November 30, 2006

First-Time Homebuyers Now

First-Time Homebuyers Now

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Despite low mortgage interest rates, a smaller percentage of first-time homebuyers are entering the market, according to an annual profile of buyers and sellers just released by the National Association of Realtors.

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During the year ending in June, 36% of all buyers who purchased a home were first-time buyers, according to the association's annual profile of homebuyers and sellers.

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That's down from 40% a year ago. About 7,500 buyers and sellers were surveyed.

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Part of the reason for the declining share of first-time homeowners: Declining affordability for those entering the market after the housing boom of the past couple of years bumped up home prices, said David Lereah, the NAR's chief economist, during a news conference held at the Realtors' annual convention in New Orleans. A greater number of second-home sales also may have contributed to a lower percentage of first-time buyers overall.

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