B4 • Friday, December 29, 2023
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THE GARDEN ISLAND
Understanding today’s real estate landscape least 15 years. Therefore, it is important for potential buyers to look as far into the future as possible when choosing their next home and thinking about job locations, marriage, children, and other factors.”
BRANDPOINT Trends in real estate and home buying go far beyond mortgage rates and home prices. Better Homes and Gardens Real Estate has identified several more trends that provide insight into today’s homebuyer and what they are looking for in a home.
What about older Americans?
Who are the buyers? There is a big difference between a first-time buyer and someone who already owns a home. In fact, the 2023 Profile of Home Buyers & Sellers by the National Association of REALTORS (NAR) reports a 23-year age gap between a typical first-time buyer (35 years old) and a repeat buyer (58 years old). There are also more unmarried people buying homes today. While 59 percent of all buyers were married couples, single females purchased 19 percent of homes, followed by single men (10 percent) and unmarried couples (9 percent). It’s also noteworthy that 70 percent of recent home buyers did not have a child under 18 living in the home, a drastic increase from 42 percent back in 1985. “First-time buyers remain active and continue to account for about 30 percent of all home purchases,” said Ginger Wilcox, president of Better Homes and Gardens Real
Estate. “While saving for a down payment remains a challenge, the overwhelming majority of first-time homebuyers are not putting down 20 percent and many are getting financial help from parents, families and friends. The repeat buyer has a significant advantage as they can utilize equity from their previous home to either pay cash or reduce their mortgage as they move up or down in home size.” Staying close ... again “The pandemic-fueled, work-from-anywhere trend that allowed so many to purchase a home in more affordable areas seems to be subsiding,” Wilcox said. “Better Homes and Gardens Real Estate affiliated
Average long-term mortgage rates dip for 9th straight week Matt Ott AP BUSINESS WRITER The average long-term U.S. mortgage rate retreated for the ninth straight week to reach its lowest level since May. The average rate on a 30-year mortgage dipped to 6.61 percent from 6.67 percent last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.42 percent. Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, also inched down this week, with the average rate falling to 5.93 percent from 5.95 percent last week. A year ago, it averaged 5.68 percent, Freddie Mac said. Mortgage rates have been easing since late October, when the average rate on a 30-year home loan reached 7.79 percent, the highest level since late 2000. The decline has tracked the trajectory of the 10-year Treasury yield, which lenders use as a guide to pricing loans. The yield, which in mid October surged to its highest level since 2007, has been falling on hopes that inflation has cooled enough for the Federal Reserve to shift to cutting interest rates after yanking them dramatically higher since March of 2022. The Fed has opted to not move rates at its last three meetings, which has also given financial markets a boost. Investors’ expectations for future inflation, global demand for U.S. Treasurys and what the Fed does with its benchmark federal funds rate can influence rates on home loans. The sharp runup in mortgage rates that began early last year has pushed up borrowing costs on home loans, reducing how much would-be homebuyers can afford even as home prices have kept climbing due to a stubbornly low supply of properties on the market. That’s weighed on sales of previously occupied U.S. homes, which are down 19.3 percent through the first 11 months 2023.
Better Homes and Gardens® Real Estate is tracking the home buying and selling patterns of baby boomers. This generation, those now 59-77, have redefined societal norms since they were born and are now doing the same in housing as they age. The COURTESY OF BRANDPOINT U.S. Census reports the homeownership rate is agents are reporting more cent purchased a smaller and more buyers who left a home. But home size is not more than 75 percent for market are starting to rethe only consideration, ac- baby boomers and AARP reports an overwhelming turn due to work or becording to Wilcox. “It was interesting to see majority of this group cause they miss family and wants to age in place. that 60 percent of all buyfriends.” “One of the big quesThis trend is shown in ers said the quality of the NAR data, according to Wil- neighborhood was the tions hanging over the most important factor in housing market is how cox. determining where to live,” long baby boomers will “For years before the she said. “We are returning stay in their existing pandemic, it was normal to a real estate market homes,” Wilcox said. “As for repeat buyers to move those in this demographic within 15 miles of their pre- where life events trigger buying decisions. Being move on to the next phase vious home,” she said. “It close to family and friends in their lives, they will be jumped to 50 miles a year is the biggest driver of looking for more manageago as so many opted to move to more affordable lo- where people want to be, able homes, nearby medications and take advantage even more than affordabil- cal facilities, accessible of the remote work boom. community amenities and ity. We are back to a 20-mile raproximity to friends and “We are also seeing a loved ones. A good real estrend in longevity in a dius today.” home. While most live in tate professional will be What do buyers want? their home for 10 years, to- able to assist and underNAR reported that 39 day’s buyer believes they stand how to maximize the percent of repeat buyers will stay in their recently equity they have built.” traded up, while 33 perpurchased home for at NAR shared that those
over 60 almost tripled the number of home purchases in senior-related housing compared to the previous year (19 percent vs. 7 percent, respectively). Retirement, health of a loved one and the desire to downsize are the driving factors for a move for those 65 and older. Only 3 percent in this age group say they want a larger home. The process The fast-paced housing market continues. It’s important that buyers select an agent with whom they are comfortable, with a like-minded communication style and experience working in the price points and communities the buyer is interested in. It is also important to choose an agent who can help identify reputable loan officers with various financing options. “More than half of all buyers use an agent who was referred to them or someone they worked with previously,” Wilcox said. “I always encourage buyers to ask around and interview more than one agent. Don’t be afraid to spend time with your potential agent to ensure they are right for you.” If you’re thinking about making a move, connect with a Better Homes and Gardens Real Estate affiliated agent today. Visit https://www.bhgre.com/ find-agents.