FIRST TIME BUYERS:
The National Association of Realtors notes that this year, 33% of all personal residences were bought by 1st time buyers. Last year it was 38%. Historically it is 40%. A blog by Bill Gasset of ReMax Executive Realty gives his reasons why the first time buyers are disappearing:
- Higher student debt
- Rising rents
- Weak job market
- Stricter lending standards
- Destruction of family wealth in the Great Recession
- Recovering housing market creating increasing prices
Why does the diminishing number of first time buyers matter? It stalls the “move-up” from those in the entry level homes and impacts the market below the luxury level.
The National Association of Realtors reported that nationwide, sales of existing homes priced over $1 million jumped over 16% in October compared with a year ago. The $750,000 to $1 million range rose over 12% while the sale of homes under $100,000 fell 6%. In Barnstable County, the number of sales over $1 million for January 1 – September 30 was 165 in 2011, 212 in 2012, 233 in 2013 and 237 in 2014.