4 Statistics to Know About First Time Homebuyers
As the year ends, let’s take a look at some statistics about first time homebuyers in 2017.
4 Things You Need to Know About First Time Homebuyers
48% of first time homebuyers put down 5% or less on their new home, and 26% list saving for a down payment as their biggest hurdle to homeownership.
These two statistics go hand in hand. While saving for a down payment may seem daunting, it’s reassuring to know that there are different options for loans, some of which allow as low as 1% down, instead of the traditional conventional loan down payment of 20%. While this does mean you will have mortgage insurance, you are able to refinance that out as you pay into your mortgage and build equity on your home. So if you are one of the 26% of people who are worried about your down payment, consult your lender as they may present multiple options for your to own a home with a lower down payment than you originally thought.
67% say their primary reason for buying is a desire to own their own home.
Home ownership comes with a lot of pride, creativity, and personalization. When living in an apartment or a rented house, you aren’t able to paint rooms, tear down walls, and expand on the home as easily as when you own your own home. Millennials are also looking for places that don’t have pet restrictions or non-pet friendly homes. Additionally, home owners in 2017 want to entertain without having certain quiet hours and people above/below them to consider. The biggest thing this 67% of people want is the freedom to live how they want to live making their own decisions.
49% bought homes in suburbs.
A lot of new home builders target suburbs to build communities since there is space and cost of land is lower than in the city. With new home communities come great schools, great neighborhoods, and well-kept parks. Buyers also look for resales in these suburb communities which adds to the 49% of first time home buyers in 2017. Additionally, in the suburbs you tend to get more house for a lower cost. When living in the city, location and accessibility plays a part in your monthly mortgage. These are only a few reasons why suburbs have remained the top living area.
58% are married couples
This also means that 42% are either unmarried couples or single men/women. If you are waiting until after a wedding, or waiting until you get into a relationship to buy a home, just understand that’s not the way it has to be. Interest rates are low right now, and if you can make it happen, buying now may be a better financial decision than if you wait months-years to wait for an event to happen to buy. With 35% of the housing market being first time homebuyers this year, a large number of people have made the decision to pick a house this year.
You might also like: First Time Home Buyer FAQ’s and Answers!
Check out the entire infographic below:
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The Fornerette Team at Fairway Mortgage in Tacoma has a long track record of helping first time homebuyers successfully navigate the home loan and home buying process. Feel free to reach out to us with any questions you might have – let’s do this together!
