The number of first-time home buyers nationwide has been on the decline in recent years. A recent article in MarketWatch suggested that changing attitudes about home ownership were part of the issue, citing Millennials who have put off the traditional rites of adulthood.
While today’s young adults may not be in a hurry to start a family, or buy a home, the driving factor behind these decisions could be an economic one. This is troubling to consider when mortgage interest rates have been advantageous, and job growth has been steadily improving. Mortgage requirements have also eased somewhat in the past year, allowing down payments as low as 3%, and allowing less-than-perfect credit scores.
Meanwhile, rents have been rising aggressively throughout much of the country, providing plenty of incentive for home ownership.
Why, then, aren’t more first-time home buyers entering the market nationally, and in Metro Columbus? There are several primary reasons, according to industry analysts and consumer surveys:
- High college student debt burdens
- Under-employed income issues
- Tepid wage growth
- Progressive year-over-year increases in home prices
- Lack of entry-level home inventory
- Higher rental costs
- Lack of sufficient savings
- Fear/anxiety caused by the foreclosure crisis that began in 2007
- Lack of knowledge about the home buying process
Here in Central Ohio, we did see tight home inventories for about 6 months of 2015. In some local markets, particularly in prime neighborhoods, buyer competition was common. Yet first-time buyers who were financially prepared, and used an Exclusive Buyer’s Broker, still found opportunity. Read Ian and Erica’s home buyer success story for a great example!
Perhaps the untold story in the decline of first-time buyers, is that there are few agents and brokers who offer exclusive buyer representation. Having the expert advice of an Exclusive Buyer Agent or Broker makes a tremendous strategic difference!
If you are not already familiar with how an Exclusive Buyer’s Agency works, we strongly encourage you to read this advice from Kiplinger’s Magazine. Also please see our blog post entitled, “Questions Every Columbus Home Buyer Should Ask Their Agent.”
As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.
Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!
Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!
Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax