An estimated 20,000 Realtors converged in San Francisco Nov. 8-11 for the National Association of Realtors 2019 Conference & Expo. The conference is largest annual event for the most successful real estate professionals coming from all 50 states, several U.S. territories and more than 60 countries.
At one of the sessions, NAR president Smaby and vice president of demographics and behavioral insights Jessica Lautz, unveiled data from the association's "2019 Profile of Home Buyers and Sellers." The yearly report covers demographics, preferences and experiences of buyers and sellers across America.
The report disclosed the share of first-time homebuyers remained at 33 percent in 2019, below the historical norm of 40 percent. A third of first-time homebuyers received down payment help from family and friends.
"Prerecession, the number of first-time buyers was higher, in part, because buyers had more options," said Smaby. "However, over the past few years, we have unfortunately experienced a scarcity in housing inventory, especially at the middle- and lower-end of the market.
According to NAR chief economist Lawrence Yun, "Low inventory conditions hurt would-be first-time buyers most. Their homeownership dream and the opportunity to build wealth gets delayed until more inventory choices reach the market."
Twenty-three percent of first-time buyers moved from a family or friend's residence directly into the home they purchased. This shows homebuyers are finding ways to save for a down payment while saving on market value rent.
The median age for first-time buyers increased to 33 years old in 2019, the highest share recorded in the series history. The age of repeat buyers has steadily increased over the course of several decades, from the mid-30s in the 1980s to the mid-50s today.
The survey revealed 35 percent of all buyers had children under the age of 18 living at home, an increase from 34 percent last year, but a drop from a high of 58 percent in 1985. Twelve percent of homebuyers purchased a multi-generational home, which consists of a home with adult siblings, adult children over the age of 18 and parents or grandparents - or both - within the same household.
Respondents gave varying reasons for buying multi-generational homes, including to accommodate aging parents (44%) and to accommodate adult children in the home (34%). Another 29 percent referenced cost savings as a reason.
"Today, repeat buyer behavior is more similar to first-time buyer behavior as tenure in home has increased," said 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."
Buyers said what they wanted most from their agent was help in finding the right home to purchase. Buyers were also looking for assistance in negotiating the terms of sale and help with price negotiations. Homebuyers reported they typically interviewed only one real estate agent before deciding to work with them and said the most important factor was that the agent was honest and trustworthy.
Alan Barbic, president of the Silicon Valley Association of Realtors, adds, "The survey shows buyers are adjusting to the current housing market. They are getting creative with ways to save for a down payment and saving on rent by living with family or rooming with others. What hasn't changed is their need for expert advice from a Realtor to help them navigate the transaction from the time they start looking for a home to making an offer through negotiation and to the close of escrow."
Officially representing SILVAR along with Barbic at the NAR conference were president-elect Mary Kay Groth, NAR director Leannah Hunt, Global Business Council chair and 2020 president-elect Joanne Fraser and executive officer Paul Cardus.
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.
For further information, please email or call the SILVAR office at (408) 200-0100.