Written by Blanche Evans
According to its latest homebuyer and seller survey, the National Association of REALTORS® has an idea of what current home sellers are like. Because of the housing boom and bust, many sellers waited for underwater homes to appreciate in value so they could have enough equity to sell their homes and purchase larger homes.
The typical seller in 2015 was 54 years old, up from 49 in 2010, and married with a household income over $104,000. They occupied their homes for nine years and realized a median equity gain of $40,000, 25 percent more than a year ago. Their homes increased 23 percent in value since they purchased, from 17 percent last year.
One of the factors for rising home equity is low supplies. With homebuilders failing to add significantly to supplies, many sellers are waiting for bigger gains.
When their homes were purchased made a notable difference in equity gains. Seller who purchased their homes between one to seven years ago sold their homes for $30,000 to $35000 more than they paid. But equity gains fell to $3,000 for owners who bought between eight and 10 years ago. Homes sold after 21 years showed price gains of $138,000.
The median time on the market for recently sold homes remained at four weeks for the second year in a row. Once their homes sold, sellers moved a median distance of 20 miles, with 70 percent remaining in the same state.
The top reason sellers gave for selling their homes was that the homes were too small. Nearly 90 percent of sellers hired a real estate professional. Only eight percent of homes sold in 2015 were for-sale-by-owner. That is the lowest share ever recorded since the annual survey debuted in 1981.
The survey results were gathered mid-year in 2015. By the third quarter, the national median existing single–family home price was $229,000, up nearly six over last year.