Houses are selling fast. Millennials are in their prime home-buying years. And there’s a severe drought in housing supply in much of the country. Those are some of the trends identified by the National Association of Realtors in its 2017 “Profile of Home Buyers and Sellers.”
Among the findings:
• The number of weeks on market dropped to an all-time low of 3 weeks;
• Age for first-time buyers remains flat, but the age of repeat buyers continues to climb—now at an all-time high of 54;
• Married couples continue at 3-year decline, while single females increased for the 3rd year;
• The median purchase price was $235,000.
Read the NAR’s full report here.
“The dreams of many aspiring first-time buyers were unfortunately dimmed over the past year by persistent inventory shortages, which undercut their ability to become homeowners,” said Lawrence Yun, NAR chief economist. “With the lower end of the market seeing the worst of the supply crunch, house hunters faced mounting odds in finding their first home. Multiple offers were a common occurrence, investors paying in cash had the upper hand, and prices kept climbing, which yanked homeownership out of reach for countless would-be buyers.”
There’s also the challenge of consumer debt – specifically in the form of student loans.
Here are the number: 41% of first-time buyers indicated they have student debt (40 % in 2016). The typical debt balance also increased ($29,000 from $26,000 in 2016), and over half owe at least $25,000. Additionally, of the 25% who said saving for a down payment was the most difficult task in the buying process, 55% said student debt delayed saving for their home purchase.