June 23, 2021
By Saeed Ghaffari
Home Buyers’ Characteristics & Stats
- First-time buyers made up 33% of all home buyers, the same as last year.
- 52% of buyers 30 to 39 years and 88% of buyers 29 years and younger were first-time home buyers.
- 23% of buyers 40 to 54 years were also first-time home buyers.
- At 25%, buyers 30 to 39 continue to be the largest generational group of buyers with a median age of 34, followed by buyers 40 to 54 at 23% with a median age of 47.
- Buyers between the ages of 40 to 54 had the highest household incomes of any generation at $110,900 in 2018, followed by buyers between 30 to 39 that had a median income of $102,800.
- 61% of recent buyers were married couples, 17% were single females, 9% were single males, and 9% were unmarried couples. The highest percentage of single female buyers were found in the 65 to 73 age group at 22%. The highest share of unmarried couples were found in the 22 to 29 age group at 21%.
- 35% of all buyers had children under the age of 18 living at home. 61% of buyers between 30 to 39 years had at least one child under the age of 18 residing in the home.
- 12% of home buyers purchased a multi-generational home to take care of aging parents, because children over the age of 18 were moving back, and for cost savings.
- 18% of buyers aged 74 to 94 purchased a multi-generational home. Buyers 55 to 64 years comprised the second largest share at 16%.
- The 40 to 54 age group continues to be the most racially diverse group of buyers in 2019.
- 21% of this group of buyers identified as Hispanic / Latino, Black / African American, or Asian / Pacific Islander.
- The 30 to 39 age group was the most educated group, with 79% holding at least a bachelor’s degree or higher. The next most educated was the 22 to 29 age group.
- The most common reasons for recently purchasing a home differed between the generations. For all three groups under the age of 65 years, the main reason for purchasing was the desire to own a home of their own. Among the 63 and older age groups, the desire to be closer to friends and family was the top reason to purchase. Buyers between 74 and 94 years also purchased for the desire for a smaller home.
Source: National Association of Realtors 2020 Home Buyers and Sellers Generational Trend Report
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Should I Wait For Housing To Crash Further Before I Buy A House? 3 Reasons The End of 2022 Could Be The Very Best Time To Jump In
Prices falling in expensive cities
In two-thirds of major regional housing markets — 98 out of 148 — prices continue to drop, especially in more expensive locations.
We may see expensive markets fall further, which if that happens sooner than later, would make it an excellent time to buy into an expensive market. This wouldn’t have registered as a possibility even a few months back.
It’s difficult to predict if this will happen. And if so, whether falling prices become offset by the federal interest rate hikes practically certain to arrive in the coming months.
The only way to know for sure is to wait until the latest rate hike sets in.
Meanwhile, keep in mind that — as with any investment — it’s best time to buy is usually when prices are low.
With mortgage rates dropping and fee changes in the pipeline, now may be the time to buy that home Do you like this Article ? Sign up HERE for your FREE M&M Account to receive more Real Estate related information and news and THIS article. M&M Membership...
The days of waiving contingencies such as appraisals and forgoing inspections are fading into the rearview mirror. Still, contract activity remains slightly competitive depending on your location.
At least 24% of buyers waived the inspection contingency in December 2022, according to the National Association of Realtors confidence survey, up from 16% a month prior and 19% one year ago. An additional 24% of buyers waived an appraisal contingency in December, up slightly from 16% in November and 21% a year ago.
Home inspection contingencies are particularly important because it can let you know if there’s a deal-breaking issue with the property before a purchase occurs. It can also help you negotiate repairs with the seller, which is becoming increasingly common in today’s market.
“If buyers have this short window to buy where they can get incentives to purchase, [they] would rather buy where they have an opportunity to really think about it, get an inspection, a financing contingency and not feel rushed,” Jeff Reynolds, broker at Compass and founder of UrbanCondoSpaces.com, told Yahoo Finance.