Why are there fewer first-time home buyers?

Low inventory of reasonably-priced homes is partly to blame

AGAWAM, Mass. (WWLP)– Nationally, the number of first-time home buyers has dropped in 2014.

Across the country, the percentage of first-time buyers went down to about 30% in 2014, which is the lowest percentage in nearly a decade. Typically, first-time buyers make up about 40% of the buying population.

The New England region’s Vice President of the National Association of Realtors, Gary Rogers, told 22News that Massachusetts is also seeing a drop in first-time buyers. Rogers said that drop is partly because there are not a lot of homes for sale in the price point they’re looking for.

“Some of the biggest reasons are low inventory in the price point that first-time buyers typically gravitate to,” Rogers said.

He also said first time buyers need to be very careful to not overextend themselves financially when they do decide to buy.

Rogers also gave the following advise for first time buyers:

  • Keep your credit card debt to a minimum.
  • Have extra money in reserve, in addition to your down payment.
  • The larger your down payment, the more appealing you are to lenders.

Comments are closed.