First-time and entry-level buyers are returning to the market after years of dormancy.
May 22, 2015
According to the Wall Street Journal, first-time buyers accounted for approximately 18 percent of new-home sales so far this year. Housing economists, builders, and realtors are likely to welcome the news of the increase in first-time buyers dipping their toes in the housing market as they are often considered the key to boosting home-construction volumes as well as the economic recovery.
The source stated that there were 437,000 new homes sold in 2014, just 58.6 percent of the annual average since 2000, but first-time buyers can help the number rise. However, 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.