Real Estate Rumblings
Higher home prices in Texas result in fewer first-time buyers
The face of the Texas homebuyer is changing as Lone Star home prices continue to increase. The Texas Homebuyers and Sellers Report, based on Texas home sales from July 2013 to June 2014, notes that homebuyers are getting older, while first-time buyers are decreasing.
"Increased restrictions in lending standards and rising home prices in certain local markets continue to stifle the growth of first-time homebuyers in Texas," the report states. During the aforementioned time period, the percentage of home sales among first-time buyers dropped to 29 percent. That's a 4 percent decrease from the previous year and 4 percent less than the national average.
Texas homebuyers are getting older, while first-time buyers are decreasing.
"As a result, Texas homebuyers are older and more likely to be married couples," the report continues. The average age of the typical Texas homebuyer increased from 43 years old to 45 years old, and, the majority of buyers (72 percent) were married couples. "
While the typical homebuyer in Texas is changing, the state continues to lead the nation in household income growth and new home sales.
The median household income for Texas homebuyers grew 5.9 percent to $97,500, compared to the national median income of $84,500. In Texas, 28 percent of homes sold were new homes — almost double the national average of 16 percent.
