A host of reasons for why first time home buyers are at the weakest level this century To rehash this old story – for those who somehow missed it, the reasons for this weakness revolve around a mixture of inter-related economic, social and political forces some of which include: 1. Delay in marriage (Dual incomes missing) 2. A lack of a strong paying full-time job with security. 3. Older Americans are unable to retire due to lack of savings – they replace younger workers, who have trouble finding jobs. 4. Having enough for a down payment plus closing cost with taxes impounded is a lot for young aspiring home buyers. 5. Renting isn’t considered a bad option anymore from young Americans. 6. Exotic loans that allow would be homeowners to obtain credit without collateral or income verification are removed from the market. 7. Financially strapped parents are unable to “gift” down payments for first home purchases by their children. 8. Student loan debt impacted household formation from rising and making it more expensive for first time home buyers to buy. 9. Despite the weak first time buyer market, home prices go up in many markets due to the lack of inventory, keeping home ownership even further out of reach loganmohtashami/2014/11/03/demand-from-first-time-home-buyers-hits-21st-century-low/
Posted on: Tue, 30 Dec 2014 16:53:15 +0000
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