First time home buyers recently accounted for 32% of all property sales, this according to the latest findings coming from the Realtors Confidence Index. Across the nation, this figure seemingly sounds rather impressive, however not when compared to other times in the recent past. For the past month of May, there was even a higher reading of 34% of all home buyers being first timers. In fact, not too long ago in 2009 we consistently saw numbers roughly hovering around 50% that represented new home buyers in the market.
Evidently, there must be a reason for such disparity as the averages for first time home buyers usually run above 40% as well. So what are the primary reasons behind this? Much can be attributed to individuals being unable to secure mortgage financing, having delays because of distressed sales and finally that many investors are able to pay in cash for a majority of these properties and this factor is crowding out the hopeful individuals who are just beginning to experience their first true Real Estate journey towards home ownership. As a result, first time home buyers are stuck in the market for longer periods of time than they initially anticipated. Moreover, thus causing them to put in an array of bids for properties throughout the process, perhaps causing them to even settle in the end for a home that only satisfies just ‘some’ of their desires.
More Information: Economists Outlook