The National Association of Realtors completed their annual survey of recent home buyers and sellers in the 2017 Profile of Home Buyers and Sellers and shared some informative data about the current home buyer helpful for all lenders to understand today’s buyers. Here are a few of the highlights.
Characteristics of Home Buyers
- Typical buyer was 45 years old with a median household income of $88,800.
- 65% were married couples, 18% were single females, 7% were single males, and 8% unmarried couples.
- 18% are veterans and 3% active-duty service members.
- First-time home buyers made up 34% of all home buyers, down 1% from last year.
- The main reason they purchased a home was a desire to own a home of their own.
Characteristics of Homes Purchased
- Home prices increased slightly this year to a median of $235,000 among all buyers.
- Buyers typically purchased their homes for 98% of the asking price.
- Buyers of new homes made up 15% and buyers of previously owned homes made up 85%.
- Detached single-family homes were the most common home type purchased at 83%.
- Overall buyers expect to live in their homes for a median of 15 years, while 18% say they are never moving.
Financing the Home Purchase
- 88% of recent buyers financed their home purchase and typically financed 90% of that purchase.
- First-time home buyers typically financed 95% of their homes and repeat buyers financed 86%.
- For 59% of buyers, their down payment came from their savings, while 38% came from the sale of their previously owned residence.
- 43% of buyers saved for their down payment for six months or less.
- For 13% of buyers, the most difficult step was saving for a down payment. However of those who stated saving as a difficulty, 49% reported student loans made it difficult.
Most important, 83% of homebuyers reported a home purchase as a good investment. Encouraging to know as we move closer into heavier buying season that home buying is alive and well and despite bidding wars and a seller’s market, people still dream the American dream of owning their own home.