First-time homebuyers accounted for 32 percent of all residential sales in February 2017, marking minimal change from January 2017 (33 percent) and February of last year (30 percent), according to the National Association of Realtors.
Nationally, demand has remained steady for first-time homebuyers for the past couple of years, despite surging prices and low supply plaguing the market. The demand is likely to remain for young homebuyers, as increases in interest rates, continual job growth, improving incomes and the gradual increase of Millennials entering the housing market help boost their purchase ability, reports NAR’s Economists’ Outlook.
Population and homebuyers
Since 2000, 25-34 year olds have represented at least 30 percent of the population. These numbers are expected to soar to 47.6 percent by 2024 and 50.9 by 2060, composing over half of the population, according to NAR. The rise in population within this age range will most likely send numbers of first time homebuyers through the roof as the majority of them come from the 25-34-year-old pool.
Where were buyers before?
42 percent of home buyers were renting before purchasing a home, while 48 percent were living in their own home and 11 percent were living with parents, other relatives or friends. Homebuyers who used to rent or live under another’s roof before purchasing a home have both seen increases in numbers, while those who had previously owned a home saw a 7 percent decrease.
Courtesy of Claire Smith, Boston Agent Magazine