Today’s Real Estate Buyers

Today’s buyers are young, multicultural, tech-savvy, and eager to buy a home as a personal investment, according to the National Association of Realtors.

Here are a few key themes that emerged from NAR’s annual survey of recent home buyers.

  1. Buyers      prefer their own agents. The internet hasn’t replaced real estate      professionals. Eighty-nine percent of buyers say they hired their own      agent to purchase a home.
  2. Ages and      unmarried buyers are on the rise. Young adults ages 25 to 34 make up a quarter of all      home buyers, the largest share. Meanwhile, first-time buyers are getting      older: The median age rose to 33—the highest on record per the NAR. The      median age of first-time buyers in 1981 was 29. While most people who buy      together still wait for marriage, unmarried buyers make up a growing share      of the market, 9% compared with 8% a year ago. Married buyers made up 61%      of the market. That’s down from 73% in 1981. Single female buyers made up      17% of the market, while the share of single male buyers was 9%.
  3. Saving for a      down payment. More than a quarter of buyers—28%—say they delayed      their home purchase because of debt. The median amount of time homeowners      spent saving for a down payment was four years, according to NAR’s survey.      Many buyers cited saving for a down payment as the most difficult step in      the homebuying process, indicating that student loans, credit card debt,      and car loans diminished their purchasing power. The median down payment      on a home purchase is 12% for all buyers. Broken out, the median down      payment is 6% for first-time buyers and 16% for repeat buyers, according      the report.

Todd Probasco is the Vice President of Mortgage Lending at Lakeside Bank. He can be reached at 708.205.2983 or Today.

Join my newsletter.

Get my housing market updates directly to your inbox.