1st Time Buyers Finally Crashing the Real Estate Party

There has been much conversation regarding the lack of first time home buyers in today’s real estate market. However, three recent reports seem to suggest that they are now entering the market in increasing numbers.

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."
Bottom Line

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.

2ddb5143 a983 4cb4 8d59 78564cf0b7fd de77cb82 3b3d 4e60 928d d6fac65cb62d d69904e2 0784 422f 9055 81d9fef9bcdb 6892a18d c611 46d5 a707 9d2fffdfd5ea 06ab1032 acf0 4969 84cd c3a9d717f5fe 53f99f8b 6dd2 4bde 9670 17cd47fb7284 d793f5ae 15ba 448b a1f8 50ae20649e68 527f95c5 ce1a 440e 81bf 1e0981304700 5f3ab0e5 ee53 49c8 b1c3 3d5cad1e7126 7bbcc163 f166 48f1 848f 0d00af0cbd3c 7c9ac924 b4d1 45b1 acea 851bb13a14fc b9df3fb2 2fbd 431b a313 4acfe50b8445 85b54576 ea01 4263 bb79 7f824d8c2b78 6c9a703b e76f 4061 88c2 49eda42ad5fc 27ff3d0f d77b 4a32 8e85 abf88a0ded48 1f3674f9 1f94 42ac 9a2f d7ffb8579d2e a2523576 dec6 4653 b0db f846609125de a6c2e1fb 362f 4d23 b8fb cdd8a4f64560 b14f68c9 af1f 4306 a4e2 937254fbc691 2febe645 bd41 41f5 bd21 9827b6e3c9f7 b49b2b0b a7ed 4d2a 94aa 41750011f2bb 05ac5c91 b4a9 41b6 9494 a94a57f63c3e 05d2ef07 1468 4efe 9851 9902cd8797a8