Use of Internet and Social Networking Sites on the Rise by Home Buyers and Sellers According to Recent REALTOR® Study

Eighty-seven percent of home buyers worked with a
real estate professional

Waltham, Mass. – February 12, 2008 – A new study on Massachusetts home buyers and sellers shows that the Internet continues to be one of the most important tools in the home buying process with 90 percent of buyers and 94 percent of sellers, reporting that they either searched or listed their homes on the Internet.  The 2007 Massachusetts Profile of Home Buyers & Sellers, compiled by the National Association of Realtors® (NAR),  also found that 34 percent of home buyers surveyed (and half of home buyers aged 18-24) reported participating in social networking sites such as MySpace, Facebook, LinkedIn, and Friendster.

While the use of Internet in the buying and selling process continues to rise, so does the use of real estate professionals.  The study found that 88 percent of home buyers bought their home using a real estate agent or broker.  Of the people who used the Internet to search for a home, 91 percent also used a real estate agent or broker to buy a home.  The results were similar on the seller side as 87 percent of home sellers also reported working with a real estate professional.

When it came to selling the home, 84 percent of sellers used an agent or broker to sell their home.  The home was on the market for an average of eight weeks, up from four weeks in 2006, and sold for 97 percent of the listing price.  In fact, 42 percent of sellers didn’t reduce their asking price at all.

“With the vast amount of real estate information available on the Internet, the demand for Realtors® who can help buyers and sellers interpret that data- and act on it successfully- will only increase,” said Massachusetts Association of REALTORS® President Susan M. Renfrew, broker and co-owner of Renfrew Real Estate in Greenfield.  “As the study points out, there is no question that it will be important for Realtors® and other real estate professionals to not only understand, but also become active members of the social networking world.”

The number of For Sale By Owner (FSBO) transactions declined five percent to 13 percent in 2007 compared to the year before.  Among those sellers who decided to sell their home on their own, seven percent knew the buyer.

The median age of home buyers in Massachusetts in 2007 was 39-years old, up a year compared to 2006.  Median incomes were up slightly to $84,400 from $82,600 (income is from 2006 reported data).  Fifty-three percent of home buyers were married couples, 24 percent single females, 10 percent single males and 11 percent un-married couples.  Thirteen percent of Massachusetts home buyers reported they were born outside of the United States compared to 9 percent nationally.

The median age of first-time home buyers was unchanged at 32, but as a group, there was a drop in the number of buyers between 25 and 34-years old.  In 2006, the 25- to 34-year old group made up 60 percent of all first-time home buyers, while in 2007 that number dropped to 49 percent.  Median income of first-time home buyers was also down to $73,500 from $75,800 in 2006.  The national median income for first-time home buyers was up $300 to $58,600.

“The drop in the number of buyers in the 25-34-year old age group, is further evidence of the exodus of this educated age group from our state and the continued need for the development of starter homes in the 100-150 percent median income range,” said Renfrew.

While 35 percent of buyers went directly online as their first step in the home buying process, 13 percent of first-time home buyers and 21 percent of repeat buyers reported contacting a real estate agent as their first step.  However, the home search process did differ by age.  The typical Internet searcher was 37 years old and visited a median of 12 homes.  The typical buyer who didn’t use the Internet was 60 years old and saw a median of eight homes.

Underwriting standards in 2007 became tighter, but that didn’t prevent 93 percent of all home buyers from financing the purchase of their homes, which was up seven percent from 2006.  Of those buyers, 96 percent of first-time home buyers and 76 percent of repeat buyers financed the purchase of their home.  For first-time home buyers savings was the chief source of the down payment (81 percent).

Despite the downturn in the housing market, 52 percent of all buyers felt their home purchase was a better financial investment than stocks, while 27 percent of buyers felt their home purchase was at least as good as stocks.

The median age of the Massachusetts home seller was 43 years old and had a median income of $102,100 and owned their home for seven years, which is up two years from 2006.  Sixty-six percent were married and over half had no children under 18 living at home.
Go to www.marealtor.com to see the complete 2007 Massachusetts Profile of Home Buyers & Sellers.

About the Massachusetts Association of REALTORS®
Organized in 1924, the Massachusetts Association of REALTORS® is a professional trade organization with more than 22,500 members.  The term REALTOR® is registered as the exclusive designation of members of the National Association of REALTORS® who subscribe to a strict code of ethics and enjoy continuing education programs.