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| More than half of all consumers now use the Internet when buying a home, according to a survey by the California Association of REALTORS(R) |
Internet buyers are younger, wealthier and better educated than their more
traditional peers, and are three times more likely to be first-time buyers
LOS ANGELES, June 29 /PRNewswire/ -- More than half of all consumers now
use the Internet when buying a home, according to a survey released today by
the California Association of REALTORS(R) (C.A.R.). The "2004 Internet Versus
Traditional Buyer Study" also revealed that, compared to traditional buyers,
Internet buyers spent more than twice as much time gathering information prior
to contacting a REALTOR(R). However, they moved much more quickly once they
began to work with a REALTOR(R), spending significantly less time with their
REALTOR(R) and previewing far fewer homes compared to traditional buyers.
"The Internet has complemented rather than diminished REALTORS(R)' role in
the homebuying transaction," said C.A.R. President Ann Pettijohn. "While
Internet buyers considered online information to be valuable, they ultimately
turned to REALTORS(R) both for their interpretation of that information, and
for their expertise and judgment throughout the homebuying process. The
expertise and professional advice provided by REALTORS(R) creates value over
and above the market and property information itself, even when the buyers
obtain that information on their own.
"Internet buyers were more inclined to view their relationship with their
REALTORS(R) as a partnership," she said. "They looked for speed and
efficiency, and they valued timely communications. Traditional buyers, on the
other hand, looked for more personal interaction and relied on their
REALTORS(R) to lead them through the process."
For the first time since C.A.R. has been conducting the "Internet Versus
Traditional Buyer Study," more than half of the respondents were classified as
Internet buyers. The share of buyers using the Internet reached 56 percent in
2004, and has risen steadily from 28 percent in 2000, the first year of the
survey. By comparison, traditional buyers have made up a declining share of
all buyers, down from 72 percent in 2000 to 44 percent in 2004.
The average number of homes previewed by Internet homebuyers has decreased
steadily in the past four years, while that of traditional buyers has changed
very little over the same period. The upfront research conducted by Internet
buyers has given them a better sense of market conditions compared to
traditional buyers, enabling them to act more quickly to find, bid on, and
close escrow on the home of their choice.
Highlights of the "2004 Internet Versus Traditional Buyer Study" include:
* Internet buyers spent an average of 5.9 weeks considering the purchase
of a home before contacting a REALTOR(R), compared to 2.1 weeks for
traditional buyers.
* Internet buyers spent an average of 4.8 weeks investigating homes and
neighborhoods prior to contacting a REALTOR(R), compared to 1.6 weeks
for traditional buyers.
* Having done significantly more research than their traditional buyer
counterparts, Internet buyers spent less time looking for a home once
they began working with a REALTOR(R), spending just 1.9 weeks on
average, compared to 7.1 weeks for a traditional buyer.
* The typical Internet buyer also visited fewer homes with their
REALTOR(R) than the typical traditional buyer. Internet buyers
visited an average of 6.1 homes with their REALTOR(R), whereas a
typical traditional buyer visited 15.4 homes with their REALTOR(R).
* Internet buyers tended to be younger than traditional buyers with a
mean age of 38.5 years, compared to 43.5 years for traditional buyers.
* Internet buyers had higher incomes and were better educated than
traditional buyers. The median income of an Internet buyer in 2004
was $168,540 while that of a traditional buyer was $142,470.
Moreover, while most homebuyers in both groups had at least a
four-year college degree, 14 percent of Internet buyers had completed
post-graduate work compared to 5 percent of traditional buyers.
* Internet buyers were three times more likely to be first-time buyers
than traditional buyers, with 23 percent of Internet respondents
reporting that they were first-time buyers compared to 7 percent of
traditional buyers.
* Internet buyers often conducted their home searches from afar, with a
median distance of 100 miles between the homes they purchased and
their previous residences, compared to 12 miles for the traditional
buyer. More than four out of five traditional buyers purchased homes
within 25 miles of their prior residence.
The "2004 Internet Versus Traditional Buyer Study" is available for
purchase in electronic format for $29.95 for C.A.R. members and $49.95 for
non-members and in hard copy format for $59.90 for C.A.R. members and $99.90
for non-members by calling (213) 739-8227 or logging on to
http://www.rebsreports.com. Journalists who would like a copy of the report should
e-mail markg@car.org or call (213) 739-8304.
The California Association of REALTORS(R) (http://www.car.org) is one of
the largest state trade organizations in the United States, with more than
135,000 members dedicated to the advancement of professionalism in real
estate. C.A.R. is headquartered in Los Angeles.
SOURCE California Association of REALTORS
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CONTACT:
Media, Mark Giberson of California
Association of REALTORS, +1- 213-739-8304, markg@car.org
