Northeast Ohio
Real Estate
November 19. 2022
Happy Saturday!
Thank you for checking out my update- I hope you enjoy the weekend!

Happy Thanksgiving!
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Home Buyer Statistics

I'm lucky enough to serve all different types of buyers and sellers all over Northeast Ohio. I did find these recent stats interesting showing where the market is, where it's going, and the demographics of who is buying and selling in today's market.

  • First-time buyers made up 26%, down from last year's 34%. This is the lowest share of first-time buyers since the data collection began.
  • The typical first-time buyer was 36 years old this year, rising from 33 last year, while the typical repeat buyer age climbed to 59 years. Both are all-time highs.
  • 61% of recent buyers were married couples, 17% were single females, 9% were single males, and 10% were unmarried couples. This is the highest share of unmarried couples recorded.
  • Among first-time buyers, 18% of buyers were unmarried couples, and 5% were other household compositions. Both are the highest shares recorded.
  • 14% of home buyers purchased a multigenerational home, to take care of aging parents, because of children or relatives over the age of 18 moving back home, and for cost-savings.
  • 88% of buyers were White/Caucasian, 8% were Hispanic/Latino, 3% were Black/African-American, 2% were Asian/Pacific Islander, and 3% identified as other. The share of White/Caucasian buyers and Hispanic/Latino buyers both grew this year, while the share of other racial and ethnic groups declined.
  • 91% of recent home buyers identified as heterosexual, 2% as gay or lesbian, 2% as bisexual, and 5% preferred not to answer.22% of recent home buyers were veterans and 1% were active-duty service members.
  • 22%, the primary reason for purchasing a home was the desire to own a home of their own. For first-time buyers, this number jumps to 62%.

If you or anyone you know has a real estate goal for 2023, I'd love a connection to see if I can help them achieve their aim. Thank you in advance for any referrals!
Better mortgage rates?
Home affordability is a large concern for a lot of my clients. In this environment, any edge you can have in maximizing your monthly savings can go a long way With that in mind, here are some tips to get a lower interest rate when applying for a mortgage loan:

  • Improve your credit scores
Your credit scores are one of the biggest influencers of the mortgage rate you can obtain. Generally, a FICO Score of at least 740 is required to qualify for the best available rates. While there’s often no quick way to improve weak numbers, it’s never too soon to start building and maintaining strong credit scores.
  • Build a record of employment
With the right financials, it’s possible to qualify for a mortgage if you’re self-employed, unemployed or retired, but lenders generally prefer to see at least two years of steady employment history. A strong employment record could also help you qualify for a better rate. If you’re planning to apply for a mortgage, speak with a loan officer before considering any changes to your employment status.
  • Optimize your debt-to-income ratio
When you apply for a mortgage, one of the factors your lender will evaluate is your debt-to-income (DTI) ratio. This measures your total monthly debt payments against your total monthly gross (before income tax and other payroll deductions) income. Lenders typically require a DTI of 43% or lower to qualify for most mortgages, and if you can reduce your DTI even further by paying off debt or increasing your income, you may be able to obtain a lower rate.
  • Lock your rate quickly
Mortgage rates are always changing, which means the longer you wait to lock your mortgage rate, the higher it could potentially rise. Thankfully, at Draper and Kramer Mortgage, we allow you to lock your rate up to 90 days before closing if you’re shopping for a home or up to 360 days before closing if you’ve chosen a property.
  • Consider all available loan programs
Although they’re not available to everyone, some mortgage programs offer lower interest rates than others. These may include loans for first-time homebuyers or military-connected borrowers. Be sure to explore all your options with your loan officer.
  • Make a bigger down payment
You may be able to finance a home purchase with a down payment as low as 10%, 3% or even 0%. However, making a larger down payment, especially one of at least 20%, could help you qualify for a lower interest rate, avoid paying mortgage insurance premiums or both.
  • Explore adjustable-rate options
While a fixed-rate mortgage offers the security of an interest rate that will never change, an adjustable-rate mortgage (ARM) typically offers a lower intro rate than a comparable fixed-rate loan. Just be aware that after the end of an ARM’s intro period, which typically lasts five to 10 years depending on the loan, your rate and monthly payment could increase.
LISTING OF THE WEEK
12862 Cedar Road Cleveland Heights

Wonderful opportunity in Cleveland Heights! Tastefully restored spacious colonial abound with updates: kitchen, all three bathrooms, roof, basement waterproofing, refinished floors, garage, interior/exterior painting, driveway, and much more! Large modern kitchen opens up to a sprawling first floor living area with beautiful hardwood floors throughout. The appealing exterior boasts an oversized front porch coupled with a quiet backyard patio. Finished third floor includes a large fifth bedroom and a full bathroom. This gem is close to University Circle, Cleveland Clinic, University Hospitals, CWRU, John Carroll University, museums, restaurants, easy access to Downtown Cleveland, and all the best of Cleveland Heights.

I'm hosting an open house Sunday 11/20 from noon-2PM. Please stop by! Listing link---> HERE
Pat Barmann
216.990.5719