After 2008, is the market getting easier for first time buyers?

Question

After the real estate market crash of 2007-08, has the past decade seen a return to normality for first time buyers? Are things getting frothy again? It seems to me, that the amount of seed capital necessary to get started is only going up and up.

Russell Brazil · Answer

Even when we look at the height of the bubble, and then the collapse, home ownership rates havnt actually moved all that much. 6% is the entirety of the swing from the low point to the high point. Freddie Mac only has interest rate surveys going back to 1971, but the low of 3.35% in 2012 and 17.48% in 1982 havnt done anything to drive the home ownership rate outside of it's very narrow range.

Brian Adzadi · Answer

Account Closed

IMO, overall its not getting easier. Depending on the market you are in it goes either way. For people in the Midwest, the housing stock is numerous that its a buyers market. However, its the complete opposite in the coastal states like NY and Cali. Financing requirement is one of the main reasons its not easy because mortgagers are much more stringent about who qualifies.

The amount of documentation I had to provide to attain my primary residence was ridiculous. If I had to jump through these much hoops to get a mortgage, imagine other first time homebuyers who are ill-prepared.

Now lets also factor in the interest rates. We keep hearing how the Federal Reserve is going back and forth about raising interest rates. If they finally decide to increase interest rates, the number first time homebuyers will quickly dwindle and be a USA full of renters.

Cody Evans · Answer

I am finding it hard to find deals but then again i dont have access to capital and im in the Bay Area. The best way to get a good grasp is to stay active here on BP and go to local meet ups and ask local investors that know your market these same questions.

After 2008, is the market getting easier for first time buyers?

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