ORLANDO – Two cohorts are finally emerging again after being missing-in-action from the home buying market: first-time buyers and single women.
.This is according to the National Association of Realtors annual Profile of Home Buyers and Sellers.
After slipping for three straight years, the share of sales to first-time home buyers in the 2016 survey ticked up to 35 percent, which is the highest since 2013 (38 percent) and a revival from the near 30-year low of 32 percent in 2015.
In the 35-year history of NAR’s survey, the long-term average of first-time buyer transactions is 40 percent.
Lawrence Yun, NAR chief economist, says more new homeowners were able to break through what continues to be a laborious market for many trying to enter. “Young adults are settling down and deciding to buy a home after what was likely a turbulent beginning to their adult life and career following the Great Recession,” he said.
The survey also revealed that single women made up more of the buyer pie than in recent years (based on household composition). After falling to 15 percent of buyers a year ago, which tied the lowest share since 2002, single females represented 17 percent of total purchases.
The survey was discussed in a press conference at the NAR annual convention last week.
The survey also found that for-sale-by-owner transactions remained at an all-time low of 8 percent for the second straight year. Nearly 90 percent of all respondents worked with a real estate agent to buy or sell a home.
Why is there a decline in for-sale-by-owner deals?
“People are uncertain about doing their own home selling,” Jessica Lautz of the NAR research department told reporters.
Nov. 7, 2016 Realty News Report Copyright 2016