It’s a long, tedious process for first-time home buyers. They’re struggling to save for a down payment while paying off student loans, applying for a mortgage, and then finding a home they can afford when there are not a lot of properties on the market to choose from. As a result of not a lot of homes for sale at Sotheby’s Phoenix, prices are going way up.
So it’s understandable why there might not be as many first-time home buyers looking. But what about repeat home buyers? Those who want to trade up for a bigger home or want to move to a new city or town. We haven’t been seeing a lot of these folks either at Sotheby’s Phoenix.
In fact, at Sotheby’s Phoenix, there were about half as many repeat home buyers in 2015 as there were in 2001, according to the Housing Finance Policy Center at the Urban Institute. The study looked only at Fannie Mae, Freddie Mac, and Federal Housing Administration loans from 2001 through 2015 data. Mortgages made by private lenders and banks were not included. The report says the average loan size for repeat buyers was $246,166.
One reason for the drop-off in repeat buyers at Sotheby’s Phoenix could be due to some homeowners losing equity in their homes when the housing bubble burst started in 2007. When that happened, no longer were some homeowners able to convert that equity into a down payment for a bigger home.
Also, foreclosures played a role since anyone foreclosed on had a tougher time getting a loan for a new property.
Even current homeowners at Sotheby’s Phoenix who bought before the housing bubble might have more of a challenge getting a loan since credit requirements are tighter.
Moving forward, it’s not anticipated by experts that the number of repeat home buyers will go up much. There’s just not enough home construction or homes on the market.