Dr. Abraham Park’s Observations on First-time Home Buying Featured on WalletHub
In an article on 2016’s Best & Worst Cities for First-Time Home Buyers in WalletHub, Associate Professor Abraham Park, director of the Fred Sands Institute of Real Estate, forecasts that the future will remain difficult for first-time real estate purchasers, at the least for the next two years. “Considering the price of homes, it seems unlikely that the market for first-time home buyers would make a comeback in 2016. The prices have recovered since 2008 and it is getting more difficult for first-time home buyers to afford a home, at witnessed by the super performance of the commercial residential (apartment) sector during the last four years,” says Dr. Park, who urges zoning and planning department and policymakers to work cooperatively to increase the supply of housing. But take heart, those seeking their own castle: Park notes that if you can save a 10-20% equity down payment and have a gross monthly income of at least 2.5 times the mortgage payment, you’re financially ready to buy your first home. Read more here.