Top Tips for Homebuyers
Since at least 1981, single women have consistently purchased more homes than single men, constituting 17% of all households. This growing trend of women pursuing homeownership has not only influenced the housing market but has also proven to be advantageous for these buyers and their households. Homeownership offers numerous benefits, both financial and personal.
From a financial perspective, housing plays a pivotal role in building wealth for single women. According to Ksenia Potapov, an economist at First American, housing has consistently accounted for a significant portion of single women's total assets. Over the past three decades, the average wealth of single women has increased by 88% when adjusted for inflation, rising from slightly over $142,000 in 1989 to $267,000 in 2019. Housing has remained the single largest component of their wealth.
Furthermore, homeownership provides financial security and independence, leading to life-changing outcomes. When considering the personal motivations behind purchasing a home, the impact becomes even more evident. According to a recent report from the National Association of Realtors (NAR), the top reasons single women are currently buying homes include the desire to own their own home (27%), the desire to be close to loved ones (19%), and changes in their family situation (13%).
If you are planning to buy a home this summer, it's important to note that there are more homes for sale compared to the same time last year. However, the market still faces a shortage of houses, with fewer options available compared to normal pre-pandemic years.
The Monthly Housing Market Trends Report from realtor.com states that although the number of homes for sale is increasing, it is still 43.2% lower than the pre-pandemic levels of 2017 to 2019. This means that there are fewer homes available for purchase on an average day compared to a few years ago.
The current housing shortage affects how you approach your home search this summer. With limited choices in the market, buyers who prioritize their needs over wants will have greater success. The first step in this process is to get pre-approved for a mortgage. Pre-approval helps you understand how much you can borrow for your home loan, which is crucial in determining your budget. Once you have a clear idea of your financial capacity, you can prioritize the features you want and need in a home by creating a list.
Here's a helpful approach to organizing your list before you begin your search:
Must-Haves: These are essential features that a house must possess to suit your lifestyle.
Nice-To-Haves: These features are desirable but not crucial. While they are not dealbreakers, a home that fulfills all the must-haves and includes some of the nice-to-haves should be considered.
Dream State: This is where you can think big and include extravagant features that are not necessary but would be wonderful to have. Again, a home that aligns with all the must-haves, most of the nice-to-haves, and any of the dream state features would be an ideal choice.
Once you have created and categorized your list according to your preferences, discuss it with your real estate agent. They can help you further refine the list, guide you on sticking to your priorities, and assist in finding a home in your desired area that meets your needs.
Regardless of who you are, homeownership can be life-changing. Reach out today to discuss your goals in the housing market.