Share of First-Time Home Buyers Lowest in 27 Years
Washington, DC, Nov. 3, 2014 -- First-time buyers have accounted for the smallest portion of home sales in 27 years this year, according to the National Association of Realtors.
NAR said that first-time buyers have made up 33% of sales this year, down five percentage points from last year.
First-time buyers, who normally account for 40% of sales, have been playing a weak role in the housing market's rebound, making it more difficult for other families to move into a new place.
Rising housing costs and strict mortgage standards are creating headwinds for young families and other first-time buyers.
"Less stringent credit standards and mortgage insurance premiums commensurate with current buyer risk profiles are needed to boost first-time buyer participation, especially with interest rates likely rising in upcoming years," said Lawrence Yun, NAR's chief economist.