First Time Buyers ensure the health of the Market

By
Real Estate Agent with Athome Realty, WA

It appears to me, and it has for quite some time, that the health of the real estate market, no matter where we are in the nation, is really based on the ability of first time buyers to invest in thier first home.

 

Everyone has to start somewhere. And I have found myself wondering how first time buyers were going to be able to survive in this market or even get into this market if it continues to skyrocket. Although I am all for equity building and the like, there really needs to be some focus on creating affordable housing options for first time buyers. Condo conversions are good, but they aren't everything.

 What do you all think?

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Rainer
46,690
Mrs. Sheri Ann Johnson, GRI
Tropic Shores Realty - Spring Hill, FL
I'm starting to see more first-time buyer now than any time in the past year. The prices in my local market have dropped considerably & Sellers are offering great incentives to the Buyers. I think it's a great turnaround!
Aug 09, 2006 02:09 PM #1
Rainmaker
469,153
Alexander Harb
Knights Investing - Mesquite, TX
Dallas, Texas Real Estate Investing

Condo conversions are all in what the owner did to convert the property to a desireable condo instead of a place to rent..... did they do extensive interior re-modeling, crown molding, adding a dishwasher, disposal, better paint, better roofing, are they having a better landscaper / lawn maintenance crew come around every week when the lawn needs cutting and shrubs need trimming?

 

 

Aug 09, 2006 03:49 PM #2
Rainer
489,107
Teri Isner
Keller Williams Realty at the Lakes - Orlando, FL
GRI, CRS, CIPS
First time buyers programs are helping here, we have one for nurses and teachers.  What they like is where we start if there are no options we move on to their second choice and so on.  Creating affordable housing is tough.  Linda Norton realtor of the year a few years ago did it by converting a large hotel and improving the community.  Takes talent, patience and support from the town which she really cornered.  You may remember her from the NAR ads.
Aug 10, 2006 07:44 AM #3
Rainer
17,786
Michael DeMello
Prudential Locations LLC - Honolulu, HI
CRS, ABR, CDPE, e-Certified
Helps here for sure!
Oct 23, 2006 04:11 PM #4
Ambassador
686,726
Rob Lang
At Home Kansas - Lawrence, KS
Local Expert in Lawrence Kansas Real Estate Homes
New lending options such as lower interest rates, low or no down payment, 40 year terms, and the like help first time home buyers.  The key that I see is to make sure first time home buyers can actually afford the home and not get them to be home buyers simply because the financing is there for them to be able to do so.
Oct 30, 2006 05:22 AM #5
Rainmaker
120,967
Richard Sweum
1st Security Bank - Everett, WA

Hi Michelle,

it is amazing how many first time homebuyer programs still exist and haven't been impacted by the current market craziness.  A huge portion of my business are first time buyers and while standards have tightened up, they haven't eliminated credit and income worthy buyers for the market. 

We will see some price correction and this will help but unfortunatly, all of the sfr's and zero lot line condos that are being built are being built on "dirt" that was way overpriced.  The builders are locked in, and it might be a while before we see them willing to sell their product at a loss.

We need inventory that is in the $225-$300 range for SFR's that is for sure.  Condo conversions are a nice thought, but as has been shown in other markets around the country, they do not perform as well as true-built condo's and SFR's. 

Best wishes!

 

Sep 07, 2007 03:38 AM #6
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Rainer
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Michelle Sotelo

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