19 Apr Current Home Buyer Trend May Surprise You
The $8,000 tax credit for first-time home buyers is set to expire soon and the housing market is starting to see a last minute push from buyers entering the market for the first time. Many market analysts predicted this late push and builders even produced homes for it. We won’t know how right or wrong these predictions were until the dust settles but there are a few attributes to this market that were unpredicted
A recent Coldwell Banker survey polled over 1,000 single homeowners. This survey reveals some interesting attributes and motives. According to their data, 53% of new single home owners bought a home because it was more cost effective than renting. While this is no real surprise, the geography of these homes may surprise you.
According to the survey, 52% of new single home owners chose to buy in suburban areas making it the majority of where singles bought homes. This is surprising because it is the opposite of what we have been reading as far as housing trends go.
I think that this can be attributed to the slumping home values in suburban areas. It’s no secret that urban homes are holding value better the suburban ones. Single home buyers are getting more house for their money in the suburban markets. It seems that singles are skipping on the urban lifestyle in search of a good investment and more space. I think they’re looking down the road a bit. They might be thinking about their new home as a financial investment and a place where they can raise a family. They are achieving a dream early in their career due to low price points and the foreclosures that are plaguing suburbs.
This is something that I don’t think anyone saw coming but I wouldn’t totally dispel the push for urban revival. This just proves that there will always be a market for suburban living. An interesting note from the survey indicates that most of the respondents have a commute of 30 minutes or less. I think this could be an indication that the sprawling exurbs far outside of town could be the markets we see diminish.