Here are five home-buying trends we are watching
Roseville, Calif.- Local Roseville real estate agent Julie Jalone of MagnumOne Realty provides timely updates and insights on the current housing market.
The latest installment tracks home buying trends that include time to purchase, first-time buyers, cash buying and more. Keep up to date on this and more by following Julie’s posts in Roseville Today’s Real Estate section.
5 Home-Buying Trends
It is taking longer to afford a home.
The age of first-time home buyers has risen to a record high of 36. We believe this is because of higher rental costs, car loans, credit card debts, and student loans. These are all causes that delayed their entrance into homeownership.
The number of first-time buyers is declining.
The first-time buyer portion of the market dropped by over 26 percent in the past year. Historically, first-time buyers make up 40 percent of the home-buying market. Housing affordability has limited first-time buyers with higher interest rates and home prices.
Buyers are moving further away.
The median distance purchasers moved from their previous homes reached an all-time high of 50 miles. Historically, the median distance moved has been between 10 and 15 miles. This is particularly true in our Sacramento area, as we have represented more sellers leaving the state than ever.
Move-up buyers can bring cash.
All-cash repeat buyers jumped to 27% of the market over the past year, up from 17% in the previous year. Homeowners have gained a vast amount of equity in the last ten years. This has allowed many to avoid holding a property mortgage and/or make large down payments.
The racial gap remains.
Despite recent reports about spiking homeownership rates among Black, Latino, and Asian households, NAR data, which looks at each group’s share of homebuying activity, shows a mixed bag. The share of White and Hispanic-Latino buyers increased over the past year, while the share of Black and Asian American, and Pacific Islander buyers decreased. Recent news reports have relied on 2021 census data, while NAR’s data comes from a random, weighted sample of home buyers who purchased between July 2021 and June 2022.
