The effect of rising prices have been taking their toll on first-time buyers according to the NAR.
Recent numbers from the National Association of Realtors shows that over the last two years the percentage of first-time buyers entering the housing market has decreased. In 2011 first-time buyers made up 36% of existing-home purchases, but in 2013 they accounted for only 28%.
With first-time buyers essential to the recovery of the housing market, there are several issues that need to be addressed in order to get more first-timers to enter the market.
High Rates of Competition
It can be difficult for first-time buyers to compete in the marketplace with those who are able to make cash offers, whether they are investors or buyers that have some experience in the real estate market.
In markets with limited inventory such as those found in and around San Diego, it can be difficult for some first-timers to secure an offer with a low down-payment.
Availability of Credit
It can be more difficult for first-time buyers to secure loans based primarily on their credit scores. More than 50% of first-time buyers were able to secure a loan through the Federal Housing Authority, but the average credit score for borrowers for the FHA has increased from 660 in 2008 to 696 in 2012.
First-time buyers need the advantage of a real estate agent in San Diego to help them compete in the real estate market. If you are a first-time buyer, consider consulting with an experienced real estate agent in San Diego before you enter into the local market.