The National Association of Realtors just came out with their Annual Profile of Buyers and Sellers. This is a study they do each year that tells us lots of statistics about who is buying and selling homes, and what kinds of homes they are choosing. The report details several trends that are a little worrying for my generation (the millennials) but also important for me to understand as your agent!
The first statistic that caught my attention is that the average age of all homebuyers rose to the highest number ever, 56 years old. They also broke these numbers down for first time buyers (38 years old) and repeat buyers (61 years old). Why does this matter? Owning real estate is one of the best and safest ways to build wealth over a lifetime. If the average person is unable to purchase a home until age 38, they are missing out on years of equity building opportunity. Furthermore, if they have a 30 year mortgage and are not able to pay it off early, they could be paying their home off well into retirement (if they are able to retire at all, another article for another day!). In 2010, the average first time buyer age was 30, so today's millennials are missing out on almost a decade of equity.
Another interesting statistic from the study was how people were purchasing their homes. Although cash purchases reached an all time high, making up 26% of all home purchases, this number was only 9% for first time buyers. In addition to housing becoming increasingly unaffordable, first time buyers are competing with cash buyers more than ever.
While this does seem pretty daunting, especially if you're around my age and trying to buy your first home, it's not all hopeless! With the help of a great agent and loan officer team, you can definitely fulfill your goals of home ownership. If you've been on the fence about buying a home, make it your new years resolution this year! Call me to make it happen!
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