First-time homebuyers

First-time homebuyers are leading the way in single-family real estate purchases in 2020.
Written by: Jamie Miller, Creative Marketing Manager; First National Bank of America

It is no secret that the Covid-19 pandemic rocked our economy and has affected countless businesses and millions of people. The real estate market and mortgage industry are not exempt from that. However, priorities have shifted and housing has become increasingly important to many as people are looking for a place to call their own where they can safely, social distance and begin to move forward with a new norm mindset.

According to the U.S. Census Bureau, Millennials are the nation’s largest living adult generation. As of July of 2019, it is estimated that Millennials account for approximately 72.1 million people in the U.S. followed by Baby Boomers at 71.6 million and Generation X at 65.2 million. Therefore, when we say that Millennials make up a big portion of first-time homebuyers, there is really no surprise.

During the first quarter of 2020, first-time homebuyers made up nearly 60 percent of Purchase-money borrowers. Recent data presented by Chief Economist, Tian Liu at Genworth, shows that first-time homebuyers accounted for 456,000 single-family home purchases during the first quarter of 2020. That number is an increase of 14% YOY. Single-family homes account for a staggering 40 percent of all buyers in the housing market.

The month of April saw a reduction in home sales and mortgage applications across the board as Covid-19 continued to make an impact. May showed us that a recovery is possible with a market rebound of first-time homebuyers by 27% and all indicators point to a continued rebound trend for June.

What does your program line up have to offer this growing demographic? Do you have a marketing strategy in place that will resonate and attract these borrowers?