Where Are the First-Time Homebuyers?
From Profit Confidential
January 4, 2013 - 12:31pm
The mainstream is ignoring some of the key aspects of the housing market in the U.S. economy. Because home prices are increasing, it doesn’t necessary mean the housing market as a whole has recovered. There are fundamental changes to the housing market that need to be fixed before there is an actual recovery.
The housing market is missing the most basic component: first-time homebuyers. In November 2012, first-time homebuyers only accounted for 30% of all the sales. Sadly, this number has been decreasing. In October, first-time homebuyers accounted for 31% in the U.S. housing market, and in November of 2011, this number was 35%. (Source: National Association of Realtors, December 20, 2012.)
How bleak is demand by the first-time homebuyers? During the month of November, the 30-year fixed-rate mortgage fell to a record low of 3.35%; it was 3.38% in October. As the mortgage rates went dow...Continue reading this article »