WASHINGTON, August 07,
2007 -
Home buyers in increasing numbers want garages with
two or more spaces in their homes, according to the 2007
Profile of Buyers’ Home Feature Preferences, released
today by the National Association of Realtors®.
Since the last survey in 2004, oversize garages saw
the biggest growth in terms of what recent buyers
considered very important in a home, gaining 16
percentage points to 57 percent. Among buyers who
purchased homes without this feature, 56 percent of them
said they would have paid more for an oversize garage,
compared to only 6 percent in the 2004 survey.
Other priorities for today’s home buyers include air
conditioning, with three out of every four respondents
ranking this as “very important,” and a walk-in closet
in the master bedroom, which was very important to 53
percent of respondents. Hardwood floors and granite
countertops each gained 7 percentage points from the
2004 survey, with 28 percent and 23 percent,
respectively, of buyers viewing these features as “very
important.” Gaining 6 percentage points was
cable/satellite TV-ready, at 46 percent.
The survey reports responses from buyers who
purchased homes in 2006. Home buyers were asked about 75
features and room types to assess the importance of
each.
“Realtors® see hundreds, if not thousands, of houses
with their buyer clients every year and know exactly
what buyers are looking for in a home,” said NAR
President Pat V. Combs, of Grand Rapids, Mich., and
vice president of Coldwell Banker-AJS-Schmidt. “This
insight is one more way Realtors® add value to the real
estate transaction and why nearly eight out of 10 recent
buyers used a real estate professional when buying their
home.”
According to the survey, nearly six out of 10 recent
home buyers took on remodeling or home improvement
projects within three months of their purchase. Close to
half of home buyers who remodeled or made improvements
updated their kitchen, and nearly half remodeled or
improved their bathroom. New homeowners spent a median
of $4,350 on home improvement or remodeling projects
undertaken within three months of purchase.
More than half of home buyers believe their home has
high investment potential, and another four out of 10
believe it has moderate investment potential. Only 3
percent felt their home’s investment potential was
low.
“The fact that a majority of home buyers quickly
remodel key areas of their homes ties into the fact that
their home is a good, long-term investment,” said Paul
Bishop, NAR manager of real estate research. “Regardless
of market conditions in the short term, when purchased
for the long term, housing is one of the safest
investments consumers can make.”
Energy efficiency was more important to new-home
buyers than buyers of existing homes, with 65 percent of
new-home buyers saying it was very important compared to
39 percent for buyers of existing homes. Older buyers
placed a higher priority on energy efficiency than did
younger buyers – 63 percent of buyers 75 and older said
it was very important, but only 32 percent of buyers who
were 18-24 agreed.
The survey identified some regional preferences in
home features. For home buyers in the South and Midwest,
central air conditioning was a priority, with 91 percent
and 81 percent, respectively, saying this feature was
very important. Sixty-six percent of buyers in the South
thought a walk-in closet in the master bedroom was very
important, while 61 percent of Midwesterners valued an
oversized garage. In the Northeast, the highest
percentage of buyers placed a premium on a backyard or
play area (53 percent), followed by central air
conditioning at 41 percent. Two-thirds of buyers in the
West want oversized garages (66 percent), followed by
central air conditioning at 59 percent.
Age was the biggest differentiation in what buyers
were looking for in a home. Buyers 75 years old and
older wanted a single-level home (74 percent) that was
less than 10 years old (43 percent) with a walk-in
closet in the master bedroom (74 percent). Most buyers
between the ages of 25-34 wanted a backyard or play area
(60 percent). More than half of buyers over 65 wanted a
separate shower enclosure in the master bathroom,
compared to only one-fourth of buyers ages 25-34.
For those who purchased a home without it, 65 percent
of buyers said they would be willing to pay a median
$1,880 extra for central air conditioning. One out of
four buyers was willing to pay a median of $4,760 more
for waterfront property.
Homes are getting bigger, but have fewer bedrooms.
From 2004 to 2006, the size of the typical home
purchased increased by about 100 square feet to 1,840
square feet, while the median number of bedrooms dropped
from four to three during the same period. The median
home age reported in the current survey is 12 years,
down from 15 years in 2004.
To order a copy of the report, visit www.realtor.org/research
and click on “Latest Research Products” or call
800/874-6500. The cost is $50 for members and $125 for
non-members.
The National Association of Realtors®, “The Voice for
Real Estate,” is America’s largest trade association,
representing more than 1.3 million members in all
aspects of residential and commercial real estate
industries.
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