IAR Market Stats

Illinois 2007 Profile of Home Buyers and Sellers

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Even as the housing market retreats from the frenzied pace of the last several years, home buying and selling remains an important segment of the national and local economies. Buyers and sellers continue to have opportunities to trade up, trade down, relocate or purchase a second home. As importantly, first-time buyers, accounting for over 40 percent of the market, are discovering and capturing the benefits of homeownership.

The 2007 Illinois Profile of Home Buyers and Sellers, conducted by the National Association of REALTORS and funded by the Illinois Association of REALTORS, allows real estate professionals to better understand their clients and how their needs are evolving over time. Figures reported in this article are drawn from the national survey (July 2006 through June 2007) and provide information on demographics, housing characteristics and the experience of buyers and sellers in the housing market.

Highlights - Characteristics of Home Buyers

• The median age of home buyers was 40 years old. Among first-time buyers, the median age was 31.
• The median household income of home buyers was $78,900 compared to $73,960 in the U.S.
• 60 percent of home buyers reported that there were no children under age 18 residing in the home.
• 58 percent of home buyers were married couples, 21 percent single females, 10 percent single males, and 8 percent were unmarried couples.
• First-time home buyers accounted for 37 percent of homes purchased in 2007.
• 49 percent of first-time home buyers were between 25 and 34 years old.
• The median income of first-time home buyers was $63,100 compared to $58,573 among all first-time buyers nationally.
• 29 percent of homebuyers reported using a social networking Web site such as MySpace, Facebook, LinkedIn and Friendster.

Highlights - Characteristics of Homes Purchased

• 62 percent of homes purchased were detached single-family homes.
• The typical home buyer purchased a home 9 miles from their previous residence.
• The median price of homes purchased was $228,557 (in the survey period) compared to $215,000 in the U.S. (See IAR Market Stats for the most recent monthly and quarterly housing stats information for Illinois.)
• The typical buyer purchased a home that was 1,760 square feet in size.
• Recent home buyers plan to live in their home a median of 10 years.

Highlights - The Home Search Process

• Recent home buyers searched for a home for a median 8 weeks and saw a median 11 homes.
• 86 percent of home buyers used a real estate professional during their home search.
• 67 percent of home buyers used the Internet frequently to search for homes.
• Among home buyers, the typical Internet searcher was 37 years old and visited a median 15 homes. The typical home buyer that did not use the Internet to search for homes was 48 years old and saw a median of 6 homes.
• 41 percent of home buyers first learned about the home they purchased from a real estate professional; 32 percent first learned about the home they purchased through the Internet.
• 82 percent of buyers viewed the Internet as a very useful tool in their home search.
• 73 percent of buyers rated real estate agents as a very useful information source with an additional 17 percent rating them somewhat useful.

Highlights - Home Buying and Real Estate Professionals

• 78 percent of home buyers purchased their home through a real estate agent.
• 56 percent of first-time buyers were referred to their agent by a friend, neighbor or relative.
• 95 percent of buyers ranked honesty and integrity as a "very important" factor when choosing a real estate professional to assist with a home purchase.
• 87 percent reported they were "very satisfied" with the honesty and integrity of their agent.
• 71 percent of recent buyers will definitely use their agent again, and an additional 19 percent will probably use the agent again or recommend to others.

Highlights - Home Sellers and their Selling Experience

• The median age of home sellers was 41 years old; they had a median household income of $92,700
• 73 percent of home sellers were married and 51 percent had no children under 18 years old living at home.
• The typical home seller owned their home for 6 years.
• The typical home was on the market for 8 weeks; 42 percent of home sellers did not reduce their asking price before their home sold.
• 84 percent of sellers used an agent or broker to sell their home.
• 57 percent of all sellers were very satisfied with the selling process.

Highlights - Home Sellers and the Real Estate Professional

• 72 percent of sellers contacted only one agent before selecting one to help assist in the sale of their home.
• When selecting a real estate professional, 40 percent of sellers received a recommendation from a friend, neighbor or relative.
• 60 percent of sellers used the same agent for their home purchase.
• 88 percent of sellers used the Internet to market their home.
• 82 percent of sellers used an agent that provided a broad range of services and managed most aspects of the sales transaction.
• 66 percent of sellers reported they would definitely use the same real estate agent again.

Select Graphs from the 2007 Profile

Buyers purchase homes in different areas. In Illinois, most homes were purchased in the suburbs or a subdivision (63%), while 13 percent purchased in a small town, 19 percent in an urban/central city and 5 percent in a rural area.

Existing homes account for the majority of homes sold (85%) in Illinois during the period; 15 percent were new homes. Eighty-seven percent (62%) purchased a detached, single-family home with 12 percent purchasing a townhouse or row house, 17 percent an apartment/condo with five or more units, and 6 percent a duplex/apartment in a two to four unit structure.

The Home Search Process

While consumers are collecting information from many sources, they continue to rely on professionals to assist them in all aspects of the real estate transaction. A full 86 percent of buyers in the Illinois survey used a real estate agent during the home search, and 83 percent used the Internet frequently during the home search. Ultimately, 41 percent of homebuyers found out about the home they purchased through an agent while 27 percent found out about the home using the Internet.

Home Buying and Real Estate Professionals

A full 78 percent of home buyers purchased their home through a real estate agent. Real estate professionals are relied upon to have experience in every aspect of a typical home purchase. Ultimately, the homebuyer wants the agent to help the buyer find the right property to purchase (57%).

Forty-two percent (44%) of buyers found their listing agent through a referral from a friend, neighbor or family member and 88 percent would probably or definitely use their real estate agent again or recommend the agent to others.

Honesty and integrity, knowledge of the purchase process, responsiveness, knowledge of the real estate market, communication skills and negotiation skills were rated as qualities buyers would like to see in their real estate agents.

Home Sellers and the Homes They Sell

The median age of a home seller is 41, with an two-earner household income of $92,700. Seventy-four percent (73%) are married couples, 17 percent were single females, two percent unmarried couples and five percent single males.

The typical home seller owned their home for six years and moved a median distance of 10 miles.

84 percent of home sellers used an agent or broker to sell their home and 61 percent of homes sold were in a suburb or subdivision. Fifty-seven percent of all sellers were very satisfied with the selling process.

Home Sellers and Real Estate Professionals

The survey shows that the most important factor for both buyers and sellers was word-of-mouth recommendation. 40% of sellers chose agents based on a referral by a friend, neighbor or relative, and 33 percent used their agent previously; 72 percent percent of sellers contacted only one agent before selecting one to help assist in the sale of their home.

Reputation, honesty and trustworthiness are the most important factors in choosing an agent. 82 percent of sellers used an agent that provided a broad range of services and managed most aspects of the sales transaction. 66 percent said they would likely use the same agent again or recommend to others.

About the Survey: In August 2007, the National Association of REALTORS® mailed an 8-page questionnaire to 129,500 consumers who bought a home between July 2006 and June 2007. The survey yielded 7,548 usable responses. This report is based on the 347 responses from the state of Illinois for the 12-month period ending June 2007. At the 90 percent level of confidence, estimates that appear in this report are general accurate within 5.3 percentage points. Consumer names and addresses were obtained from Experian, a firm that maintains an extensive database of recent homebuyers derived from county records.