First-time buyers purchased 2.7 million homes nationwide during 2018, and they are predicted to influence the market throughout 2019. A study by Genworth finds that first-time buyers have been gaining market share for the past 4 years. We’ve been helping first-time buyers since 2004, so we’re happy to see this news!
Illinois saw double-digit growth in first-time buyers from 2014 through 2018. While Illinois first-time buyers grew by 26% during this time, neighboring states like Wisconsin, Iowa, Missouri – even Indiana, for crying out loud – saw a greater percentage of first-time buyers active in the market. We can speculate that a lack of entry-level homes in Chicago was at least part of the cause, along with higher home prices for the inventory that remained.
We should point out that first-time buyers stepped back nationwide during the last quarter of 2018. While they still represented 39% of all buyers during this time, their mortgage application volume declined from prior months. This is likely due to the period of higher interest rates that began to evolve in September 2018, which annoyed buyers through the remainder of the year. With interest rates now back to what they were about a year ago, pent-up demand could surface anew.
A bright spot for Chicago area home buyers this year is the improvement in home inventory that we’ve seen in recent weeks. We are still likely to see competition for starter homes, so we encourage first-time buyers (and all home buyers) to be well-prepared with their mortgage approval in hand. We can refer you to excellent, local lenders, just give us a call! 847-348-1154.
StartingPoint Realty – serving first-time home buyers since 2004!
StartingPoint Realty proudly serves first-time home buyers throughout Chicago and the Northwest suburbs. Get an introduction to home buying by attending our free home buying seminar! There’s no sales pressure and no obligation. Space is limited, so please register your choice of location and date to reserve your seat!
Always feel welcome to contact us for help with your Chicago home buying questions!
Ryan Gable Broker/CEO Starting Point Realty
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