For the last few years there has been plenty of talk about how the current housing market is lacking in terms of first-time buyers. However recent reports suggest they are making their move into the market in a big way.
From Keeping Current Matters:
The most recent Existing Home Sales Report from the National Association of Realtors(NAR) reported that:
“The percent share of first-time buyers rose to 32 percent in May, up from 30 percent in April and matching the highest share since September 2012. A year ago, first-time buyers represented 27 percent of all buyers.”
And, in a recent Washington Post article, Ken Harney revealed that:
“According to a June 19 Campbell/Inside Mortgage Finance tracking survey, which polls 2,000 real estate agents nationwide, first-time buyers accounted for nearly 39 percent of home purchases in May; that’s the highest level since August 2010.”
Also, according to American Enterprise Institute’s International Center on Housing Risk’s May First-Time Buyer Mortgage Risk Index (FBMRI), the share of first-time buyers stood at an estimated 52.2 percent.
Lawrence Yun, the Chief Economist at NAR explained:
“The return of first-time buyers in May is an encouraging sign and is the result of multiple factors, including strong job gains among young adults, less expensive mortgage insurance and lenders offering low down payment programs.”
It seems that the number of first time buyers is increasing for the first time in a long time. This further lends credence to the fact that the residential housing market is back.