It’s a lot easier to buy your first home when you feel good about your job prospects and the economy. For many, the time is now as strong economic news and positive employment trends are empowering buyers to purchase their first home.
According to a new report in REALTOR ® Magazine, first-time homebuyers are jumping off the fence and into their own homes at the highest rate since 2005. Despite a decrease in overall home sales, the study concludes that 985,000 single-family homes were purchased by first-time homebuyers – the most during the first six months of a year since 2005.
“The desire remains strong,” said Lawrence Yun, chief economist at the National Association of Realtors. “About 80 percent of renters, especially millennials, indicate they would like to own at some point in the future.”
One reason first-time homebuyers are feeling more confident in making the transition from renter to homeowner may be caused by the positive news in the job market. According to the latest Employment Situation Summary report from the U.S. Bureau of Labor Statistics, jobs continued to increase in July, dropping the unemployment rate to 3.9%.
For REALTORS ® who are dealing with buyers concerned over the prospect of rising home prices and interest rates, it is important to explain that closing quickly can help secure a mortgage rate and potentially significant savings on their monthly mortgage payment.
Source: nar.realtor/realtor-magazine and housingwire.com