First-time home buyers make about a third of all home buyers, nationwide, according to the National Association of Realtors.
The median age of a first-time buyer is 31, (making about $70k), while the median age of a repeat buyer is 53, (making nearly $100k). It is safe to say that they do not have the same priorities.
While first-time home buyers usually settled in the past for a cheaper “starter home”, there are signs now that more want to have a home for the long term, holding back for a home that will work for them for a much longer time. 70% are willing to wait, rather than settle for that cheaper, smaller house with some repairs.
Since we have been faced with a severe scarcity of “starter homes” for sale, compared with a few years back, the price tag of those properties went up drastically. It is possible that first-time home buyers find that the price is not worth it any more and prefer to wait for more savings to buy a larger first home that will serve their needs for many more years.
Per the Residential Specialist (trsmag.com) the main home features that first time home buyers like most are, in order:
- updated kitchen and bathrooms (81%),
- an open floor plan (59%),
- low maintenance characteristics (43%),
- walkable communities (36%),
- energy efficiency (20%),
- cell phone service and wifi access (19%).
Those feature preferences are definitely evident in our market in the Silicon Valley, and with the exception of the last one, I think the order is pretty much the same. Here, phone reception and wifi access is also close to the top of the list in my experience.
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