There’s no doubt that 2014 was a year of recovery for real estate. Prices were up, equity increased and foreclosures were down but looming in the background is a problem which can sink the recovery: First-time home buyers have become a rare and exotic species.
“Despite an improving job market and low interest rates,” says the National Association of Realtors, “the share of first-time buyers fell to its lowest point in nearly three decades and is preventing a healthier housing market from reaching its full potential.”
Without large numbers of first-time purchasers it’s hard if not impossible for current owners to move up, move out or get higher values. That means owners with more expensive homes are also stuck because they need move-up purchasers and the result is that a lack of first-timers impacts sales through the entire marketplace. Read More