If you plan to buy your first home in Albuquerque, you’re certainly not alone. There’s a growing trend this year in home sales across the nation – first-time home buyers. In fact, last month in June, first-time home buyers made up 35% of home sales nationwide.
The National Association of Realtors (NAR) had this to say about the rise in first-time home buyers:
“The share of first-time buyers increased in March through June—right into the heart of the pandemic period and the surge in unemployment—and is now trending higher than the 29% to 32% average in past years since 2012.”
Why are there more new home buyers?
NAR continues to say:
“The major factor is, arguably, low mortgage rates. As of the week ended July 16, the 30-year fixed mortgage rate dropped to 2.98%. With rates so low that are locked in under a 30-year mortgage, the typical mortgage payment, estimated at $1,036, has fallen below the median rent, at $1,045. For potential home buyers who were thinking of purchasing a home anyway before the pandemic outbreak and who are likely to remain employed, the low mortgage rate may be the clincher.”
These record-low mortgage rates are just too enticing for many people who are currently renting, especially since monthly mortgage payments can be cheaper than renting. According to the Q2 2020 Housing Trends Report from the National Association of Homebuilders (NAHB):
“Eighty-four percent of Gen Z’s planning to buy a home are first timers, compared to 68% of Millennials, 52% of Gen X’s, and 21% of Boomers. Looking at results by region shows that over 60% of prospective buyers in the South are buying a home for the first time.”
The issue for most first-time home buyers is that they don’t understand the home buying process. NeighborWorks America had this to say about this challenge:
“Homeownership is a particular challenge for many, despite high levels of interest. Americans believe there are many benefits to homeownership and half of non-owners will seek information about the process in the next few years…a large share of non-owners say the process is too challenging and only a minority know where to find advice if they wanted it. And although many would seek the guidance of community and non-profit programs, only one in three non-owners are aware of such services.”
If you plan to buy your first home in Albuquerque, you don’t have to worry about having the help you need to buy the perfect home for your needs. The Sandi Pressley team is here to help. We’ve been helping people buy homes in Albuquerque and the surrounding communities for decades. In fact, Sandi has been rated the #1 Top Producing Realtor for 34 consecutive years. You can count on Sandi Pressley and her team to help you understand the home buying process. Contact us today to start your journey to owning your first home in Albuquerque!