The annual Profile of Home Buyers and Sellers by the National Association of REALTORS gives insight into the homebuying and selling experience. Highlights from the report include the decrease of first-time homebuyers in the housing market, the buying strength of dual-income couples, and the biggest hurdles buyers face in the financing process.
Here is what the survey found.
- The biggest home financing hurdle for buyers was saving for a down payment. For information about options for buying a home with less than 20% down, click here.
- Of buyers who said saving for a down payment was difficult, over half reported that student loans made saving for a down payment difficult. To see the effects of student loans and homeownership, click here.
- Buyers also cited existing credit card debt as a hurdle in saving for a down payment. For tips for paying down debt to buy a home, click here.
- Home sellers averaged a profit of $40,000 more than what they paid for their home. According to data from Fannie Mae's National Housing Survey, only 37% of mortgaged homeowners believed they had significant (at least 20%) equity in their homes. It's estimated that of those surveyed, at least 69% of those homeowners have 20%+ equity. If you're thinking of selling your home, their may be opportunity and substantial benefits to doing so sooner rather than later.
- 42% of recent buyers said the first step that they took in the homebuying process was to look online at properties. This percentage is notable, because the first step in the homebuying process should always be meeting with a mortgage banker to determine eligibility and affordability and to receive a pre-approval or loan commitment.
Thinking of buying a home in the near future? Download our free Mortgage 101 Handbook, a complete guide of the homebuying and financing process for first-time homebuyers.