More First-Time Home Buyers Than Before
According to the National Association of Realtors, in 2007, 39% of all home sales were by first-time home buyers. So far in 2008, we’ve seen that number increase to 41%. First-time home buyers have some very attractive incentives to enter the market, and it’s much easier than many would think for a first-time buyer to purchase a home because they aren’t tied to another property.
When you don’t have something to sell, you don’t have to worry about waiting. You have complete freedom toYou don’t want to be renting forever.
Renting is money lost. Purchasing a home puts some of that monthly payment back into the home which can be recovered when you sell (Equity.) Not only will you recover it, but it will grow at an average of 4% – 7% annually over time as proven by history.
Even thought recent growth rates have receded due to economic conditions brought about by the mortgage crisis, if you choose the right area to buy your home, such as an affluent area of your city, or a city such as Scottsdale, Arizona which has seen year over year increases in value, you’ll be positioned well in the market and your home will increase in value. They aren’t building anymore land in Scottsdale.
We’ve never seen a better time to buy than now especially IF you are a first-time home buyer with a LONG TERM VIEW.
Getting into the market to make money on your home quickly is not the attitude that you need to have. Lenders are less forgiving when approving loans for investors or people who already own their first home and are looking for a second home or a rental property. Since you are a first-time home buyer, you want to make sure that your perspective is one with a long term view of ownership. Sellers in this market are either desperate to move because of adverse conditions, or they’re wasting their time hoping for an offer at a price that the market will not bear. Lenders won’t lend when the home’s appraisal fails to meet the accepted price.
Understand that the average first-time home buyer stays in their first home for five to seven years on average in a normal market. In this market, where inventory is high and demand is low, the only common denominator is price, and the purchaser must meet the seller in order for there to be a sale. In a buyer’s market, this means the seller will have to move more than the buyer, which puts you in the driver seat. (Article Reference: Supply and Demand, X Marks the Spot)
Buying your first home can be a stressful venture, which is why you need to enlist the services of a professional. By working with a Realtor you will protect yourself from the pitfalls associated with the home buying process.