The following are some statistics I think readers of this blog will find interesting. Excerpts from the Massachusetts Association of Realtors:
Fifty-four percent of all buyers believe that their home purchase was a better financial investment than stocks (compared to 47 percent in 2008); with an additional 29 percent of buyers feeling their home purchase was at least as good an investment as stocks.
The study showed that 92 percent of Massachusetts home sellers chose to work with a real estate professional, which is seven percent higher than the 85 percent national average. Only five percent of sellers attempted to sell their home without the assistance of an agent or broker. This is much lower than the national share of 11 percent. Of those “For-Sale-By-Owner” (FSBO) sellers, about 20 percent knew the buyer prior to the sale.
The median age of the home seller was 44 years (which is down from 47 years in 2008) and they had a median income of $113,500. The typical seller owned their home for eight years. Fifty-percent of home sellers reported the main reason for deciding to sell was either a change in family situation (e.g., marriage, birth of child, divorce) or their home was too small. Only six percent reported selling their house because they could not afford the mortgage and other expenses of owning a home.
When it came to selling, 38 percent of home sellers did not reduce their asking price before the home was sold. Recent sellers typically sold their home for 94 percent of the listing price. Twenty-three percent of sellers did offer incentives to attract buyers compared to 42 percent nationally. Most often that assistance was applied to closing costs and home warranty policies.
I thought it was interesting that over 50% of new homebuyers feel purchasing real estate was a better investment than buying stocks.
