WASHINGTON–Spring of 2017 could mean a new surge in young buyers entering the housing market.
Realtor.com reported that first-time home buyers now make up 52% of prospective buyers looking to purchase in 2017, up from 33% a year earlier.
“Buyers typically begin searching several months in advance, so the jump in activity could translate to increased purchases by first-timers in the spring and summer of next year,” Realtor.com said in its analysis.
Realtor.com pointed out that the “absence of first-time buyers has been one of the biggest abnormalities of the housing market in recent years. If they return, it could provide a big boost to sales and serve as a sign that the housing market is returning to normal after years during which most new households being formed were apartment-dwellers.”
However, the company pointed to a caveat: just because many more young people are searching for homes doesn’t mean they will be able to buy. Many have outstanding debt or are unable to put together a down payment. In response, many mortgage lenders have introduced programs for first-time homebuyers that allow for smaller amounts of money for a down payment.