While financing remains a challenge for many want-to-be-homeowners, difficulty in finding the right house is the most limiting reason buyers have yet to purchase a home. To better understand homebuyer preferences and how relationship status can affect the home-buying process, we thought we would share with you some interesting facts from the recently published “2014 Profile of Home Buyers and Sellers” from the National Association of Realtors.
By relationship status married couples are the largest home-buying group, comprising 65 percent of the market. They have the highest gross household income at $98,300, affording them more buying power and they purchase the largest homes with a median size of 2,090 square feet. The larger home and the income certainly comes in handy since married couples report that taking care of aging parents (19 percent) and children over 18 moving back home (26 percent) were factors in their home purchase.
Single females make up the second largest category of buyers at 16 percent. They are the oldest group with a median age of 52 and have a median income of $54,800. Financial investment and the security of homeownership are most important to this group with 46 percent believing that homes are a better investment than stocks and more than half said that they are willing to make financial sacrifices to purchase their home. Although they tend to buy roughly the same size home as single men, on average they spend 12 percent less per square foot than men, netting a savings of around $20,000. They are more selective in terms that the neighborhood’s location must be convenient to friends and family. They also rank highest for moving because of life changes (55 percent) and for wanting to buy a home that would be a “forever home” or last home purchase (24 percent).
Single males constitute 9 percent of the home-buying market. They are younger than their female counterparts with a median age of 47 and have a higher income at $65,800. (Hey, just reporting the facts!) Single men are three times more likely to view “flipping” the home as a reason to move than single females and married couples. Lifestyle is important to this group and convenience to entertainment and leisure activities was ranked highest among neighborhood features. One of the most interesting and possibly telling facts about single males was that only 34 percent said that a laundry room was “very important” in a home, far less than any other group.
The final category by relationship status is the unmarried couple and they occupy 8 percent of the market. They tend to be the Millennials or Gen Y buyers, with a median age of 33. This group is very interesting because they are the most optimistic about home ownership with 83 percent viewing it as a good investment. However this group has been one of the hardest hit since home prices have been outpacing incomes and this segment of the market (under 35) has been steadily dropping since 2004.
With spring almost upon us, Santa Fe’s real-estate market will continue to pick up with more inventory becoming available. With the varied geographical and the broad value of properties in Santa Fe, homebuyers in all categories will ideally find the right place to call home.