Hunkering down. Once the buyer is moved in to their newly purchased home, the typical buyer expects to live there for 15 years — the same outcome as last year — but up significantly from 2010, when the typical buyer expected to stay 10 years. Younger buyers (18-24 years old) expect to stay for the shortest tenure: five years.
Tip: With this longer tenure, it is important to help buyers make a choice that will suit their needs for the long haul, without having to rely on high-risk loans. ABR®s may find the Consumer One-Sheet, “Am I ready to buy?” useful when it comes to helping buyers’ assess their readiness to purchase a home and determine their future needs, particularly critical given that buyers are likely to be there a while.
Tighter credit. Many buyers are now facing tighter credit standards than seen in previous years. For this reason, the typical buyer profile has shifted over the past couple of years. For example, this year’s report displayed the highest share of married couples and the lowest share of single buyers since 2001.
Tip: With tight lending by financial institutions, buyers need to demonstrate higher levels of income to qualify for loans than in the past. The Consumer One-Sheet, “Calculating the True Cost of Homeownership” is a great tool to help buyers be aware of all the costs of owning a home and plan their finances accordingly.