The Rules for First-Time Homebuyers Have Changed

The Rules for First-Time Homebuyers Have Changed

The housing market has been something of a field day for first-time homebuyers, especially since they don’t have to worry about selling a property before moving into a new home. However, recently, some of the ground rules have changed, so first-time homebuyers beware!

Until just recently, first-time homebuyers made up about 40% of all home sales. Now it’s more like 29%. So, why has this drop occurred? Real estate experts are blaming the increasing costs, fees, and rates associated with buying a home. Because of this, fewer people are moving into homes that they are buying for the first time.

Because the housing market has been so strained lately, the window of opportunity might actually be closing for first-time buyers. Although prices may be lower than they have ever been, some of the newer rules might affect first-time homebuyers. Here’s what to watch for:

  1. Put More Money Down – This isn’t a rule per se, but a strong suggestion. You can still move into your first home by putting down less then 5% but the more you put down, the better! Look into getting a grant for first-time homebuyers from your state.
  2. Stay for at least 10 Years – The days of house flipping are gone, so if you buy a house and move in, stay for at least ten years. Your home should be an investment and a long-term one at that.
  3. Get Ready for Competition – There is now a lot of competition out there for first-time homebuyers. Others in the market for a new home are investors, international buyers, and retirees looking to move into a smaller home. So, be sure to be a savvy shopper!

Jon Huser