WHAT FIRST TIME BUYERS WANT
According to organizations like NAR (the National Association of Realtors) and Zillow, first time buyers are far from dead. In fact, an online survey by Zillow attributed 47% of home sale over the past year to first time buyers. This figure helps explain the lack of inventory in the housing market; first time buyers don’t have a property to sell, so while they are flocking to buy, there aren’t enough home available for the total number of buyers, keeping home prices strong for sellers, but leaving some buyers searching longer than they expected, and making multiple offers before clinching a deal.
So who are all these first timers, you ask? If you are a seller, chances are first time buyers are viewing your listing, and it’s worth knowing who they are and what motivates them to buy. If you are in the market to buy a home, learning more about the “typical” first time buyer may give you an edge over the competition.
- Median age is 33
- Large percentage of first time buyer’s are couples in their thirties
- More likely to be college educated (62% of buyers overall have at least a 4 year college degree)
- 17% of millennial homebuyers are Hispanic
- Just 66% of millennial homebuyers are white; future generations of homeowners will likely continue to increase in diversity
- At a median purchase price of $217k and median square footage of 1800, millennials are bypassing smaller starter homes and purchasing next level homes once reserved for “buy up” shoppers looking to expand on space and amenities
- According to Zillow’s information, just 1/4 of millennial homeowners are city dwellers; a whopping 47% choose to live in the suburbs, proving that suburban living, despite rumors to the contrary, is just as popular with up and coming millennials as prior generations
Whether you are a swinging single, married with 2.5 kids, thinking about retirement or hoping to upsize, downsize or rightsize your digs, it pays to be informed and to have an experienced professional by your side to help you navigate the real estate marketplace. Give me a buzz to let me know how I can help.
The Meyers Group