Dear Friends,
Home buyers across the US this year have been “older, whiter, and wealthier” than in the past four decades, according to the National Association of Realtors.
According to the NAR’s latest report, rising prices caused more first-timers to be “elbowed out” by the more mature “all cash” buyers, who are also typically more insulated from the rising rates. (Only 3% of first time buyers paid in cash during the 12 month period between July ’21 and June ’22.)
Historically, first time buyers made up about 40% of the market. This year, first-timers made up only 26% – the lowest since 1981, when NAR started keeping track.
The median age for first-timers is also the oldest since ’81 — 36. The median age for repeat buyers was 59. (People between the ages 55-74 accounted for 42% of home purchases, while people aged 25-34 accounted for only 14% of sales – this is 10% fewer than the year before. )
This trend likely means two things for the market ahead, according to NAR:
–Rental prices are likely to rise – though they rose almost 18% over 2021 (NAR) they may continue to rise, as rental demand from would-be buyers who lost purchasing power continues.
–Buyers will continue to travel farther – Home seekers will continue to increase the distance they’re willing to travel in search of a home – the study found people were moving an average of 50 miles up, vs. 15 miles during the previous year. (The latter is no doubt helping to fuel the Connecticut market – we have seen a marked increase in Westchester County buyers moving to our area this year. )
Alas, around Fairfield County, we still have a lower housing supply (See the above graph comparing June – Nov.), and though some reductions are occurring, we are still seeing multiple offers across price categories.
There is always light at the end of the tunnel !
Prices have definitely cooled, and with inflation numbers lower than expected, rates have moderated a bit (for the moment), and our equities markets have picked up some gains.
Wishing you a very enjoyable Thanksgiving (whether you celebrate with a traditional bird or do the vegan version – we do both at our table).
Look forward to speaking to you soon.
My best regards,
Joni
PS: Always available to discuss the latest plot twists in the real estate market and why there are some better deals are out there NOW than we will see in 2023. Let’s chat. Call or text me at 203.216.7654.
This 5-BR ( with 2-BR cottage) home on .6 Ac at 20 Woodside Lane, Westport, went on the market last Thursday at $2.5 Million, and was under agreement by Monday.
AVAILABLE RENTAL:
Know Anyone looking to rent a pristine, sunny, spacious – and affordable cottage – with 1-car garage in Fairfield ? This updated 1-Bedroom apartment overlooking gorgeous parklike grounds in the Stratfield neighborhood is available for immediate occupancy @ $2600/month, including electricity.
