Single Women Have the Buying Power
“Skip the spouse, buy the house” was a line from a recent Bloomberg news story about single women buying homes on their own. It’s catchy, but also true: as the article reported, single women currently account for approximately 17% of new homebuyers in the U.S., versus 7% of single men.
Why? Despite the wage gaps that remain between men and women in the workforce, many millennial women appear to value homeownership more than their male counterparts do, and are adjusting their lifestyles accordingly to make it happen.
In the Bloomberg article, Daren Blomquist, senior vice president of ATTOM Data Solutions, noted that single women typically buy at a lower price point ($173,000 compared with $190,600) and have a slightly higher foreclosure rate than men (73 per 10,000 vs. 70 per 10,000). This may be a result of the aforementioned gaps in wages, or possibly because more women raise children on their own than men do – a scenario with major financial implications.
Single women homeowners say there’s a sense of independence and a comfort level that comes with owning your space, and that despite the need for often-expensive home maintenance and other costs, homeownership can be personally fulfilling.
For both single men and women, buying one’s own home requires more financial independence than does buying with the support of a partner. It’s essential not only that prospective buyers have a down payment and months of mortgage payments saved, but also that they’re emotionally prepared for the stresses that come with homeownership – and are ready to take them on alone.
Well we are finally in a normal, borderline seller’s market. As the inventory tends to remain low, and interest rates creep up, it is the perfect storm for bidding wars again. The number this past month, July 2017, has shown absorption rates at 6 months and below in the Ocean County foot print, from Bayville to Little Egg. Absorption rates are a gauge for how much inventory can be sold in a period of time. To derive to this number it is really simple math. Total active homes divided by last sold in the past 30 days will give you the number of months it will take to sell off that inventory. This is what I have come up with recently:
Berkeley AR 6.26 months
Lacey AR 5.8 months
Waretown AR 5.9
Barnegat AR 4.4
Little Egg Harbor 7.3
What does this mean for you the buyer or seller? 1-5 months is a sellers’ market. 5-6 months is a normal market and anything above 6 months is a buyers’ market.
Bidding wars are imminent. Buyer’s are going above asking price just to win the property. If they weren’t savvy enough to do so, the remaining inventory that they already hand picked is not as promising as that one home that got away from a higher bidder. Although we, the professional Realtors try to give some sound advice during the offer process, there is no guarantee that the advice is taken. This market hasn’t been here since 2005. Of course the pricing isn’t as insane as it was 12 years ago, but the notion of a quick selling market is here again. As rates start to rise slowly and inventory starts to wane, now would be a great time to get off the fence, stop your window shopping, and become a Proud American Home Owner. Make “American Homes Great Again”.
See you at the closing table!!
The Elite Team Realty found the following article and infographic very interesting. Let us know what you think!
What Realtors Need to Know About Millennials