First-time buyers fall again in the us

First-timer buyers are still on the decline in the US, according to the National Association of Realtors.

The share of first–time buyers declined for the third consecutive year and remained at its lowest point in nearly three decades, according to the NAR's latest annual survey. They accounted for 32 percent of sales (33 percent a year ago), the second–lowest share since the survey's inception (1981) and the lowest since 1987 (30 per cent). Historically, the long–term average shows that nearly 40 per cent of primary purchases are from first–time home buyers.

Indeed, the overall strengthening pace of home sales over the past year was driven more by repeat buyers with dual incomes.  Lawrence Yun, NAR chief economist, says first-time buyers continue to be the missing link in the US housing recovery.

"There are several reasons why there should be more first–time buyers reaching the market, including persistently low mortgage rates, healthy job prospects for those college–educated, and the fact that renting is becoming more unaffordable in many areas," he comments.

"Unfortunately, there are just as many high hurdles slowing first–time buyers down. Increasing rents and home prices are impeding their ability to save for a down payment, there's scarce inventory for new and existing–homes in their price range, and it's still too difficult for some to get a mortgage."