NAR’s 2016 Buyer and Seller Survey shows increased participation of single women and first-time buyers in real estate market
By Jesse Darland
First-time buyers and single women are two key demographics that have dropped out of the real estate market in recent years. This past year, they have reversed course and increased their participation in the market, just as the rate of home sales has increased in general.
This is according to the 2016 National Association of Realtors’ annual Profile of Home Buyers and Sellers. The survey, which dates back to 1981, is the longest-running series of national housing data evaluating the demographics, preferences, motivations, plans and experiences of recent home buyers and sellers. Respondents are owner-occupiers; the survey does not include investors or vacation homes
The share of sales to first-time home buyers had slipped for three straight years, but the most recent survey found that 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. The home ownership rate for 18 to 35 year-olds continues to hover near its historical low due to a lack of affordable inventory, home prices rising faster than wages in many markets and trouble saving for a down payment due to student loan date and rising rents.
Single women’s participation in the real estate market rose, representing 17 percent of all buyers. “Despite having a much lower income ($55,300) than single male buyers ($69,600), female buyers made up over double the amount of men (7 percent),” Lawrence Yun, chief economist with NAR, says. “With job growth holding steady and credit conditions becoming somewhat less stringent than in past years, the willingness and opportunity to buy is becoming more feasible for many single women.”
The study also showed that the two most popular resources for home buyers remain the internet (cited by 95 percent of respondents) and real estate agents.
Seller use of a real estate agent remains at an all-time high, with 89 percent using one to sell their home.
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