First-Time Home Buyers Decline to New Low
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.
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