Young Buyers - "Owning their Shelter"

It has been challenging, to say the least, for first time buyers in our Sacramento market. Most need FHA financing and are buying under $200K. It is the most competitive segment of our market and my buyers have been very patient in writing more than a few offers in order to obtain a home.

I wondered how they were feeling not just about the competitiveness, but also the increase in rates and the immense challenge of acquiring a home in this unusal times. The first time buyers are the most enthusiastic segment of the buying market and (other than state workers) I am just not seeing any pullback from them. I was most curious about their views.

Many of them tell me that the market conditions and interest rate while important, is just part of the process. They are not afraid. They all have to have housing and with payments now in line with rent - they would much rather "own their shelter". They are very interested in learning and understanding the process, procedures, timelines, obligations and all the what-if's. They are more prepared than ever with down payments and an understanding of the loan process. They get excited at house inspections and learning everything they can about their homes. They are loaded with tons of great questions!

I would be interested in hearing from other members on your experience with Young buyers and if you are seeing similar trends. I believe we currently have more buyers than houses in the under 200K range and if the banks start releasing more homes - we may be able to put more these New brand of homeowners into our neighborhoods. What a great thing that would be!

Cathy McAlister, GRI

Ashley Real Estate

Sacramento, CA