How the Market Bust Could Be Changing the Actions of St. Louis Home Buyers
Last week in New Orleans thousands of real estate agents gathered at the National Association of Realtors annual convention. This is a time where industry leaders get together to share information … and try and figure out what is going on in this crazy market.
One of the highlights of the convention is the release of The Annual Profile of Home Buyers and Sellers survey. This survey includes responses from 8,449 home buyers.
Some interesting data:
- First-time home buyers made up a record 50% of all buyers during the period, up from 47% in last year’s figures.
- 27% of the first-time buyers received a gift from family or friends to help them with the down payment. This is up about 3% from last year. (Thanks Mom and Dad, Uncle Larry, Aunt Martha)
To find out how long the average buyer intends to live in their home and why potential buyers aren’t buying in today’s market … continue with the rest of this post
How the Market Bust Could Be Changing Buyer Behavior (continued)
Today’s homeowners intend to live in their home for a long time, according to the data. The first-time buyers plan to stay in their homes for an average of 10 years when they make their purchase; repeat buyers plan to stay for 15 years. There was a time when the average time to stay in a home was around 7 to 8 years.
Buying a home and settling down there for a number of years often makes good financial sense for a homeowner-even if that person owns a home during a dramatic housing bust, like the one from which the country is still reeling, the report pointed out at the conference.
With interest rates at historic lows and an abundance of homes on the market, why aren’t people buying? Well, the data seems to show that people are worried about the economy, or worried about the security of the job they now have. And for those who do want to buy, the road to getting financing is getting tougher and sometimes a deal killer. If their credit scores are not up to par or they don’t have enough cash to put down they will not get the home. Even if you are close to buying a home new laws from Fannie Mae could delay or deny a closing
However … Opportunities abound for those who are not fearful and are savvy buyers!
“Be fearful when others are greedy.
Be greedy when others are fearful.”
Many of you reading this might be in the fearful category. You might be afraid that you cannot buy a home … when maybe you can! Give us a call and we can chat about your situation.
Many people could be kicking themselves in a few years wondering why they did not take Mr. Buffett’s advice and take advantage of the best buyer’s market in recent history. Check out the newest St. Louis Real Estate Market Reports
Remember, if you are looking for St. Louis real estate, or St. Charles real estate, we can help you find the right home.
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Is buying a home the right thing for you? Watch the video below: