RISMedia's Real Estate Magazine

DEC 2018

Real Estate magazine is the industry's leading source for real estate news and information since 1980. Published monthly by RISMedia, Real Estate magazine offers timely and relevant real estate news to the industry's top brokers and agents.

Issue link: http://remag.rismedia.com/i/1057163

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Page 123 of 158

RISMedia's REAL ESTATE December 2018 119 {Blog Spot} "With the lower end of the housing market—smaller, moderately-priced homes—seeing the worst of the inventory shortage, first-time home - buyers who want to enter the market are having difficulty finding a home they can afford," says Lawrence Yun, chief economist at the Nation - al Association of REALTORS®(NAR). "Homes were selling in a median of three weeks and multiple of - fers were a common occurrence, further pushing up home prices. These factors contributed to the low number of first-time buyers and the struggles of would-be buy - ers dreaming of joining the ranks of homeownership." Against the challenges, however, first-timers are not all that different from other generations of homebuy - ers, according to the Profile of Home Buyers and Sellers from NAR, newly released for 2018. When compared to all buyers as a group, and home - buyers in a repeat scenario, first- time homebuyers are also: • Likely to accumulate a down pay - ment through personal savings • Likely to enlist the help of a REALTOR® • Likely to house-hunt online • Likely to be married • Likely to purchase a single-family home Another common trait? Buyers, in - cluding first-timers, are encumbered by their loans. Thirteen percent of buyers are challenged the most by the down payment, and for half of them, college debt is keeping them from saving for it, according to the research. (Twenty-four percent of buyers have college debt—a me - dian $28,000—and 40 percent of first-timers are weighed down by it, at a median $30,000.) As for those who can amass enough for a down payment? Wheth - er a first- or seven-time homebuyer, there's a similarity: cash to spare. According to the research, first-tim - ers put down 7 percent this year, up from 5 percent, while repeats put 16 percent toward their purchase this year, up from 14 percent. RE This article originally appeared on RISMedia's blog, Housecall. Visit us at blog.rismedia.com. Suzanne De Vita is RISMedia's online news editor. B uyers on their first go at homeownership are a product of their surroundings today—budgets burdened by college debt and mounting prices (and, now, rates), with the inability to save. With the barely-there headway in inventory, many are simply spinning their wheels. First-Time Homebuyers: Unique, Sort Of by Suzanne De Vita "With the lower end of the housing mar- ket seeing the worst of the inventory shortage, first-time homebuyers...are having difficulty find- ing a home they can afford." – LAWRENCE YUN Chief Economist, NAR

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