Singles Remain a Force in Home-Buying Market

Home-buying can still be a worthwhile venture for single people, especially if they have a steady job and a decent credit score.

Singles, who make about 32 percent of all home purchases, have been a growing segment of the home-buying market, and single women are especially important to sales, making 20 percent of the home purchases each year in the United States.

That trend has sellers concentrating more on colors, floor types and features that appeal to women. The median age of a single female homebuyer is 41, and median income is about $50,000.

Generally, singles of both sexes seek a smaller home or condominium with a limited amount of yard to fuss with. But they do like patios. They also like recreational opportunities, restaurants and shopping nearby. Location and security are important. Most like buying homes in suburbia.

Because they only have one income to support their purchases, single people tend to look for homes priced at $400,000 or less. Some share a home with a family member or seek a roommate to help with the costs.

Like other homeowners, they have to be prepared to pay for upkeep, property taxes and homeowners’ insurance. Expect to spend 1 to 3 percent of the home’s value each year for repairs and projects.

Fountain Valley has a fairly good selection of smaller homes, condominiums and townhomes suited for a single buyer. Many smaller two-bedroom homes and condominiums can be purchased for under $400,000.

One example of a potential “singles” home is a condominium recently advertised for sale on Newhope Street in Fountain Valley. Priced at less than $270,000, it has an estimated monthly payment of about $1,587.

It spans 1,040 square feet, with two bedrooms and two baths.

It’s a good idea to look for a home with two bedrooms rather than one, even though a single person may only need one at first. The additional bedroom provides space to grow, or it can be used for an office. Also, having the second bedroom makes the home easier to sell when the time comes.

Singles can usually find two-bedroom condominiums or small homes in the $250,000-to-$300,000 range in the Fountain Valley area. Square footage generally runs about 1,200 square feet or less.

It’s good to compare mortgage rates, because it can make a critical difference in how much a single person has to fork out each month. The key is to keep the cost below one-third of gross monthly income.

The down payment is a big concern, especially if the single buyer has to come up with 10 to 15 percent of the home price. But in some cases, sellers are willing to take as little as 5 percent, and low-down-payment FHA loans are still available.

Overall, pricing is the lowest it’s been in about eight years, and agents are eager to sell. Even for singles, the cost to own is usually not much more than the cost to rent. And owning a home provides tax benefits and a good rental income if the owner decides to move.