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
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