Maybe Dave Cahill wasn’t like so many others, but purchasing the first home—and doing so alone—has a way of placing us all on the same plateau.
When Cahill, a 28-year-old native Southsider and area manager for Chicago Beer/Budweiser, made the decision to purchase his first home he was armed with a wealth of patience and a positive outlook.
“I guess my situation was a little unique,” says Cahill, “because I wasn’t opposed to living at home and saving my money. There was no rush for me.”
Still Cahill, like so many other singles, trod a path traditionally tread arm and arm with another. But with a hot housing market and “a loan for everybody” reality, 21st century singles are waving good-bye to rent checks or the parents’ abode and greeting mortgage payments. Now, more than ever in the nation’s history—and certainly the Chicago area—singles are signing on the dotted mortgage line and taking the keys to their new home.
“The 100 percent loans and other beneficial programs like that have allowed single people and younger people to get in the market earlier,” said Pam Patterson, a managing broker with Re/Max All Properties based in New Lenox. “I’m selling more and more to singles and I’d have to say that’s a trend across the board as well.”
About ten years ago, Patterson recalls selling a home to a single woman who was called a spinster on the title.
“Imagine that—a spinster,” she says. “Times have changed haven’t they?”
Indeed they have. Double-digit loan rates of the past have been replaced with slim rates in the six percent range, adjustable rate mortgages, and a general view that the home is a safe investment.
“Singles—and everybody in general really—have so many more options available to them. There are adjustable rates, interest only loans, and just about anything for somebody to get their foot in the door,” said Jim DeSantis, a 25-year real estate veteran with Oak Lawn-based Century 21 Accent-Homefinders who has also observed a spike in single homebuyers over recent years. “Everybody knows how the market’s been accelerating and people are eager to get into it.”
Outside of less stringent mortgage plans, a plethora of other factors have led to an increased amount of single homebuyers. Most notably, a stronger condominium market than ever before has invited singles to enjoy the benefits of homeownership without much of the maintenance. An altered view of homeownership, meanwhile, has singles seeking the home as a singular step to another phase of life. Whereas it was once marriage and then the home, the home is increasingly entering the equation ahead of the nuptials.
“I think singles are looking at the home as a stepping stone,” said DeSantis. “They have an idea of the type of property they may want to be in somewhere down the road and if they choose to get married, then they have a property that functions as that stepping stone. It’s better than renting; you can build equity and look at the home as an investment. People are saying this more and more.”
But purchasing a home as a single does not come without its trepidations. The aforementioned Cahill had his concerns about forging ahead on his own.
“I thought back and forth about staying at home and saving more money because money was the major concern,” he said. “You keep asking yourself if you’ll have enough for everything. And I definitely didn’t know anything going in—about taxes, mortgages, the loan process.”
Both DeSantis and Patterson say such concerns arrive with credibility. Both veteran real estate agents merely encourage single buyers to investigate the entire scope of their situation.
“You have to be cautious not to overextend yourself,” says DeSantis, “because there’s not another person to share that burden with you. Yes, you may be approved for a $300,000 home, but that doesn’t mean you have to spend that much. You have to be more specific and positive about your income.”
Patterson offers similar guidance.
“Have extra money in reserve in case something comes up—that’s the reality,” she said. “There are also home warranties that can protect you from the unexpected; you can know that things will be taken care of.”
After enlisting the help of Coldwell Banker’s Kristin Vanoni, herself a single first-time homebuyer, Cahill has settled nicely into his two-bedroom, two-bath Chicago Ridge condo. Though concerns have not vanished, Cahill has nonetheless found the positive in his bold decision.
“I was never intimidated to ask questions and having an agent not far removed from the process herself helped that,” Cahill said. “I’m seeing that I need to manage my money better and having the home has helped me with that. I still don’t understand half the technical jargon, but at least now I know the steps to take and the timetable to get things rolling.”
