Market Matters

Number of First-Time Home Buyers Falls to Lowest Level in Three Decades Source: Wall St. Journal Concerns continue to grow that young people are being left out of an otherwise strong housing-market recovery due to the fact that the share of U.S. homes sold to first-time buyers this year declined to its lowest level in almost three decades. First-time buyers fell to 32 percent of all purchasers in 2015 from 33 percent last year, the third straight annual decline and the lowest percentage since 1987, according to the National Association of REALTORS®. Typically, first-time buyers comprise 40 percent of purchasers. As home prices continue to rise, it will become even more difficult for new buyers to enter the market. Read the full story   Home buyers are hitting record credit scores  Source: CNBC   High-credit borrowers, those with FICO scores above 700, are almost entirely behind the surge in purchase applications, with some experts stating that loan performance is arguably the best in history. Since credit is favoring a smaller segment of borrowers, activity among borrowers with lower scores is flat to slightly lower from a year ago, according to Black Knight. For example, just 20 percent of purchase originations over the past three months have come from borrowers with credit scores below 700, the lowest level in more than a decade. Read the full story Median Home buyer Age Has Remained ‘Remarkably Steady’ Over the Years Source: DSNews.com   The rising share of home buyers age 50 and over and the shrinking percentages of homeowners ages 35 to 50 and under 30 have been major trends in housing as of late, but the median age of home buyers has remained “remarkably steady” in the last decade. The median home buyer age was 39 years old from 2005 to 2010 and 41 years old from 2011 to 2014, according to government data in the recently released American Community Survey (ACS). While the data showed that most states mirrored the trend of the rising share of older home buyers from 2005 to 2014, the median home buyer age actually declined in nine states and the District of Columbia during that period. Read the full story     Grown and still at home: Why young adults are moving back home and staying longer Source: Yahoo! Finance   A third of 18- to 34-year-olds are living with their families, which is more than during the Great Recession, according to a recent analysis from the Pew Research Center. So despite an improving job market, why are more millennials moving back home with their parents and staying longer? Many young Americans feel financially unprepared to live on their own because of their education debt, and in many instances, parents are welcoming their adult kids back home with open arms. Many recent grads are saving thousands of dollars each month, money that would’ve gone to rent and food if they lived on their own. Read the full story

Credit, Mortgages, and Your Ability to Buy a Home: It Doesn't Have to Be Scary Source: U.S. NewsAfter the effects of the recession, many Americans are still leery of entering the housing market for fear of another bubble, and a lack of education about mortgages has made some consumers still a little gun-shy to close on a home. But financial advisors caution that buying a home doesn’t have to be scary. Find a REALTOR® who can advise you through the process, and develop an understanding of your financial situation and what you are able to afford, as well as the kind of lending you sign on for. For instance, potential home buyers should know their credit score and any problem areas in their credit history. Also, meet with multiple loan representatives to get the best deal. Read the full story