First Time Homebuyers are Double

Higher for longer interest rates, rising home prices, and what feels like no “good” inventory has made buying a home for anyone tough, especially first time home buyers with no departing primary equity to lean on. Despite challenges, these fighters made a notable jump in the first quarter of the 2024. Maxwell data shows the first-time home buyer loan share grew by 13% year-over-year and 18% quarter-over-quarter, with loan counts rising twice as fast as the overall market in Q1. The first-time home buyer share is now at its highest level seen in any quarter since Maxwell started tracking this data hitting 27.53% of mortgaged purchases.

These resilient little buggers are determined to get into homeownership with 25-34 year-olds making up 46% of the first time homebuyers. Over half (57%) were unmarried and almost 40% were female!

Why is this a beacon of good news? Because there are buyers out there waiting for you to show them how. They are overwhelmed, scared, confused, but not beaten. They want in and while high rates are keeping move up buyers locked in their homes, first time homebuyers have options with more inventory.

I had a strategy session with two first time homebuyers in my office yesterday. They had a hundred questions and a decent amount of anxiety but a ton of hope. After walking through down payment assistance programs, budgets vs eligibility numbers, our 1% rate buydown option, the secret behind the AMI lower rates and fees, and all the ways their earnest money is protected, they were not only feeling better but ready to start looking right away. Today’s higher rates are only the obstacle we make them. We have to get out of our own way to build theirs.

P.s. Denver rents were up 0.8% in May; the other side of the fence is no better!

P.s.s… I’m working this weekend; let’s get your first time homebuyers under contract!