There are several factors indicating that 2015 will see a substantial increase in First Time home buying.
1. Rents are increasing faster than income. According to a study by Zillow, the % of income spent on rent
has risen to an all-time high. Housing Secretary, Shaun Donovan declared that we are in “the worst rental affordability crisis that this country has ever known.
2. Builders are increasing their output of smaller, more affordable homes. Home builders such as D.R Horton, LGI Homes and KB Homes are targeting first-time home buyers for their new lines of no-frills homes. Also because of the increase in home building, the market as a whole will see a rise in the number of affordable homes for the First-Time home Buyer.
3. Lending standards are loosening. New Fannie Mae & Freddie Mac guidelines will enable more First Time HomeBuyers to qualify for mortgages. According to the Mortgage Bankers Association, sales of new homes are expected to increase by over 13% in 2015 and existing home sales should climb at least 5%.
4. Mortgage rates are low now but are expected to increase. That means that First-Time Home Buyers will be looking to pull the trigger sooner than later.
Mortgage mailers and home builders continue to find that mailing to First Time HomeBuyers is the most efficient, cost-effective way to reach them. Providing a compelling offer is the hook to make them respond!