FIRST TIME HOME BUYERS FACE CHALLENGES
According to the “Realtors Confidence Index Survey” first-time home buyers represent 31% of all sales that closed in August of 2017. This is only up slightly from the all-time low seen back in 2013 when the rate was just under 30%. First-time home buyers as measured by homeowners under the age of 35 increased only slightly during the 2nd quarter of this year representing 35.3% of all closings, up from 34.3% at the end of 1st quarter 2017. The bottom line is first-time home buyers have represented just under one third of all home buyers since the real estate market crash earlier this decade.
There are roughly 6 million fewer households with owners under the age of 35 now as compared to before the market crash in 2005. There are many reasons why the number of first-time buyers have remained flat despite the turnaround in the market and the current housing boom. While the current market seems ripe for first-time buyers, especially since the unemployment rate is down, and interest rates remain at historic lows, young home buyers still face many challenges including obtaining credit from lenders and housing cost compared to income. While employment is rising, income levels remain stagnant and this is compounded because many young adults are straddled with a lot of student debt. Another hurdle first-time buyers face is low inventory. Housing startups cannot keep up with the pace of demand. All of this continues to put stress on the market and conditions remain challenging for first-time buyers under the age of 35. Source: “Potential First-Time Buyers Still on Sidelines” NAR Economist outlook blog.
Despite all of this, if you are in the market and looking to get out of the wasteful ways of renting and paying for someone else’s equity and bottom line, don’t let all of this scare you. Knowledge is power and that is why I wanted to share this information with you. Rick and Jim Properties have nearly 30 years of Real Estate and Mortgage Banking experience and we care uniquely qualified to help first-time buyers repair your credit, get pre-qualified and find you the perfect first-time home that meets your budget requirements and most, if not all, of your residential housing needs. Please contact Rick and Jim Properties at 843-469-6570 / 6580 or visit us on-line at www.RickandJimProperties.com. You can also find us on Facebook at "R and J Properties" , please LIKE us on Facebook and take the time to read our reviews from previous clients. We look forward to working with you soon and helping you meet all of your Real Estate needs. Let us get started working for you today.