First-Time Home Buyer Comeback?
A First-Time Buyer Comeback?
More jobs and a strengthening economy may give homes sales a jolt this spring.
MARCH 2015 | BY LAWRENCE YUN
2015 got off to a snowy and sluggish start for residential markets. While running at a faster clip than at the same time 12 months earlier, January’s closing activity clocked in markedly lower compared to the final months of 2014.
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|Inventory remains low in many areas, and income growth lags behind home appreciation.|
|Practitioners are seeing more activity from buyers as interest rates remain low and financing becomes easier to obtain, at least in some markets.|
This phenomenon may have little to do with lifestyle choices and more to do with economic realities. After all, the number of millennials—those in their 20s and early 30s—-living with their parents is at sky-high levels, and it’s doubtful that staying with mom and dad is their idea of freedom. More likely, they’ve felt -hampered trying to find stable, good-paying jobs, let alone obtain mortgage financing in today’s overly strict environment.
But there are hopeful signs here as well. Jobs and wages are steadily improving. The mortgage credit box is opening up a bit. When you look at these trends along with the improving prospects for home construction amid a strengthening economy and continuing low interest rates, first-time buyers could be poised for a comeback in 2015. Overall, we could see a good year ahead. The formation of more new households is something parents, as well as their young adult children, can smile about.