Lawrence Yun reports “Unfortunately, our most recent data show first-time buyers are a shrinking share of the market, only about 27 percent of buyers, compared to 40 percent in a more normal market. It’s not that young households don’t want to buy. It’s that desire is not matching up with their ability. Many young households are saddled with student loan debt while job creation and wages have been heading up only slowly. And the qualified mortgage rule that took effect this year to ensure lenders don’t make bad loans won’t help, since it tightens how much student loan and other debt loan applicants can carry.”
If you are reselling to first time home buyers you are marketing to a shrinking buying pool due to our first time home buyers not getting the jobs or not being able to qualify for the harder to get loans. So find new and creative way to fund out first time home buyers or offering tenant buyer options might be more beneficial. And we are going to continue to have more renters for a while.
Read full article: Fixing the Plight of First-Time Buyers