First Time Home Buyers Feel The Pinch

Dated: November 3 2017

Views: 173

  •                                                            First Time Home Buyers Feel the Pinch


As the economy and wages improved in 2017, first-time homebuyers were finally moving back into the market — until that turned around again.

Sky-high home prices and few low-priced listings took their toll on these buyers yet again. For those who did buy, they had to pony up and pay more money for less of a house.

The share of sales to first-time buyers fell to 34 percent in 2017, down from 35 percent in 2016, according to the National Association of Realtors' annual Profile of Home Buyers and Sellers. That is the fourth-lowest share in the survey's 36-year history. First-time buyers historically make up closer to 40 percent of homebuyers.
The drop in buyers is, in part, due to a rise in student-loan debt. For those who did buy, 41 percent said they had student debt, up from 40 percent in 2016. The average amount of debt also increased to $29,000 from $26,000 last year.

More than half of buyers owed at least $25,000, and a sizable share said that debt delayed their saving for a down payment. And that down payment had to be larger, given the lack of affordable homes for sale.
"The dreams of many aspiring first-time buyers were unfortunately dimmed over the past year by persistent inventory shortages, which undercut their ability to become homeowners," said Realtors' chief economist Lawrence Yun.

"With the lower end of the market seeing the worst of the supply crunch, house hunters faced mounting odds in finding their first home," he said. "Multiple offers were a common occurrence, investors paying in cash had the upper hand, and prices kept climbing, which yanked home ownership out of reach for countless would-be buyers."

Latest Blog Posts

Jan 5 2021 38376 1

What to Expect From Real Estate In 2021For real estate, as for many things, 2020 was a strange year. Despite a pandemic, a recession and unemployment that at one time hit 20 million, 6 million

Read More

Jan 2 2021 38376 1

A Perfect Storm Seeks Destruction of the U.S.As 2021 dawns, the war on our culture moves into high gear.  The opportunistic intersection of the resistance to the Trump presidency, the rise

Read More

Dec 1 2020 38376 2

Nearly Half of Americans Are Considering a Move During the Pandemic, but Why?With the coronavirus pandemic likely to stretch into next year, many people are spending more time than ever before in

Read More

Dec 1 2020 38376 1

How will California’s Proposition 19 impact property taxes?A slim majority of California residents voted in favor of Proposition 19 on Election Day, green-lighting a motion that gives new

Read More