Median first-time buyer age reached 36 in 2022 from 29 in 1981, per NAR

Per Bloomberg

The median age for first-time homebuyers has increased in the span of almost four decades. In 1981, the median age for first-time buyers was 29 but last year, the median homebuyer age reached 36.

The National Association of Realtors released records that showed first-time buyers making up only 26% of total sales in 2022. Zillow Group Inc. senior economist Nicole Bachaud gave a statement regarding the situation of the housing market.

Bachaud: “The scales are shifted toward homebuyers with higher incomes and a better financial background. This will be the norm until we get more inventory in the market.”

The data also revealed that home buyers mostly purchased the home at its asking price, with 28% paying over the asking price. It was noted that first-time buyers were typically paying a 6% downpayment.

NAR vice president of demographics and behavioral insights, Jessica Lautz, gave a statement regarding how the market's condition. It was mentioned that the housing market experienced a combination of historically low inventory and high home prices.

Lautz: "It's not surprising that the share of first-time buyers shrank to the lowest level ever recorded given the housing market's combination of historically low inventory, persistently high home prices and rapidly escalating interest rates,"

In January, US home sales dropped 36.9% year-over-year, reaching its 12th consistent monthly decline, breaking its longest streak since 1999. This resulted in a new all-time low in over 12 years since October 2010.

Existing home sales dropped to just 4 million units in January.

Mortgage applications also saw a massive drop, reaching a 28-year low. It was noted that should a homebuyer purchase a $400,000 home with a 20% down on a 30-year fixed loan, the monthly payment would be at $230 monthly, with a monthly payment around 50% higher.

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Resources:

Bloomberg

National Association of Realtors

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