What do you get when you mix low mortgage rates and first-time homebuyers? – Home sales.
According to REALTOR® Magazine, 32% of sales in January came from first-time homebuyers, which is up from 29% last year. First-time homeowners younger than 35 increased from 35.4% in early 2019 to 37.6% in late 2019, and existing home-sales are at 5.46 million for 2020.
Lawrence Yun, Chief Economist for the National Association of REALTORS®, explains, “The rise in the homeownership rate among younger adults under 35 and minority households means an increasing number of Americans can build wealth by owning real estate. Still, in order to further expand opportunities, significantly more inventory and home construction are needed at the affordable price points.”
While it has only been two months into 2020, real estate analysts are looking to builders to increase inventory to help first-time buyers and repeat buyers alike.
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