In 2016, the share of first-time home buyers was 35 percent,a three-point increase over last year’s 32 percent. This figure gravitates back towards the historical norm at 40 percent of the market. The median household income of buyers increased again this year, likely due to a nationwide increase in home prices caused by a lack of housing inventory. Married and unmarried couples have double the buying power of single home buyers, and may be better able to meet the price increases of this housing market.
Tightened inventory is affecting the home search process of buyers. Due to suppressed inventory levels in many areas of the country, buyers are typically purchasing more expensive homes as prices increase. The number of weeks a buyer is searching for a home remained at 10 weeks. Buyers continue to report the most difficult task for them in the home buying process is simply finding the right home to purchase.
Tenure in the home has returned to a peak of 10 years again this year. Historically, tenure in the home has been six to seven years. Sellers may now have the equity and buyer demand to sell their home after stalling or delaying their home sale but may be facing reduced affordability to buy a new home.
Buyers need the help of a real estate professional to help them find the right home for them, negotiate terms of sale, and help with price negotiations. Sellers, as well, turn to professionals to help market their home to potential buyers, sell within a specific timeframe, and price their home competitively. For-sale-by-owner sales have dropped to the lowest level recorded in this data set at eight percent of sales again this year, while the use of the agent to sell the home stays at historic highs.Likewise, the buyer's use of the agent is at historic highs as buyers purchasing directly from a previous owner or through a builder falls.
Author:KC Cormack Phone: 415-690-3346 Dated: November 4th 2016 Views: 414 About KC: Originally from Southern California, KC moved to San Francisco in 1990. After entering the real esta...
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