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First-Time Home Buyers Decline to New Low

First-Time Home Buyers Decline to New Low

Michael Jensen, Mortgage and Finance Guru
, Mortgage and Finance Guru

According to a study released by the National Association of Realtors, first-time home buyers represented only 33% of the primary residence home purchase market for the twelve months ended June 2014.  The 33% figure for first-time home buyers is the lowest since 1987 and represents a decrease as compared to 38% in 2013 and 39% in 2012.

Rising housing prices, tighter lending and down payment requirements and economic uncertainty are all factors that have hindered first-time home buyers from entering the home purchase market.  Additionally, competition from buyers and investors willing to buy a property with all-cash has made the market more challenging for first-time home buyers over the past several years, although this activity has declined over the last twelve months.

On one hand, the report paints a challenging picture for first-time home buyers. On the other hand, the report suggests pent-up demand from first-time home buyers.  If interest rates remain low, housing prices continue to stabilize and economic and employment improve we could see a wave of first-time home buyers enter the real estate market after years of sitting on the sidelines.

FREEandCLEAR offers a wealth of resources for first-time home buyers including our First-Time Home Buyer Basics Mortgage Guide and First-Time Home Buyer Cheat Sheet.  Additionally, prospective first-time home buyers can keep tabs on interest rates using the COMPARE LENDERS feature on FREEandCLEAR.

The FREEandCLEAR Mortgage Expert

www.freeandclear.com

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Data provided by Informa Research Services. Payments do not include amounts for taxes and insurance premiums. Click for more information on rates and product details.

About the author

Michael Jensen, Mortgage and Finance Guru

Michael is the co-founder of FREEandCLEAR. Michael possesses extensive knowledge about mortgages and finance and has been writing about mortgages for nearly a decade. His work has been featured in leading national and industry publications. More about Michael

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