Housing market could see influx of first-time buyers
Posted on Friday, March 14, 2014 at 8:46:21 AM
The housing market isn't chugging along like it should unless there are first-time buyers entering the market in droves. Over the past few years, challenging economic conditions and limited access to residential financing may have hampered that, but recently, those trends have reversed and novice shoppers have reemerged.
According to the first-ever Zillow Housing Market Confidence Index, more than 4 million first-time homebuyers have the desire to enter the real estate sector. This is likely driven by strong confidence in the U.S. housing market as a whole, including other favorable economic conditions.
"For the housing market to continue its recovery, it is critical that homes are both available and remain affordable to meet the strong demand these survey results are predicting, particularly from first-time homebuyers," said Stan Humphries, chief economist at Zillow.
On the other hand, Redfin reported that higher home prices and lower sales could impede buyer activity over the next few months. These fluctuating conditions, including residential financing rates, have some buyers concerned. But, recovery is expected to continue.
Redfin economist Ellen Haberle explained that buyers will have to withstand changing affordability over the next few months. This could especially impact first-time homebuyers.