Qazzoo reviews what happens when one portion of the housing market grows quickly or retracts quickly and how it affects the other segments of the market.
When the baby boomers first hit the housing market as first time home buyers it stimulated the real estate industry and prices rose and construction increased. It made the entire country a lot of money. To have millions of people employed and buying homes meant that the economy was strong and growing. This is the type of housing bubble that doesn’t burst as there is a real reason for the bubble and not a manufactured or temporary bubble. The bubble still burst but it took a little longer than usual.
The first time housing market is what drives all the other markets. If a home owner was a first time buyer five years ago, chances are they would like to move up to a larger home as their families have grown and their incomes have also increased. Without first time home buyers buying their starter home they could not afford to move up. This is why politicians are constantly harping on first time home buyers. Everyone up the housing chain needs there to be enough first time buyers entering the market so that they can move up. Sometimes as Qazzoo reviews the market, the move is gradual and rarely it is in large steps up or down the market. However, the idea of buying up every 5 to 6 years is largely ingrained in our psyche and the only way to do this is to have someone that wants to buy the home we have out grown.
First time home buyers are the most needed home buyers to keep active as they affect every single buyer all the way to the desk of the largest developer in the Hamptons. The first time home buyer creates the ability to move up for everyone in higher prices ranges except for the very highest price ranges in a given area.
The first time home buyer market can become stronger or weaker when the economy is stronger or weaker which means that we need to have an economy that is stable in order to keep new home buyers active in the real estate market. This single facet of the real estate market can cause the most damage to the entire industry.
You know what they say about a rising tide. First time home buyers are very important. This is a good article explaining why.
Thanks for the kind words. We do our best to break it down to show how everything touches everything else. It’s just a matter of degrees.