In Spite Of Falling Home Prices, Young Buyers Entering Real Estate Market

By Roger Mares, KTXS NewsABILENE,

Texas -- Despite a drop in home prices, young home buyers have not been deterred from entering the real estate market.The National Association of Realtors reports that nationwide, more than one third of home buyers are between the age of 25 to 34, many of whom are first time home buyers."We looked at the options and it just seemed to make sense to buy a house rather than to have to keep paying rent and not seeing any of that money again," says second time home buyer Andrew Huddleston.Huddleston and his wife, bought their first home when they were in their mid-twenties and now, with a three year old and in their mid-thirties, they have decided to purchase their second here in Abilene.Buying young can come with its obstacles, especially for those just out of college looking to own a home."They've kind of had a wild side, they've gotten into it, and they have maybe abused their credit slightly, then they may not be able to buy initially, they may have to work through some of those credit issues," says real estate agent Kay Spiva.Over the past 5 years, the percentage of first time buyers has risen from 36 percent, to 50 percent of all home buyers.Spiva, with Stovall Realtors, says buying young can have a benefit when it comes to making money off your investment."If they buy early," she says, "and they can start building equity, then that can help them if they are ready to make a step into a bigger home they'll have some equity built up to use in order help them get into that second home.Spiva adds that young buyers must be realistic about their first purchase, especially when considering price as well as condition.Here are the facts on home prices:In May of this year, home sales prices in Abilene dropped 2 percent compared to may of last year.June didn't fare any better from 2010 to 2011 where prices fell 2.7 percent.Nationally prices have fallen 6.8 percent in a one year.