AgentIndustry News

Are current or first-time buyers responsible for summer’s strong housing market?

Reports differ on share of first-time buyers versus repeat buyers
  • The strong housing market we experienced this summer may have been driven more by current homeowners buying additional properties than first-time homebuyers.
  • The market share for current homebuyers surged in the summer while the first-time homebuyer share declined.
  • In addition, the investor share of home purchases has also fallen from 18.7 percent in March to 14.4 percent in August.

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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 pu...