By Selina Stoller, Summit Consumer Receivables Acquisitions, LLC
The housing market in 2018 saw a tight inventory with prices skyrocketing.
That is a quick synopsis.
But after taking a closer look at home buyers and sellers in 2018, the National Association of Realtors unveiled five real estate trends:
Marriage Not Necessary
The portion of married home buyers hit the lowest point since 2010 at 63 percent. The decline in married couples buying homes could mean marriage is no longer a prerequisite to buying a home. Single females made up the second-largest buyer group at 18 percent, followed by singles males at 9 percent.
First-Time Homebuying is Tough
An especially low inventory of entry-level homes and rapid price increases stifled many first-time homebuyers. The ratio of first-time homebuyers fell to 33 percent, well below the historical norm of 40 percent. Many of these buyers moved directly from their parents’ homes giving them the ability to save up for a down payment because they are not paying rent or caught in a lease.
Older Repeat Buyers
Repeat buyers are getting older. Young baby boomers are healthier than previous generations at their age meaning they do not need to downsize or move to assisted living. Many boomers are purchasing multi-generational homes and taking care of their parents or children who are moving back home.
Student Loan Debt
College debt is a significant financial challenge for potential homebuyers. Almost a quarter of all buyers have a reported median education debt between of $28,000 and $30,000. This form of debt can be crippling with high monthly payments mixed with skyrocketing rent and rising home prices – many would be home buyers are having difficulty saving up for a down payment.
Homebuyers with children under the age of 18 reached the lowest point ever at 34 percent. These buyers may be willing to move to up-and-coming neighborhoods and are more likely to be content with a house that has less than three bedrooms, no recreation room, or even in a townhouse or condo. Instead of moving by a good school system, these buyers are more interested in how their homes work for their pets.
- 8 Nov, 2018
- Josh Smith