"If you're young and want to buy your first home, the current trends aren't your friend. That's because homebuying is becoming an activity for middle-aged people. Half of first-time home buyers this year are 40 or older, according to the National Association of Realtors (NAR). That's up from nine years ago, when the New York Fed found the average age of first-time home buyers was 35.4 years."
"As the oldest baby boomers turned 30 in 1976, demand for houses surged. Home sales skyrocketed. Home prices rose dramatically each year from 1977 to 1980, according to historical data from NAR. Meanwhile, mortgage rates went haywire. Interest rates on 30-year home loans climbed above 10% in late 1978 and remained in the double digits through most of the 1980s. In 1981, the 30-year mortgage rate peaked at 18.63%, according to Freddie Mac."
"The next affordability crisis happened in the early to mid 2000s, when Gen Xers were in their 30s to early 40s. They, too, wanted to own homes. More than 7 million existing homes were sold in 2005, and the median home price rose 12.4% that year - its first time exceeding $200,000. Rates on 30-year mortgages were stuck above 6% during most of the"
Homebuying has shifted toward older buyers, with half of first-time purchasers aged 40 or older and the average first-time buyer age rising from about 35.4 years. Housing affordability has deteriorated over the past decade, making home purchases harder for younger adults. Past affordability crises occurred in the late 1970s–early 1980s and the early–mid 2000s, driven by surging demand, rapidly rising prices, and high mortgage rates. Historical peaks included a 30-year mortgage rate of 18.63% in 1981 and a 12.4% median price increase in 2005, which pushed the median above $200,000.
Read at SFGATE
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