There is no much influence or research attention driven by factors such as gender, mortgages or marital status, when comes to real estate market. But as per two new reports examined recently in this regard, the outstanding role of single women in the real estate and home purchase markets and the challenges faced by them in getting a loan are taken into huge consideration.
Statistically, when compared to men, single women are better at mortgages pay off. They take much less defaults; still they are levied with more charges for their loans and are quite often denied for credits. According to the research conducted by Housing Finance Policy Center of the Urban Institute, even though when compared to single men, their average income is lower, single women still tend to pay larger down payments.
- In the housing marketplace, single women rank second place as a largest buyer’s group. Nearly, exceeding 15 to 20 percent of all the homes purchased in recent years was made by this group.
- On the other hand, single men have accounted approximately for only 9% of purchase since 2012. When taking into account the past several decades, married buyers percentage of house purchase has been declined.
- Once they used to make nearly fourth-fifth of the market, but it has been decreased gradually in recent decades. In 1985, married people made nearly 81% of all purchases, whereas according to last year it was only 67%. You may think that the difference in the percentage has been filled up by the unmarried couples but which is not the case.
Last year, according to a new research with the title as “ All the Single Ladies” conducted by Jessica Lautz, Managing Director of Survey Research at the National Association of Realtors, it was only just 7% of the total purchase was accounted by unmarried partners.
From Tribune Publishing’s Real Estate Network
Laurie Goodman, co-director of the Housing Finance Policy Center, and Jun Zhu, a senior research associate conducted the Urban Institute study based upon the database compiled by the federal government related to national mortgage transactions in addition to the proprietary information gathered on borrower credit characteristics plus properties from an analytics firm named Core Logic.
- The study seems to be blunt about its core conclusions. According to the study, single women pay off slightly higher for their mortgages, even though they possess better repayment performance. At the application stage, Single women are somehow tends to present as “weak credit characteristics” possessing group and as a result of it, there are more possible that they end up with higher-cost financing or subprime.
- It’s true that their iniquity prevailing in the system in spite of statistically single women has proven to make a lower rate of defaults, they are still paying too much for their mortgages and home loans.”Given that more than 1/3 rd of single women who borrows home loans are minorities and nearly 50 percent of them are falling under low-income communities” the authors claim that in fairness” we need to build up more robust and perfect measures of risk in order to ensure that we are not rejecting mortgage requests to women who are fully potential in making repayment of their dues.
Taking into consideration three different sets of years – 2004 to 2007, 2008 to 2010, and 2011 to 2014, the percentage of default payment made by single women is lower than single men during all the three periods, which represents distinct economic environments sharply. Being 2004 to 2007 prime boom span, 2008 to 2010 experienced housing bust and financial crisis globally and 2011 to 2014 were post-recession years of recovery, the Single women rate of default seems to be persistently low through all these years.
Right Trac Financial Group mortgage consultant, Joe Petrowsky, says 26% of his business dealings is with single women and expects it exceeds 30%. He believes strongly “single women have greater ability to plan and save for the future and thus takes part solid risks” than single men. Real estate agent says single women have strong emotional bonding towards buying homes when compared to men. Out of White’s last twenty house purchase transactions, 20% were made by single women and zero by single men.
Today/Sotheby’s International Realty agent Lottie Kendall, says single women wish buying a home as their dream and strive hard to fulfill it. On the other hand, single men are keen in tax write-offs and other financial gains and not show much interest on stability.