LOCAL MARKET INTELLIGENCE PACKET SAN ANTONIO TEXAS BROUGHT TO YOU BY
ABOUT HOME SHOPPERS IN The following information will give you some valuable, data-supported, insights to better understand home shoppers in your market. The more you understand their needs, wants and perceptions of new homes vs. used homes, the better chance you will have shoppers preferring new and converting more leads to sales. THINGS YOU MUST KNOW ABOUT YOUR LOCAL HOME SHOPPER They are tired of their current home and looking for a fresh start USED LOCAL PREFERENCES FOR NEW VERSUS 45 % 28 % USED NEW TOP HOME PURCHASE CONSIDERATIONS Low Cost/Sq. Ft. Low Maintenance Costs (time & money) Safer Neighborhood More than 55% are interested in new Primary competition is used, not other builders 27 % INDIFFERENT Quality of Construction Energy efficiency Buyers aren t in a hurry. Shopping process is often >9mo ~75% will be using a realtor They do their homework. Online and mobile are critical tools in the search and education process THE HOME WAS BUILT IN 1984 OWNERS TEND TO STAY IN THEIR HOME FOR 17 YEARS SHOPPERS ARE 47 % MORE RECEPTIVE TO NEW HOMES VS. THE NATIONAL EXPECTED TIME UNTIL PURCHASE < 3 3 6 6 9 9 12 MONTHS MONTHS MONTHS MONTHS 1 % 5 % 13% 4 % TRIGGERS THAT START THE HOME SHOPPING PROCESS: Change of Job Favorable Home Prices Low Interest Rates thebdx.com 119 Ranch Road 62 N, Austin TX 7875-1345 213 Builders Digital Experience, Inc. All rights reserved.
OVERVIEW: REAL ESTATE PROFESSIONALS Your customers will use a real estate agent during the shopping process. It is so important for you to understand their perceptions good and bad of you (the builder) and how they believe new construction homes stack up versus used homes. With that insight you can increase the likelihood that the agent will recommend buying a newly built home to their client. 65 % OF AGENTS HAVE SOLD A NEW CONSTRUCTION HOME IN THE PAST 12MO. HAVE SOLD 3 OR MORE NEWLY BUILT HOMES. OF PROSPECTIVE BUYERS PLAN TO USE AN AGENT. PREFER SELLING NEW HOMES VS. SELLING USED OF AGENTS ARE UNLIKELY TO RECOMMEND NEW CONSTRUCTION TO THEIR CLIENTS IF NOT ASKED 39 % 75 % 83 % 13% REASONS FOR USING TOP 9 A REAL ESTATE AGENT WORKING WITH BUILDERS 1 2 3 4 5 6 7 9 8 Assistance navigating you through the purchase process Determine what comparable homes have sold/are selling for Find homes with your specifications Help negotiate terms and price Knowledge of market conditions Knowledge about the neighborhood Coordinate viewings/appointments Draft offers and contracts/ Handle paperwork References for inspectors, contractors, lawyers, mortgage brokers, etc. WHAT AGENTS LIKE No delays in receiving commission Earning same commission Requires less effort to sell a new home WHAT AGENTS DISLIKE Lack of sales training for agents/brokers I lose control of sale Builders don't answer buyers' construction questions thebdx.com 119 Ranch Road 62 N, Austin TX 7875-1345 213 Builders Digital Experience, Inc. All rights reserved.
DATA: DEMOGRAPHICS POPULATION BY SEX Divorced 14% MARITAL STATUS HOUSEHOLDS WITH CHILDREN HOUSEHOLD SIZE 2.99 Female 51% Male 49% Single 41% Married 45% No Children 52% Children 48% CHILDREN PER HOUSEHOLD 2.22 2,5 POPULATION BY AGE COHORTS 2, HOUSEHOLD INCOME DISTRIBUTION Population in Thousands 2,25 2, 1,75 1,5 1,25 1, 75 5 25 25 26 27 28 29 21 211 212 Age Range 65+ 45 64 25 44 2 24 5 19 4 Population 15, 1, 5, < $15k $15 25k $25 35k $35 5k $5 75k $75 1k $1 15k $15 25k $25 5k > $5k 85 TOTAL HOUSEHOLDS 5 NET MIGRATION 45 Households (Thousands) 8 75 7 Net Migration (Thousands) 4 35 3 25 2 15 65 1 5 6 25 26 27 28 29 21 211 212 25 26 27 28 29 21 211 212 $52k MEDIAN HOUSEHOLD INCOME Median Household Income 5k 48k 46k 44k 42k 4k 25 26 27 28 29 21 211 212 thebdx.com 119 Ranch Road 62 N, Austin TX 7875-1345 213 Builders Digital Experience, Inc. All rights reserved.
DATA: PROPERTY Median Home Price (Thousands) MEDIAN HOME PRICE & AFFORDABILITY 18k 16 14 12 1 8 6 4 2 Jan 24 Sept 24 May 25 Jan 26 Sept 26 May 27 Jan 28 Sept 28 May 29 Jan 21 Sept 21 May 211 Jan 212 Sept 212 25 2 15 1 5 Affordability Index Renter 36% TYPE OF TENURE Owner 64% FAIR MARKET RENT 1 Bedroom $688 2 Bedroom $864 3 Bedroom $1,13 4 Bedroom $1,242 Number of Homes 15, 125, 1, 75, 5, 25, HOME VALUE DISTRIBUTION Home Price IMPLIED MORTGAGE PAYMENTS < $2, $2, 4, $4, 6, $6, 8, $8, 1, Mortgage Payment < $81 $81 162 $162 243 $243 324 $324 45 < $2k $2 4k $4 6k $6 8k $8 1k $1 15k $15 2k $2 3k $3 4k $4 5k $5 75k $75 1,k > $1,k $1, 15, $15, 2, $2, 3, $45 68 $68 811 $811 1,216 75, HOME TYPE $3, 4, $4, 5, $5, 75, $1,216 1,621 $1,621 2,27 $2,27 3,4 Number of 5, 25, $75, 1,, > $1,, Median Home Price $132,99 $3,4 4,53 > $4,53 Median Mortgage Payment $446 Detached Single Unit Two 3 19 2 49 > 5 Trailer or Mobile Median Year Built Average Tenure (Years) 1984 16.7 Number of 16, 14, 12, 1, 8, 6, 4, 2, > 25 ESTIMATED HOUSING UNITS BY YEAR BUILT 2-4 199 99 198 89 197 79 196 69 195 59 194 49 < 1939 THE TRUTH ABOUT REMODELING: % OF DOLLARS SPENT THAT IS TYPICALLY RECOUPED UPON SALE OF HOUSE 81 % SAN ANTONIO TEXAS 68 % NATIONALLY thebdx.com 119 Ranch Road 62 N, Austin TX 7875-1345 213 Builders Digital Experience, Inc. All rights reserved.
NEW vs. USED The median price for a new home is $24,6 That s 39% higher than a used home THAT S 26 % SMALLER But that median used home has 24% fewer bathrooms and 66 fewer square feet When you adjust for size, the median price per square foot for new is only 16% higher than used. And to make the used home somewhat comparable, at least one major renovation is likely required But the median year built for existing homes in San Antonio is 198 THAT S 33 YEARS AGO At that age, the typical San Antonio used home costs 19% more to operate annually A kitchen remodel costs $49,496 $11,42 upscale Add $29 A new roof in San Antonio costs $15,62 $27,856 upscale Add at least $9 to that $/sqft A bathroom remodel costs $14,36 $47,97 upscale Add $8 If you have to invest in improvements to make a used home livable that cost $18,964 or more, the true cost per square foot of that used home is now higher than the new home! Finally, only 81% of the improvement value will be retained when you resell. thebdx.com 119 Ranch Road 62 N, Austin TX 7875-1345 213 Builders Digital Experience, Inc. All rights reserved.