New-home sales account for less than 7% of all US home sales in 2013, significantly below historic level of 16%-17%; 90% of people visiting new homes looking to buy, consumers looking to buy bigger homes with large rooms, finds study
November 14, 2013
– Consumer Research Firm iHave5Questions Explains Recent Influencers on Buyers
New home sales represent under 7% of all homes sold this year – a figure significantly below historic levels of 16-17% newly-built. Despite that low number, consumer research company, iHave5Questions, says that now more than ever homebuilders need to listen to what new home shoppers are saying. That's because their latest research of 67,000 new home shoppers surveyed in 150 cities across the nation reveals that 90% of people visiting new homes today are actually on a mission to buy. This makes the motivators behind their purchase decision all the more important to understand.
Today, iHave5Questions releases their 2013 Homeshoppers' Survey, which presents aggregated consumer research results that delve into buying patterns including international buyers, age-qualified and multi-generational housing trends, condo conversion and luxury rental predictions as well as other basic consumer demands in home function and design.
"Our research shows buyers gravitating to builders based on brand loyalty," said David Harding, chief research officer of iHave5Questions. "This is a surprising primary motivator as it has grown 5 times since last year's report. Brands that garner this support do not necessarily build the highest cost homes. Consumers are saying that great brand loyalty is possible at every price of a new home."
This information is crucial for homebuilders as they look to draw in new buyers and perhaps change their traditional approach of leading with location, neighborhood size and amenities. In age-targeted communities especially, over 20% are primarily motivated to purchase because of a builder's brand and reputation, but are told more about the pools and the views. Consumers seldom care. These findings present homebuilders the ability to focus their efforts into areas considered important by their consumers.
In addition to their direct consumer research, iHave5Questions has dug deep into homebuilding industry reports to pinpoint compelling trends. These trends have a definite impact on the way that homebuilders plan for new potential buyers and broaden their understanding of market potential – especially as it relates to the international new homebuyer. Key findings show that nationwide average sales price per owner-occupied residential breaks down as follows:
"Homebuilders have long focused on buyers from China," says Harding. "With this data, there is a huge opportunity to attract buyers from India – the world's largest democracy with an economy that is growing at twice the American clip and with buyers who cite California as their favorite state and greater Los Angeles as their top city to own a home and live in America. The growing entrepreneur and middle class, from a country soon to be the world's most populous, can be a gold mine to those ready to properly serve this segment."
iHave5Questions is a consumer research company that specializes in quick, conversational lines of questioning designed to reveal accurate and immediately-useable results to clients. Homebuilders are able to gauge consumer reaction in real time, even while home shoppers are still at the models.
Additional findings from the 2013 Homeshoppers' Survey include:
Because of the quick and accurate consumer data and feedback, iHave5Questions is delivering a powerful new tool to new homebuilders who typically rely upon consumer research that is 4 or more years old – half the duration of a typical business cycle. By having this information so quickly at their fingertips, they can plan more efficiently and more importantly, be relevant to the ever-changing demands and interests of new home shoppers.
The findings from the report were revealed on Thursday, November 14, 2013 at the fourth annual iHave5Questions Coffee Symposium where a select group of opinion leaders and lead marketers in the new homebuilding industry received the critical data about new home buying trends. The event was presented in conjunction with Kovach Marketing and KTGY Group, Inc., Architecture + Planning.
California-based iHave5Qs is a mobile market research program. It uncovers consumer motivations, attitudes and trends in industries including housing, health, sports, supermarkets, and automotive in geographic locations from California to Maryland, Utah to Texas and from British Columbia to Guandong, Province China.
A bench of experts crafts questions customized to solve each client's burning issues. This person-to-person approach garners some of the industry's highest capture ratios. Its proprietary, real-time download of results allow clients to respond to today's consumers...today and in real time. Visit www.iHave5QsCoffee.com for more information.