Guidance and Support Are Key When Buying Your First Home
In June, the number of first-time homebuyers accounted for 35% of the existing homes sold, a trend that’s been building steadily
throughout the year. According to the National Association of Realtors (NAR):
“The share of first-time buyers increased in March through June—right into the heart of the
pandemic period and the surge in unemployment—and is now trending higher than the 29%
to 32% average in past years since 2012.” (See graph below):
Why the rise in first-time homebuying?
NAR continues to say:
“The major factor is, arguably, low mortgage rates. As of the week ended July 16, the 30-year
fixed mortgage rate dropped to 2.98%. With rates so low that are locked in under a 30-year
mortgage, the typical mortgage payment, estimated at $1,036, has fallen below the
median rent, at $1,045. For potential home buyers who were thinking of purchasing a home
anyway before the pandemic outbreak and who are likely to remain employed, the low mortgage
rate may be the clincher.”
Clearly, historically low mortgage rates are encouraging many to buy. With the average mortgage payment now estimated at a
lower monthly cost than renting, it’s a great time for first-time homebuyers to enter the market. According to the Q2 2020 Housing
Trends Report from the National Association of Homebuilders (NAHB):
“Eighty-four percent of Gen Z’s planning to buy a home are first timers, compared to 68% of
Millennials, 52% of Gen X’s, and 21% of Boomers. Looking at results by region shows that over
60% of prospective buyers in the Northeast and South are buying a home for the first time. The
share is above 55% in the Midwest and West.”
There are, however, challenges for first-time buyers. A recent survey conducted by NeighborWorks America also notes that
understanding the homebuying process may be the most significant barrier for many hopeful homeowners:
“Homeownership is a particular challenge for many, despite high levels of interest. Americans
believe there are many benefits to homeownership and half of non-owners will seek information
about the process in the next few years...a large share of non-owners say the process is too
challenging and only a minority know where to find advice if they wanted it. And although many
would seek the guidance of community and non-profit programs, only one in three non-owners
are aware of such services.”
If you’re among the first-time homebuyers who feel the process is complicated, you’re not alone. If you’re not sure where to begin
or you simply want help in figuring out how to save for a home, finding a trusted real estate advisor to work with is a critical step
toward your success. A real estate professional can help you understand the process, review your current situation, and guide
you with a plan to help you to feel confident when buying a home.
Bottom Line
If you’re interested in purchasing a home and need help getting started, let’s connect today so you can take advantage of the
support available to guide you through each step of the way.
Liliana Reeves P.A, REALTOR|📲 305-609-3525 | Liliana.Reeves@GMail.com | www.LilianaReeves.com
“Selling Your Home Is My Business and Finding Your Next Home Is Too”