First Time Home Buyer Stumbling Blocks

Back in May, First-time buyers represented 28% of existing-home purchasers!  This figure is over 3% less than a year ago! Traditionally, in most areas of our country, four out of ten homes are purchased by first-time buyers.  Housing economists are alarmed by this decline.  Due to lack of inventory and multiple offers many buyers in this category have been left out.  (REALTOR Mag July 2013)

With mortgage rates creeping over 4.3%, the effect on first-time buyers has decreased home purchase affordability in many cases.  National Association of Realtors Chief Economist Lawrence Yun states “The people buying homes today….are participating in home price growth.  Younger people are being left out.  His statement continues  “It remains to be seen when the first-time buyer can return” in many of the country’s real estate markets.  We, Realtors, understand how critical this segment of buyers are to the housing recovery. 

Increased mortgage rates is not the only factors facing first-time buyers.  They face competition from investors and tight credit conditions that are making it difficult to qualify for a home loan.   The recession hit the 22 to 34 age group hardest with higher unemployment plus facing higher levels of student loan debt.  In my opinion, these factors have and will delay home ownership for many first-time buyers now and in the near future.

If you are a current renter and want to discuss becoming a first-time home buyer, contact me and we can discuss your options and make a plan of action for becoming a home owner. 

Carol Murphy

Keller Williams, Greater Cleveland West ~ Carol Murphy Team

Avon Lake Real Estate