Report 32 %of Homebuyers are First-Timers
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Report 32% of Homebuyers are First-Timers
Lily Leung
Nearly one in three homebuyers in September were first-timers to the housing market, reported the National Association of Realtors on Wednesday in its Realtors Confidence Index.
That’s up from 31 percent recorded in August and down from the historical norm of 40 percent, based on research from the trade group. The share of first-time buyers peaked in 2009, when it was 50 percent.
The change can be explained by the stricter guidelines to obtain mortgages, lengthy short sales and a high rate of investor purchases that often involve cash, the report said.
“Unsuccessful first-time buyers typically continue their property search, sometimes making a number of bids before securing a property,” it continued to state.
Related: 6 tips for first-time homebuyers
Common complaints from Realtors include: “Banks are not lending,” banks are “taking way too long to give approval,” and banks are “requesting more paperwork and records.”
Locally, it appears first-time homebuyer interest is strong, if a recent workshop hosted by the San Diego Association of Realtors is any indication. Nearly 150 people came out to the Oct. 20 event to learn about financing options, types of sales and tips to be a more appealing buyer.
Figures from the National Association of Realtors are based on more than 3,400 responses from surveyed Realtors from Sept. 24 to Oct. 1
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