Amid a tight supply of homes for sale and fluctuating interest rates, a welcome bright spot is emerging in the Twin Cities housing market. Single women are showing up at Open Houses and then at the closing table as a larger percentage of home buyers. And they are doing it at a faster pace and larger percentage than their male counterparts.
According to Census data, in Minnesota 12.2 percent of homes are now owned by single women, contrasted with 10.2 percent for single men. At the same time, the number of women making mortgage applications is also rising. In 2023, solo females made 18 percent of applications, up from 17.3 percent in 2021.
“This is an interesting development in the real estate market, the influx of what we think of as a non-traditional homeowner. Traditionally, home ownership is the nuclear family, a husband and wife, but now it is for everyone who is prepared,” said Stephen Spears, who leads Bremer Bank’s Community Banking Team.
Spears anticipates that some changes are in the works that will create more opportunities for all first-time home buyers in 2024. “We are sitting in a time when housing prices are up, but so is the ability to get down payment assistance,” Spears said. “We have an unprecedented amount of down payment assistance that may coming to the market this year. This is a perfect time to get your house in order, so to speak, so you can be ready to buy your home.”
Spears said that an important first step for prospective home buyers is to find a trusted and knowledgeable lender and loan officer to work with as they embark on the complicated process of qualifying for a mortgage for the transaction. With the traditional busy spring market just ahead, Spears stressed that prospective buyers should begin doing their homework before they ever do a first walk-through of homes on the market.
“You have to be creditworthy, so you must understand your credit profile and get the best possible credit score so you can qualify for a loan,” he said. Despite prevailing wisdom, Spears insists this can be an ideal time for first-time homeowners to fulfill their American dream of home ownership.
“Interest rates are certainly higher than they have been in recent years, but historically they are still low. Interest rates have neutralized, housing prices have neutralized,” he said. “The current market is presenting unique opportunities for first-time home buyers. If you’re ready and informed, then now is the perfect time to buy.”
In addition to loan officers, Bremer Bank also offers consultations with Community Impact Manager Trent Bowman. He leads efforts to educate first-time homebuyers and low-to-moderate-income families to inform and support them as they begin the home-buying process.
Source: spokesman-recorder.com
