From floridarealtors.org
The quickening pace of home sales over the past year included a small rebound from two key segments of buyers missing in action in recent years: first-time buyers and single women.
The National Association of Realtors’ annual Profile of Home Buyers and Sellers also found that for-sale-by-owner transactions (FSBOs) hit an all-time low of 8 percent for the second straight year — almost 90 percent of all respondents worked with a real estate agent to buy or sell a home.
The survey’s results represent owner-occupants and do not include investors or vacation homes.
First-time buyers
After slipping for three straight years, the share of sales to first-time home buyers ticked up to 35 percent, the highest since 2013 (38 percent) and a revival from the near 30-year low of 32 percent in 2015. In the 35-year history of NAR’s survey, the long-term average is 40 percent.
“Young adults are settling down and deciding to buy a home after what was likely a turbulent beginning to their adult life and career following the Great Recession,” says Lawrence Yun, NAR chief economist. “Demand increased over the past year because of a robust job market for those with a college degree and renter fatigue at a time when homeowners continue to see their equity rise.”
Two out of three (67 percent) of first-time buyers said their top reason for buying was “a desire to own a home of their own,” up from 64 percent in 2015 and 53 percent in 2014.
“Even with the affordability challenges many buyers face, the allure of homeownership is not lost among the younger generation,” adds Yun. “Those under age 35 made up 61 percent of first-time buyer transactions.”
Single female buyers
Married couples once again made up the largest share of buyers (66 percent) and the highest income ($99,200).
However, the survey revealed that single women made up more of the buyer pie than in recent years (based on household composition).
After falling to 15 percent of buyers a year ago, which tied the lowest share since 2002, single females represented 17 percent of total purchases — the highest level since 2011 at 18 percent.
“Despite having a much lower income ($55,300) than single male buyers ($69,600), female buyers made up over double the amount of men (7 percent),” says Yun. “Single women for years have indicated a strong desire to own a home of their own, as well as an inclination to live closer to friends and family.
“With job growth holding steady and credit conditions becoming somewhat less stringent than in past years, the willingness and opportunity to buy is becoming more feasible for many single women,” he said.
The median age of first-time buyers in this year’s survey was 32, matching the high set in 2006 and up from 31 the past five years.
The typical first-time buyer had a higher household income ($72,000) than last year ($69,400) and purchased a slightly larger home (1,650-square-feet; 1,620-square-feet in 2015) that was more expensive ($182,500; $170,000 in 2015).
The typical repeat buyer was 52 years old (53 in 2015), earned $98,000 ($98,700 in 2015) and purchased a 2,000-square-foot home (2,020 square-feet in 2015) costing $250,000 ($246,400 in 2015).