It took three decades, but finally first time home buyers in this Country has fallen to its lowest percentage in three decades. Typically, according to National Association of Realtors (NAR) first time home buyers make up at least 40% of all home purchases.
Even though mortgage rates are still at record lows it is not enticing first time home buyers to continue the record of sales. Contradicting what the market says, these numbers are providing that even though with record low mortgage rates it is not enough to pursue buyers out of their rent. Even though rent is becoming like a mortgage payment for a lot of people it still makes more sense and is easier financially. The fact of the matter is that, it is not that these younger people do not want to buy at this time: according to Zillow 83% of people 23-34 are expecting to purchase a home.
Some of the attributes that are going to the lack of sales to first time home buyers is the amount the day to day life is costing now. Prior to this most recent decline debt was not as high as many individuals and couples are facing prior to even thinking about the purchase of a home. The increase in college tuition every year and incomes that are not matching that of the price in the housing market. Especially, in urban areas where people want to but the most, incomes are no where close to being where they need to be in order to allow these young people to buy and further the economy.
Furthermore, to accompany the idea of not having enough money to purchase (even though you can get a loan with no money down USDA), with rising rents, it is very difficult for the millinia’s to save any money for a down payment. With student debt rising, and income falling lending companies also have had to make changes to their protocol. Strict lending standards have been put in place, especially to those who are carrying thousands of dollars in student loan debt. Loan companies were interviewed and they stated that they will now be looking at student loan debt, just as if it were credit card debt.
One suggestion that was voiced in order to try to make a change to current protocols in order to encourage first time home buyers is to have less strict credit laws as well as introduce risk based pricing. By this it means depending on credit scores, debt, income ext. this is how a loan should be determined as well as overall price. If this idea were to come into fruition it would help first time home buyers get something within their price range and set them up for success in the repayment of it. Yes the loans may take longer to re-pay, but it would allow the premiums to fit with in the dynamic of the buyer.
The other factor is that these first time home buyers are competing against established people that are buying their second or third homes. When there is cash involved it tends to make the borrowing and purchasing process a bit easier.
There are odds against the first time home buyer but where there is a will there is a way. Please do not hesitate to call Omni Real Estate with any of your needs and we will always be there to help to find a solution!
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This weeks Summit County events
As April draws to a close in the Colorado mountains, the landscape undergoes a captivating transformation. The lingering winter's grasp gradually loosens its hold as warmer temperatures begin to prevail. Snow-capped peaks glisten under the increasingly intense sunlight, reflecting the changing hues of the sky during sunset. In the lower elevations, patches of vibrant green emerge as the snow melts away, revealing the earth's awakening. Rivers and streams swell with the melting snow, offering a melodious soundtrack to accompany the sights of nature's revival. Hikers and outdoor enthusiasts eagerly venture out to explore the rejuvenated trails, where the scent of pine mingles with the fresh mountain air. As April bids farewell, it leaves behind a promise of adventure and new beginnings in the boundless beauty of the Colorado mountains. -
This Weeks Summit County Events
In the heart of April, the Colorado mountains undergo a mesmerizing transformation. As winter's icy grip begins to loosen, the landscape emerges from its snowy cocoon, revealing hints of the vibrant life that lies beneath. The crisp air carries the scent of pine and freshly melted snow, while the distant peaks still wear their snowy crowns, glistening under the bright sun. In the valleys, patches of emerald green start to emerge as the earth awakens from its slumber. Streams and rivers, once frozen, now flow freely, their waters rejuvenating the surrounding flora and fauna. Wildlife cautiously ventures out, drawn by the promise of warmer days ahead. The middle of April in the Colorado mountains is a time of transition, where the beauty of winter gracefully yields to the burgeoning life of spring, painting a breathtaking tapestry of renewal across the rugged terrain. -
This Weeks Summit County Events
In the Colorado mountains, the beginning of April heralds a transformative time as winter's icy grip gradually releases its hold, yielding to the gentle warmth of spring. As the sun climbs higher in the azure sky, its golden rays dance upon the remaining patches of snow, casting a brilliant sheen across the landscape. The forests, once cloaked in a blanket of white, now reveal hints of emerald as the first tender shoots of new growth emerge from the thawing earth. The crisp mountain air carries the tantalizing scent of pine and earth, while the distant call of wildlife stirs with renewed vigor. April in the Colorado mountains embodies a delicate balance between winter's lingering chill and the promise of rejuvenation, offering a captivating tableau of nature's ever-changing beauty.
