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49 Orchard Avenue
East Side of Providence, RI 02906[/caption] After the housing market crash, we saw a decline in first-time homebuyers. However, in the recent years, as the job market has grown and there have been more and more first time homebuyers with each passing year. According to the National Association of Realtors
(NAR), in 2016 first time homebuyers made up 35% of the real estate market. This trend is expected to continue even with some major market shifts expected in 2017. In fact, some experts are predicting that
first-time buyers will make up 52% of the market in 2017
. If you are working with first-time homebuyers this year, here are some tips to help them find their dream home.
Increased Mortgage Rates
In 2017, mortgage rates are expected to go up. The Federal Reserve plans to increase rates three times over the year to reach benchmarks set after the housing market crash. These increased rates may scare off some first-time homebuyers who will opt to save money by continuing to rent. However, these rates are not expected until later in the year. So if you are working with first-time buyers, it is prudent to help them find something sooner rather than later. Mortgage rates through the rest of the winter and into early spring will be lower than those available next fall. The best thing you can do is encourage first-time buyers to seek pre-approval from their mortgage lender and start shopping right away.
Less Available Homes
At the end of November 2016, there were 1.85 million homes available nationally. However, this is 9.3% less than in 2015. The amount of home available will continue to decrease in 2017. This is a result of the real estate market recovering and more buyers committing to investing in a home. However, this also means that buyers may be faced with fewer options than in previous years. This lack of availability will also impact rental units. In some cases, this means that first-time buyers may have to compromise on the features, price, and location they want in their ideal home. It is a good idea to help first-time buyers broaden their search so they can see more options.
First-Time Buyers Shop Online
According to the NAR, 42% of first-time homebuyers look at listing online, while 92% use the internet in some capacity during their search process. So it is essential that you make sure your homes have great listings online to attract these excited homebuyers. You should not only features your homes on your website but also include listings on websites like Zillow
, and Redfin
. Seeing the quality of homes available, will also help first-time buyers better understand the local market. In a walkable, trendy city with great housing prices like Providence, there some great options for first-time buyers. With first-time homebuyers making up a large percentage of the real estate market in 2017, it’s important that you understand the emerging market trends and how they will impact first-time buyers so that you can help them find their dream home.