According to our last article, “Next Year’s Perspectives on Housing,” 2017 is going to be full of home buying opportunities. Mortgage rates remain lower than the previous decade, homebuilder confidence is high, and home buyer sentiment has stayed strong. One element of the housing market, however, has drastically changed within the past year: the nation’s homebuyers. Not only is the demographic of buyers shifting, but also are their home buying concerns and priorities. Let’s take a closer look at what you need to know about today’s homebuyer.

1. First-time homebuyers now dominate the market: Last year, half of the nation’s homebuyers were under the age of 36 and purchasing a home for the first time. These numbers are only expected to increase throughout 2017, as more millennial homebuyers enter the housing market. With this demographic shift, it’s essential that real estate agents understand what housing features millennials evaluate most when considering a home. The full list is provided here.
2. The majority of today’s homebuyers want to skip the “starter home”: 75 percent of today’s homebuyers would rather purchase a home that meets their future needs, rather than save on monthly payments and buy a nicer house at a later date. Of these homebuyers, 95 percent are willing to sacrifice luxury payments, such as new clothes and travel, in order to make this a reality.
3. Home buyer credit is not a huge concern: About a quarter of potential homebuyers fall within the “fair” category of credit scores. While this was previously a big roadblock for many hopeful buyers, credit has dropped in this year’s report of home buying concerns. In fact, with mortgage lenders lowering their required credit scores and down payments, buying a home has become a possibility for a much wider audience.
4. Home buyers begin researching the housing market up to one year in advance: This means that today’s homebuyer is careful and cautious. Most spend their time researching their loan options and eligibility for various mortgage programs before even looking into real estate options.
5. The two most popular considerations when buying a home are cost and neighborhood: In a recent survey, 82 percent of respondents reported cost as the most important factor when considering a home. As such, the current home price requested is now between $150,000 and $200,000 – especially by millennial homebuyers. Closely following cost, respondents recorded the home’s neighborhood as the second most important factor to consider.

With such high expectations for this year’s housing industry and smart, determined home buyers ready to buy their first home, we look forward to another great year of mortgage lending. For more information about the housing market, or to learn more about home financing, please contact one of our mortgage specialists today.