Coming off the heels of last week’s national sales numbers, we’re learning who exactly is picking up keys to their new home. According to the National Association of Realtors, first-time buyers were responsible for 31 percent of sales in April, down from 32 percent in March and 36 percent in April 2020.
“First-time buyers in particular are having trouble securing that first home for a multitude of reasons, including not enough affordable properties, competition with cash buyers and properties leaving the market at such a rapid pace,” said Lawrence Yun, NAR’s chief economist.
Investors or second-home buyers accounted for 17 percent of home sales in April, up from 15 percent in March and 10 percent in April 2020. All-cash sales, often coming by way of investors, accounted for 25 percent of transactions in April, up from 23 percent in March and 15 percent in April 2020.
Bottom line: cash is king, especially in today’s market rush.