First-time homebuyers are an important part of any healthy housing market. But Chicago Agent Magazine recently identified four challenges that they face.
• Cash Investors: With foreclosures and short sales gone, cash buyers have increasingly competed with first time buyers for the limited home inventory. 25 percent of home sales went to cash investors in October of last year, down from 32 percent the previous year but well above the average. In 2000, for example, that number was only 8 percent.
• Housing Inventory: The total numbers of homes for sale was 1.82 million in January, a total of four-months supply. That's below the normal supply level of six months and in some markets that number is even lower.
• Financial Situation: Many home buyers face a variety of financial challenges including rising home prices, stagnant wages and large amounts of student loan debt.
• Buying Time Frame: According to a recent survey, 42 percent of first-time homebuyers wait until they're married with children to buy a home but many are delaying those larger decisions. Only 20 percent of young adults are married with children.
Read more at Chicago Agent Magazine here.