First-time home buyers are making a comeback, according to the latest report from the National Association of Realtors (NAR). During September 2016, first-time home represented 34% of all home buyers nationally. This is the largest market share held by first-time buyers during the last four years. Industry analysts attribute strengthening employment numbers, wage gains, and the low interest rate environment to the rise in first-time buyers.
First-time buyers may have also timed the market, capitalizing on thinning competition as the school year began and other buyers ceased their home search.
First-time buyers still face competition from real estate investors, who represented 21% of all home sales in September. This includes all-cash transactions by institutional and individual investors. Since investors and first-time buyers are typically vying for the same types of properties, entry-level home inventory has been pressured in many areas of the country.
Home sales during September were strong across the board, despite limited home inventory. Here in the Midwest, existing home sales increased by 3.9% compared to September 2015. Median home prices in the Midwest increased 5.9% on a year-over-year basis, reaching $184,500.
Here in Chicago, home prices and home sales have literally been all over the map! You can see what we mean by checking out the latest report from the Institute for Housing Studies at DePaul University. The “hottest” neighborhoods share a common denominator: they are targeted by real estate investors, including buy-and-hold landlords and house flippers.
This doesn’t mean a first-time home buyer can’t succeed in Chicago’s most popular neighborhoods. What it does mean, however, is that you must be very well prepared, with your home financing in order, and having a good idea of what you’re looking for.
Sometimes a first-time buyer fears making a “wrong” decision and ends up passing on a great opportunity! But if you do your homework, and have the guidance of StartingPoint Realty, you’ll know the right home when you see it – and have confidence in your decisions.
StartingPoint Realty – helping first-time Chicago home buyers!
StartingPoint Realty specializes in educating and serving first-time home buyers throughout Chicago and the Northwest suburbs. We provide complete guidance during the entire home buying process!
Be sure to attend a free home buying seminar to learn about Chicago home buying! There’s no sales pitch, and no obligation. Always feel welcome to contact us for help with your Chicago home buying questions!
Ryan Gable Broker/CEO Starting Point Realty
Become a StartingPoint Realty Facebook Fan
Follow StartingPoint Realty on Twitter