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economic outlook & forecast By Nadia Evangelou, NAR Research
Who’s Buying and Selling Homes in the D.C. Area?
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ationwide, a typical home buyer is 47 years old and earns $93,200 a year, while a typical home seller is 57 years old, with a median household income of $102,900, according to the 2019 NAR Profile of Home Buyers and Sellers. Based on the survey, first-time buyers made up 33 percent of all home buyers— the same percentage as last year. Low inventory, weak affordability, and student debt are factors that make it more difficult for some people to buy a home.
How does the Washington, D.C. area compare to these national figures? We took a closer look at the housing market in both the District of Columbia and Montgomery County.
Buyers Millennials—or buyers between the ages of 22 and 40—made up the largest group of home buyers in the District. Specifically, 53 percent of all home buyers in D.C. were millennials; 34 percent of Montgomery County home buyers were millennials. Typical buyers in the District are younger, earn about $15,000 more, and are more likely to be unmarried compared to buyers in Montgomery County. That said, only 12 percent of D.C. transactions were all-cash, while all-cash transactions accounted for 20 percent of those in Montgomery County. Since housing is more expensive in the District, there are fewer buyers who are able to purchase their home without financing.
28 CAPITAL AREA REALTOR ® — Spring 2020
