The Face of a Buyer

I've often wondered who is out there buying houses.  Sure, interest rates are at all-time lows and there is plenty of inventory to choose from, but who are these people?


The National Association of Realtors (NAR) recently released a report that tells us exactly who these people are.  And the results may surprise you.


According to the NAR, the face of the buyer has changed, even from a year ago.  Today the largest share of home buyers is aged 25 to 32 at 27 percent.  However that buyer age group is down 9 percent in the last year, a considerable drop for a group that continues to dominate the buyer pool. 


A shift in income levels
The median age of home buyers has jumped from 39 years old to 45 years old as first time home buyers have dropped to a third of all buyers, down from half of all buyers.  Older, more stable buyers are accounting for more of the market as younger buyers are staying where they are.


A shift in buyers' income levels
The median household income of buyers in America is now $80,900, an increase in income after the previous two years' decline.  Lending remains tight, which may actually account for why people with higher incomes are capable of qualifying for (and actually closing on) a home purchase.


A shift in married couple buyers
For ten years, more and more single people were buying homes as married couples' purchases dropped by 10 percent in that time.  However, but over the last year, this trend was broken.  In 2011, NAR reports a distinct drop in single home buyers as the share of married couples rose to 64 percent, the highest number since 2001.
In addition, the number of single women buyers has slowed.  Only 10 percent of home buyers were single women, the smallest share in six years.


The Takeaway
According to the 2011 NAR Profile of Home Buyers and Sellers, the average American buyer is now older, has higher income and is likely married.  Single and lower income buyers are sitting on the sidelines as unemployment continues to be a concern and lending guidelines remain tight.  In the end, the study shows that home buyers are now "staying well within their means".


The NAR Profile of Home Buyers and Sellers surveyed 5,708 home buyers and sellers last summer.