Get In On The Increase In First Time Home Buyers

Get In On The Increase In First Time Home Buyers

If you are thinking of selling your home in the Lake Murray, Chapin, Lexington or Irmo area, now is the time to capitalize on first-time home buyer activity. Why?

First-time buyers continued to increase their presence in the market as both the first-time buyer share and volume were up considerably in December from a year earlier. First-time buyers accounted for 56.7 percent of primary owner-occupied home purchase mortgages with a government guarantee, up from 55.5 percent the prior December.

–The number of primary owner-occupied purchase mortgages going to first-time buyers in December totaled an estimated 124,000, up 10 percent from the 113,000 mortgages in December 2014.

–54 percent of first-time buyer loans were high risk (MRI above 12%) in December, up from 51 percent a year earlier.

–Historically low mortgage rates, an improving labor market, and loose credit standards, combined with a 39-month-long seller’s market for existing homes, continue to drive up home prices faster than income.

In December 2015, first-time buyers accounted for 56.7 percent of primary owner-occupied home purchase mortgages with a government guarantee, according to the Agency First-Time Buyer Mortgage Share Index (FBMSI). As shown in the chart below, the December share was more than 1 percentage point above the December 2014 share of 55.5 percent. The rise in the share reflects improvements in the labor market, riskier mortgage lending, and continuing low mortgage rates. These factors, combined with a 39-month-long seller’s market for existing homes as reported by the National Association of Realtors (NAR)[1], are driving up home prices faster than income.

Curious as to what your home might sell for?  Get a free online  valuation estimate here. 

Gary Heiligman Real Estate Professional advocating and negotiating on behalf of  Buyers and Sellers in  communities surrounding Lake Murray South Carolina including, Chapin, Irmo, and Lexington. Real Estate with Gary Heiligman associated with EXIT Midlands Realty, email garyscexit@gmail.com or call 803-271-9544

Author: Maria Kitchens
Phone: 803-467-1694
Dated: January 21st 2016
Views: 1,366
About Maria: Maria Kitchens is a Real Estate Professional who has lived in Chapin, SC, for the past nine years wi...

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