First time Buyers are on their way back with a roar.
About one half of the clients that I am currently working with are first time buyers. This is significant for several reasons. When there are a lot of first time buyers in the market, the entire market in all price ranges begins to move. First time buyers in the San Diego Metro area are generally are in the $200K to $300K range. The sellers in this range then buy in the $300 to $500 range. Those sellers in turn purchase in the $500 to $800 range and so on. One of the most fun things in the real estate business is to put together "chains" of several move up buyers all purchasing at once. I have done this a few times and it is quite exciting, especially when you represent several of the parties involved.
The following is the text from a recent article about this topic:
First-time home buyers have been a sluggish segment of the
housing market in recent years, but Barclays equity researcher Stephen Kim is
betting on their return. Kim recently released a report, “The Return of the
First-Time Buyer,” which outlines three reasons why he believes first-timers
will soon be back. In fact, he’s betting that entry-level buying will be a key
theme in homebuilding industry this year. Kim says that job growth is reaching an important threshold for
improved household formation. “The cumulative number of jobs created over the
past several years has now reached the point where each new job will drive
greater household growth,” Kim writes. Also, Kim points to the loosening of
credit, with more lenders showing willingness to lend to borrowers in the
600-700 FICO range. Kim also notes that buying a home is still about 20 percent
cheaper than renting, and the affordability of housing will be an attraction
for first-timers to enter sooner rather than later before mortgage rates and
home prices rise more.But
Kim says there’s one big hurdle first-time buyers will continue to face: Student loan debt. – “Barclays: 3 Reasons the First-Time
Homebuyer Will Return,” HousingWire
If you are a first time Buyer and need the assistance of a trained professional who has sold hundreds of homes to first time buyers, contact me at:
Philip Crocker Lead Buyer Consultant mySanDiegoAgent Realty Group Keller Williams Real Estate 760.212.7222 To visit my website:
About Colleen K. Cotter - mySanDiegoAgent Realty Group
The mySanDiegoAgent Realty Group provides professional real estate consultation in the areas of residential, income properties, luxury rentals, short sales, first time home Buyers, real estate for senior citizens, real estate issues related to divorce, military and corporate relocation. We are experts in downtown San Diego and coastal properties especially Coronado, Encinitas and Point Loma, downtown lofts and condos, urban planning and sports team seasonal placements.
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