According to the NAR’s 2018 Profile of Home Buyers & Sellers, the share of first-time buyers remained at 33% for 2019, which they say is a historic low. In addition they report that a third of first-time home buyers used down payment help from family and friends. The NAR also reports that that while tight inventory has caused steeper housing prices, home sellers in many parts of the country have been able to take advantage of the situation and have received a median of 99% of their asking price and sold their within about three weeks.
“Low inventory conditions hurt would-be first-time buyers most..Their homeownership dream and the opportunity to build wealth gets delayed until more inventory choices reach the market.” Said Lawrence Yun , the NAR’s chief economist.
Some characteristics of 2019’s first-buyers:
- First-time buyers made up 33% of all home buyers (same as 2018)
- The typical buyer was 47 years old this year
- The median household income for 2018 was $93,200.
- 12% of home buyers purchased a multi-generational home, to take care of aging parents, because of children over the age of 18 moving back home, and for cost-saving.
- 20% of recent home buyers were veterans and 3% were active-duty service members.