Today's Home Buyer

Who is today's buyer? With the ever changing real estate market the question I am frequently asked is this question. 

 

 

 

Here are some national facts and stats regarding today's home buyer. 

 

• 66% of homebuyers today are married couples (this number is up since 2001).

• The median income for buyers is $83,300.

• The median home purchased was built in 1992 and was within 12 miles of their previous residence.

• The typical home purchase was 1900 square feet.

• 30% said that owning their own home was their primary reason for buying.

• More than half of buyers said that finding the right home was the most difficult step in the buying process.

• The typical buyer searched for 12 weeks and viewed 10 homes.

• The typical buyer was 42 years old.

• 3 out of 5 buyers, according to Realtor.com, said that they would go "over budget"  to have their children go to the school of their choice.

• 80% of homebuyers purchased a single family detached home.  Note: a detached home refers to a free-standing home as opposed to a condominium or PUD that shares a common wall.

 

Nancy Puder is a real estate broker in Arroyo Grande, CA. with Nancy Puder &Associates. If you have any questions or concerns regarding your own property, contact Nancy at (805)710-2415 or email Nancy@NancyPuder.com.  You may also go to Facebook.com/Nancy Puder Realtor and "like" her page to access other real estate related articles.

 

Home Values Reaching New Highs

After only 2.5 years from the end of the worst recession since the Great Depression, housing prices are steadily coming back.  Some housing markets are actually experiencing new highs in home prices indicating just how robust our housing recovery is.

 

Recent reports show in approximately 20 percent of the metro housing markets, the decline in home values is gradually being erased. In 60 of the over 300 areas covered by Zillow, it is reported that homes prices either already have or are expected to exceed pre-recession peaks in the next year.  These metro areas include San Jose, Dallas, Houston, Denver, Pittsburg, San Antonio & Austin.  

 

In the majority of metro areas, housing affordability remains strong, but in a handful of areas like San Francisco, San Diego, Los Angeles and San Jose, housing has become unaffordable.  Mortgage rates remain low which helps the affordability issue, but some potential homeowners may have to seek housing further away from the urban areas in order to be able to buy.


As buyers look further away from urban areas to purchase an affordable home, we may see prices decrease in these urban areas because the demand for those homes may weaken.

 

Overall, this is a good report for home sellers who are ready to put their home up for sale.  Buyers are looking and they are also buying in today's market.  A word of caution to sellers is be careful not to get ahead of the rise in home prices as buyers are still being careful not to pay what they perceive as too much for the property.

 

The expected increase of home prices in 2014 is 5-6 percent.  For example, if  your home is valued at $600,000 today, it may or may not be worth as much as $630,000-$636,000 this time next year.  Currently, low  mortgage rates are holding pretty steady, but they are expected to go up and that could slow things down again. 

 

Nancy Puder is a real estate broker in Arroyo Grande, CA. with Nancy Puder &Associates. If you have any questions or concerns regarding your own property, contact Nancy at (805)710-2415 or email Nancy@NancyPuder.com.  You may also go to Facebook.com/Nancy Puder Realtor and "like" her page to access other real estate related articles.

 

Boomerang Buyers Have Arrived

New on the scene is the "boomerang buyer".  The boomerang buyers are homeowners who either lost their home through foreclosure or sold under the terms of a short sale over the past several years. I believe that these buyers will continue to be a driving force in the housing market over the next few years.

Less strict guidelines for mortgages are allowing many homeowners who lost their home through a foreclosure or short sale to now be in a position to buy again.  Of course, there is certain criteria that a buyer will need to meet like re-establishing credit since the foreclosure or short sale and they may be required to make a larger down payment.

As a real estate professional, it is gratifying to be able to help these buyers purchase again after experiencing the sometimes devastating loss of their family home. 

As always, It is important to remember that nothing is as "black and white" as it seems.  Be sure to speak to a good lender to assess your own situation.  If you need a referral or would like a consultation, call me at (805)710-2415 or email Nancy@NancyPuder.com. I always enjoy hearing from you!
 

The latest information that I have received is that these are the waiting period for short sale or foreclosure.

• Freddie Mac - short sale 4 years, foreclosure 7 years

• Fannie Mae - short sale 2 years with 20 percent down payment, foreclosure 7 years

• VA - short sale or foreclosure - 3 years

• FHA - short sale or foreclosure - 1-3 years

Nancy Puder is a real estate broker in Arroyo Grande, CA. with Nancy Puder & Associates. If you have any questions or concerns regarding your own property, contact Nancy at (805)710-2415 or email Nancy@NancyPuder.com.  You may also go to Facebook.com/Nancy Puder Realtor and "like" her page to access other real estate related articles.