With Terry Story, 25-year Veteran Real Estate Agent with Coldwell Banker in Boca Raton, FL
Terry updates us on the housing recovery’s “missing link”… and what she’s alluding to is the drop off in first-time home buyers. In the past, first-time home buyers have accounted for about 40% of homes bought, but that number has now dropped to about 30% – and that’s a problem… because if first-time home buyers don’t buy, then the number of move-up buyers reduces. So first-time home buyers are critical to building a solid base for the housing market.
When surveyed, 56% of 18-34 year old first-time home buyers wanted to buy a house but were not aware that they could do so with just a 3% down-payment – much less than the 16% down payment misconception many of these younger potential buyers had. So there’s misinformation amongst this critical group that is also holding the housing market down, and education is key. Many of these buyers also have fresh memories of the recent housing crisis, and that too is driving hesitation.
But as the employment picture brightens, first-time home buyers should step-up more boldly into the housing market. Moreover, most surveys indicate that housing should rise by about 3.5% in 2016, and that there’s little long-term downside from where home prices now stand. Prices now are also a lot more stable than they were before the 2007 crash.
Terry answers a listener’s question… about a do-it-yourself deed that has incorrect information – and what the new owners will have to do to clear up their deed – because a bad deed is a dead-stopper for a re-sale. Finally, Terry talks about a For-Sale-By-Owner situation and how the seller needs to work against a slew of people that are essentially against you, trying to beat you down on the deal. So FSBO only if you have a lot of information on home sales minutiae, else you’re simply better off getting an agent.