With 2018 profile of home buyers and sellers conducted by the NAR – ( National Association of REALTORS), a lot of challenges have to face by home buyers for the first time and this struggle has been increasing day by day. Several reports say thirty – three percent of the home buyer was fresh to the market and for the third year, a decline from 34 percent prior to the year. Yes, certain questions are coming on your mind i.e. what are the challenges that home buyers have to face. Their challenges are cost related and overlap i.e. college debt, the down payment, and increasing mortgage rates. According to the report, forty percent have to $30,000 in student loans whereas 13percent are facing the challenge by the down payment. Seven percent are average first-timer paid towards a purchase but in general average buyer is thirteen percent down which is not seen since 2005.
Not only this, but there are certainly other factors also such as low inventory, rising interest rates, and student loan debt etc is the points that play a vital role and contributing a lot to the suppression of first-time home buyers said by the chief economist NAR- “Lawrence Yun”. The first – time home buyers who entered the market had to face difficulty on finding a home which they can afford because of the inventory shortage and the lower end of the housing market is smaller, moderately priced homes. Even though there is an abundance of job opportunities and a thriving economy, factors that make more challenging for potential buyers to buy a house to put aside savings for a down payment are rising home prices and monthly student loan payments coupled with sky-high rents said by Yun.
Yeah single women, how can we forget about that according to the report there is 18 percent of all buyers are single women this year and sixty-three percent are married. In third were the nine percent of the home buyers are the single men who bought houses at a median $215,000 as compared to the $189,000 median for single women. Ninety- five percent of the home buyers are looking for the home online whereas eighty – six percent are enlisted as a realtor and eighty-seven hire agent who help them to purchase a house. Ninety percent home- buyers use their agent again and recommend others. For the seller side, these agents are equally important which is showed by reports. Seven percent is all the transactions for sale by owner sales this year which is the lowest ever recorded in the report and the importance of the realtors is highlighted when selling. To find a home, buyers always rely on the knowledge of their agent and neighborhoods said by the president of Elizabeth Mendenhall – NAR as the inventory is very low.
The main role of the realtors as they have years of experience that can help buyers to navigate a tight market which forced them to move fast and make competitive bids in order to get their house.