So, as it turns out, if household income increases, then more families have more money to buy new homes.
I know. I’m totally shocked, too.
What you’ll find interesting is that Texas, with our steady job market and low taxes has resulted in the Lone Star State leading median household income growth AND new home sales for 2013. In Texas, homebuyers are basically like this:
And home builders, they’re like Liz Lemon here:
“This year’s Texas Homebuyers and Sellers Report is showing the impact of the last few years’ strong housing market and economic growth on Texas homebuyers and sellers,” said Dan Hatfield, chairman of the Texas Association of Realtors. “Households are earning more income and new home development continues to play an increasingly important role to meet our state’s ever-increasing housing demand.”
Yup, we’re makin’ it rain, folks. The report, which uses data from the National Association of Realtors, says that Texas homebuyers’ median household income is up 9.6 percent to $91,700 year-over-year in 2013. That’s almost twice the increase in buying power of the average American homeowner, which increased just 5.6 percent to $83,300. First-time homebuyers are making more scratch, too, with a 9.3 percent increase in median household income to $67,800 year-over-year. Repeat homebuyers are making more modest gains, though, with median incomes up just 4.9 percent to $107,100. Still, that’s a lot of simoleons, peeps. And I wonder how many of these new homebuyers are using homebuilding concierges such as Page One to make their experience even better.
Interesting takeaways from the report:
1) Of all homes purchased in Texas for 2013, 30 percent were new homes, up 4 percent from 2012 and almost twice the proportion among home sales nationwide.
2) With tight-fisted lenders rivaling Scrooge McDuck and home prices skyrocketing, married couples continue to lead the homebuyer demographic, up 2 points in 2013 to 71 percent.
3) First-time homebuyers in Texas are a shrinking share of the market, down 2 percent to 33 percent.
4) “In 2013, the average Texas homebuyer was 43 years old, while the average first-time buyer was 31 years old and the average repeat buyer was 50 years old. This is on trend with the ages of homebuyers nationally,” the report stated.
5) The time frame a homeowner actually owns a property decreased from nine years to eight in 2013, but nationally, figures still show homeowners staying in their home nine years. tenure of owning a home in Texas decreased one year to eight years in 2013, but remained unchanged at nine years nationally.
6) 94 percent of Texans sold their home with a Realtor in 2013 (YAY!), compared to 91 percent nationally. Likewise, “FSBO homes in Texas sold for significantly less than homes sold using a Realtor. The average Texas FSBO home sold for $153,500, compared to $200,000 for the average Realtor-assisted home sale.”
What tidbit of data strikes you the most?