We see, of first-time homebuyers in 2019, 32% depended on their inner circle for loans or gifts, according to the 2019 Profile of Home Buyers and Sellers, an annual report from the National Association of Realtors.
We also see that group effort even before anyone moves into their own place. 23% cohabited with family or friends to save on living expenses, and 4% of first-time homebuyers (FTH) had the foresight to build equity as roommates. About 25% of those FTH's utilized an FHA loan. Good job, guys.
The most important takeaway of the article before you? A third of all buyers in 2019 were first-timers—which even fell short of the historic average by 7%. According to the president of the NAR, and Castles Unlimited concurs, low supply is a key factor. Boston saw bidding wars galore as a result.
We're seeing scarcity in the housing market with regard to low-mid level housing, which is likely in response to the internet. With all we can learn, we're seeing some people hold onto property to feel safe, while some are taking advantage of the opportunity to scoop up as much real estate as possible-- like billionaires. if you have the money, buying up land to hold, or develop luxury/high-end housing, is the near obvious answer.
The NAR's annual report shows the average buyer was 57 years old, and profited $60,000 at sale. The average seller’s stayed in their home for about 10 years, 4 more than average, and moved into a newer, pricier home within 20 miles of their last.
89% of all sellers listed with a Realtor, and two thirds of them ranked their experience top notch.
“Today, repeat buyer behavior is more similar to first-time buyer behavior as tenure in home has increased,” says NAR's vice president of Demographics and Behavioral insights, Jessica Lautz. “All buyers are doing their homework—going to open houses, following housing news—and are more reliant than ever on the expert advice of real estate agents and brokers.”
Records Achieved in 2019
- 14% of all homes purchased were new—an all-time low.
- 8% of all homes bought were FSBOs, nearly the lowest on record.
- The standard first-time homebuyer was 33— the oldest on record.
- 17% of FTH's were unmarried couples—a higher-than-usual rate.
- The average non-first-time homebuyer's age was 55 years old, the same all-time high as 2018.
- 16% of sellers bought closer to family and friends.