Categorized | Residential

First Time Home Buyers: More Questions Than Answers

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As the summer months approach, the residential real estate market is usually in full swing. More often than not, new homebuyers make up a solid portion of those shopping for properties. This year, however, there is a sense of unpredictability surrounding the market. With that said, many economists are questioning as how to first-time homebuyers will approach the market in its current state.

In recent surveys, roughly seven out of ten Americans indicated that they thought buying a home would be a good decision financially. While seventy percent may seem like a strong number, it is actually fairly low when compared to the numbers from previous years. That pessimistic outlook can be attributed to uncertainty within the job market and unemployment rates that are still relatively high. With those factors in mind, it should come as no surprise that home ownership rates are the lowest that they have been in fifteen years.

With mortgage rates nearly at their lowest point in history, one might think that first-time homebuyers would be buying homes at a far greater rate than they would be renting. The fact that home prices are more affordable than they have been in more than a decade would also lend one to think that same thing. However, many first-time homebuyers are struggling to get approved for a mortgage loan due to tightened credit.

Many economists believe that home ownership is not for everybody. It is best for homeowners to evaluate their current situation, and then make the situation that makes the most financial sense.

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About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

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