First-Time Buyers Make a ComebackBy Integrity Windows
Although the numbers have yet to fully recover, according to the Wall Street Journal, and as reported by the Professional Builder, First time and entry-level buyers are returning to the market after years of dormancy. In fact, first time buyers accounted for approximately 18 percent of new-home sales thus far in 2015. Even so, The Wall Street Journal does state that even though first time buyers are stepping off the sidelines, it doesn’t mean they’re fully back in the game.
The gradual return of the first-time buyers is welcome news to some housing economists, builders and realtors, given that the eventual return of first time buyers after several years of dormancy is often cited as key to boosting home-construction volumes and, subsequently, the economic recovery, repots Wall Street Journal.
Even with the upturn, obstacles such as tight credit restrictions and rising home prices make it difficult for first-time buyers to qualify for a mortgage or have enough save for a 10 percent or 20 percent down payment – making their return to the market a gradual one.
Nonetheless, The Wall Street Journal reports that the home builders association estimates, based on a survey of its members, that first-timers will account for 18% of new-home sales this year. That’s up from its recent low of 16% last year, but it’s also well short of 27% to 28% in the normalized market of 2001 to 2005.