Single and minority buyers driving national home sales.

New home purchases by larger numbers of single, never-married and minority buyers drove the 4.1 percent increase in home sales during 1997 in 20 representative U.S. markets, according to the 22nd annual Chicago Title and Trust Co. (CT&T) survey, "Who's Buying Homes in America."

The number of single, never-married buyers grew 28.9 percent in 1997. In addition, minority buyers purchased 27.7 percent more homes last year.

The 1997 survey was expanded to include Houston and Miami for the first time. "As the housing market continues to evolve, CT&T recognized the need to broaden the `Who's Buying Homes in America' survey. By including Houston and Miami this year we anticipate the data will be more useful to a wider range of groups across the country," said John Rau, president and CEO of CT&T.

Comparative Data on Home Buyer Racial Origin Now Available

CT&T's 1996 survey provided the first insight into the racial origins of home buyers. Comparative data in the 1997 survey revealed that each minority group increased its respective share of the home sales market. Also on the rise were the numbers of first-time and repeat minority home purchasers in 1997.

Minorities represented 28.4 percent of first-time home buyers (compared with 24.8 in 1996) and 17.8 percent of repeat buyers (compared with 13.3 percent in 1996).

"The dramatic increase in single and minority buyers is due in large part to 1997's low interest rates and higher consumer confidence," said John Pfister, who directs CT&T's marketing research. "Minorities accounted for 27.7 percent of total home buyers in 1997, compared with 18.5 percent in 1996." This increase was evident in most of the 20 major urban markets surveyed by CT&T.

Number of Married Home Buyers Decreases

"While 1996 saw a return to the housing market by larger numbers of married home buyers, this was not the case in 1997," said Pfister. "The 1995 survey revealed that 66.4 percent of the total number of home buyers were married that number rose to 70.2 percent in 1996 and then dropped again to only 64.7 percent last year."

The 1996 survey was the first to present a more in-depth look at the marital status and gender of home buyers, and last year's survey provided the first look at comparative data.

Non-married males led the categories of single home buyers, with an increase to I 9.1 percent from 14.9 percent a year earlier. The number of non-married females increased slightly, rising 1.3 percent to 16.2 percent from 14.9 percent the previous year. Among non-married home buyers, 57.6 percent of the males and 56.9 percent of the females were first-time buyers.

The National Pricing Spectrum

The median home price in the markets surveyed rose 4.2 percent to $159,700 from $153,200 in 1996. The average home price, however, did not keep pace with the median rising only 2.4 percent to $192,300in 1997, from $187,800 the previous year. This difference was most likely due to greater numbers of home purchases in the center of the pricing spectrum, according to Pfister.

Once again in 1997, San Francisco was the nation's costliest housing market for both first-time and repeat buyers, with the highest median home price ($289,700), the highest average home price ($326,000) and the highest average monthly mortgage payment ($1,632). Orlando, FL, reported both the lowest median home price ($103,300) and the lowest average monthly mortgage payment ($841), while Houston had the lowest average home cost ($116,900).

Viewed as a percentage of after-tax income, New York City had the highest average monthly payment (37.5 percent), and Minneapolis/St. Paul had the lowest percentage (29 percent).

Atlanta home buyers again led the country with the highest percentage of new home purchases (41.1 percent), and Los Angeles home buyers purchased the highest percentage of previously owned homes (92 percent). Dallas/Fort Worth had the most married buyers (76.8 percent), while San Francisco had the least (43.3 percent). Dallas/Fort Worth also had the largest number of home buyers choosing conventional fixed-rate mortgages at 82.3 percent, and San Franciscans, as usual, picked adjustable- or variable-rate mortgages more often than buyers in other markets at 40.4 percent. San Francisco also boasted the highest average household income for both first-time ($78,500) and repeat ($95,400) home purchasers. Orlando had the lowest household income in troth categories, at $45,500 and $63,400, respectively.

Impact of Family Income on Home Buying

Household income for all buyers increased during 1997, rising 3.6 percent to $66,100 from $63,800, providing more Americans with the means to buy homes. This factor contributed to the 4.1 percent increase in home sates in the 20 markets surveyed by CT&T.

The Chicago Title and Trust Family of Companies (CT&T Family) provides a variety of real estate services, including title insurance escrow and closing services, as well as valuation, credit and flood certification products through a network of more than 300 offices and approximately 3,700 agents nationwide.