Financing the Home Purchase – PART 5 of 7
In our current series covering the “2015 Home Buyer and Seller Generational Trends Report”, the following data offers highlights regarding “Financing the Home Purchase” for the 12-month period ending June 2014:
- Overall, 88% of recent buyers financed their home purchase. Nearly all (97%) of Gen Y buyers financed their home compared to just 61% of Silent Generation buyers.
- When financing the home purchase, younger buyers also financed larger shares – the typical Gen Y down payment was 7% and Gen X was 10% compared to 22% among the Silent Generation.
- Buyers had a variety of sources for a down payment on their home. The source was predominately savings for younger buyers, while older buyers were more likely to use proceeds from a sale of a primary residence. Younger buyers were also more likely to use a gift or loan from a relative or friend.
- 12% of buyers, overall, cited saving for a down payment was a difficult task. Among those buyers, 50% reported credit card debt, 46% of buyers reported student loans, and 38% stated that car loans was the debt that held them back from saving. This was most common among Gen Y and Gen X buyers who were most likely to use savings as a down payment source.
- Despite record housing affordability, many buyers were still making financial sacrifices. Reportedly, about half of Gen Y and Gen X buyers made sacrifices. Common sacrifices included cutting spending on luxury or non-essential items, entertainment and clothes purchases.
- Younger buyers were considerably more optimistic that their home purchase was a good financial investment in comparison to older buyers. 84% of buyers under 34 considered their home purchase as a sound financial investment compared to 72% of buyers 69 years of age and older.
Having a clear picture of who makes up each of the generations within this report is important. As a follow-up to our previous 4 parts of this series, The National Association of REALTORS (NAR) annually conducts studies in order to compile and complete their yearly Home Buyer and Seller Generational Trends Reports and uses the following generational definitions to identify each group:
Millennials/Generation Y: Born 1980-2000
Generation X: Born 1965-1979
Younger Baby Boomers: Born 1955-1964
Older Baby Boomers: Born 1946-1954
Silent Generation: Born 1925-1945
We hope you found this post to be informative and interesting… Watch for our next BLOG POST on June 4th, which will cover PART 6 of 7 in our series highlighting “Home Sellers and Their Selling Experience”. To learn more about Tampa Bay area homes for sale in Spring Hill and Brooksville, located in Hernando County, Florida, visit us @ www.GailSellsFloridaHomes.com
Until then… it’s all about YOU!