Real estate market trends: Compromising on new home purchases.
Home-buying is a complicated, multi-layered exercise, but there are some homebuyers who make it easy. Or difficult, depending on how you look at the real estate market trend toward home buying.
According to a survey by the National Association of Realtors, approximately 50 percent of all home buyers 58 years of age and older made no compromises on recent home purchases. That contrasts with the 28 percent of the youngest home buyers who refused to compromise on their home purchase.
The NAR surmises that people who have already bought one or two homes in their lives know exactly what they want and know that what they want is available somewhere. The information came from a survey of over 93,000 home buyers and sellers in a study of real estate market trends.
“The first-time buyer is starry-eyed and has no idea what they really need. They might want a five-bedroom and never use two of them,” Stephen Melman, director of economic services for the National Association of Home Builders told MarketWatch. He said buyers in their 50s “are better than most housing consumers at knowing what they want—and won’t be shy.”
What they want, and what they are unwilling to compromise on, includes location, style of home, price, lot size, and distance from job. Those are all factors on which younger and first-time home buyers often find themselves compromising.
The difference, besides experience, is that younger buyers often have specific needs related to their home, like number of bedrooms, or distance from a job. Older buyers, many of whom have already raised their families, are able to concentrate on their personal desires as it relates to their new home and usually have the time to wait for the correct property.
The NAR study also said older home buyers also want newer homes. They have been through the fixer-uppers, and sometimes are beyond the stage where they are going to work on the home themselves. The survey showed that Millennials (born between 1980 and 2000) who were old enough to be in the market for a home usually ended up with houses built around 1986, while older home buyers were usually in homes built around 1996 or more recently.
The study on real estate market trends reports that older buyers tend to move farther away from their previous home than younger buyers. The younger buyers tend to stay within 10 miles of their current home while older buyers will have a 20-mile relocation average.
Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for www.nba.com. He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.
In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.
McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.
McDill is the father of four children, and an active fan of soccer, Jimmy Buffett and all things Disney.