The Reason We Are Seeing More and More First-Time Homebuyers

We haven’t seen this many first-time homebuyers in our market since 2005. Here’s why they’ve made such a strong return.

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According to a recent report, first-time homebuyer purchases are being made at their highest rate since 2005, and they’re up 1% from 2017. The main reason behind this is the fact that rents are rising at the fastest pace we’ve seen in almost two years. According to Zillow, the median rent rose 2.8% to $1,445 and has been experiencing the fastest pace of appreciation since May 2016.

We are personally seeing a huge demand from potential homebuyers under age 35 who want to stop renting and stop throwing away their money. In Collin County alone, there are 147 houses priced at or below $225,000 or less, which is a typical price range for first-time buyers.

Assuming a buyer is going to utilize an FHA 3.5% down payment loan program, a $225,000 home would cost roughly $7,200 out of pocket and result in a monthly payment of roughly $1,800. That’s not much more than what most people are paying in rent, and in some cases, it’s significantly less.

Renters are tired of throwing away their money and are ready to buy.

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If you’re tired of throwing away money on rent and are curious about how the home lending and buying process works, don’t hesitate to give us a call or send us an email. We look forward to hearing from you soon.