Realtor.com® releases expectations for 2017 housing market

First-time homebuyers are expected to account for at least half of the homebuying market in the next year, according to realtor.com^®’s Active Home Shopper Report.

This is an increase of nearly 20 percent from 2016. The older millennials, those aged 25 to 34, currently make up one-third of the market of potential homebuyers, and 61 percent of first-time homebuyers. Millennials cited growing tired of their current home, getting married or cohabiting with a significant other or looking for a safer area to reside as reasons to buy. Overall, most homebuyers across generations are seeking more privacy, adjusting to their family’s needs and looking to grow their assets.

Suburbs are the most-wanted locations, according to 50 percent of shoppers, and 43 percent of first-time potential homebuyers. First-time homebuyers report that they would rather have a safe neighborhood and more living space, but don’t want time-consuming landscape. Overall, homeowners are searching for construction that is “good-quality.”

Nearly 40 percent of first-time buyers want a townhouse or row home, while only one-quarter of the general population seeks that type. Overall, most potential homebuyers are looking for a single-family home.

The majority (26 percent) of respondents are hoping to buy in the next one to three months, while 22 percent hope to buy in the next 10 months to a year. Fifteen percent are hoping to buy in the next 13 to 18 months.

However, while the lack of inventory is expected to remain an issue next year, affordability, down payments and credit scores are also concerning for potential buyers. Thirty-seven percent of first-time buyers said the down payment is their biggest obstacle to homeownership.