It isn’t exactly the best time for someone to be looking to purchase his or her first house. Wages have been relatively stagnant and rents have been steadily increasing, making it difficult to save for a down payment. A lack of inventory is leading to bidding wars causing home prices to rise rapidly in many parts of the country, and fewer entry-level homes have been built. But despite all of these significant factors, the share of first time homebuyers increased in May to 38.9 percent, a 1.8 percent increase from last month’s 38.1 percent and an even larger increase from the less volatile year-over-year number of 37.2 percent, HousingWire reports.
This spring has seen a strong increase in the demand of first-time homebuyers, the number of which has increased for five straight months from December to April. First-time buyers now only trail the share of current homeowners' home purchases by 6.7 percent.
Just because the share of first-time homebuyers has increased does not mean the market has become any easier for them, though. Most first-time buyers are unable to pay cash for a home, which sellers tend to favor, and many are also unable to come up with a big down payment, something that can lead to delays in closing.
Some of the best things first-time buyers can do to beat the competition is to get pre-approved for a mortgage and make an offer on a home as quickly as possible after it is listed.
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