By Fred Hibbert
It used to be practically unthinkable: a single woman buying a home. Imagine Harriet landing that three-bedroom rancher without Ozzie Nelson. Or, for the current generation, Marge Simpson getting into a nice Victorian sans Homer.
But times have changed. Spurred by changing demographics, a healthy real estate market, a variety of new loan options and more buying power than they had in the past, single women are buying real estate like never before.
In 2005, more than 1.7 million single women closed deals on homes throughout the country. That is one out of every five home sales, more than twice as many as single men buyers. Over the past two decades, the percentage of single women buyers has almost doubled, while the percentage of single-men buyers has slipped.
The Harvard Joint Center for Housing Studies concludes that one of the primary reasons for the changing demographics is that women are delaying marriage. Rather than seeing marriage as a step before homeownership, they’re buying now and marrying later.
Other reasons are high divorce rates and higher income levels among women. Statistically, women live longer than men, which can make them single homeowners in their later years.
Walter Molony, spokesman for the National Association of Realtors, said that single men aren’t as focused on buying real estate as single women. “Men don’t get serious about homes until they find the right woman, but women are serious about buying homes now,” he said.
The growing number of single women buyers isn’t likely to slow anytime soon. By 2010, the number of women-headed households with no spouse will increase to about 31 million, according to data from Fannie Mae, one of the nation’s largest lenders. Since 1950, the number of households headed by women has increased fourfold.
No matter what the reason, one thing is clear: Women have become a powerful demographic in the real estate market. And the phenomenon is triggering changes in the industry, from builders adding features with women in mind, to mortgage lenders helping them qualify for loans.
What do women want in a home? Home builders attempt to entice female buyers with gourmet kitchens, name-brand appliances, upstairs laundry rooms, walk-in closets, skylights in the bathrooms for natural light and easy-to-clean slate floors.
Equally important, according to homebuilders, is what is on the outside of the home. In particular, women look for low- or no-maintenance landscapes and more security features. Builders are responding with more streetlights in new developments, more gated communities, built-in security systems and courtyards that provide a stronger sense of security.
The mortgage lending side is changing, too. Because of new government loan criteria, child support can count as income to help qualify for loans, divorced women are considered first-time buyers to qualify for down-payment assistance or low down- payment loans and women without credit in their own names can sometimes qualify with alternative forms of credit history (such as phone-bill records).
Before taking the plunge into the market, there are a number of things buyers should consider:
• Prequalify for a loan. Talk to a mortgage lender and find out what you can afford, so that you shop within your budget. This also can put you in a better bargaining position compared to buyers who haven’t prequalified.
• Set aside a cash reserve. Earmark money for upkeep and unforeseen emergencies.
• Work with a professional realtor. Find someone who knows the neighborhood you’re interested in and has the experience to help you find the best home for the money.
Hibbert is manager of Coldwell Banker Residential Brokerage’s office at 110 First St., Los Altos. For more information, call 948-0456 or e-mail fhibbert@cbnorcal.com.
