The Age of Buyers is Soaring, But One Group Surpasses Them AllReturn to Blog
One of the all the more captivating patterns from the ongoing 2019 Profile of Home Buyers and Sellers is the rising age demographics of home purchasers. In general, purchasers' ages have hopped from the middle of 31 in 1981 to 47 in 2019. While numerous aspects contribute to the rising age of first-time purchasers, a housing desert with the lack of affordable entry-level properties seems to play a major role.
From 1981 to 2018, the age gap of first-time purchasers was pretty close, a level line that staggered somewhere in the range of 28 and 32. The main expansion outside of this was in 2019 when it marginally expanded to the middle age of 33. Not a colossal change, yet enough to know there are different components influencing everything. First-time purchasers are confronting various obstacles to enter homeownership. Many experience issues putting something aside for a downpayment with rising home costs, rising rental expenses, and getting their debt-to-income ratio under control with student loan debt. First-time purchasers additionally face a housing desert with the absence of reasonably priced properties. First-time purchasers who do enter the market regularly defeat these obstacles with family help, for example, downpayment help, or the capacity to move straightforwardly from living with parents into homeownership.
The number that has changed drastically since 1981 is the ascent in the age demographic of repeat purchasers. Repeat purchasers were a middle-age of 36 out of 1981, and are presently at 55. This steady trip can be credited to various elements. Many are remaining in their homes for longer timeframes either because they need to or because they needed to, as their house was worth less than their home loan after the Great Recession. Occupancy holding a home expanded from six to seven years and is presently at 10 years. Additionally, Americans are living and working longer, so moving and buying another home, even with a home loan, is a pattern many feel good doing past the conventional retirement age. As Americans are having kids further down the road, numerous life choices get drove further into what's to come. Working and helping a young adult through school presently takes a point of reference over downsizing. Numerous parents are staying in their family home as young adults move back after graduating.
Presently numerous property holders are experiencing a positive home equity situation, as home costs have risen and they are making the transition to a home that meets their family's necessities better. Some are moving to be close to loved ones, others to a bigger home and some to a more affluent neighborhood. Sellers who were holding back, are at last able to break and make that move. Repeat purchasers can secure the same low-interest rates they likely have on their current home, another factor that may have deferred their move before. It is worth noting that these home purchasers who are at the middle-age of 55 plan on staying in their homes for 15 to 20 years, and many are never planning to move. If that holds, that is yet to be seen.
If you are interested in buying or selling a property in the Bay Area, feel free to schedule a call at your convenience with our realty expert Darryl Glass below: