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First-time home buyers fell to a historic low, representing only 24% of sales, according to recent National Association of REALTORS® (NAR) data. NAR deputy chief economist and vice president of research Jessica Lautz joins Brad Smith on Wealth! to discuss the finding and what they say about the housing market.
"It's really striking this year [that] not only did we see that first-time home buyers dropped to a historical low that we have not seen in our data set back to 1981, but they're also at an all-time high for age. That means they're saving for a longer period of time. There [is] now a median age of 38 years old ... [and] we also know they have higher incomes," Lautz tells the Wealth! team.
She adds, "As we move forward, I think we're looking at a better picture. Interest rates have come down. There's slightly more inventory in the market. Builders are starting to build again. All of these things could be encouraging for first-time home buyers coming back, but this [data is] very bleak."