First time home buyers are entering into the market in droves and the percentage has increased for 2016. There are more than 75 millennials and they have become the most populous group in the United States. Many young households delayed buying homes after the 2007-09 recession, which sent unemployment up to 10% nationwide. Then the accompanying housing crash dragged down home values, making houses seem like a risky investment. Now it appears that they are ready to enter the market as the economy has rebounded and job opportunites has increased.
According to a recent article at NorthJersey.com “Other people held off buying homes as they completed their educations and struggled to save for down payments in the face of student debt and high rents. Those delays may be one reason the median age of first-time buyers surveyed this year by the NAR rose to 32, up from 31 in the past five years. The market has rebounded with first time homebuyers as well. The amount of purchasers that are first time has increased 3% from 32% in 2015 to 35% in 2016. Millennials are increasing looking for homes in the suburbs as they begin to have families and careers become more stable. For more information click here.
As indicated first time homebuyers are part of an entire eco-system. First-timers purchase and allow sellers to purchase newer or pricier homes. The purchase also affects the home improvement and improvement supplies industries. This also will affect the property management industry as sellers may invest in real estate to offset the gains they will receive on the sale of their properties. Although this is a nationwide survey, it will definitely affect the New York City metropolitan region in a positive light.