Property Check: Existing Home Sales Up Again in the US, but Number of First Time Buyers Declines

Its good news for the realty developers since the home sales are up again in the US, but it seems it's not a complete victory since the number of first time buyers have fallen in this past few days. According to a previous report by propertywire.com, "Existing home sales in the United States steadily increased for the third consecutive month in July."

For the past year, the home sales in the US were very low. According to a past article by bloomberg.com, "Three-year winning streak for sales of previously owned homes in the U.S. ended in 2014 as some investors stepped out of the market and first-time buyers failed to fill the void."

For this year, the sales are better.  Even though its better, there is still much to be achieved. The low record levels and increasing prices have caused sales to first time buyers, dwindling the percentage to their lowest share ever since January of this year. The data show that total existing home sales increased 2 percent to a seasonally adjusted annual rate of 5.59 million in July from a downwardly revised 5.48 million in June as stated in an earlier report by propertywire.com.

It is not only in this year, and in this quarter that the first time buyers fall. According to a previous report by bloomberg.com, "The share of American homebuyers making their first purchase dropped in 2014 to its lowest level in almost three decades." However, bloomberg.com further reported that, "At the same time, employment gains, growing consumer confidence, mortgage rates at historically low levels and government efforts to lower purchasing costs probably will help bolster demand in 2015."

It seems that despite the efforts of the government, the home sales economy is still struggling. What is the cause of the falling sales for first time buyers? There are various reasons for the failing of sales and according to a recent report by propertywire.com, "Rising rents and flat wage growth make it difficult for many to save for a down payment, and the dearth of supply in affordable price ranges is limiting their options."