First-time homebuyers, this is your year!

If the number of sellers I have been meeting with lately is any indication, 2015 should be a great year for everyone planning to buy or sell a home!


After years of inventory shortage, the total number of homes for sale finally climbed above levels the previous two years in mid-2014. I am working with more sellers than ever at this time of year getting ready to sell… a good sign that inventory levels should continue to strengthen in 2015.

My experience showed that last year was the year when many move-up buyers were finally able to make a move. But it was interesting that many of the 'first-time homebuyer' type homes were selling to people who were downsizing rather than to first-time homebuyers.

Nationwide, first-time homebuyers in 2014 made up the smallest share of buyers since 1987! In 2010 50% of home sales were to first-time homebuyers… last year it was only 33%.

But take a look at the chart below… inventory levels in 2014 were significantly lower than they were in 2010-2011 (red line vs blue & tan bars) so they didn't have nearly as many choices of homes to buy. First-time homebuyers usually don't need to buy and will wait until they find a home they want to buy… many may still be waiting.

2014-11-total homes-5YR

If the number of homes available for sale does indeed continue to grow, that may bring more first-time homebuyers back into the market… which in turn provides a kick-start for the whole real estate cycle as move-up buyers have buyers for their homes so they can move up to their next home, etc… a healthy real estate market.

KCMJan2015-RENTIt feels like 2015 may be the year when the market cycle gains healthy momentum… interest rates are still amazingly low, but rent is rising… first-time homebuyers, this could be your year!

Sharlene Hensrud, RE/MAX Results

The team at HomesMSP - SharleneJohnAngelaMinneapolis-St. Paul Realtors


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I love what I do! Highly insightful, analytical and creative, there is nothing I love more than helping you find the right solution for your real estate transition. My mission is to serve my clients with honesty and integrity, exceeding their expectations in service and support… and to help others by donating a portion of every transaction to Habitat for Humanity.

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