RISMedia's Real Estate Magazine

DEC 2018

Real Estate magazine is the industry's leading source for real estate news and information since 1980. Published monthly by RISMedia, Real Estate magazine offers timely and relevant real estate news to the industry's top brokers and agents.

Issue link: http://remag.rismedia.com/i/1057163

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Page 32 of 158

28 December 2018 RISMedia's REAL ESTATE Thirty-three percent of buyers this year were buyers fresh to the mar - ket, the report shows—a decline from 34 percent the prior year, and now down for the third straight year. Their challenges are cost-related, and overlap: college debt, the down payment and increasing mortgage rates. Forty percent of first-timers have $30,000 in student loans, according to the report, while 13 percent of all buyers are chal - lenged by the down payment—half of which because of college debt obligations. The average first-timer paid 7 percent toward a purchase, but the average buyer in general put down 13 percent—a figure not seen since 2005. "Low inventory, rising interest rates and student loan debt are all factors contributing to the sup - pression of first-time homebuyers," says Lawrence Yun, chief econo - mist at NAR. "With the lower end of the housing market—smaller, moderately-priced homes—seeing the worst of the inventory shortage, first-time homebuyers who want to enter the market are having diffi - culty finding a home they can afford. "Even with a thriving economy and an abundance of job opportunities in many markets, monthly student loan payments coupled with sky- high rents and rising home prices make it exceedingly difficult for po - tential buyers to put aside savings for a down payment," Yun says. Another critical homebuyer group is single women, who accounted for 18 percent of all buyers this year, behind the buyer majority (63 per - cent) who are married, the report shows. In third were the 9 percent of buyers who are single men, who bought more expensive homes, at a median $215,000, compared to the $189,000 median for single women. For buyers as a whole, an agent is their go-to for support in the transaction. Despite 95 percent of buyers house-hunting online, 86 percent enlisted a REALTOR® in their search, and 87 percent had an agent help them in their purchase. Ninety percent of buyers would "definitely" or "probably" use their agent again, or recommend him or her to others. An agent is equally important on the seller side, the report shows. For-sale-by-owner sales were just 7 percent of all transactions this year—the lowest ever recorded in the report, highlighting the impor - tance of a REALTOR® when selling. "With inventory so low, buyers are relying on their agent's knowledge of markets and neighborhoods to find listings, rather than relying only on online searches," says 2018 NAR President Elizabeth Menden - hall. "A REALTOR® has years of experience, generating insight and expertise that can help buyers navi - gate a tight market, where buyers are forced to move fast and make competitive bids in order to get their dream home." RE For more information, please visit www.nar.realtor. Suzanne De Vita is RISMedia's online news editor. Email her your real estate news ideas at sdevita@rismedia.com. First-Time Homebuyers Meeting Overlapping Pressures by Suzanne De Vita W ith the affordability crunch difficult to overcome, first-time homebuyers are increasingly struggling, according to the 2018 Profile of Home Buyers and Sellers by the National Association of REALTORS® (NAR).

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