Who is Buying in 2019
Did You Know? None
Considering data gathered from closings and public filings, Realtor.com® has revealed some interesting facts that may be helpful if you are planning on buying or selling a property in the near future.
- One out of every 14 home purchases are now made by unmarried couples. Among first-time buyers, the proportion is nearly double that — 13 percent of all purchasers.
Who is Buying in 2019: Millennials
As would be expected the age group that is now most active in homebuying is the population born between 1981- 1996 and are currently aged 22-37 years old. The older of the millennials has started families, established jobs and are finally buying homes. The millennials strapped with huge educational debt have been slow to become active in the housing market.
Who is Buying in 2019: Single Women
Single women comprise the largest demographic of home buyers other than married couples. They are responsible for 17% of U.S. homebuying. Single men accounted for only 7%.
- Single women now account for nearly one-sixth (15 percent) of all home purchasers and one out of every seven repeat homebuyers. Combined with unmarried male buyers (9 percent), singles account for more than one out of every four (26 percent) purchasers.
Compared with married and unmarried couples, single women tend to have slightly lower household incomes on average and that tends to constrain what they can buy and where. As a result, according to researchers at NAR, they tend to favor condominiums and townhomes — newly built and resale. Aaron Drucker, an agent with realty firm Redfin in Miami who works extensively with single buyers, says their biggest hurdle “by far” is financing — qualifying for the loan on income and then coming up with the down payment and closing costs. Many of them, Drucker said, must look to parents and other relatives for gift funds to help out.
Because of controversial restrictions imposed by the Federal Housing Administration, many individual condo units today no longer can be financed using low down payment FHA loans. Instead, singles often must turn to the conventional marketplace — banks, Fannie Mae and Freddie Mac. Many of these lenders, Drucker says, now expect not only down payments of 20 percent to 25 percent on condos, but above-average credit scores — FICOs well into the 700s. NAR found that 95 percent of all single female buyers needed a mortgage to buy their homes and that it took them an average of 1.5 to 5 years to put together the needed funds. Yet, despite these hurdles, they are succeeding at twice the rate of single males and becoming a powerful presence in the home-purchase field.
Who is Buying in 2019: Hispanics
During 2017 Hispanic homebuyers accounted for 15% of homes sold in the U.S. Mostly in the states of Texas, Florida and California their influence in the housing market has recently been noted also in the states of Iowa, Kansas and Utah.
- Thirteen percent of buyers are shopping for houses that fit “multigenerational” needs, where grandparents, parents and grandchildren all either inhabit the same property or want to help finance the purchase. Among all home-owning households with a mortgage, 14 percent are multigenerational, including 17 percent of Asians, 20 percent of African Americans and 25 percent of Hispanics.
Know who is buying in 2019 and prepare and stage your home to appeal to today’s buyer. It’s key to a successful and quick sale.
For the latest, check out NAR.