Recent data from The National Association of Realtors (NAR) found that first-time homebuyers accounted for a 33 percent shares of sales. This Mortgage News Daily article by Jann Swanson highlights some of the details of the NAR report findings.
Sales of existing homes increased in June for the fourth consecutive month. The National Association of Realtors® (NAR) said it was encouraged to see the month also bring a modest increase in the percentage of first-time homebuyers.
First-time homebuyers accounted for a 33 percent share of sales, the highest percentage since July 2012. New homeowners represented a 30 percent share and have averaged 31 percent for the first six months of 2016, up 1 percentage point from the average for all of last year.
“The modest bump in June sales to first-time buyers can be attributed to mortgage rates near all-time lows and perhaps a hopeful indication that more affordable, lower-priced homes are beginning to make their way onto the market,” Yun added. “The odds of closing on a home are definitely higher right now for first-time buyers living in metro areas with tamer price growth and greater entry-level supply – particularly areas in the Midwest and parts of the South.”
The median existing-home price for all housing types in June was $247,700 compared to $236,300 12 months earlier, a 4.8 percent annual gain. It was the 52nd consecutive month of year-over-year appreciation and surpassed May’s peak median sales price of $238,900. The median existing single-family home price was $249,800 in June, a 5.0 percent change from a year earlier while the median condo price rose 3.2 percent to $231,600.
Individual investors purchased a smaller share of homes than at any time since July 2009, 11 percent compared to 13 percent in May. Twenty-two percent of transactions during the month were all cash, unchanged from both May and the previous June. Sixty-four percent of investor sales were all-cash.
Sales of foreclosed properties represented 4 percent of closed transactions and short sales had a 2 percent share. The total share of distressed sales was unchanged from May. Foreclosures sold for an average discount of 11 percent below market value in June, the discount was 12 percent in May, while short sales were discounted 18 percent (11 percent in May).
Total housing inventory at the end of June dipped 0.9 percent to 2.12 million existing homes available for sale, and is now 5.8 percent lower than a year ago (2.25 million). Unsold inventory is at a 4.6-month supply at the current sales pace, which is down from 4.7 months in May.
[Read the full article here]
