TheMReport

TH E M R EP O RT | 47 O R I G I NAT I O N S E R V I C I N G DATA G O V E R N M E N T S E C O N DA R Y M A R K E T THE LATEST DATA Ladies First Women are driving home sales, according to a study by the National Association of Realtors. S ingle female homebuy- ers continue to remain a driving force in the homebuying market ac- cording to the latest 2018 Profile of Home Buyers and Sellers re- leased by the National Associa- tion of Realtors (NAR). The survey, which identifies current consumer and housing trends revealed that single female buyers made up 18 percent of the overall homebuyer demographic and came second to the most common demographic of married couples (63 percent). While single male buyers came in at only 9 percent, the survey found that they were likely to purchase a more expensive home compared to their female coun- terparts. Single males were more likely to purchase homes with a median price of $215,000 compared with single female homebuyers whose budget was more likely to hover around the $189,000 range. Overall though, the survey found that first-time homebuyers struggled the most when it came to purchasing a home. "With the lower end of the housing market—smaller, mod- erately priced homes—seeing the worst of the inventory shortage, first-time homebuyers who want to enter the market are having difficulty finding a home they can afford," said Lawrence Yun, Chief Economist at NAR. The survey indicated that the share of first-time homebuyers fell 33 percent, continuing a decline that has been observed for the past three years. "Homes were selling in a me- dian of three weeks and multiple offers were a common occurrence, further pushing up home prices. These factors contributed to the low number of first-time buyers and the struggles of would-be buy- ers dreaming of joining the ranks of homeownership," Yun said. "Low inventory, rising interest rates, and student-loan debt are all factors contributing to the suppres- sion of first-time homebuyers." To find the right home, buyers continued to rely on agents and the internet, the survey revealed, with 95 percent of the buyers surveyed said that they used the internet at some point during their search and 50 percent saying that they found the home they purchased through an online search. Repeat buyers were more likely to use agents in their home search (87 percent) compared to first-time buyers (86 percent). The top factors that these buyers desired from their agents were finding the right home and nego- tiating the terms of sale. When it came to down pay- ment, the survey found that buyers paid a median 13 percent down payment, up from 10 percent last year and the high- est since 2005. "First-time buyers paid a median 7 percent down payment, up from 5 percent last year and the highest since 1997 (9 percent), while repeat buyers paid a median 16 percent, up from last year's 14 percent and the highest since 2010," the survey said. Needed Now—Homes! Following an ongoing trend, limited inventory has continued to plague the housing market. F ollowing an ongoing trend, limited inventory has continued to plague the housing market, slowing sales of moderately priced homes and increasing prices in metro areas, accord- ing to the latest quarterly report from the National Association of Realtors (NAR). "Though inventory is more than adequate on the upper-end market, the insufficient supply of low to mid-priced homes in metro markets with strong job growth continues to drive up prices and push prospective buy- ers out of the market," said NAR Chief Economist Lawrence Yun. Nationally, the median price for existing single-family homes rose 4.8 percent in Q 3 2018, up to $266,900 year-over-year, from Q 3 2017's median price of $254,700. "A strong economy and consis- tent job growth should be driving up home sales; however, would-be homebuyers are struggling to find a home they can afford," said Yun. "As mortgage rates continue to rise, reaching the decade's highest rates this quarter, an increase in the supply of affordable homes has become even more impor- tant to help temper price growth across the country." According to NAR, the national housing inventory increased by 1.1 percent year-over-year in Q 3 2018, to 1.88 million, up from 1.86 million in 2017. Supply is expected to last a little longer, too, up to 4.3 months from 4.2 months in Q 3 2017. NAR also notes that despite in- creases in income across the coun- try, affordability has decreased, due to higher mortgage rates and higher home prices. To make a five percent down payment on a home at the national median home price, a buyer would need an income of $64,480, and a 10 percent down payment would require an income of $61,086. "Aspiring middle-class home- buyers continue to face afford- ability issues, as buyers are increasingly being priced out in the West while the rest of the country struggles, too," said Yun. "The market desperately needs homebuilders to begin construct- ing more moderately priced single- family homes and condominiums to help satisfy demand and mitigate rapid price growth." "The market desperately needs homebuilders to begin constructing more moderately priced single-family homes and condominiums to help satisfy demand and mitigate rapid price growth." — Lawrence Yun, Chief Economist, NAR

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