Hardware Retailing The Industry's Source for Insights and Information
The amount of first-time homebuyers in the market is rather small compared to previous years. According to the National Association of Realtors (NAR), “the share of first-time buyers fell to its lowest point in nearly three decades and is preventing a healthier housing market from reaching its full potential.” The amount of first-time homebuyers was 33 percent of total purchases, the lowest share since 1987.
Young adults are facing many obstacles in purchasing homes, such as student debt, strict credit conditions, low housing inventory, stagnant wage increases and many other factors. Lawrence Yun, a chief economist for NAR, believes a brighter future is ahead. “Stronger job growth should eventually support higher wages… Less stringent credit standards and mortgage insurance premiums commensurate with current buyer risk profiles are needed to boost first-time buyer participation, especially with interest rates likely rising in upcoming years.”
The National Association of Relators’ survey also found that more buyers are searching for their homes online and then purchasing the home through an agent. “In fact, buyers who used the Internet were more likely to purchase their home through an agent than those who didn’t (67 percent).”
To read more about the survey’s findings, click here.
