First-time home buyers are an important demographic when it comes to the health of the housing market. Because they’ve historically accounted for about 40 percent of home sales, they garner a lot of attention from experts, economists, and analysts hoping to gauge how the market is doing and where it’s headed. In recent years, first-time buyers have been less active than usual. The financial crash and recession led to a long period where Americans of typical home-buying age did not have the economic stability or job security to feel comfortable pursuing homeownership. Then, even after economic conditions began to improve, a lack of affordable, starter homes kept many younger Americans on the sidelines. This year, conditions are still challenging but new numbers from Freddie Mac show things may finally be changing. That’s because, first quarter results show that first-time buyers accounted for 46 percent of new mortgages during the early part of this year. That’s the largest quarterly share since 2012 and an indication that young Americans are finally becoming more active in the real-estate market. More here.
June 2018 Newsletter
Why The New Home Market Matters To You
If you aren’t in the market for a new home, why should you care about the new home market? Well, for starters, it plays a very important role in the health of the housing market. And that affects all buyers, not just new home buyers. How? Simply put, new home construction is the quickest way to add homes for sale to the market. And, when more homes are added, buyers can be more choosy, which results in less competition and fewer home price spikes. In other words, when new homes are being built and sold, the overall real estate market benefits, including buyers looking for an existing home in a more affordable price range. So, if that’s true, how’s the new home market doing? According to the latest numbers from the Commerce Department, new home sales were 11.6 percent above last year’s level in April, which is good. But, though year-over-year numbers are positive, recent revisions to totals from the first three months of the year were revised downward, indicating some lingering weakness in the market. More here.
5 Home Selling Myths
May Newsletter
How To Know When It’s Your Time To Buy
MARKET WATCH: The Typical Home Buyer & Seller
What To Look for When Looking At Homes
More Home Buyers Sign Contracts In February
If you want to get a feel for how many home buyers there are currently active in the housing market, the National Association of Realtors’ Pending Home Sales Index is a good place to start. It tracks the number of contracts to buy homes signed during the month and, because it measures contract signings and not closings, it’s a good future indicator of where home sales will be a month or so down the road. In short, if there are a lot of pending sales, there will likely be a lot of final sales. Which is why, February’s results are a pretty good indication that the spring season is ramping up. Contract signings were up 3.1 percent in February and rebounded in all four regions of the country. The largest increase was in the Northeast, though pending sales also saw significant improvement in the South. Still, despite the gains, NAR chief economist Lawrence Yun says the pace falls short of last year’s level. “Contract signings rebounded in most areas in February but the gains were not enough to keep up with last February’s level, which was the second highest in over a decade,” Yun said. More here.
What Style Of House Do You Prefer?
Most regions offer house hunters a variety of architectural styles to choose from. Whether you prefer bungalows to ranches or modern over contemporary, you can likely find something that fits your preference. But, according to one recent survey, what you’re looking for might depend on your age. That’s because the results show millennial home buyers are looking for a different kind of home than older buyers. For example, younger buyers expressed a preference for colonial and contemporary homes, when they had a preference at all. On the other hand, buyers over the age of 55 were much more interested in finding a ranch – which is an architectural style favored by only 6 percent of millennials. Of course, some of this has to do with practicalities – such as retirees in search of a one-story home because it eliminates any concern about future mobility and navigating stairs – but it’s also a question of personal taste and aesthetics. Ultimately, though, whatever type of house Americans say they prefer, they generally all say they want that house to have ample storage, a garage, and multiple bedrooms. More here.
