Stats: First Time Buyers vs Luxury Buyers

FIRST TIME BUYERS:

The National Association of Realtors notes that this year, 33% of all personal residences were bought by 1st time buyers. Last year it was 38%. Historically it is 40%. A blog by Bill Gasset of ReMax Executive Realty gives his reasons why the first time buyers are disappearing:

  1. Higher student debt
  2. Rising rents
  3. Weak job market
  4. Stricter lending standards
  5. Destruction of family wealth in the Great Recession
  6. Recovering housing market creating increasing prices

Why does the diminishing number of first time buyers matter? It stalls the “move-up” from those in the entry level homes and impacts the market below the luxury level.

LUXURY BUYERS:

The National Association of Realtors reported that nationwide, sales of existing homes priced over $1 million jumped over 16% in October compared with a year ago. The $750,000 to $1 million range rose over 12% while the sale of homes under $100,000 fell 6%. In Barnstable County, the number of sales over $1 million for January 1 – September 30 was 165 in 2011, 212 in 2012, 233 in 2013 and 237 in 2014.

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