First-Time Existing Homebuyers Increase Their Share in the Marketplace

According to the June Realtor® Confidence Index Survey, the share of first-time homebuyers who purchased existing homes rose to 35% of total sales. Over the past eight years the average of first-time homebuyers has held steady at 29% – 32%. The National Association of Realtors, Research Economist Scholastica Cororato, summarized it this way, “The fact that mortgage rents are fixed while rent rises are one of the causes of the wealth built from homeownership, not counting the equity gain from homeownership.” Currently record or near record low mortgage interest rates makes owning home with its tax benefits, equal to or in some instance less expensive then renting. The biggest issue right now is the lack of available inventory, which is leading to, in many locations, multiple offers and the resulting bidding war on many of the homes for sale.