Recent reports say that the number of first-time home buyers have been on a decline lately. In May, the National Association of Realtors (NAR) reports that first-time home buyers only accounted for 28 percent of existing-home deals, down from 34 percent in 2012. For the real estate market, this is a pressing issue for as Meg Handley of U.S. News puts it, first-time home buyers “keep the real estate cycle moving.”
Who exactly are first-time home buyers? Simply saying that they’re buying their first (and possibly only) residential property so far is a gross understatement. Based on current statistics, the average first time home buyer in Utah or elsewhere in the U.S. is a 31-year-old married man or woman in search of a home not far from his or her job. The average first-time buyer, however, is also more likely to consider foreclosure come crunch time.
A shrinking first-time home buyer base, however, is still better than nothing at all; at one point in time, repeat home buyers had been down that road. The market simply can’t move without them. The good news is that the population is at least chock full of potential first-time buyers: newlyweds, tenants, immigrants, and more. In fact, real estate companies are urged to look at several places like universities and apartment complexes for potential customers.
Think about it: when first-time home buyers lose out on the chance to buy a home and the real estate market goes south, where does that leave home sellers? When first-time home buyers, however, engage in the market because of ideal conditions, the effect can be contagious. Other home buyers, first-time or repeat, are highly likely to follow suit.
Several hurdles face first-time home buyers today, one of which is the tighter noose around federal home loans. In the Beehive State, many first-time home buyers relied on several Utah home loans of the federal kind to help them finance their first home. However, in an attempt to prevent another housing bubble, as well as another burst, the Federal Housing Administration introduced tighter rules. As it turns out, these are rather tough times for first-time home buyers.
What can the first-time home buyer do if he or she’s in desperate need of a home? There are ways to cope with an unstable market, such as, knowing your limitations as to what your money can buy. If you don’t have enough money yet for what you want to buy, sometimes it’s better to just wait for the next big opportunity; it’s not like America will run out of homes to buy anytime soon. If they have the money, however, first-time home buyers can work with lenders like Altius Mortgage Group in finding that deal that’s worth a rookie’s every penny.