Who Are the Buyers?

Buyers are back! As many renters transition to homeowners now, let’s take a look at who is fueling today’s real estate market.

When the “bubble” burst a few years ago, even qualified buyers got scared and sat on the sidelines. It took some time and reassurance to enter the real estate market, but now we’re seeing many first-time buyers who would have bought 3-4 years ago. Coupled with yesterday’s and today’s first-time buyers, the entry-level market in particular is seeing tight inventory and rising prices.

Move-down buyers like empty nesters and those paring down their lifestyle are driving a new market of smaller, but more upscale housing like the patio homes found at Louisville’s Steel Ranch. Move-up buyers with growing families are also adding to the real estate rebound.

With high rents now, investors are doing well taking advantage of these low interest rates. Another sector of buyers, coined “boomerang buyers” by some, are those who were previously foreclosed upon or did a short sale years ago and are now eligible to buy again. Though not everyone in this category with qualify for a loan, many are paying more in rent than they would a mortgage and now have stable jobs and a down payment to take advantage of today’s market.

As the dynamics of today’s buyers are changing, it should be interesting to see how they shape the future market.