First-time home buyers are buying larger homes and staying put for longer, a noteworthy departure from real estate norms. Traditionally, young families with median incomes would select an affordable 'smaller' home to live in until they eventually outgrow it. However, the young families who have not yet been priced out of the housing market by continually rising prices, are buying more square footage. These latest statistics come from the U.S. Census Bureau.
The housing market is not only skewed to those who can afford it, but it appears that these new buyers also intend to stay put for longer. In a Bank of America survey, 75 percent of first-time home buyers stated that they would prefer to skip a starter-home and find one that will suit their long-term needs.
Rising home prices, however, are still an obstacle for young families. Yet, some consolation may be found in near all-time low mortgage rates. Today, conforming no-point 30-year fixed mortgage rates average 3.375 percent while the 15-year rate is near 2.625 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.