First Time Home Buyer

First time home buyers are facing a number of barriers to becoming first time home owners today. Included in these barriers is the current market, the increasing cost of a down payment and a lack of confidence in today’s economy. These barriers are very real to everyone looking to buy homes; however, they are not insurmountable. Most adults admit to finding home buying intimidating and money related issues are a big concern that often makes the potential home buyer back off. Many have concerns about finding the right home and find the entire process to be intimidating. Being able to shop for homes online and obtain as much information about the home and the neighborhood without the pressure of a sales agent is appealing to the people intimidated. Some of the top real estate agencies in the industries have addressed this concern by delivering a large and fresh collection of listings with new features that allow the buyer more options to remove the uncertainties they may have. By providing comprehensive information with relevant tools and links to local realtors online realtor sources help make the process of buying a home easy and less stressful. The first time home buyer is looking at the area differently today. Naturally the rate of crime is still a top concern; however, being close to daily conveniences is a close second. This is due to environmental concerns as well as the ever increasing price of gas. The home buyer of today is willing to sacrifice cultural and recreational amenities for environmentally green features over buying other houses in today’s housing market. The importance of community and concern over gas prices are evident as buyers look for accessibility with just a small percentage of home buyers being willing to sacrifice the closeness to work and shopping. Green features such as solar panels and energy saving appliances are more important than the more luxury amenities.

Understanding the mortgage as well as the entire financing process during times of change is a major issue and barrier of the first time home buyer. The majority wish the process of taking out a mortgage was easier to understand. Some of these buyers report that understanding financing and the uncertainty of the lending process is the most intimidating part of buying a home. The recent changes in the percentage of down payment required for a mortgage is a major issue for many buyers as well. The lack of money for a down payment prevents around a quarter of buyers from buying a home; more even than buyers with poor credit, low income or lack of confidence in the economy.

The majority of first time home buyers will make sacrifices to save money and earn extra money to be able to buy a home in today’s housing market. These sacrifices include spending on personal luxuries, clothes, shoes and accessories. Buyers are willing to go out less often, clip coupons and even cancel vacations to buy that first home.

According to a survey conducted by Harris Interactive®, commissioned by Move, Inc. and released today, about 44 percent of all first time home buyers feel that the housing market will improve with a new President taking office.  At the same time the majority of home buyers are nervous about the housing market and report barriers between them and becoming a home owner.  These barriers are the cost of down payments, annual incomes and a lack of confidence in today’s economy to name just a few mentioned.  Despite all, there is an underlying demand for homes which is healthy.

This same survey reports that about 80 percent of all renters plan at some point to become home owners, nearly half of them plan on doing so within the next five years.  Space, life changes such as family and increasing rent charges are a few of the reasons given for wanting to become home owners.  What these findings show is that despite the subprime crisis and difficulties in economy and new mortgage rules the underlying demand for housing remains strong.  People still long to have a home of their own; however, their thoughts and priorities regarding the home and neighborhood are changing with today’s changing world.

Most potential home buyers are willing to make sacrifices in their lives to save money and earn extra income to obtain down payments.  Certain neighborhood features and home amenities are willingly overlooked to be able to buy a home in the current market.  A number of these choices reflect changing values as well as a growing concern of the environment, community features and the rising cost of fuel.  The finings in the survey demonstrate that despite difficulties faced buy first time home buyers they are willing to do what it takes to become home owners.  It shows strength and a determination.  This is great news to the real estate industry that pays attention to consumer perceptions and behaviors.  This survey can be used for feedback that will enable them to identify ways to enhance the search experience to meet the needs of today’s consumers who will be the first time home buyers of tomorrow.

First time home buyers see better things on the horizon coming with the new President coming into office in January 2009.  Today’s falling economy makes it difficult in saving for a down payment and is putting off new home owners until things are able to pick up.  A promise of a new President nearly always brings promises and hopes for a change in what is currently happening in the jobs situation and in the economy as a whole.  With an economy that is already facing challenges this hope is heightened and the changes are anticipated with baited breath.