The first-time homebuyer market shows a big increase for the first time in 11 years
There are many factors that hinder prospective first-time homebuyers from owning a home, but first-time homebuyers still made a big contribution to the housing market over the last three years, accounting for the vast majority of the market’s expansion.
“Over the past three years, first-time homebuyers have accounted for 85% of the growth in home sales, and have become an important indicator for understanding market trends,” said Tian Liu, chief economist for Genworth Mortgage Insurance. “Their impact has already been felt in falling inventory and rising home prices, and we expect them to increasingly drive growth to businesses most exposed to this market segment.”
Last year was the strongest period for the first-time homebuyer market in 11 years, according to Genworth’s First-Time Homebuyer Market Report. 2016 saw two million first-time homebuyers – 15% more than 2015.
They also contributed to 37% of all single-family home purchases, up from 34% in 2015, and the most purchases since 2005.
For the first quarter of 2017, 424,000 single-family homes were bought by first-time homebuyers – an 11% year-over-year increase.
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“Over the past three years, first-time homebuyers have accounted for 85% of the growth in home sales, and have become an important indicator for understanding market trends,” said Tian Liu, chief economist for Genworth Mortgage Insurance. “Their impact has already been felt in falling inventory and rising home prices, and we expect them to increasingly drive growth to businesses most exposed to this market segment.”
Last year was the strongest period for the first-time homebuyer market in 11 years, according to Genworth’s First-Time Homebuyer Market Report. 2016 saw two million first-time homebuyers – 15% more than 2015.
They also contributed to 37% of all single-family home purchases, up from 34% in 2015, and the most purchases since 2005.
For the first quarter of 2017, 424,000 single-family homes were bought by first-time homebuyers – an 11% year-over-year increase.
Related stories:
Down payment misconceptions continue to hinder millennials from owning a home
Millennials and roadblocks to homeownership
