Is there a right age to buy your first home? Recent Survey Gives a Profile of Home Buyers
For most people, the purchase of a home is one of the largest financial transactions in the course of their life. Buyers buy a house because of changes in family circumstances, the need for a smaller or larger living area, and also because of a change in employment.
So, who are now the buyers of today? An annual survey by the National Association of Realtors provides information on the latest buyers and sellers and insight into the experience associated with this important transaction. In this article are highlights from the current report.
Everyone has dreams and desires that would make them happy, and living in a house they own is an aspiration shared by many. A good step would be to create a bucket list - a list of goals, desires, and dreams. People holding the keys to their first property are on average 32 years old, earn on average $72,000 a year and live in a three-person household. The share of first-time buyers shifted to 35 per cent in 2016. This is the highest figure since 2013 (38%) and it is at the same time a year-on-year recovery of only 32% in 2015. The long-term average of the first-buyers is 40%. Young adults opted for a house and that is probably a turbulent beginning of their adult life and career. Due to a robust labor market, last year's demand rose for those with a college degree, where homeowners see a capital increase in house purchase, which is why more first-time buyers (67%) made the leap to buy their own houses. This was the main reason for their purchase (64% in 2015, 53% in 2014).
Although the increase in new homeowners is encouraging, the overall share of young buyers in the market is still below average. House prices in many markets are far above wages, there's a lack of affordable new housing, and there's difficulty in saving a deposit because of rising rents and the debts of the students are the reasons why the home ownership rate of the 18 up to 35 years old is at its historical low. Everything depends heavily on improving the supply of the market, and when wages can finally awaken from the slow growth momentum, many more young people would be able to afford a house.
The age of first-time buyers is on the rise
Married couples accounted for the largest share of buyers (66%) and also had the highest income (an average of 99,200 dollars). However, the survey revealed surprisingly that single women have retreated by 17% more than in previous years. The typical buyer was an average of 52 years old (53 in 2015) and earned about 98,000 US dollars (98,700 US dollars in 2015). He acquired a 2,000 square foot house (2,020 square feet in 2015) for 250,000 US dollars (246,400 US dollars in 2015).
To ensure that their own home will not be only a dream, home buyers should examine their financial possibilities closely.