How many are buying houses in the United States? According to Statistic, at least 6.27 million homes went off the market in 2018. By 2019, it will increase to 6.44 million. While population growth in the country has been sluggish, the demand for houses isn’t. The question is, how many were first-time home buyers? SunTrust has the infographic.
Breaking Down the Results
The infographic detailed some vital information about the persona or profile of the first-time home buyers. For example:
- At 54%, most of the first-time home buyers are married couples.
- Most of them are also millennials (Y generation), whose median age falls between 33 years old and below.
- Their median income is nearly $69,000.
- Most of them plan to stay in their home for at least ten years.
- An overwhelming 53% said that they bought a home because of their desire to own one.
The baby boomers make up only a small percentage of the first-time home buyers. It’s because most of them already have property. In fact, several are now moving on to another one, which can serve as a retirement house or an investment.
First-time home buyers are also more likely to take the time to purchase a home. They tend to view at least ten properties before they settle for one. It’s understandable since the majority of them finance their purchase with hard-earned savings.
Money is an essential commodity for first-time home buyers. For one, they are willing to compromise on the size, condition, and lot size if it meant spending less. On average, the home price is about $170,000.
It might be an issue for those planning to move to Colorado. Due to the high demand, the average market price in the state is already $370,000. The good news is that first-time home buyers might be able to manage their finances better in specific ways.
One, they work with an agent who can secure a prime Wash Park, Denver, real estate property. This charming green urban space can command a price of over $2 million. With a property team, though, you can find something below $300,000.
Because of its desirability, its market value can also go up by as much as 5% annually. It, therefore, becomes a lucrative investment whether the buyers decide to stay there for a decade or not.
Over 90% of the first-time home buyers finance their purchase. For those in Colorado, they can take advantage of loan assistance programs. For example, the CHFA Advantage Plan lets you buy a property with a meager down payment of 3%. It’s a far cry from the regular 20% asked by hundreds of lenders. You also get to skip mortgage insurance. A variant, the Preferred version, allows you to finance a home for a lower private mortgage insurance and credit score. For those who don’t have a credit score, there’s FirstStep, which can also reduce the down payment to only a thousand.
The SunTrust infographic suggests that some factors buyers can’t trade for a much lower home price. These are job opportunities, accessibility, and the quality of the neighborhood. If these are your non-negotiables, a home in Washing Park, Denver is a serious consideration. You can make it cheaper by looking into the various assistance programs.