According to Campbell/Inside Mortgage Finance's HousingPulse Tracking Survey, the number of first-time homebuyers looking for properties is not enough to reduce the current market's inventory.
The survey revealed that 35.7 percent of those looking for new homes or properties are doing so for the first time, which is down from 43.4 percent last April. Last year's figures are skewed, however, as the government had issued the first-time homebuyers tax credit, which rewarded any first-time buyers that purchased a new home.
The increased market inventory has created a gap from the number of first-time homebuyers, even though the percentage is normal, according to the report.
"The normal proportion of first-time homebuyers is about one-third of the market and that’s where we are now," said Thomas Popik, research director for Campbell Surveys. "Unfortunately, that’s not enough demand to absorb the excess supply from homeowners defaulting on their mortgages."
In order for inventory to be reduced, more first-time homebuyers need to exist, as those currently living in homes looking to relocate would add to inventory when they leave their current residence behind.
Houston properties declined in price during April, according to the National Association of Realtors. With more jobs becoming available recently, the market could be optimal for first-time buyers.
Courtesy of 2M Realty News