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Sign into your accountFirst-Time Home Buyers are Declining: Reasons for the Trend and Tips on How to Reverse It
July 31 2013
This post comes to us from the Delta Media Group blog:
The first-time home buyer market is shrinking this year, taking a percentage of buyers that normally make up as much as 40% of home purchases. The Wall Street Journal first reported the trend last week, noting that first-time home buyers accounted for only 29% of purchases of existing homes in June, compared with 32% in June 2012.
A number of reasons come into play, including rising interest rates, a more competitive market, and a higher rate of unemployment amongst traditional demographics of first-time home buyers.
Even those first-time buyer prospects who are employed and able to purchase may not feel like they are ready. Those who better understand the process tend to be more able to move quickly on decisions and follow the process they are familiar with. That can prove intimidating for someone who is entering the market for the first time.
Perhaps the best way to overcome the discomfort factor is through education. The timid first-time home buyer wants to know if now is right. They want to know if the rising home prices they've noticed will continue to rise, or might level out. They want to know if there's a chance that the market might tank entirely, as it did just a few short years ago. They want to know if it might make more sense to rent for now, while waiting to see what will happen in their young professional lives, and if they'd be able to get a good return on their investment if they were forced to sell to relocate in a few years.