Tag Archives: First-Time Homebuyers

A breakdown of attitudes among young homeowners and renters by Fannie Mae’s Economic & Strategic Research Group finds that while most renters still dream of owning a home, few are taking steps to prepare for a purchase. Even among those who would prefer to own a home, the majority remain pessimistic about their ability to get a mortgage, with down payments and credit scores cited as the top obstacles.

As home price growth continues to moderate to a more sustainable pace, real estate data provider Clear Capital sees another promising trend forming: The mid-tier housing sector now has the best deals for buyers, hopefully drawing more interest to the market’s largest segment. Dr. Alex Villacorta, VP and chief economist for Clear Capital, says the shift reflects how market drivers have had an impact on each tier of housing.

In a survey of more than 800 recent homebuyers, Chase found approximately nine out of every 10 said that overall, they “felt prepared” when they purchased their home. Still, looking back, a combined 56 percent said they wish they were armed with more knowledge about making an offer and negotiating, the financing aspects of purchasing a house, and the actual details on closing the transaction.

According to survey results released Tuesday by independent home lender loanDepot, 56 percent of Americans who don’t currently own a home but would like to purchase in the near future say they’re not pursuing it right now “because they fear they won’t qualify for a loan.” Among current homeowners who wish to re-enter the market, 30 percent hold the same fear.

According to estimates from the National Association of Realtors (NAR), total existing-home sales in March came in at a seasonally adjusted annual rate of 4.59 million, a 0.2 percent slip from February’s downwardly revised pace of 4.60 million and hitting a nearly two-year low. Compared to March 2013, the sales rate was down 7.5 percent.

In an analysis gauging the recovery’s progress, Fitch Ratings listed harsh winter weather across the country as one of the biggest factors moderating the housing recovery, though higher interest rates and home prices have also provided some drag. Affordability will likely only deteriorate. Looking at 2014, Fitch expects new home prices to rise between 2.5–3.5 percent, with existing-home prices also moving up.

As of the end of the fourth quarter of 2013, the homeownership rate among those under 25 was 36.8 percent, according to the Census Bureau—only a little more than half the national rate of 65.2 percent. Compare that to as recently as 2008, when the rate among young adults was at or above 41 percent. Generation Y remains, as ever, a difficult group to nail down.

Realtor.com released Thursday its list of the top markets for first-time homebuyers for the spring and summer seasons. To compile the list, analysts compared cities across five categories that have the biggest impact on buyers new to the market: list price affordability, time on market, employment rates, supply of inventory (and thus chances of competition), and—as the mantra goes—location, location, location.

According to the National Association of Realtor’s sales data, total existing-home sales—including single-family homes, townhomes, condominiums, and co-ops—declined 0.4 percent last month to a seasonally adjusted annual rate of 4.60 million, matching a consensus forecast among economists surveyed by Bloomberg. Following January’s decline, February took the new record for having the slowest sales pace since July 2012.

According to the latest Home Index Survey released by PulteGroup, Inc., out of more than 1,000 consumers surveyed in February, a combined 74 percent feel the economy is either better off or the same as it was this time last year. Among respondents in Generation Y, more than half (54 percent) said the economy is in better shape now. What’s more 74 percent said now is a good or excellent time to buy the things they want or need—including homes.