November 23 2016
Long the bible of consumer data in residential real estate, NAR's venerable Profile of Home Buyers and Sellers now has competition.
With the 2016 Profile, which was released on Halloween and is based on a massive survey of both buyers who have participated in recent residential transactions, NAR celebrated 35 years of annual publication. When the Profile was launched in 1981, Ronald Reagan was inaugurated for his first term, "Raiders of the Lost Ark" opened in theaters and the median value of a home was $55,300. in recent years, the Profile has been the source of information that defines residential real estate today, such as these often-cited findings:
While the venerable NAR Profile set the standard for years as the "go to" source of consumer data, now it has a competitor with some different ideas about what measure and how to present its results. Just a a few weeks before NAR releases its 35th edition, Zillow introduced the first Zillow Group Report on Consumer Housing Trends.
The Zillow report differs in number of ways. It is based on surveys of more than three times as many consumers than the NAR study and includes rentals as sales. Its samples included not just recent but also long-term sellers, buyers, homeowners and renters. Its analysis and discussion of key findings was included a discussion of generational trends.
Here are two interesting findings that give a sense of how the Zillow study takes a generational approach:
Both the NAR and Zillow studies looked at the same issues and came up with different findings, which is to be expect in light of their different methodologies. Some examples of major differences:
Though using these and other findings from the two studies may complicate life a little for those who like to use simple, definitive numbers, the Zillow study is a valuable and welcome addition the library of quantifiable data available to the residential real estate industry. It's fresh approach will add depth to our understanding of consumer trends, while the NAR Profile will become even more valuable as a way to track changing behaviors over decades.
To view the original article, visit the WAV Group blog.