Younger, First-Time Home Buyers Enter Market in Large Numbers

Who wants to wait to apply for a Florida mortgage loan? Not many people these days.

Consumers in their 20s are growing more and more likely to purchase property at a younger age than their older brothers and sisters - as well as their baby boomer parents - had been. These individuals are not necessarily waiting for marriage or even a long-term relationship before becoming homeowners.

“The next generation of homeowners is beginning to exert its influence on the housing market,” said Thomas M. Stevens, National Association of Realtors president from Vienna, Virginia, and senior vice president of NRT Inc. “Many younger buyers have seen the wealth-building effects of homeownership in their parents and understand the value of housing as a good long-term investment.”

The motivations, interests, and home buying approach of some younger buyers are chronicled in “Tomorrow’s Buyers: Who They Are and What They Want” in the September 2006 issue of Realtor Magazine. The report integrates NAR research with the experiences and attitudes of real-life buyers who represent different demographic populations, putting a human face on statistical national and Florida home mortgage trends.

The percentage of first-time homebuyers under age 25 has been increasing in response to historically low interest rates and continued confidence in the long-term housing market, from 11% in 2001 to 14% in 2005, according to the 2005 NAR Profile of Home Buyers and Sellers.

“Owning a home is no more burdensome than renting, and in the long term, it’s the better investment,” said Kristen Carreira, a 26-year-old homeowner in Pittsburgh.

Carreira is also part of a trend in single female home buyers. While married couples are still the norm, they represent a smaller share of the home buying public than they did just 10 years ago, from 70% of home buyers in 1995 to 61%, says NAR. During that same time, the proportion of single women buying homes has increased, from 14% in 1995 to 21%.

Younger buyers are also likely to use technology and the Internet in their home buying search. In 2005, according to NAR research, the median age of buyers who used the Internet to search for homes via online Florida home loans was 11 years younger than those who did not, at 38 and 49, respectively.

Realtors have adjusted to the new demographic, Stephens said. They have taken courses to understand this generation and how its home owning preferences differ from others. Consult with a Florida home mortgage broker by completing the FREE form above and see what the result is today.