Posts Tagged ‘first time home buyer’

New Home Sales Less Than Half of Historical Norms

Posted on June 13, 2017 by Laura Lam

The current level makes up 88.3% of the 50-year average, according to a report from Trulia. However, new home sales are unable to keep up with the rate of total sales.  How many new home sales do we need for the market to look normal?  According to Trulia Chief Economist Ralph McLaughlin, if we compare the share of new home sales to total sales, that share needs to more than double.  “In April, new home sales made up about 11.9% of all home sales, which is less than half of the historical average of 23.6%,” McLaughlin said. However other experts explain…

The Top 10 Careers for First-Time Home Buyers

Posted on May 26, 2017 by Laura Lam

Although home prices continue to rise, one degree stands above the rest as being the best for those who wish to buy at home closer to the start of their career.  Of the top 26 degrees that would allow graduates to purchase a home in four years, 22 of them involve engineering, according to a recent study from Realtor.com.  The top degree enables buyers to purchase a home within 2.5 years of graduation. “When it comes to homeownership, degrees in engineering really pay off,” realtor.com Senior Economist Joe Kirchner said. “It shows just how powerful a high starting salary can…

First-Time Homebuyers Deterred by Misconceptions

Posted on May 25, 2017 by Laura Lam

The lack of knowledge around the home purchase process was cited by 39% of mortgage executives as the leading barrier keeping potential first-time buyers from entering the market.  That topped a lack of inventory (29%), excess student loan debt (27%) and rising interest rates (6%), according to a survey taken during the Mortgage Bankers Association’s National Secondary Market Conference by Genworth Mortgage Insurance. The greatest cause of confusion among first-time homebuyers is the role of a 20% down payment.  Of those surveyed, 28% said consumers still mistakenly believe that a 20% down payment is a requirement for purchasing a home,…

Switching Gears: Builders Turn to Starter Homes to Lure Millennials

Posted on May 22, 2017 by Laura Lam

First-time buyers are rushing to buy homes after a decade on the sidelines, promising to kick a housing market already flush with luxury sales into higher gear.  Tracking home sales to a particular age group is hard, but a series of data points form a mosaic of a generation of young people ready to buy: The number of new-owner households was double the number of new-renter households in the first quarter of this year, the share of first-time buyers is creeping back toward the historical average, and mortgages for first-timers are on the rise. “They’re crawling out of their parents’…

Millennials Locked Out of Housing Market Again

Posted on March 14, 2017 by Laura Lam

For quite some time, we’ve heard that Millennials have put off buying a home.  These reasons include student debt load, tighter lending standards, and simply not wanting to sacrifice everything for a chance to own the “American Dream.”  Whether Millennials actually want to buy a home or not, there has to be homes available to purchase.  Currently, young home shoppers have a very shallow pool of options – and the current inventory shortage is predicted to stick around through 2017. Daren Blomquist, senior vice president at ATTOM Data Solutions, identified 3 key factors keeping housing inventory in a drought, barring entrance for aspiring…

Student Debt Impacts Home Ownership

Posted on December 10, 2015 by Saldutti

A new report based on research from the Harvard Joint Center for Housing Studies indicates student loans has a potentially strong impact on consumers seeking to move from renting to buying a home. It also could delay their ability to build savings for a mortgage down payment. Young borrowers who are facing debt but didn’t finish their degree are looking at growing default and delinquency rates and challenges finding well-paying jobs, according to Irene Lew, a research assistant at the Harvard Joint Center for Housing Studies.  In Lew’s report, “Student Loan Debt and the Housing Decisions of Young Households,” she reviews the…

It's Getting Cheaper To Buy A Home

Posted on November 25, 2015 by Saldutti

Earlier this year, the Federal Housing Administration began reducing mortgage insurance premiums on its loans by an average of $900 a year. While the FHA loans typically come with low down payment requirements, they often have higher monthly payments as a result of the mortgage insurance that (unlike conventional loans) continues for the life of the loan, even when 20% equity is reached. Now it appears the mortgage insurance premium reduction is having the desired effect.  Data from RealtyTrac shows that FHA loans were used in 23% of all financed purchases in the second quarter of 2015, up from 19% in the second quarter of…

More Renters Considering Home Ownership

Posted on November 19, 2015 by Saldutti

An increasing number of renters are considering whether to purchase a home, according to a new TD Bank survey.  About 50% of renters are likely to purchase a home in the next 2 years, TD Bank said. The reason is the rising cost of rents, according to Scott Haymore, head of pricing and secondary markets. “With an improving job market and economy, renters are gaining more confidence in the housing market and starting to explore home ownership as a feasible option,” Haymore said.  TD Bank’s survey was conducted between Sept. 23 and Sept. 30 and queried 1,046 consumers. The breaking…

Millennials: Untapped and Unwilling Homebuyers?

Posted on April 09, 2015 by Saldutti

It’s a largely untapped market Realtors can only dream about: more than 80 million Americans ages 20 to 34, prime time for starting families and moving into their first homes. The youthful answer to the industry’s prayers in a home-sale market recovering too slowly.  Though real estate agents and builders have their money riding on a bounce in 2015, they are acknowledging that most so-called millennials can neither afford houses nor want to buy them. Many millennials look at a house as “something you can get underwater on debt with if its value goes south,” said Kevin Gillen, chief economist…

Our Depressing Student Debt Problem

Posted on February 10, 2015 by Saldutti

There’s “a clear positive correlation between a state’s student debt growth and the rate at which its 25 year-olds live with their parents,” according to a new report from the Federal Reserve Bank of New York, which analyzed what factors are to blame for keeping millennials living at home. While housing costs and a tough job market may also be fueling the trend, the dramatic rise in student debt being shouldered by college graduates was most closely associated with the rise of young people living with their parents. The report compared parental co-residence rates for 25 year-olds from 2002-2003 to…