The 2017 home buying season will be characterized by a large increase in first-time home buyers, with millennials leading the pack, according to findings from a consumer survey conducted by realtor.com. In its recently released Active Home Shopper Report, the official site of the National Association of Realtors cites increasing affordability issues among buyers and high demand for suburban homes as other characteristics that will shape this year's housing market.
Here are five significant findings from the realtor.com consumer survey:
1. First-time home buyers could make up over half of the 2017 home buyer population.
The 2017 home buying season is expected to have more first-time home buyers entering the market. According to the survey which was conducted in September 2016, 52 percent of prospective buyers looking to purchase in 2017 are first-time home buyers, compared to 33 percent in 2016. Millennials comprise 61 percent of these first-time home buyers. Top reasons cited by millennials for buying include getting married or moving in with a partner, growing tired of their current living space, and planning to increase family size.
2. Affordability and mortgage qualification are expected to be largest barriers to homeownership.
With more first-time home buyers entering the market, affordability and mortgage qualification issues may be the largest barriers to purchasing a home. In 2016, 40 percent of home buyers cited lack of inventory as the largest barrier to homeownership. Of first-time home buyers planning to purchase this spring, 37 percent indicated their largest impediment to homeownership is the down payment, while 30 percent said finding a house within their budget.
3. Safe neighborhoods, more living space, larger yards are key features for first-time home buyers.
Kay home features first-time home buyers cited are safety, more living space and larger yards. With marriage and family in mind, millennials are showing a strong preference for single-family homes (39 percent) or townhomes (34 percent) over multi-family homes (15 percent), condos (10 percent), or mobile homes (2 percent).
4. Competition for the suburbs is expected to heat up.
Fifty percent of all respondents chose the suburbs as their top location, though findings show younger home buyers more likely than their older counterparts to prefer urban living, the second most common location preference among millennials.
5. Spring and summer will continue to be the hottest times to buy a house.
Majority of survey respondents were beginning the housing search at the time of the survey and planned to purchase in seven months or longer, indicating spring and summer will continue as the top home buying seasons. Realtor.com found 73 percent of respondents had been considering homeownership for fewer than three months and did not expect to purchase a home immediately.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
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