The characteristics and actions of first-time homebuyers have changed. A study by Zillow shows that those taking their first step on the home ownership ladder are likely to be older than first-time buyers would have been in the 70s and 80s; they are also more likely to be single. Americans are renting for an average of six years before buying their first homes. In the 1970s, they rented for an average of 2.6 years. First-time buyers are also spending a bigger chunk of their incomes to buy; in the 1970’s they bought homes that cost about 1.7 times their annual income whereas now they're buying homes that cost 2.6 times their annual income.
The average first-time homebuyer is about 33 with a median income of $54,340, which is about the same as what first-time homebuyers made in the 1970s, when adjusted for inflation. In the late 1980s, 52 percent of first-time homebuyers were married compared with 40 per cent today. Source: Mortgage Bankers Association
Sales of newly built single-family homes increased nearly 6 percent in August, reaching a seasonally adjusted annual rate of 552,000 units, the Commerce Department reported. That is the best monthly figure in new-home sales since February 2008. However, the number does still remain far off from the 706,000 unit-pace that is considered the 30-year historic average in new-home sales. "We continue to hear from our members that more serious home buyers are returning to the market," says Tom Woods, chairman of the National Association of Home Builders. "Builders are gradually adding inventory to meet future demand as they handle shortages of lots and labor."
Overall, the inventory of new homes for-sale reached 216,000 units in August, a 4.7-month supply at the current sales pace. "This report indicates the release of pent-up housing demand as the overall economy strengthens, consumer confidence grows and interest rates remain low," says David Crowe, NAHB's chief economist. "The housing market should continue to move forward at a modest but more persistent pace throughout the rest of 2015." Source: CNN
Author:Keith Judish Phone: 623-224-7956 Dated: October 13th 2015 Views: 697 About Keith: O'Keith Judish licensed REALTOR® with Realty ONE Group serving the West Valley and Phoenix Metrople...
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Owning a home has great financial benefits, yet many continue to rent!
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