First Time Home Buyers at Historic Lows

05/04/2016
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The post crisis landscape has really changed with respect to the first time home buyer.  Tune in and see how.

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  • The recent announcement of FHA requiring 1% repayment of student loans or the reported monthly payment (whichever is higher) to be used in borrowers DTI is another road block to many first time homebuyers. Since we will no longer be able to use the income based repayment plans for student loans, I have seen many new buyers, (those with significant student loans), that no longer qualify for a home. These are first time home buyers in many cases, who have their first jobs out of college. They want to buy, but again, as rules change, they are edged out of the market until their income catches up with their student loan debt.

    DG May 4, 2016 6:43 am Reply
  • If the housing crisis has taught us anything, it’s that a house is no longer considered to be the steady 3%-annual appreciation investment that it once was for our grandparents. There is a whole generation of people who purchased homes between 2004-2007 who got really burned financially. Over-paying for real estate and “leveraging someone else’s money”, just to watch their investment dip to as much as 40 percent right after they bought it.

    As far as investments go, a house is NOT a safe, blue-chip type stock any more. Recent history has proven that real estate is more like a Wall Street commodity, not unlike gold, whose values are extremely manipulated by outside market forces. If the price of gold dropped 40% from 2004 to 2010 then came rebounding back in 2016 to its 2004 levels,
    who in their right mind would “borrow” money now to purchase gold at its new peak price? Yet here we are again, telling millennials, “come on in, the water’s fine.”

    Jim May 4, 2016 8:40 am Reply
  • seriously naked gardening day??? I have heard of Lady Godiva day where people ride horses naked…I could not watch…..I was working as a real estate asst and I my agent asked me to take some very well to do people to a beautiful home on the Ranch. As we were going through the property we heard moaning coming from one of the 8 bedrooms (not the master) it seriously sounded like someone in pain. We rushed in only to see more than 2 people getting it on…..I do not think I could have been any redder in the face. I left with the couple and called the cops. when they went inside they found a back door had been busted into. Because it was a foreclosed property and not staged the bank had elected to turn off the alarm so nobody knew. Needless to say, the bank after getting the call from the police had the alarm reset…..

    Bernie May 4, 2016 8:47 am Reply
  • If the housing crisis has taught us anything, it’s that a house is no longer considered to be the steady 3%-annual appreciation investment that it once was for our grandparents. There is a whole generation of people who purchased homes between 2004-2007 who got really burned financially. Over-paying for real estate by “leveraging someone else’s money”, just to watch their investment dip to as much as 40 percent, right after they bought it.

    As far as investments go, a house is NOT a safe, blue-chip type stock any more. Recent history has proven that real estate is more like a Wall Street commodity, not unlike gold, whose values are extremely manipulated by outside market forces. If the price of gold dropped 40% from 2004 to 2010 then came rebounding back in 2016 to its 2004 levels,
    who in their right mind would “borrow” money now to purchase gold at its new peak price? Yet here we are again, telling millennials, “come on in, the water’s fine.”

    Jim May 4, 2016 9:07 am Reply
  • Had scheduled an appointment to show a home in an upscale neighborhood to some buyers. I made an appointment the day before and the listing agent verified the property was vacant. Arriving at the home we saw a car in the driveway so rang the door bell several times with no response. I used the lockbox and gained entry and proceeded to show the home. The master bedroom was the last room we went into and probably stood in there 5 minutes talking about the home. Finishing up the showing I opened the big double doors to the master bathroom and to our surprise the owners were in a shower in the middle of the bathroom and they were not just taking a shower. My buyers ran me over getting out of there and will say my buyers did not choose that property. I guess the sellers wanted to come back and try the shower one last time. Pretty shocking.

    MikeZ May 4, 2016 2:21 pm Reply

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