We’ve been regularly covering the struggles and difficulties that first time home buyers have in today’s economy. In spite of those hindrances, a recent study indicates that for the past couple of months, first time buyers have been a growing segment of the real estate market.
The strong housing market we experienced this summer may have been driven more by current homeowners buying additional properties than first-time homebuyers, the latest Campbell/Inside Mortgage Finance HousingPulse Tracking Survey suggests.
But a recent report from the American Enterprise Institute (AEI) offers the conflicting view that first-time buyers have been gaining market share for several months.
According to the Campbell survey, the market share for current homebuyers surged in the summer while the first-time homebuyer share declined. Current homeowners accounted for 49.3 percent of purchases in August, based on a three-month moving average after hitting a 12-month low of 44.9 percent in March.
The first-time homebuyer share hit 38.3 percent in May, the highest level seen since 2010, but higher home prices and seasonal patterns combined to push the first-time buyer share down to 36.4 percent in August, the survey said.
In addition, the investor share of home purchases has also fallen from 18.7 percent in March to 14.4 percent in August.
>> read the full article at inman.com