Single women have long played an important role within the Real Estate market, having been second only to married couples when it comes to being the largest group of home buyers. But with the housing crisis, there was a significant drop in the purchasing power of single women. This was mainly due to lenders tightening up their qualification standards for loans in response to the crash. In the 2015 survey report of Buyer and Seller Profiles released by the National Realtors Association (NAR), last year saw 15% of home buyers being single women. In 2009 this figure was 21.9%. The NAR and real estate experts have potentially encouraging news for single women who are ready to buy a home however. 2016 could be the year for you.
There are a few key factors which point to the potential for single women buyers to be on the rise. Within major metropolitan regions across the country, including here in the San Jose and South Bay area, there has been a growing trend in single women incomes, they have been rising faster than those of single men. With greater income levels beginning to be experienced, more single women are in a better position to buy a home. Part of this could be due to the median age of single women home buyers being 50, these working women are finally seeing their experience pay off with faster income growth compared to years prior. The majority of these women have already owned a home previously.
Single female homebuyers have in the past had more competition to deal with when it comes to finding a home they want and can afford. With the national median price point of a home being $169,000 for single females, they have had to compete against investors looking for rental properties and first time home buyers in the same price range. In 2015 however, investor purchases decreased compared to the year before, and this trend is likely to continue. If this does occur there will be more homes readily available which fit the parameters for single female buyers.
The NAR report also provided some information on what types of homes single women are looking for. The median size home is 1,600 square feet, and while the majority of these buyers are looking for a single family unit, many are also seeking town homes and condos. It will be interesting to see how this trend continues as more single women make the investment in home ownership. It is anticipated that builders could respond to an increased demand in smaller, multifamily homes, attempting to meet the rising demand of single female buyers.
When you are ready to buy or sell a home, we at Haylen Group are here to help you with all of your real estate needs! If you are unsure what your options are, call Helen Chong at (408) 800-LIST or email at Helen@HaylenGroup.com. You can also visit us at our website for available listings and additional information.