Greenbook: A Local Guide to Chesapeake Living - Issue 3 | Page 48

Turnaround Likely
for First-Timers in 2015
DAILY REAL ESTATE NEWS | TUES., DEC. 02, 2014

First-time buyers have nearly
vanished from many housing markets
in recent years, falling to their lowest
level in nearly three decades.
Read more: Fannie, Freddie to
Loosen Up on Lending “Rising rents
and repaying student loan debt
makes saving for a downpayment
more difficult, especially for young
adults who’ve experienced limited job
prospects and flat wage growth since
entering the workforce,” Lawrence
Yun, chief economist of the National
Association of REALTORS®, said in

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48

GREENBOOK | SEPTEMBER - OCTOBER 2014

a report earlier this month. “Adding
more bumps in the road is that those
finally in a position to buy have had
to overcome low inventory levels in
their price range, competition from
investors, tight credit conditions,
and high mortgage insurance
premiums.”
But this could change in 2015.
“First-time buyers in this year are

essentially at their low point,” says
Yun, adding that first-time buyers
made up 29 percent of existing-home
sales in October. “I do anticipate some
growth going into next year.”
He notes the market is already
showing signs of opening the doors
to more first-time buyers. Stronger
employment and the loosening of
some underwriting standards are
developments that are already
pav