Lower mortgage rates and increased affordability is presenting an opportune time for home buyers, especially first-time home buyers, who continue to have the advantage and ability to move quickly on a home purchase without having to first sell their current home.
· Some housing experts believe the recovery of the housing market is dependent upon first-time home buyers. When houses are affordable for first-time buyers, the supply of available homes dwindles, bringing the supply and demand into alignment, which generally leads to an increase in median home prices. First-time buyers also have the benefit of not relying on their current home to sell prior to purchasing a new one. As first-time buyers purchase homes, the sellers of those homes also are able to move up, further shrinking the supply of available homes.