Tag Archives: Homebuyers

The current imbalance of supply and demand in the housing market has caused second quarter home price results to continue on its path, overshadowing 2016 numbers. However, could these numbers point to crisis?

New survey results show urban, rural, and suburban American homebuyers have “drastically different” profiles. Aside from agreeing on the importance of homeownership, the three groups vary greatly on most homebuying-related topics. The biggest differences lie with the urban buyer, who is younger, more transient, more likely to be an immigrant, and has a bigger budget. The average urban buyer is just 38 years old—nearly a full decade younger than the average suburban and rural buyer.

A new report shows that most millennials believe now is a good time to buy a home—and more than half of them are actually ready to take the plunge. About 51 percent of those surveyed said they are either extremely likely or very likely to buy within the next year. According to experts, impending mortgage rate hikes are likely causing the uptick in urgency. Still, roadblocks like scarce inventory and a lack of knowledge around the homebuying process could pose a problem for millennials.

Though many of today’s homebuyers are looking for a more automated, high-tech mortgage process, that doesn’t mean they want to be left to their own devices. Most buyers—even the tech-savvy millennials—still want a good amount of handholding throughout the process. Striking a balance between those high-tech and high-touch demands can make lenders stand out in today’s marketplace.

New data shows San Jose, California, homebuyers enjoy the fastest closing times in the nation, with an average of just 41 days to close. Six other cities came in at 50 days or less, including Dallas, San Francisco, and Denver. These markets are seeing multiple bidders, many of whom are pre-qualified and offer large down payments, on the first day of listing.

Existing home sales took a drop in April as prospective buyers and middle-income homeowners faced problems in the current housing market. Tightening supply continues to drive up prices. Properties, on average, stayed on the market for a month.

Potential buyers could be taking a temporary step back from the housing market as the volume of mortgage applications declines even though fixed and adjustable rates continue to fall. Yet, even taking into account the current decline, mortgage rates remain higher than they were a year ago. The average loan size for applications that have been pushed through has also reached a new high.

A recent survey concluded that the number one misconception and cause for dwindling first time homebuyers is being required to put 20 percent down when it comes to securing a mortgage. Other believed factors include a reduced number of houses on the market, growing student debt, and rising interest rates. Constant dialogue between industry professionals and the education of prospective buyers can help remedy this trend.

New data shows that August is the best time for homebuyers. According to recent analysis, housing inventory is up significantly by the end of summer, causing many sellers to reduce their listing price. In fact, buyers who wait until late summer may actually pay less than if they’d bought during other times of the year.

According to Ellie Mae’s most recent Millennial Tracker for March, millennial homebuyers are moving to the Midwest. Homes in Midwestern states have proven to be more affordable, and Mount Vernon, Illinois was the most popular metropolitan area for homes purchased by millennial buyers. Other popular cities for millennials included Midland, Texas and Odessa, Texas.