There are several trends we have seen emerge since COVID. The following are a few trends to watch for in the real estate market this year:
- not as many first-time buyers.
Historically, first-time buyers make up 40 percent of the home-buying market. However, in the past year, we have seen the first-time buyer share of the market drop to 26 percent. A great part of this fall in first-time buyers is housing affordability due to the rise in interest rates and home prices.
- Affording a home is taking longer.
First-time homebuyers’ average age has risen to 36, a new record high. There are so many other costs for them to pay that they cannot save enough for a down payment later in life than past buyers. Higher rental costs, car loans, credit card debt, and student debt were factors that delayed their entrance into homeownership.
- Buyers are moving further away.
The median distance purchasers moved from their previous homes reached an all-time high of 50 miles. Prior to this, the median distance moved had been between 10 and 15 miles.
- Move-up buyers can bring cash.
All-cash repeat buyers jumped to 27 percent of the market over the past year, up from 17 percent in the previous year. Homeowners have had more home equity this past decade than for many years before. This has allowed many to avoid holding a mortgage on their property.
- The racial gap remains.
Recent reports about spiking homeownership rates among black, Latino, and Asian households The National Realtors Association (NRA) data, which looks at each group’s share of homebuying activity, shows a mixed bag. The share of white and Hispanic-Latino buyers increased over the past year, while the share of black, Asian American, and Pacific Islander buyers decreased.
Keep in mind that whether you are interested in buying or selling a home, a Realtor should represent you. This person is working for your benefit and will help you navigate through the buying or selling process. We have celebrated selling both new and resale homes for over thirty years.
We are here to answer any questions you might have; just email Jennifer at email@example.com.
Thanks, and make it a terrific day. The Smith King Team