In what the National Association of Realtors® called “an encouraging sign” for the housing market, first-time home buyers helped push home sales in May to their highest level since May 2009.
While many had written off first-timers due to stagnant wages, tight credit, and what has seemed to be a preference for renting, Monday’s existing-home sales report from the NAR painted a different picture. First-time buyers in May represented 32% of all sales, up from 30% in April and 27% a year ago.
The NAR’s chief economist, Lawrence Yun, in a press release attributed the return of first-time buyers to “strong job gains among young adults, less expensive mortgage insurance, and lenders offering low downpayment programs.” Yun predicted more first-timers would soon enter the market, though their share of the market would depend on “how fast rates and prices rise.”
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Posted on June 30, 2015 at 11:07 am