Think you understand first-time homebuyers? Think again.
Both sellers and buyers can benefit from knowing some interesting facts about the majority of first-time homebuyers. Not everyone follows the same path, but it’s helpful to know about the average American homeowner. Whether you’re a seller looking to hone in on your potential audience or you’re a buyer deciding what steps to take, there’s something enlightening here for everyone.
How Old are Most Homebuyers?
You might be wondering when most Americans take the leap into buying real estate. According to the National Association of Realtors
, it’s 32 years old. If you’re trying to find a rough target for the majority of homeowners, this survey can give you an idea. This can also stand as a marker in the life of a potential homebuyer.
Who Makes Up this Majority?
Not surprisingly, the largest share of homebuyers are married couples. Comprising 65% of the first-time purchasing bracket, couples are usually looking to settle down and find a place to raise a family.
The second most common first-time homebuyers are single females. Single females make up close to 18% and purchase significantly more expensive houses than single male buyers. Single males comprise 7% of first-time-buyers while unmarried couples make up 11%.
What are First-Time Buyers Purchasing?
The most popular type of home purchased is a single-family home in a suburban location. Standing strong at 85% of the purchases made this year, this is definitely the most common decision across the nation’s group of first-time homebuyers. Multi-family homes, townhomes, and condos only make up 11% of overall sales to first-time buyers this year. The locations of choice are suburbs, small towns, and rural areas. Only 13% of buyers choose real estate in urban areas.
How Do First-Time Homebuyers Shop for Real Estate?
When browsing home options for sale, it may come as no surprise that the most popular outlet is the internet. The second-most common option for property shopping is with a real estate agent. Both of these sources end up culminating with the final purchase being through an agent, as even buyers who make the purchase online still consult agents for professional help on closing the final deal.
What is the Mortgage Process like for First-Time Buyers?
Good news for potential buyers: it’s reported that most first-time homebuyers are able to obtain mortgages smoothly. Due to the easing up of credit standards and the improving financial situation of borrowers, the process is usually reportedly quick and easy. 58% of first-time buyers have been financed with a conventional mortgage, and obtaining this loan did not take excessive time or difficulty.
If you’re an interested buyer or seller
or have any additional questions, don’t hesitate to contact us