A Look Back: Home Buyer Trends in 2015
The types of home we buy, the reasons we buy them, and the way in which we purchase them changes all the time with every year and every generation. As a realtor or as a home buyer, it’s a good idea to keep track of what’s going on in the market so you can get the best deal possible. Let’s take a look at what 2015 tell us about Florida first time home buyer trends going forward this year.
Mobile Search is Becoming More Important
2015 saw a significant increase in the number of young people who searched for a home using a mobile device. It shouldn’t surprise anyone that Gen Y and X home buyers use the internet significantly more than older generations, but younger generations are also increasingly using their phones. This is important for realtors and real estate websites, because it means they need to optimize their sites for mobile browsing, or risk being left behind.
Saving for a Down Payment Is the Biggest Hurdle For Young Buyers
As of 2015, saving for a down payment is the biggest thing standing between Generation Y buyers and home ownership. While it’s normal for younger buyers to be less financially stable, this at least partially indicative of the generation pay gap, which is the phenomenon that has many economists projecting that millennials will earn less in their lifetimes than their parents.
Debt is Becoming More Common
Another reflection of this new pay gap is the number of first time home buyers going into debt for their homes. While a majority of home buyers have always gone into debt, the 97 % of Gen Y buyers in 2015 who financed their homes are a clear indication of the polarization of wealth in America. Compared this figure to the 61% of the Silent Generation who financed their homes, and it becomes fairly obvious that
What it Means for 2016
Because of the generational reduction in income, more young first time home buyers qualify for, and will be forced to rely on, mortgage down payment and down payment assistance programs to help them purchase their first homes and to break into the middle class.
Because of this it’s especially important for realtors to reach out to, educate, and inform young home buyers about the programs that are available to them.
For the latest information and access to down payment assistance programs in your area:
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