First-Time Homebuyers Hit Lowest In Nearly 30 Years

[Spartan]

The U.S. economy is improving, employment is growing and home prices are recovering, but first-time homebuyers are not returning to their normal, historical levels of homeownership.

 

The share of these buyers, who are generally younger Americans, fell to the lowest level in nearly three decades-just 33 percent this year, down from 38 percent a year ago, according to an annual survey of homebuyers by the National Association of Realtors (NAR). The long-term average, dating back to 1981, shows that 4 out of 10 purchases are by first-time buyers.

 

"Rising rents and repaying student loan debt makes saving for a down payment more difficult, especially for young adults who've experienced limited job prospects and flat wage growth since entering the workforce," said Lawrence Yun, chief economist of the NAR. "Adding more bumps in the road is that those finally in a position to buy have had to overcome low inventory levels in their price range, competition from investors, tight credit conditions and high mortgage insurance premiums."

 

Nearly half of those surveyed by the NAR said the mortgage application and approval process was much more or somewhat more difficult than expected. A recent decision on forthcoming regulations governing mortgage lenders could help ease credit criteria slightly, but lending will not go back to the loose days of the last housing boom.

[macha]

2011 and 2012 rate back vastey it will hit all time high..... almost all home rates are riding high now....

[Spartan]

2011 and 2012 rate back vastey it will hit all time high..... almost all home rates are riding high now....

 

yeah bad time to enter the market..unless u desperately need a home...

[BillMarkSteve]

useful topic...gp....:)

[dummyquestion]

gp

[ARYA]

:(