Zillow busts first-time buyer myths with new research

Plus, how to tap into your millennial clients' network
  • According to Zillow, 53 percent of all buyer sales in 2016 were to first-time buyers.
  • The average buyer in the Zillow study was 36 years old with half the buyers being millennials.
  • The peak time for Zillow app downloads is the last week of the year. Be profile ready.

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Ready to increase your market share? If so, pay attention to a soon-to-be-released study from Zillow Group that shows 53 percent of all buyer sales in 2016 were to first-time buyers. Amy Bohutinsky, the COO at Zillow Group, recently shared the results of a 160-question survey Zillow conducted with 13,000 homebuyers and sellers who closed transactions in 2016. The results demonstrate that the notion the market is too expensive for first-time buyers is simply a myth and here’s why. Due to low-interest rates, homes are more affordable today than they have been in decades. Zillow’s findings show that today’s borrowers are spending an average of 15 percent of their income on their mortgage versus the 30 percent that they spent during the 1980s. To illustrate this point, a $400,000 30-year fixed rate mortgage at the 1986 prevailing rate of 12 percent interest had monthly payments of $4,220. The same loan today at 3.75 percent would have payments of $1,771. The 1986 $4,220 p...