First-Time Home Buyer numbers in 2018

March 11th, 2019 by

There was a real increase in the first-time home buyer numbers in 2018.  It’s not just about the numbers we can show our clients in our system. It’s also been validated be many articles in the media.

In fact, I love reading articles that reinforce the value of the data we provide. In this case, it’s about our First-Time Home Buyer List.  This list helps mortgage and real estate marketers target their specific prospects.

“The first-time homebuyer market recorded 2.07 million purchases in 2018, putting at a level that has not been seen since 2006″. according to a new report from Genworth Mortgage Insurance Corp.

From 2014 to 2017, the first-time home buyer segment increased by approximately 40 percent. It accounted for more than 80 percent of the total homebuyer market growth. And while the current wave of first-time home buyers is facing challenges that include higher interest rates and a shrinking pool of affordable properties, their resilience in pursuit of homeownership is seen as an affirmation of new confidence in the housing market.

First-time home buyer segment leads the growth cycle

“This housing cycle has been called a first-time homebuyer-led cycle. That’s because growth in the first-time homebuyer market has accounted for virtually all of the growth in home sales. It has accounted for 65 percent of the growth in purchase loan originations,” said Tian Liu. Liu i Chief Economist at Genworth Mortgage Insurance and author of a new report. “The growing importance of first-time homebuyers in both housing and housing finance can be seen from two other measures. First-time homebuyers accounted for 39 percent of single-family home sales in 2018. This is up from 31 percent in 2014. It also was the highest level of first-time homebuyer mix since 2000. For mortgage lenders, first-time homebuyers are even more important. First-time homebuyers accounted for 56 percent of new purchase loans in 2018, up from 52 percent in 2014.”

Liu also noted that first-time homebuyers were not deterred by the decline in home sales during the fourth quarter of 2018.

“As a group, first-time home buyer numbers in 2018 accounted for 56 percent of the loans used to purchase a single-family home and 39 percent of the sales,” he continued. “Compared to a year ago, first-time homebuyer market share is up by one percentage point in terms of sales, and up by 0.7 of a percentage point in terms of purchase loans.”

This article was reprinted from National Mortgage Professional Magazine.

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