First Time Home Buyers Decreasing

First Time Home Buyers Decreasing

First time home buyers are becoming a smaller percentage of the market.  Normally around 40%, first time buyers are down to 34.7% of the active marketshare nationwide.  Meanwhile, move-up buyers are increasing.

First Time Home Buyers Decreasing

Perhaps the reason for this decline is due in part to the difficulties facing those trying to go the FHA route.  With many people struggling these days, applying for FHA is the best option for lower mortgage payments.  However, with so many in that struggling phase, FHA is being overrun with requests.  So there is "demand," but not necessarily enough "supply" to go around.  Up to 50% of first time buyers use FHA.

First Time Home Buyers Decreasing

On the recovery front, non-distressed properties on the market are up to 64.7% from 55.7% last February.  Move-up buyers from non-distressed homes are making up 54% of the market, up from 50% in June.