First- time home buyers aren’t buying homes like they used to.
Just 33 percent of home purchases this year have been by first-time buyers, the trade group said, down from 38 percent last year and well below the long- term average of 40 percent, the trade group said.
According to NAR chief economist Lawrence Yun, would-be buyers are struggling with higher prices, tight lending procedures and a still unsteady job market. Their absence, however, is slowing the overall recovery. NAR predicts home sales will fall this year for the first time since 2010.
As a Loan Officer here in Minnesota, I cry foul… Yes, maybe the percentage of first time home buyers is down, but it appears the home buyer market reality doesn’t match the perception. Home prices are incredibly affordable all across MN, WI, and SD. Mortgage programs and lending may require a few more documents, but it is not really difficult at all (unless you have bad credit).
I heard again this morning on a national news program that you need 20% down payment. Really? Since when? There are many first time home buyer programs in MN that can be combined with down payment assistance programs, so you only need a small amount for down payment. FHA loans are only 3.5% down payment, and Fannie Mae just announced they are coming out with a 3% down program shortly.
Maybe there is a changing market, but the reality is that a home of your own is still the American Dream, and there is no reason for most people not to buy a home.