Yorkville IL Realtor | Urgency Increases for First-Time Homebuyers

first time homebuyers yorkville il real estate In the housing market, new buyers are gradually increasing their stake.  First-time homebuyers comprised 32% of existing home sales in March, which is up from 30% just a year ago and 29% in 2014.

Because there is a potential threat of interest rate increases, it may be prompting more first-timers to get into the market this year.  According to the March Realtors Confidence Index, sustained job and income growth is playing a role.  There could also be a modest increase due to the aging of the millennial generation.  The Confidence Index report notes that first-time homebuyers are most likely to be between the ages of 25 and 34.

In most markets, Realtors are saying that interest from first-time homebuyers is up this year, but competition is tough for listings in their price range.

The great news is that those who do find a home in their price range aren’t having to use their entire life savings when going to the closing table.  63% of first-time homebuyers put down anywhere from 0 to 6% to secure a mortgage.  In opening the credit box, the Federal Housing Administration has reduced its annual mortgage insurance premiums and the government-sponsored enterprises—Fannie Mae and Freddie Mac—now accept mortgages with 3 percent down.

That being said, the Confidence Index report notes that the impact of these measures in attracting first-time homebuyers is low because there is a general lack of knowledge about the opportunities available.  Only 13% of people aged 34 or younger believe they can buy a home with a down payment of 5% or less, according to the National Association of Realtors 2016 3rd Quarter Housing Opportunities and Market Experience (HOME) Survey.

Whether you’re a first-time homebuyer or a seasoned pro, when you’re buying or selling a home, you’ll want an experienced Realtor by your side.  Contact Yorkville IL’s smart choice for real estate, Yorkville real estate agent Lauralee McElroy.