First Time Home Buyers Retreating from Market

New York, NY, Aug. 30, 2010--First-time home buyers accounted for only 39% of home purchases in July, down from 48% in March, according to the latest Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions.

The percentage of first-time buyers last month was at the lowest level in at least a year.

"The end of the tax credit has clearly had an effect," said Thomas Popik, research director for Campbell Surveys, in a news release. "First-time home-buyer participation is continuing to drop. We expect a further decline in first-time home-buyer activity, perhaps reaching as low as 30% to 35% of the market by the fall months."

Existing-home sales last month plunged, mainly because there's no longer that tax credit of up to $8,000 for those willing to buy a home in today's market.