Posted by Damon L. Chavez on Tuesday, November 15th, 2016 at 8:15am.
November 14, 2016 / Homes.com, By Carson Buck If you’re a first time home buyer, you’re in luck. Why? Because the new home building trends that are currently at work in the real estate market are exactly what a new home buyer wants to see.
But, if there’s one thing that’s certain about the real estate market – things change very quickly! Therefore, if you’re thinking about buying a home this year, then you need to get serious because who know how long these trends will last.
Here’s a breakdown of the new home building trends that are great for first-time home buyers.
Homes prices are still relatively affordable around the country, but that is changing. Gradually, home prices are starting to climb back up, so if you’re looking to buy your first home, you will want to get active and start looking now while the prices are still affordable.
Just a few short years ago, it was virtually impossible for someone with less than a perfect 800 credit rating to qualify for a mortgage. But today, underwriting standards have become (a little) more relaxed, meaning it’s possible for the average Joe or Jane with a good credit rating and an appropriate down payment to get approved for a mortgage.
Over the last few years, all-cash buyers flooded the market, scooping up any property that was suitable for investment purposes. Of course, when competing against all-cash buyers, any first-time buyer trying to get financing is probably going to lose. But these days, all-cash buyers have gone the way of the dodo bird, so there’s less competition out there for first time buyers to worry about.
Just like buying your first car, it was once thought that one’s first home should almost always be a fixer-upper. But these days, first-time home buyers don’t have to bring their toolboxes along on closing day because there are far fewer distressed properties on the market, especially with last year seeing the most brand new single family homes being built since 2008.
With affordable prices, easier to obtain loans, and a generous amount of brand new homes available, it’s a great time to buy your first home!
In a case of what’s old is new again, first-time home buyers are more interested in buying in the suburbs than they are in more urban areas. In fact, according to the Bank of America Homebuyer Insights Report, 52% of first-time buyers are looking to the suburbs for their home-buying goals, with 75% interested in purchasing single-family homes.
The primary reason is cost. Urban living has become extremely popular in recent years, and as a result, prices have skyrocketed in the inner city. Good luck making your first home purchase this year!