Job growth, improving incomes, and low mortgage rates for most of the year led to a rise led to a rise in the share of first-time buyers in 2016.
The Economists’ Outlook blog reports that first-time buyers accounted for 32 percent of all residential sales last year, up from 30 percent in 2015 and 29 percent in both 2012 and 2013.
The aging Millennial generation is also a factor. Buyers 34 years old or younger accounted for 30 percent of sales in December 2016, up from a 26 percent share in July 2013.
The share of first-time homebuyers increased in states such as Arizona, California, Florida, and North Carolina in 2016 compared to the rates in 2015. The share of first-time homebuyers has also increased in Arizona, Florida, and New York since 2012, the first year of solid growth since the recession of 2008-2009.
Advertisement
Related Stories
Sales
Sales and Texting? Know the Rules
Texting your sales prospects en masse can be an efficient way to get your message through if you follow these best practices
Affordability
Will NAR's Landmark Commissions Settlement Lower Housing Costs?
The $418 million deal changes long-standing rules—written and unwritten—that consumers claim inflated sales commissions for home sellers, including new-home builders
Market Data + Trends
January's Mortgage Rate Dip Prompts Some Thawing of the Housing Market
A drop in mortgage rates from recent peaks nudged more homebuyers and sellers into the market, signaling the start of greater supply and demand