For Immediate Release:
January 30, 2009
NEW JERSEY REALTORS® RELEASE ANNUAL PROFILE OF
NEW JERSEY HOME BUYERS AND SELLERS
2008 SURVEY SHOWS JUMP IN FIRST-TIME BUYERS
(Edison, NJ) According to the 2008 Profile of New Jersey
Home Buyers and Sellers, first-time buyers account for a
larger portion of the housing market than in
previous years. The survey conducted by
the NATIONAL ASSOCIATION of REALTORS®
(NAR) on behalf of the New Jersey
Association of REALTORS® (NJAR®)
found the number of first-time buyers rose
to 49 percent from 36 percent in 2007. When
asked about the primary reason for the
timing of their home purchase, 49 percent of
first-time buyers said it was just the right
time.
"Today's housing market holds real potential
for financially capable first-time buyers,"
said 2009 NJAR® President Diane
Dilzell, CRS and e-PRO. "This survey is
evidence that first-time buyers are taking
advantage of the increased housing stock for
sale, historically low interest rates, the
temporary $7,500 tax credit and other
economic stimulus measures."
Buying Experience
A majority (56 percent) of all buyers viewed
their home purchase as a better financial
investment than stocks. An additional 25
percent of buyers believe their home
purchase was at least as good of an
investment as stocks. The report also shows
recent home buyers plan to live in their
home a median of 10 years.
"Although the housing market is going
through a period of transition, this survey
clearly indicates consumers understand that
real estate continues to be a smart
long-term investment," added Dilzell.
"Perceptions about real estate have been
skewed in recent years due to unsustainable
levels of growth at the height of the market
in 2005. Even though there are some people
who view real estate as a quick money maker,
most people understand that buying a home is
usually not a about getting rich quickly but
rather building wealth over time."
According to the survey, nearly 90 percent
of home buyers used the Internet to search
for homes. A significant number (32
percent) of recent buyers reported that
their first step in the home-buying process
was looking online for properties for sale.
The typical home buyer had a median age of
36, searched for a home for a median of 12
weeks and saw a median of 15 homes. An
overwhelming majority of buyers (71 percent)
reported the mortgage application and
approval process was not difficult or no
more difficult than expected. Nearly all
buyers (95 percent) said they were not
rejected by any mortgage lenders and 89
percent reported they obtained a fixed-rate
mortgage to finance their home purchase
The report also shows that consumers have
come to depend on the expertise of real
estate agents to guide them through real
estate transactions. The survey found that
84 percent of home buyers used a real estate
agent or broker to purchase their home, as
compared to 76 percent in 2007. Real estate
agents were viewed as a very useful source
of information by 84 percent of buyers. When
asked about their agent's performance on
qualities they viewed as important, 87
percent of buyers reported they were "very
satisfied."
Selling Experience
The typical home seller owned their home for
seven years and 42 percent of sellers traded
up to a larger home when purchasing their
next home. According to the report, sellers
listed the primary reasons for selling their
home was a change in their family situation
(19 percent) and the size of their home was
too small (17 percent).
The survey also found that the vast majority
(89 percent) of sellers used the Internet to
market their home. Yard signs where used by
63 percent of sellers, while 71 percent held
an open house to market their home. Sellers
typically sold their homes for 96 percent of
the listing price, while 33 percent of
people did not reduce their asking price
before their home was sold.
Furthermore, 88 percent of sellers used the
services of a real estate professional to
sell their home. A majority of sellers (54
percent) reported that they were very
satisfied with the selling process. The
survey shows that 66 percent of recent
sellers would definitely use their agent
again, and an additional 19 percent would
probably use their agent again or recommend
him/her to others.
"This report indicates that real estate
agents are an integral part of the home
buying and selling process and people have
come to depend on their services. REALTORS®
can guide consumers through the complicated
process of buying or selling a home and will
most likely save them time and stress while
doing it," concluded Dilzell.
The data in the 2008 New Jersey Profile of
Home Buyers and Sellers is based on
questionnaire responses of 276 New Jersey
consumers who purchased a home between July
2007 and June 2008. The survey information
is drawn from the 2008 NATIONAL ASSOCIATION
OF REALTORS® Profile of Home Buyers and
Sellers. To view a summary of the report,
visit NJAR®'s website at
www.njar.com/research_statistics/njhbsp.php.
The New Jersey Association of REALTORS®,
with approximately 53,000 REALTOR® and
REALTOR-ASSOCIATE® members, is one of the
largest trade organizations in the state.
NJAR®'s membership is comprised of real
estate professionals who subscribe to a
strict Code of Ethics and are members of the
national and local REALTOR® organizations.
As the leading advocate for the real estate
industry and private property rights in New
Jersey, NJAR® is committed to protecting the
dream of homeownership. For more
information, please visit
www.njar.com.
# # #
