typical seller was in their home nine years before selling and 13 percent of recent sellers had to delay or stall selling their home because the value of their home was worth less than their mortgage.
Characteristics of Home Buyers * 40 percent were first-time buyers in Minnesota, compared to a national level of 38 percent, which is still at a suppressed level of the historical norm of 40 percent. * Fourteen 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 caretaking of aging parents. In Minnesota, this was 10 percent. * In Minnesota, the typical buyer was 36-years-old, while the typical first-time buyer was 30 and the typical repeat buyer was 42. Nationally the typical buyer was 42-years-old, while the typical first-time buyer was 31 and the typical repeat buyer was 52. * The 2012 median household income of buyers was $83,300 nationally and $82,000 in Minnesota. The median income was $67,400 among first-time buyers and $96,000 among repeat buyers, and in Minnesota this was $68,300 and $95,900 respectively. * Sixty-six percent of recent home buyers were married couples—the highest national share since 2001. 68 percent of recent home buyers were married couples in Minnesota. *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 similar to Minnesota at 28 percent of recent home buyers.