A Decade of Dramatic Developments

At the beginning of the 21st century, most home buyers had never viewed a home online; the three top home sale marketing methods were yard signs, newspaper ads, and open houses; and nearly nine out of 10 buyers financed their purchase with a fixed-rate, 30-year mortgage.

What a difference a decade makes

“The real estate industry has seen tremendous change and evolution over the past decade,” said NATIONAL ASSOCIATION OF REALTORS® President Vicki Cox Golder, owner of Vicki L. Cox & Associates in Tucson, Ariz. “As the first, best source for real estate information, REALTORS® have not only anticipated and adapted to the evolving needs of their clients and customers, but also have influenced industry trends and innovations that will carry us into the future.”

In 1999, buyers who went online in search for a home were in the minority – only 37 percent of buyers used the Internet in their home search, according to data from the NAR Profile of Home Buyers and Sellers. Today, 90 percent of buyers are searching online, and the real estate industry has responded. Sites like REALTOR.com, which attracts nearly 12 million total visits every month, have evolved to gives today’s buyers what they want – not just property listings, but multiple photos, online videos, mapping features, and comprehensive neighborhood information, as well.

Median home values over the past decade have increased more than 25 percent, from $137,600 in November 1999 to $172,600 in November 2009 (the most recent existing-home data available). Fewer people are buying detached, single family homes – 82 percent in 1999 compared to 78 percent in 2009 – but more people are buying homes in suburban neighborhoods – 46 percent in 1999 compared to 54 percent today.

Buyers themselves have also changed. A smaller proportion of married couples are buying homes these days; while married couples comprised 68 percent of all home purchases at the beginning of this century, they represent 60 percent of all buyers today. Single men and women have made up the difference – single men purchased 10 percent of all homes last year, compared to only 7 percent 10 years ago. Single women now represent more than one-fifth of all home buyers – 21 percent, up from 15 percent in 1999.

Other things haven’t changed. The median age for home buyers last year was 39, just as it was in 1999. Neighborhood quality, affordability, and convenience to work and school have consistently been top priorities for both past and present buyers. And eight out of 10 recently surveyed consumers believe that owning a home is an investment in their future.

“REALTORS® have been around for more than 100 years, but one constant during that time has been the persistence of homeownership as the American Dream,” said Golder. “As the first decade of this century comes to a close, NAR stands ready to meet the many challenges and opportunities that lie ahead by helping our REALTORS® members better serve their clients and communities and ensuring that those dreams of homeownership remain possible for all who want to achieve it.”

Source: National Association of Realtors

10 Strategies For Significant Savings For 2010

1) Pick a friendlier credit card

“Being on the wrong card can cost people thousands more a year in interest rates and fees,” says Schwark Satyavolu, a co-founder of comparison tool BillShrink.com. “Even if you pay off the balance in full each month, you could be leaving hundreds of dollars on the table in rewards.” Terms and conditions are changing rapidly as banks add fees and jack up interest rates in preparation for the new federal regulations that go into effect on Feb. 22. After that date, compare your options using a site like BillShrink.com or CardRatings.com to make sure you have the best card for your financial situation and spending habits.

2) Track your cash
Shoppers can’t account for an average $21 spent each week, according to a September survey by Visa (V). Tallied up, that’s $1,092 per year in mystery purchases. Sign up for a free financial management site like Mint.com or Wesabe.com, which sync with your bank accounts to automatically sort and track purchases. You can also set budgets for individual categories, and receive email or text alerts when your spending nears that pre-set limit.

3) Join loyalty clubs
Retailers offer benefits in loyalty programs, knowing that most customers are apt to forget their cards or otherwise miss out on perks, says Larry Chiagouris, a marketing professor at Pace University in New York City. Don’t make that mistake: Keep cards in your wallet or on a key-ring, or add the account numbers to your smartphone. Loyalty programs can cover varied purchases, including books, movie theater excursions, restaurant meals and even flu shots.

4) Hunt for coupon codes
The marketing strategy of offering coupon codes to cement customer loyalty is increasingly popular with retailers. Take advantage. Step 1: Type a retailer’s name and “code” into Google. Step 2: Use the results to save significantly on your in-store and online purchases.

5) Shop the grocery sales circular
Though many products on circulars only come up on sale once every 10 to 12 weeks, by shopping smart, you can still cut your bill by more than 50% with a combination of coupons, weekly grocery store sales and store rebates. “They’ll practically pay you to take that bag of potato chips out of the store,” says Cindy Chapman, a spokeswoman for social networking site MomsLikeMe.com.

6) Pay cash
Buy-now-pay-later of credit cards sound friendly, but are designed to entice you to spend more. A 2008 study by researchers at the University of Toronto and the Federal Reserve Bank of Kansas City found that the opportunity to earn rewards led more consumers to pay by credit, even if they were already carrying a balance. Instead, flash bills. It will keep you in check and might also lead to discounts on everything from health care to jewelry to gasoline.

7) Reassess your phone plan
Carriers constantly offer new plans and promotions -- which may mean a better deal than your current selection. Use tools at LetsTalk.com and BillShrink.com to compare available options against your current plan. Infrequent talkers (fewer than 200 minutes a month) may save more in the long run by paying an early-termination fee and switching to prepaid service.

8) Cut spending on pets
The fuzziest members of your family need to adhere to the household budget, too. In 2008, pet owners spent an average $670 per dog and $447 per cat on vet care, food, grooming, treats and toys, according to the American Pet Products Association. Pay less by shopping around. Petco offers its signature plush dog toy for $5.97, while Wal-Mart has a three-pack of a similar toy for $7 -- roughly $2.33 apiece.

9) Haggle
“When times get tough, consumers have to get aggressive,” says Scott Testa, an assistant professor of business administration at Cabrini College in Radnor, Pa. “On a high-priced item, you’re crazy if you don’t haggle.” It doesn’t take a hard-line negotiation in most cases, either – you just have to ask if there’s any chance for a better price, he says. For example, 68% of landlords said they would lower rents or give a month or more free to retain tenants, according to a recent Rent.com survey. Collective buying groups like Groupon.com serve as haggling on training wheels, offering prenegotiated discounts if a certain number of shoppers buy in.

10) Seal up your home
Don't let the air you're paying to warm in the winter and cool in the summer escape through cracks around windows, doors, electrical outlets and other places. Enough sealing products like caulk and weather-stripping to block drafts would set you back just $25 to $50. In return, you’ll see your home’s energy efficiency improve by up to 20%, according to the Environmental Protection Agency. For the average household, that could amount to more than $400 annually.