With the red-hot housing market, your idea of the average home buyer has probably changed in recent years. Given the heavy competition and bidding wars that have been going on lately, you might think that anyone who can afford to buy a home right now must be nothing short of a millionaire. (Or they have a really rich, generous uncle.)
It might surprise you to know that although inventory is tight and prices are higher, home buyer statistics haven’t changed much in recent years. You don’t have to be extremely wealthy to own a home. And if you’re in your golden years, the time’s not up for you to get that dream house either.
Here are a few interesting facts about today’s average home buyers.
First-time buyers are increasing
Higher prices and limited inventory haven’t dissuaded first-time buyers from fulfilling their home-owning dreams. While 31% of buyers were purchasing a home for the first time last year, that number rose to 34% this year, according to a recent report by the National Association of Realtors.
Repeat buyers are getting older
This is one of the more surprising facts uncovered by the association. In 1981, the median age for repeat buyers was 36. Today it’s 55. One possible reason for this is that Americans are staying in their homes longer and children are moving back home after college, which pushes back downsizing plans. It could also be that people are living longer, working longer and having children later in life, so having a new home in the retirement years may seem appealing to more people.
They want to be close to family and friends
On the surface, this may not seem like a big shock. But what’s interesting is that convenience to family and friends was the second most important factor for buyers when choosing a neighborhood. It surpassed convenience to jobs and affordability, which buyers valued more last year.
Technology plays a major role
The internet is still king when it comes to buying a home. The association reports that 95% of all recent home buyers used online tools during their search process. Most buyers searched a median of eight homes over eight weeks and three of them were exclusively online.
Statista reports Zillow had 36 million views from January 2021 to October 2021. Zillow is just one of the sites used to look for homes—the report also includes Trulia, Yahoo Homes and more.
Most buyers use a real estate agent or broker
Even though technology plays a big role in the home-buying process, it hasn’t totally replaced human interaction. In fact, the NAR found that 87% of buyers recently used a real estate agent or broker to purchase their home. And 7% purchased directly from a builder or builder’s agent.
This statistic shouldn’t be too surprising given that it’s usually the seller and not the buyer who has to pay realtor fees. Not using an agent when buying a home typically won’t save a buyer any money.
A vast majority of buyers are satisfied with their agents
It seems that hiring an agent is more than worth it for buyers because the National Association of Realtors reports that 90% of them would use their agent again or recommend them to others. 73% of buyers only interviewed one agent before buying a home, so most are satisfied with their first pick.
Almost all of them are happy with the buying process
A homes.com survey found 2 in 5 people described buying a home for the first time as “the most stressful event in modern life.” Yet the National Association of Realtors report discovered that 94% of recent buyers were at least “somewhat satisfied” with their experience. Finding a home with a helpful real estate agent can make all the difference in your home search and buying experience.
Most buyers finance their homes
Few people have hundreds of thousands of dollars on hand to buy a home outright, which is why 87% of recent buyers had to finance their home purchase. However, even if you don’t have the money immediately available, that doesn’t mean you can’t still make a cash purchase for a home.
Want your offer to stand out? Get pre-approved for Homie Cash
If you’re tired of bidding wars and losing out to other buyers in this competitive market, your best chance of nabbing the home of your dreams is to make a cash offer. According to Redfin, cash offers quadruple your chances of a seller accepting your offer. And thanks to Homie Loans, almost anyone can make a cash offer in today’s market — yes, even you.
Homie Loans recently released Homie Cash, a program that levels your offer up to cash to help you win the house you want. Here’s how it works: When you qualify for the program, Homie will advance a cash loan you can use to purchase a home. After closing, you can refinance the loan into a long-term mortgage you can afford.
It’s time to stop bidding and start winning — get pre-approved for Homie Cash today and get ready to finally purchase the home you’ve been eyeing! For more information, visit homie.com/cash.