First Time Home Buyers Are Accounting For Fewer Sales
Despite continuing low interest rates and low home prices, the ever important first time home buyer is on the decrease. According to recent data released by the National Association Of Realtors, first time home buyers accounted for 36% of homes sold nationwide in July 2012. Normally this group accounts for 40% of all home sales.
First time home buyers are critical to the housing market as they purchase homes which allow current homeowners to purchase their next home, and they are not burdened with the need to sell an existing home.
Several factors contribute to the slowing of the first time home buyer market:
Lack Of Down Payment Money:
The lack of down payment funds is a major obstacle cited by 47% of first time home buyers. In addition to down payment money, buyers in our area also face approximately 6% of the purchase price of a home for closing costs.
Poor Credit History:
Poor credit history, or lack of a credit history hampers first time home buyers.
Student Loan Payments:
A majority of college grads are looking at 10 years of student loan repayments. This additional debt affects their ability to maintain the debt to income ratio that lenders are demanding.
Unemployment:
Many potential home buyers in the 24 to 35 age group face higher unemployment rates that other groups.
Wallingford Real Estate – Wallingford, PA 19086
