Tag Archives: First-Time Homebuyers

NeighborWorks' Second Annual America at Home Survey showed that student loan debt and perceived overtightness of lending has prevented or delayed homeownership despite the fact that 60 percent of American adults surveyed said owning a home was either "the most important" or a "very important" part of the American dream.

In its annual survey of homebuyers and sellers, the National Association of Realtors (NAR) found that only about 33 percent of home purchases in the last year were made by first-time buyers, down from 38 percent in last year's survey and the long-term average of 40 percent.

The National Association of Realtors (NAR) reported a 1.0 percent decline in its Pending Home Sales Index for August. The drop brings the index down to 104.7, its second highest reading so far this year. The drop in the pending sales measure came in the same month that the association reported a dip in existing-home sales.

Going against recent assertions that student debt may not prove as big a hindrance to the housing market as feared, a new report from researchers at John Burns Real Estate Consulting argues that student loans could cost the industry tens of billions of dollars this year alone.

Despite concerns about their current presence, millennials still have a major role to play in shaping the housing market in the coming years, researchers assert in a new report from the Demand Institute (TDI). Based on an analysis of economic and consumer research over the last 18 months, TDI predicts the number of households headed by millennials will reach 21.6 million by 2018, representing an increase of 8.3 million since 2013.

In a poll of more than 2,000 consumers, Wells Fargo found 68 percent feel that now is a good time to buy a home, and 95 percent want to own if they don't already. On the other hand, while nearly three-quarters of respondents in Wells Fargo's survey said they "know and understand" the financial process involved in buying a home, large numbers also expressed doubt or misguided notions about homebuying requirements.

RealtyTrac's latest report on housing affordability shows that 96 percent of U.S. housing markets are still affordable for recent graduates making the median household income, even those with student loans. RealtyTrac found that the minimum amount of income needed to purchase a median-priced home, with and without student loans, was feasible in 475 out of 494 counties with a population of at least 100,000.

According to Zillow's latest Negative Equity Report, high negative equity among Gen-X homeowners is causing gridlock in the U.S. housing market. Nearly 43 percent of homeowners between 35 and 49 are underwater on their mortgages. In contrast, only 15 percent of millennial homeowners (those between 20 and 34 years old) and 31 percent of baby boomers (50 to 64 years old) are underwater.

The National Association of Realtors (NAR) reported on Thursday that sales of existing homes (including single-family houses, townhomes, condominiums, and co-ops) hit a seasonally adjusted annual pace of 5.15 million last month, up 2.4 percent from a downwardly revised June. Looking only at single-family homes, July sales improved 2.7 percent month-over-month to a seasonally adjusted pace of 4.45 million but still fell 4.2 percent short of last year.

A new customer satisfaction survey released by J.D. Power breaks down the top priorities among clients working with real estate brokerages, ranking the customer/agent relationship as most important factor for homebuyers—particularly first-timers, who benefit most from clear communication, says Christina Cooley, director in the diversified services industries practice at J.D. Power.