By KCM Blog
There has been much conversation regarding the lack of first time home buyers in today’s real estate market. However, three recent reports seem to suggest that they are now entering the market in increasing numbers.
The most recent Existing Home Sales Report from the National Association of Realtors(NAR) reported that:
“The percent share of first-time buyers rose to 32 percent in May, up from 30 percent in April and matching the highest share since September 2012. A year ago, first-time buyers represented 27 percent of all buyers.”
And, in a recent Washington Post article, Ken Harney revealed that:
“According to a June 19 Campbell/Inside Mortgage Finance tracking survey, which polls 2,000 real estate agents nationwide, first-time buyers accounted for nearly 39 percent of home purchases in May; that’s the highest level since August 2010.”
Also, according to American Enterprise Institute’s International Center on Housing Risk’s May First-Time Buyer Mortgage Risk Index (FBMRI), the share of first-time buyers stood at an estimated 52.2 percent.
Lawrence Yun, the Chief Economist at NAR explained:
“The return of first-time buyers in May is an encouraging sign and is the result of multiple factors, including strong job gains among young adults, less expensive mortgage insurance and lenders offering low down payment programs.”
It seems that the number of first time buyers is increasing for the first time in a long time. This further lends credence to the fact that the residential housing market is back.
Lorri Zumwalt of Q Realty Inc says “Whether it’s a stronger job market, lower cost mortgage insurance or parents kicking their adult children out of their basements, this is a really good sign for real estate growth. All homeowners have to be a “First time homebuyer” as some point. There is no greater satisfaction as a realtor than to help clients find their first home. They usually need the most help and guidance but are always so grateful and appreciative of the help we give them. Q Realty has a great partner in First Mortgage. Together we can help people realize the dream of owning a home. If we are lucky, we can build relationships that last and we can help them find their second or third home as well.”
Chris Juarez of First Mortgage Company says “With the summer months are upon us, this is the busiest time of year for the Albuquerque real estate market. I believe we are seeing a rise in first time buyers for two specific reasons; the first being that interest rates have continued to remain low even during the busy season and second the mortgage products available for first time home buyers have made purchasing a home more affordable than ever before. The rise in first time buyers in Albuquerque can most certainly be attributed to the educated mortgage/real estate professionals that have done a great job marketing the first time buyer mortgage products. First time buyers can get into a home with as little as $500 (of their own money) down payment. Buyers are becoming more educated as fewer & fewer people are calling me asking if there is any other way to buy a house other than putting 20% down. I believe we have hit the proverbial sweet spot with regards to educating home buyers, low interest rates and quality listings through real estate professionals. Who wouldn’t want to buy a home they love if they can afford the down payment & have a low interest rate that makes their monthly mortgage payment cheaper than renting?”